Airway Outfiter Case Study

a. Please recount (list) Tim and Brad’s skills in running/managing/starting a company. Tim was in Air Force for four years. Tim attended college received both a bachelor’s degree and an MBA, and he’s strong motivator. His experience has made him successful entrepreneur. Brad received his MBA from Harvard and was an operations consultant for Price Waterhouse. Brad had the drive and desire to run his own business.

b. What other skills/competencies might Tim and Brad consider adding to their team? Some other skills that Tim and Brad could consider adding to their team would be a marketing director. Tim mentioned that he isn’t creative and having someone with marketing skills can be advantageous to their team. The marketing person can also

Tim was experienced purchasing and selling companies at low cost. Brad was experienced as an operations consultant with an MBA. Given their background and experience they were able to use cost leadership successfully.

e. From Tim and Brad’s perspective which of the four companies would you choose to purchase? Why? Remember to consider both their selection criteria and specific business and market conditions. From Tim and Brad’s perspective I would purchase Fairway Outfitters, Inc. Looking at Tim’s primary elements in analyzing any business, first you need to know why the owner is selling his business. Second is to do a financial analysis, third is to perform a thorough analysis of the company’s market and competition. Fourth you need to see who is involved in the business and last to consider the state of the company. Fairway Outfitters held the primary elements that Tim outlined. The owner had a good reason to sell the company even though the company was making a profit. Fairway Outfitters has significant growth along with customer satisfaction. They received new customers each year from referrals. The company has great potential to

What are the key factors that led you not to choose the other three? Remember to consider both their selection criteria and specific business and market conditions. Some of the key factors that led me not to choose Landscape Products is that the company relies on only one salesperson. Also, another firm owns 25% partnership in the business. It relies to heavily on twelve lumber mills that are closed for six weeks causing sales to drop. Richmond’s Premium Snacks first thing that would cause me not to purchase this company would be the reason why they were selling it was due to his sons attempting to take over the business which caused some detriment to the company. Richmond is also very reliant on certain clients. Sales for this company are seasonal 70% towards the end of the year. Teletech Systems is extremely risky. It is a new market that could potentially bring in money. However, they only have two stores that are willing to participate in the pilot phase. They still have a patent pending and need 300,000 additional funds to bring the product to market. This is a very volatile purchase.

g. Rank them (the companies) in order of desirability as if you were Tim and Brad. Simply give me a 1,2,3,4. There is no need to restate your rationale from e and f