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HUSKY INJECTION MOLDING

SYSTEMS
BUSINESS CASE STUDY FOR BA 4196
TEAM MEMBERS

 Alice Li

 Jenniffer Perez

 John West

 Matthew
Warrington
CURRENT CRISIS

 Resin Shortage
 Demand for resin underestimated
 Prices soared

 Processors unable to obtain resin for molds

 Processors put new equipment orders on hold

 Increased Competition
 Rivals notice success in niche PET market
 Competitors prices an average of 20% less

 Mold design competition


INDUSTRY ANALYSIS

High High

High

Low Low
COMPETITIVE ANALYSIS

 The Mannesmann Group


 Broad range of application markets
 Acquired several vendors
 Cincinnati Milacron
 “Largest US producer of injection molding
machines
 Offers broad line of standardized machines
 Engel
 Product customization
 High-end technical applications
 Electra Form | R&D Tool & Engineering
 Small facilities with little automation
 Prices set 10% below Husky’s
CONCLUSION

 Lower prices

 Refurbish old PET molds


 Focus on technology
VALUE CHAIN ANALYSIS

Production Facilities Sales & Services


• •Personnel • Personnel
Personnel •Repairs • Attract & Retain
• Labor •Property employees
Hrs value • Sales
• Repairs •Labor Hrs • Travel time
• • • Special orders
Suppliers • Built - for - stock
orders
• Contracts

IT Development Corporate Infrastructure


• Personnel • Personnel • Personnel
• Machinery|Equipment
• Compensation plans • Organizational structure
• Tools • Attract & Retain employees
• Control systems
• In-house projects • Regional office • Company culture
SWOT
TWOS MATRIX
PREFORM SYSTEMS ANALYSIS
HUSKY’S PREFORM SAVINGS

 Resin Savings
 0.03gm per preform
 At $0.70 per gram annual savings of $2,840

 Electricity Savings
 $0.00003 per preform
 $36,152 annual savings

 Floor Space Savings


 8.7 sq.ft. less
 $870 annual savings
RECOMMENDATIONS

 Develop Additional Product Lines


 Automotive, technical, and general markets

RECOMMENDATIONS CONT’D
 Continue Innovation
 Invest high earnings into R&D
 Additional fully integrated systems
 Maintain leadership in PET technology

 Improve Operating Efficiency and Expand Capacity


 Lower production costs where possible

 Strengthen Marketing & Sales Department


 Reminder marketing campaign
 New product line promotions

 Become a public company
 The production and marketing expansions will be financed
through IPO


Q&A