Pinnacle Machine Company Essay Example

acquire Hoilman Inc., a company known for its cutting-edge technology. This move would transform his manufacturing company into a high-tech service company. By acquiring Hoilman Inc., Don Anglos's Pinnacle Machine Tool Company would greatly improve its current standard maintenance and service contracts thanks to superior software and equipment.

However, there are drawbacks to acquiring Hoilman Inc. as it would result in dissatisfaction among senior managers, including CFO Sam Lodge, in Don Anglos' company. Additionally, several customers may be lost due to the potentially high cost of the add-on services offered by the acquisition. This decision is risky and could further decrease Pinnacle's profitability. On the other hand, an alternative option would be to not acquire Hoilman Inc. This would allow Don Anglos to maintain the trust of his senior managers and prevent the departure of several customers.

Furthermore, by not acquiring Hoilman Inc., he can avoid making his investors uncomfortable with a drastic change to his company. Additionally, the implementation of new cutting edge technology equipment can not only save manpower but also save his company money in the long term. On the other hand, if he keeps his company the same without acquiring Hoilman Inc., his investors may become weary of it due to its resistance to change. Moreover, there is a risk that his chief competitors could acquire Hoilman Inc. and profit immensely from it. Considering these factors, question 4 (Most Feasible Alternative) arises.

The decrease in profits at Pinnacle Machine Tool Company indicates that a decision must be made regarding the company's future. The best option is to acquire Hoilman, as this would improve Pinnacle's current maintenance and

service contracts through the use of better software and equipment. Don Anglo has been appointed to ensure Pinnacle's growth and provide excellent services to customers. The decision will be made based on question 5.

The board members of Pinnacle elected Don Anglos as the CEO for his ability to handle responsibilities and make tough decisions. Don is confident that the acquisition will benefit the company in the future. To communicate the direction of Pinnacle with the purchase of Hoilman, Don holds a board meeting with upper management. Additionally, he assigns the CFO to lead a customer service team to find a solution for reducing the price of the new software program. The goal is to offer existing customers a reasonable price package.

Don Anglos made his decision based on the competitors' transition. The customer service team, led by Sam Lodge, discounted the price for current customers, allowing Pinnacle to retain most of them. The new discount strategy helped increase profits. Don Anglos received high praises from upper management for providing a new branch of technological software.