STANLEY WALSH BEGAN INNER-CITY PAINT CORPORATION IN A RUN-DOWN WAREHOUSE,
which he rented, on the fringe of Chicago’s “downtown” business area. The company is
still located at its original site.
Inner-City is a small company that manufactures wall paint. It does not compete with
giants such as Glidden and DuPont. There are small paint manufacturers in Chicago that supply
the immediate area. The proliferation of paint manufacturers is due to the fact that the
weight of the product ( 521
⁄2 pounds per 5-gallon container) makes the cost of shipping great
distances prohibitive. Inner-City’s chief product is flat white wall paint sold in 5-gallon plastic
cans. It also produces colors on request in 55-gallon containers.
The primary market of Inner-City is the small- to medium-sized decorating company.
Pricing must be competitive; until recently, Inner-City had shown steady growth in this market.
The slowdown in the housing market combined with a slowdown in the overall economy
caused financial difficulty for Inner-City Paint Corporation. Inner-City’s reputation had been
built on fast service: it frequently supplied paint to contractors within 24 hours. Speedy delivery
to customers became difficult when Inner-City was required to pay cash on delivery
(C.O.D.) for its raw materials.
Inner-City had been operating without management controls or financial controls. It had
grown from a very small two-person company with sales of $60,000 annually five years ago,
to sales of $1,800,000 and 38 employees this year. Stanley Walsh realized that tighter controls
within his organization would be necessary if the company was to survive.
STANLEY WALSH BEGAN INNER-CITY PAINT CORPORATION IN A RUN-DOWN WAREHOUSE,which he rented, on the fringe of Chicago’s “downtown” business area. The company isstill located at its original site.Inner-City is a small company that manufactures wall paint. It does not compete withgiants such as Glidden and DuPont. There are small paint manufacturers in Chicago that supplythe immediate area. The proliferation of paint manufacturers is due to the fact that theweight of the product ( 521⁄2 pounds per 5-gallon container) makes the cost of shipping greatdistances prohibitive. Inner-City’s chief product is flat white wall paint sold in 5-gallon plasticcans. It also produces colors on request in 55-gallon containers.The primary market of Inner-City is the small- to medium-sized decorating company.Pricing must be competitive; until recently, Inner-City had shown steady growth in this market.The slowdown in the housing market combined with a slowdown in the overall economycaused financial difficulty for Inner-City Paint Corporation. Inner-City’s reputation had beenbuilt on fast service: it frequently supplied paint to contractors within 24 hours. Speedy deliveryto customers became difficult when Inner-City was required to pay cash on delivery(C.O.D.) for its raw materials.Inner-City had been operating without management controls or financial controls. It hadgrown from a very small two-person company with sales of $60,000 annually five years ago,to sales of $1,800,000 and 38 employees this year. Stanley Walsh realized that tighter controls
within his organization would be necessary if the company was to survive.
การแปล กรุณารอสักครู่..
