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Case Circuit Board Corporation

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Case Circuit Board Corporation
Background of the case
Circuit Board Corporation (CBC) designs and manufactures printed circuit boards (PCB’s). Dieter Adams had started CBC in 1961 during the early days of the computer industry. His first contract was to design and manufacture PCB’s for the early minicomputer companies. Maggie Adams, his wife, was a part-time employee at the time.
The market was divided into three distinct product segments by functionality. In 2001 the three product segments were: * Low-End Segment: for simple applications requiring one- to four-layer boards * Mid-Range Segment: for more complex applications requiring 12- to 24-layer boards * High-End Segment: for the most complex applications, requiring 30- to 50-layer boards
In 2000 industry analysts placed total bookings for PCB production worldwide at approximately 30 billion, with the U.S. market comprising about a third of that dollar volume. The company was profitable at 30 million in sales, making 1,2 million pre-tax.
Dieter Adams hired Ben Cashman as President and COO of the company.
R.I.P. Dieter Adams † Maggie Adams had gone from being a part-time employee and secretary of the board to running the company.
What is the real problem in the case?
† Dieter Adams; Maggie was now left in complete of charge of the company and getting difficult and conflicting advice.
In January 2001, the high-tech industry imploded. Most companies in the printed circuit-board industry had reported between 50 percent and 75 percent declines in quarterly revenue in comparison with the prior year and smaller companies are leaving the industry.
CBC was in trouble, it had gone from making 1.2 million pretax in 2000 to losing 614.000 in 2001.
Ben Cashman had been assuring her that the market would rebound in the second quarter of 2002. He advised Maggie to be ready for a turnaround and to

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