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System and Human Backup;

Organization is relying more on Scorpio (GM) in terms of financial management procedures as well as general management. Taurus brothers are good craftsmen but it was seem to be difficult for them to handle the operational side of the business because of the expansion of business. Scorpio initiates new cost management in the production process and tracking systems to improve the efficiency of assembly lines and also implemented a rudimentary management information system to insure the efficacy of the production according to the mention standard. For the sake of achieving future growth, organization has aimed to restructure the hierarchy and build new layers. There was a question mark in terms of growth and new structure because they were going to introduce new business lines. They needed more committed personal and systems to avail the potential market growth.

Short term goals;

They anticipate renewed growth, but only in current product line. They have cut the scope of operations over the past two years which has restored strength to balance sheet. Contracts that already have, budgeting annual sales of Lcy 290 million which would be about a 19% sales increase. It will go up if they can negotiate a production increase in their contract with the Pegasus Auto Plant. With the contract with PAP, production would inclemently go up to about a 25% increase in volume, an average sales increase of about 35% for the year, instead of the 19% they were projecting. In terms of net income, shooting for a return on sales (ROS) of 8% based on a decrease to 71% in the CGS/Sales margin and to 11.5% in selling, general, and administrative expenses. This will be achieved through cost cutting and increased efficiency.

Longer term Goals;

Over the long term, the organization would be position as one of the larger and more significant component producers in the country. They saw strong future for the automobile sector in Andromeda, not only for the domestic market but for exports as well, while adequate now and for the next couple of years, are not enough to become large producers within our market. In the export they have exports considerations in order to meet demand of major multinational car producers such as those in the USA. They need lower costs by outsourcing many of the parts. They aimed that quality is now approaching theirs, but their prices in dollars are cheaper. They see global markets as the future for industry in Andromeda. This is what successful Asian countries have done and they dont see why they cant do the same in Andromeda by produce a high quality medium tech product for global companies. They hope to build a relationship with (PAP). That will permit them to grow outside of Andromeda.

Technology & Status of Plant & Equipment;

They have concrete block plant building was old but in fairly good condition owned by the company and free of liens. It was located in an old area that had good access. Electricity and water supplies in the area were adequate. Inside the plant was clean and well lighted but quite crowded with large machines. The machines not new appeared to be well maintained and they were all imported and looked expensive.