1. First I compared Asbestos Pads to CMI Pads in the Coleman Test: $3 x 24 pads/set x 20 sets used = $1440 $1440.00 / 1 set CMI (6 Pads) = $240.00 Base pad retail $50/set actually paid x 20 sets used = $1000 $1000/1 set CMI (6 Pads) = $166.67 retail paid 2. Added savings in efficiencies in feet driven per hour: 15,000’ required / 200’ per hour (CMI) = 75 Hours 15,000’ required / 150’ per hour (asbestos) = 100 Hours 25 labor hours saved x $280.00/hour = $7,000 $7,000 / 1 set (6 pads) =
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Case 1: Capital Mortgage Insurance Corporation Background Capital Mortgage Insurance Corporation (CMI) is a wholly owned subsidiary of Northwest Equipment Corporation (NEC).NEC expects Frank Randall, company president; to build CMI into a larger more diversified financial service company. To do this Randall wants to acquire Corporate Transfer Services (CTS) a small relocation services company, as part of a plan for diversification. Informal discussions took place with the principal stockholders
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Situation Analysis Problem Definition and Objectives Curled Metal Inc. - Engineered Products Division (CMI), Company had grown from selling metal as a finished product to one that used it as a raw material, with sales increase from $750,000 usd in 1991 to over $55 million usd by 2007. To date, CMI strongly relies on Slip-Seal, used as a high-temperature product seal in cars. Even considering CMI 80% market dominance for this product, management moved to diversify. A new product application for
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Hei. Cumberland Metal Industries (CMI), a company specialized in making of curled metal products, has develop a new product, metal cushion pad with health safety and long durability, to help contractors drive piles faster. Based on the successful tests, CMI now wants to launch this new product to the market. The main challenge CMI is facing is to price its new pads. Since the pad is totally new in the market, CMI should use perceived value pricing method and apply marketing mix programs comprised
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Cumberland Metal Industries: Engineered Products Division, 1980 • CMI was about to introduce a new product – curled metal cushion pads – an integral part of the process of driving piles • Curled metal cushion pads seemed to have more potential than any other product the company had every introduced • A successful introduction to the market could double the sales of the company as well as compensate for a decline of some existing product lines • The key factor was pricing of the new product which
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network and strategic joint ventures with customers to allow better access to end customers CMI has joint ventures and strategic alliances with customers, particularly in emerging markets, including Tata motors in India, Dongfeng Motors in China, Komatsu in Japan, and PACCAR in the US. These companies are market leaders in their respective regions/countries. Additionally, CMI has 600 company owned and independent distributors locations, and approximately 6500 dealer locations
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case, CMI and CTS are the two companies. Negotiation's primary objective is to satisfy both (or all) the parties involved in the process of negotiation. In this case, the objective of CTS is to get acquired, and CMI aims to acquire CTS too. All the parties involved in the negotiation aim to satisfy their interests during the dialogue of negotiation (Van, De Dreu & Manstead, 2004). Discussion Financial Findings The financial findings of the merger between CMI and CTS show that CMI has a
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value. These concerns are the real decision criteria that underlie any business transaction” (Di Frances, 2005, para. 2). Capital Mortgage Insurance Corporation (CMI) was acquired by Northwest Equipment Corporation in 1978 and was a wholly owned subsidiary (Lewicki, Saunders, & Barry, 2005). Northwest Equipment Corporation acquired CMI when the parent company went into Chapter 11 bankruptcy. The company was developed to work with residential mortgage lenders in selling mortgage guaranty insurance
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in the pile driving market. In order to successfully launch this product, we first and foremost recommend that CMI acquire a patent to prevent this product from being copied and imitated, thus avoiding the entry of competitors. The associated value and advantages of CMI’s metal cushion pads are evident from the results of the two comparative performance tests by Colerick and Fazio. CMI pads drove piles 33 percent faster than asbestos per hour and lasted the entire job while also eliminating the downtime
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Metal Industries (CMI), l’un des plus grands fabricants de produits métalliques recourbés au pays, souhaite introduire un nouveau produit sur le marché. Ce nouveau produit consiste en un coussinet métallique, utilisé dans le processus de battage qui est supérieur à tous les autres produits sur le marché. Plus efficace et sécuritaire, il s’agit d’une innovation sur le marché par rapport au coussinet actuellement disponible sur le marché qui sont fait de bois ou d’amiante. Pour CMI, l’introduction réussie
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