Case Study of

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Case study of Vigard Manufacturing Company Background: Mr. Jesse Krause, supply manager of the Vigard Manufacturing Company, was faced with the problem of selecting a source to prepare a technical manual for a winder that the company was planning to sell nationally. Mr. Vigard’s company concentrated on the production of a special type of wound magnet that had wide application in military and commercial electronics equipment. Introduction The sales manager prepared for marketing the new product. First, he undertook exploratory discussions with potential customers in the immediate area of the Vigard plant. Second, he negotiated an agreement with a sales representative to handle sales in the western part of the United States. Third, he initiated an advertising campaign, by means of direct mail and announcements in trade papers, stating that the winders would be ready for delivery on June 1 that year. Process of Mr Krause found the potential sources Mr. Krause’s preliminary survey indicated that four companies were interested in undertaking the work: Bullock Art; Webster, Inc., and Hershey Associates (the two concerns specializing in the production of technical manuals): Analysis of the four companies Mr Krause must analysis the four companies must could prepare approximately 180 illustrations and technical drawings and have the manual ready for the printer on the first of May Analysis of Webster, Inc, which was the largest art concern in the city, employing approximately 150 artists and book designers. The company had excellent facilities, including the latest art and layout equipment and its own photographic laboratories. The operations of the company appeared to be efficiently organized and well managed But Krause learned that approximately 80 percent of its business had been with one large manufacturer that had recently informed the

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