Husky Case
Memorandum
To: Robert Schad, Founder and CEO, Husky
cc:
From:
Date:
Re: How to stay a viable competitor in the plastics industry
Executive Summary:
An in-depth analysis has been conducted on Husky Company, strategies on how to stay a viable competitor were analyzed and recommendations given below. Many aspects were taken into consideration when developing a plan and company values were followed when making a recommendation.
Husky has seen terrific growth in the past years, but predictions for the company don’t look as promising. Husky is currently facing increased competition due to entrants crossing markets and a reduction in supply of complementary goods.
Husky has several options to look at which are; to stay in their current markets, enter into competitors key markets, cut costs on expenses to increase net income or take the company public to increase capital cash flows.
Industry Analysis:
Husky currently competes in the plastics industry. The industry consists of three major types of businesses that are; processors, resign makers, and equipment manufacturers. Husky specializes in equipment manufacturing, and is known for building the highest performance equipment in the industry. The industry experienced strong growth between 1982 and 1996 growing at about 6% per year. The strong growth was due to plastics replacing metal, glass and paper in various products.
Husky manufactures equipment for processors of injection molding, which is one of three processes for plastic formation. Within the injection molding process are three different tonne classes of machines; they are small, medium and large machines. Husky capitalizes in the medium tonne machine class, which is the largest of the machine markets. The process that the equipment goes through requires the use of plastic resign. The plastic resign is melted and formed into a product by Husky’s...
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