Proper Business Case

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Term Paper Title	Proper Business Case
# of Words	1364
# of Pages (250 words per page double spaced)	5.46

proper business case

[Category]:

business

[Paper Title]:

proper business case

[Text]:

Overview regarding the current situation of AWC Inc.

The company that will be analyzed in this report is that of AWC Inc. AWC
Inc., is an aluminum manufacturing company located in Southwestern Ontario. The
company has been around since 1950, and was founded by Mr. Jim MacDonald, father
of the current president Mr. Alex MacDonald. AWC specializes in the fabrication
of aluminum windows, doors, storefronts, and curtain wall products. AWC has 100
committed staff with 45 in production, and 55 in the offices. The company is
well known for the high quality of it’s products and their competitive prices.
AWC Inc. is facing a decision regarding air treatment in the welding portion of
the plant, as new government regulations are introduced to the industry.
Currently there is a recession in the construction industry, and it is projected
to last another three years. Buying the air cleaning equipment would devastate
the companies profits and cash flows. Fines are ever-present, however highly
unlikely. The air cleansing equipment is between $240,000 and $400,000.

SWOT analysis of the current issue

Strengths with respect to the current issue are.

- Quality design and competitive prices.

- Popularity of the new aluminum doors.

- Extremely committed employees.

- Experienced and family owned (since 1950).

- Not located where neighbors would complain ( near cement quarry).

Weaknesses of AWC Inc. with regard to the issue are.

- no current ventilation systems.

- Alex MacDonald has limited experience (1 year running company).

- Limited money to spend due to 3% profit margins on normal contracts.

- Contemplating costly second shift for welding line.

Opportunities for AWC Inc. too look at externally.

- AWC can earn up to 20% on specified contracts.

- Interest in commercial aluminum doors (high volume).

- free trade agreement with U.S. (tariff free contract opportunities).

- One third of it’s competitors are out of business.

- Fines are highly unlikely.

Threats externally to AWC Inc.

- Cost of cleaning equipment devastating to cash flow, and profits.

- Government regulations (Inspectors snooping around).

- U.S. competition (new), local competition (37 firms in Southwestern
Ontario).

- Recession in the construction industry could last up to three years.

- up to $500,000 fine for non-compliance.

Lets Identify The Problem

The problem that AWC faces is that of ...

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