PREPARED BY
Abdullah Resalat Rahman 0930477060
Md. Towhidul Hoq 0930393060
Md. Sabbir Alam 0930391060
Md. Nafiz Enam 0930404060
Debabrata Bhowmik 1020071090
Company Background
Crown Corporation started as mining company, but a series of acquisitions and divestitures during the 1960s had totally transformed Crown Corporation from mining company to a manufacturer of superalloy castings for aircraft and industrial uses and aluminum products for the building, packaging and aircraft industries. Sales were evenly divided between castings and aluminum products.
Crown’s castings were for the most part designed for operation in the “hot part” of the gas turbine engine. Crown’s constant emphasis on quality and technical excellence had established a high level of confidence among its customers. The other half of crown’s sales comprised aluminum products, including a broad product line for the building and construction industry. To assure a steady and economical source, Crown Corporation participated with American Metal climax, Inc. in a project in 1966 known as Intalco, which made them a producer of primary aluminum. Crown’s share of Intalco’s output was 130 million pounds. Crown decided to build a second aluminum ingot plant in 1967, named Eastalco, which provide Crown with additional primary aluminum capacity of 85 million pounds a year and increased net income of $3-4 million. A planned addition of 85 million pounds in 1972 would raise Eastalco’s capacity to 170 million pounds and would meet the company’s objective to be a fully integrated producer.
Crown’s sales performance was good initially, it’s sales had risen sharply from $60 million in 1958 to $230 million in 1968 on the strength of 23 acquisitions, strong internal growth and a firming
