The client, an owner of a
small bespoke manufacturing company which operated primarily
within the
automotive industry was planning to expand his business to meet increased
orders from his customers. The company was generating low profit margins and the owner
was concerned that the investment required to increase capacity would not be reflected in
future ROI.
The company was recognised for the quality
of its products and its superior customer
service and had grown quickly since
start up and employed twenty staff. The success of the
company was mainly due to the drive and energy of the owner, and the family like structure
operating within the company. This resulted in the company being extremely client focussed
with high quality products and customer service though not particularly
profitable. See also
Strategy and Operations studies.