Flinder Valves and Controls Inc Case Study Example | Topics and Well Written Essays - 1000 words

Flinder Valves and Controls Inc - Case Study Example Strength of FVC FVC’s strengths are the internal factors that led to the success of the in its operations. The company has a good top-management team who organizes and runs the company’s daily operations. The management team is comprised of highly innovative team that develop innovate products that are desired by their potential customers (University of Virginia, 2008). Weakness of FVS The company lacked enough finances to expand and venture into international markets. This made it experience stiff competition from highly established companies in this industry. The company also lacked the knowledge for high volume manufacturing. The company sometimes produces fewer products that do not meet customers’ demands. Low volume of production is also associated with fewer sales, which generate less revenue for the company (University of Virginia, 2008). Lack of enough resources and revenue are the principal constrains towards the company’s expansion. Strengths of RSE The company has enough resources to venture into global markets and acquire other small companies in this industry. With the enough resources, the company’s management team is capable of initiating new project activities which can add value to the business operations (Weaver & Weston, 2004). The company’s marketing strategies are well planned, and this has made it gain a bigger market share than its key rival companies. Its products are also designed in away that meet its customer’s expectations.... Strengths of RSE The company has enough resources to venture into global markets and acquire other small companies in this industry. With the enough resources, the company’s management team is capable of initiating new project activities which can add value to the business operations (Weaver & Weston, 2004). The company’s marketing strategies are well planned, and this has made it gain a bigger market share than its key rival companies. Its products are also designed in away that meet its customer’s expectations (University of Virginia, 2008). Weaknesses of RSE The company management team lacks innovative skills. The company has not developed new products over a long period, and this has made it face stiff competition from its highly innovative key rivals (University of Virginia, 2008). Low profit turn over are occasionally realized by this company, and this calls for new strategies to be implemented. Frequent changes and implementations of new strategies make th e company lose focus on its potential projects, thus making it to operate behind schedules (Beam, 2001). The Situation and Need for Negotiation Both FVC and RSE Companies want to improve on their strengths and solve their weaknesses. In order to achieve this, the companies’ presidents want to enter into a merger for mutual benefits. Both the companies want to take advantage of each others strengths so as to improve their business operations (University of Virginia, 2008). FVC want to become a subsidiary of RSE International so as to improve and maintain its identity. After the acquisition, FVC will maintain its top management team including other employees. FVC’s also wanted to take advantage of RSE’s resources to expand into the global market and improve its