The three young managers took over the Company Enterprise 3. The company has been moderately successful in recent time and it should open market potentials in the future to take up a good position among the competitors. The enterprise is producing cables and fenders in the legal form of a public limited company (plc). The cables are the company's long-seller and the fenders' production was developed a few years ago. The company is selling its products on the markets of Germany (DE), the European Union (EU), and the United States (US). Both products achieved the biggest turnover and contribution margin in the German market, followed by the United States, and the lowest turnover and contribution margin results from the European market. In the last quarter, the company had a total turnover of €108.75 million, a residual contribution margin of €4.114 million, and the result of the period before taxes was €2.981 million. In the span of the last business year, a net income of €3.36 million was achieved.
The company has in total of 1947 employees working in internal production, 377
skilled worker and 1570 semi-skilled-worker. The products are made with three
different kinds of machines. The enterprise has five machines of type 1, five
machines of type 2, and three machines of type 3. Last period an internal
production of 12.5 million cable and 4 million fender was realized. In the next
period, the company will receive 8 million cables and 2 million fenders from
external production.
Currently, the company has four other direct competitors with the same price and
quality level. The average price for a cable unit in the German market is €3.5,
while a fender unit costs €12.5. The prices for the other markets are slightly
higher. The current market share is 20% in turnover and sales and the quality of
cables is good, the fender is of satisfactory quality. Last period the sales were within the forecasted range, resulting in 13.3 million cables and 4.7 million fenders sold. The contribution margin of cables is in total €0.66 /Unit and for fenders €5.69
/Unit....
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