CASE 5 —Reagan Applied sciences
Mike Reagan and his brother, Marc, have been justifiably pleased with their firm. What they started
as a paint distributor some forty years in the past, recent out of faculty, had grown into one of many
largest specialty portray contractors within the U.S., and sure the world. What their firm does
is paint ships, which can not sound tough, however when one considers that each floor on a
ship, together with some in some very tight locations, needs to be painted and repainted over time, it
turns into straightforward to see that your common painter wouldn’t be capable of do the job. Actually, the
firm has the perfect security file and is thought for creating new, safer strategies for ship
portray. In consequence, the corporate employed 1,200 individuals, 1,100 of whom have been extremely educated
specialists in marine portray. Now, as Mike simply turned seventy and Marc wasn’t far behind,
they have been discussing the corporate’s future.
“We have to discover one other enterprise,” Mike was telling Marc over espresso one morning.
“One thing that may flourish when occasions aren’t so good for shipbuilding. And we have to discover
it shortly so we will help get it going earlier than we flip this firm over to Mike Junior and
Addie.” Addie is Marc’s daughter, and the one one in every of his youngsters who had proven an curiosity in
the household enterprise. She labored together with her dad in taking good care of the again workplace capabilities
(accounting, finance, IT, and many others.) whereas Mike Junior labored along with his dad to supervise the portray
operations.
One fact about shipbuilding is that the business is very cyclical—governments don’t construct
navies throughout peace, for instance. One other fact about shipbuilding is that there isn’t any gross sales
pressure, as a result of all jobs are put out for bid. Authorities jobs don’t require a salesman, only a
good proposal, and Reagan Applied sciences had a strong proposal-writing crew. However even with that
sturdy crew, the corporate’s income would plummet when the U.S. Navy wasn’t constructing new
ships.
Marc replied, “I believe I’ve an concept. I obtained a name final week from Shore Insulation and
Fireproofing. They wish to lease our scaffolds from us on the usS. Bankston job once they do
the insulation. They usually’re not the one ones. I’ve had a number of calls from firms within the space
asking if we lease scaffolding. There’s loads of firms in building, upkeep, and
constructing restore that lease scaffolding.”
Mike had a quizzical look on his face as he mentioned, “However we don’t know something about that
enterprise.”
“We all know learn how to put up and take down scaffolding safely, and security is a giant concern. With our
security file, we must always be capable of win loads of enterprise,” Marc responded. “Plus, this could
be comparatively regular earnings, along with the portray enterprise. With our places within the
shipyards all throughout the Gulf and up and down the east coast, we must always be capable of serve simply
about something east of the Mississippi River.”
“Yeah, however how can we get the enterprise? We’ll want salespeople as a result of proper now, you and I
are the one ones on this firm with gross sales expertise, and I don’t have time for that!”
QUESTIONS:
1. To date, Reagan Applied sciences has had neither a advertising and marketing division nor a gross sales pressure.
Which ought to come first and why?
2. What would advertising and marketing do for the brand new division? What would its position be, and what
would you take into account success for advertising and marketing?
three. What kind of gross sales place would they want? Justify your selection.
four. In the event that they have been quick on capital and needed to outsource gross sales, might they? What would
cease a scaffolding producer from outsourcing similarly after which beat
them on worth?
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CASE 5: REAGAN TECHNOLOGIES
Mike Reagan and his brother, Marc Reagan, have been justifiably pleased with their firm. What they started
Recent out of faculty, he began as a paint distributor and grew into one of many largest paint distributors within the nation.
The most important specialist portray contractors in the US, if not all the world. What their agency does
is to color ships, which can not seem tough at first, however when one realizes that each floor on a ship should be painted, it turns into difficult.
Over time, the ship should be painted and repainted, together with some in very tight areas.
It is clear that the common painter would not be capable of full the duty. The reality is that the
The corporate has the perfect security
