Axeon Case Analysis
R | AXEON N.V. | | Case Analysis |
Table of Contents
Axeon N.V Overview 2
SITUATION ANALYSIS 2
ENVIRONMENTAL ANALYSIS 3
EXTERNAL SIZE UP 3
INTERNAL SIZE UP 3
ISSUE DESCRIPTION 3
SWOT ANALYSIS FOR NEW FACTORY 5
FINANCIAL ANALYSIS 6
Manufacture product in UK 6
Manufacture product in Netherlands 7
ALTERNATIVE 1: 8
Build the manufacturing plant in U.K. 8
ALTERNATIVE 2: 9
Manufacture more product in Netherland and sale it to cost to Hollandsworth 9
QUESTION #1 11
QUESTION #1b 11
QUESTION #1c 11
QUESTION #2 12
Axeon N.V Overview
Axeon N.V. is a producer of industrial chemicals with 24 …show more content…
| Opportunities * Currently there is no AR-42 in the U.K. market This could be a revolutionary product if inserted with proper marketing and pricing strategies * Customer trials show the benefits for the product and the cost savings materialized by the user. * UK market potential could be equivalent to Axeon’s current international market for AR-42 | Threats * Same product produced by sister company in Netherlands * Opportunity for economy of scale using the Dutch manufacturing facility to produce the extra AR-42. |
In order to analyze the proposal we compared the financial benefits for Axeon to support product manufacturing in the UK versus the Netherlands. See exhibits 1 and 2 for cash flow comparisons including financial summary.
As seen in the cash flow analysis, economically makes sense to manufacture the product in Netherlands and ship it to U.K., that option has an NVP of £1,044,146 versus £915,976 NVP if the product is manufactured in U.K.
Build the manufacturing plant in U.K.
As proposed by Ian Wallingford, the building of a new manufacturing facility to produce AR-42 in U.K. is financially viable and sustainable for at least 7 years.