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Flinder Valves and Controls Inc. - Case Study Example
Pages 4 (1004 words)
FVC Company is an outgrowth company established in 1980. In May 2008, RSE’s President, Tom Eliot, entered into an agreement with Bill Flinder to acquire FVC Corporation. This paper discusses the strengths and weaknesses of both the companies, which led to the plans to acquire Flinder Valves Company…
Strength of FVC
FVC’s strengths are the internal factors that led to the success of the in its operations. The company has a good top-management team who organizes and runs the company’s daily operations. The management team is comprised of highly innovative team that develop innovate products that are desired by their potential customers (University of Virginia, 2008).
Weakness of FVS
The company lacked enough finances to expand and venture into international markets. This made it experience stiff competition from highly established companies in this industry. The company also lacked the knowledge for high volume manufacturing. The company sometimes produces fewer products that do not meet customers’ demands. Low volume of production is also associated with fewer sales, which generate less revenue for the company (University of Virginia, 2008). Lack of enough resources and revenue are the principal constrains towards the company’s expansion.
Strengths of RSE
The company has enough resources to venture into global markets and acquire other small companies in this industry. With the enough resources, the company’s management team is capable of initiating new project activities which can add value to the business operations (Weaver & Weston, 2004). The company’s marketing strategies are well planned, and this has made it gain a bigger market share than its key rival companies. Its products are also designed in away that meet its customer’s expectations. ...
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