C2 - Printec Company (2005)

C2 - Printec Company (2005) - RSM Erasmus University...

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RSM Erasmus University Erasmus University Rotterdam RSM-F-0504 PRINTEC COMPANY (2005) Mike Page prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. Names and other identifying information may have been disguised to protect confidentiality. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic, mechanical, photocopying, recording, or otherwise – without the permission of the authors. Copyright © 2005, Rotterdam School of Management BV Version (1.0) 2005-10-12 Patricia Printer, managing director of Printec Company, picked up the telephone to call Ross Steyn, the company sales manager. Steyn had sent her an e-mail suggesting that Printec would increase its profits substantially if production capacity could be increased 1 . “Your suggestion interests me,” said Printer, “but I can’t give you an answer until the financial implications have been fully assessed. As soon as you have firm estimates for sales and how much is required for advertising and promotion, forward them to Dean Jameson in the finance department. He can get the other data necessary from purchasing and production, and I will ask that the projections be sent to me by early next week. If the proposal is as profitable as you believe, we will move on it immediately.” Printec Company has been in business in the same location South Bend Indiana for over twenty years. Although a conglomerate acquired the company in the late 1990s, it continues to operate autonomously. In addition to the title of plant manager, Patricia Printer also serves as a director of the parent conglomerate in charge of publishing and printing. Before sending the e-mail to Printer, Steyn discussed the expansion idea with John Taylor, head of the production department. According to Taylor, there is no room to expand production capacity in the present facility. It is located in an industrial zone several miles from the main plant, and other tenants presently occupy
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This note was uploaded on 05/21/2010 for the course FINANCE 2009 taught by Professor Wong during the Spring '10 term at Télécom Paris.

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C2 - Printec Company (2005) - RSM Erasmus University...

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