You are the CEO of a major company that manufactures heavy earth moving equipmen

Question

You are the CEO of a major company that manufactures heavy earth moving equipment. Business is great since Mr. Trump became president. Your company has a great amount of profit cash and decided to buy another company. Your company can only purchase one type of company - either type will need to add benefit to your earth moving equipment company’s daily operation. You are to describe the operations manager’s considerations/benefits of buying either a ‘hard goods’ or ‘services’ based company as they relate to the existing business. Keep in mind, you are to address how a tangible or services model might/might not benefit your operation.

Explanation / Answer

As the company deals with heavy earth moving equipments, it becomes imperative that the company buys or acquires another company which will facilitate the business of the parent company. The company manufactured heavy earth moving equipments; hence a company dealing in hard goods would be more beneficial for the overall business of the company. This is so because the hard goods may deal in the parts and machinery required for the heavy earth moving equipment. A service based company may not be that beneficial to the overall business of the company.

Hence, the company must finalize the deal of buying a hard goods company. The final products of the acquired company will become the raw material for the parent company. This way, huge expenditure is saved which would have been spent on buying the parts from a local or global market.

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