Marketing Case Analysis: Curtis Automotive Hoist Essay Example

the huge one-time, start-up costs ($450,000 for capital equipment and incremental costs), and additional carrying costs f $1 and annual maintenance costs of $80,000. Each of the options above has its own set of advantages and limitations, and while the first two entry options in Europe could allow CASH to utilize Bar Mashie's strengths as a market leader and expertise, the ability to maximize profits by benefiting from synergy costs had to also be taken into consideration.

Furthermore, a Joint venture or a licensing option also posed other concerns, such as, earnings forecast and ability to generate sufficient profits. While the third option (direct investment option) could rove to be expensive in the short term, in the long term it could prove to be fruitful as CASH expands its operations and enjoys full control over ownership, decision making and profits. Also, the data available relates to past sales data and such data cannot be used to forecast future sales.

With the availability of more quantitative data, such as, future free cash flow data for each of the entry and investment options available to CASH, this could in turn allow CASH to use discounted cash flow (DOC) analysis for each of the investment options, as well as, net present value (NP) analysis for the second investment option. Recommendation and Implementation: I strongly feel that CASH should weigh each of the entry options in Europe using financial data, such as, data on future free cash flow, to calculate DOC and NP.

I also feel that CASH should forecast its future sales revenue power in the United States and its ability to do so. While my analysis weighed

each of the options primarily using qualitative data, quantitative data (forecast data) would, in my opinion, allow CASH to make more informed decisions on whether it should expand existing sales in the United States or exploit market opportunities in Europe.