Kochman, Reidt + Haigh, Inc. Case Study

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Running head: Finance - KOCHMAN, Reidt + Haigh, Inc. case study Finance - Kochman, Reidt + Haigh, Inc. case study Joseph A. Wnuk University of New Haven - EMBA June 5, 2012 Charlie Boynton Module 1 (Summer 2012) - Finance Kochman, Reidt, + Haigh, Inc. is a custom cabinet manufacturing company in Stoughton, MA. The company was formed in 1991, by the merger of two cabinetry manufacturers, Kochman Woodworking, Inc. and Reidt & Haigh, Inc. Prior to the merger; the two companies had carved out niches in the semi-custom cabinetry business. To remain competitive and grow the business, they needed to expand and refine their automated, computer-controlled manufacturing processes. The firm produces uniquely designed, high end quality cabinetry for the residential and commercial markets. Although their primary focus is on residential kitchens, baths, and audio/video storage, they are capable of supplying high end cabinetry to the commercial sector. A unique, competitive advantage of the company is that they are able to produce high end cabinetry products with computer controlled, automated processes that allows for a more efficient, lower cost operation relative to typical custom cabinetry firms that manufactured by manual processes. This firm fills a niche between the most expensive, fully custom cabinet manufacturers and the mass produced, “big box” store stock cabinets in terms of productivity and customization. Following the merger of the two companies in 1991, the expectation of increased sales and profitability, in addition to automation development, was met with several obstacles. The primary problems were a combination of an aggressive growth and capital expenditure plan that was derailed by questionable financial performance, operational inefficiencies, and the ultimate loss of cash flow to run the company.

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