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EXECUTIVE SUMMARY
Fabtek has the ability to position themselves for profitable
growth, but they need to fix their business, focus on key
business drivers, and re-evaluate the area. Listed below are
the key issues they face and the recommendations for
improvement. Focusing on these issues and developing
selection criteria for quoting would help Fabtek improve their
current profitability and position them for growth. Fabtek
should accept the Pierce Pike order as it closely matches
Fabtek's selection criteria for selecting orders.
Key Issues
Critical Decision:-
Constraints
Added volume from any one of the orders will affect metal
purchases.
Recommendations
Conclusion
Because the limit amount of possibilities to add new welders very quickly, in the
company, the decision will be between Refco order and Pierce-Pike and
Worldwide Paper orders. If Fabtek decides to take the three orders together the
welding department will not be able to fulfill this order on the time requested and
the image of the company in the market can be serious damaged. Fabtek should
accept the Pierce Pike order as it is in sync with Fabtek's selection
criteria for selecting orders.