Sample Business Study Case Study Review Paper on Cumberland Metal Industries (CMI)

Introduction

The case study presents essential factors that emerged in Cumberland Metal Industries (CMI) during the introduction of a new product in the market. The business needed to focus on the prevailing conditions and provide the best way forward to introduce the new design to prospective customers. The facts surrounding the case study revolves around the dilemma that companies undergo during the introduction of a new product and the implementation of the strategies that will bring about the desired success from the product. A proper choice of the strategy to employ in the marketing of a new product plays an essential role in the outcome and values gained from the product.

Situational Analysis

Cumberland Metal Industries (CMI) makes a comparison of the old asbestos cushion pad with its new CMI cushion pad that has proved to contain many advantages than the former. It is critical to use the correct figures derived from research to identify the most viable solution. Moser et al. explained that companies must make investment portfolio decisions and select the best alternative through the opportunity cost to ensure that the project has a significant return on investment. The need for detailed evaluation made it necessary for the company to weigh the best option of implementing their

The situational analysis shows that when the company was still evaluating the viable decision, other participants in the market were likely going to take the new invention and patent it as their own. The new patent from other companies will deny CMI a chance to benefit from their invention. The situational factors of CMI forced it to remain ahead of the competition because of the growth of the business from $250,000 to over $18,500,000 in16 years. Therefore, there was no option but to remain ahead of the competition and provide leadership in equipment used in drilling. Another issue that emerged in the case study is that most companies source their products from England and Japan, but CMI had made a discovery to help it propel the engineering field. The opportunity was large and the company could not afford to miss it.

Issues Faced in the Case

The company had produced cushion pads that were superior to the conventional asbestos pads used in pile driving functions. Comparative analysis of the curled metal made of asbestos and the CMI cushion pad emerged to be competitive in performance but the latter proved to have significant prospects regarding expenses, energy consumption, cost, and the amount of work completed. An example of a data set that shows the efficiency of the CMI product is in the depth achieved in one hour where asbestos achieved 150 feet while the CMI achieved 200. Piles driven are 15 and 300 for asbestos and CMI, respectively. A simple glance at the data shows greater efficiency in CMI than asbestos, which should have forced the company to decide with immediate effect.

The firm uses the Colerick Test to evaluate the two sets of equipment. The shock absorbers made from asbestos required change per set after every 20 minutes while the new CMI equipment required for minutes and no cost involved compared to asbestos, which requires $50 per set. The disparities play an important role in princess the business in making the right decision. The business has the obligation to select a portfolio that optimizes performance and has lower risks during operations (Mushori et al. 11). Therefore, it was necessary to make the right decision that will ensure productivity in the company.

A second test to determine the effectiveness of cushion pads from CMI should that asbestos achieved 160 feet in one hour while CMI managed to dig 200 with the same duration. The cost of the asbestos per set was $40 while there was no charge in CMI. From a financial perspective, CMI had far much better prospects done asbestos. Additionally, energy consumption worried when you see this to component because asbestos between 600°F and 700°F of heat, which was dangerous to the workers because of frequent fire accidents while CMI emitted only 250°F. The lower emission of energy meant that the equipment was sustainable and reduced the costs of operation significantly.

Conclusion and Recommendation

It is important to highlight recommendations that the firm could use to remain relevant in the market and uphold the performance of the new component discovered. The following are the recommendations adaptable within the market for proper product placement. (i) Select architects and hammer manufacturers to influence the product in new markets; (ii) use CMI in all operations for sustainability instead of asbestos. (iii) Use a shorter channel of distribution such as direct selling to the clients and ensure that the company provides additional support; (iv) the company should use a premium price of about $300 per pad to ensure that the quality perception remains intact. The above recommendations are important in the organization because they provide an opportunity for the business to identify the possible market for the product and implement its strategy to benefit from the new product.

 

 

Works Cited

Moser, E., et al. “A portfolio theory approach to identify risk-efficient enablers of change in global production networks.” Procedia CIRP 63 (2017): 768-773.

Mushori, Sabastine, and Delson Chikobvu. “Optimal portfolio selection with stochastic maximum downside risk and uncertain implicit transaction costs.” Journal of Economic and Financial Sciences 10.3 (2017): 411-423.