Trextel Case Essay

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Trexel Case 1) What criteria should you use to evaluate the projects at Trexel? Which project (molded structural foam, injection molding, blow molding, PVC extrusions, or meat trays and food packaging) should Bernstein recommended to the board? Why? The project at Trexel should be evaluated through different criteria, like: • Company’s history: Since Bernstein joined to the Trexel Team, he has developed two strategies: the first one was based on partnership deals and the second one on internal development of specific products. Both strategies failed, therefore it is necessary to analyze what were their mistakes. • Core Competencies: Trexel has the know-how to development of different product better than its competitors (lower production cost), so it is necessary to consider the cost savings of the different alternatives. • Competitive Advantage: Because of Trexel has the know-how to produce high-quality products at low production cost, they are better positioned that its competitors. Also Trexel have protected their intellectual property through patents, which allow maintaining a sustainable competitive advantage in the time. For these reasons, it is necessary to analyze the competitive advantage of the different options presented. • Strengths and Opportunities: The project evaluation should consider a SWOT analysis of each potential application, which allows identifying the strengths, opportunities, threats and weaknesses. This way, it is possible to choose the best option, which maximized the firm’s strengths and opportunities, while mitigating its threats and weaknesses. • Barrier to Entry: Also it is necessary to analyze the cost of enter to the industry. • Economic Benefit: What will be the earnings associated to the project.. • Customer Preferences Bernstein should recommend to the board the

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