Massey-Ferguson, 1980 Case Study Solution Essay - 1905 Words

Massey-Ferguson, 1980 Case Study Solution Q1) Assess the product-market strategy and financial strategy Massey pursued through 1976. Where possible, compare Massey’s strategy with those of its leading competitors. Market strategy Massey is a multinational company and has a series of products. It produces farm and industrial machinery and diesel engines, which contributes to 80% and 20% of sales respectively. The farm and industrial machinery has two product lines: the farm machinery line and industrial machinery line. The former produces tractors, combine harvesters, balers, forage harvesters, cane harvesters, agricultural implements, farmstead equipment and other equipment for agricultural purpose, while the latter produces different†¦show more content†¦Competitors Massey’s competitors were International Harvester and Deereamp;Company. In 1976, Massey’s market share was 34%, while the other two were 27.7% and 38% respectively. International Harvester had the highest sales and it was also the most efficient in making use of its assets, with a sales/asset ratio of 1.54. Massey was in the middle, doing better than Deereamp;Company. With regard to financing, in 1976, Massey and International Harvester both had a less than 50% debt/total capital. While till 1980, International Harvester managed to keep the ratio around 50%, Massey had the total debt/capital ratio out of control, with more than 80% debt financing. Neither of the two competitors relied on short term debt such as STD, while Massey relied heavily on STD. Q2) Assess the various alternatives at the current stage of Massey’s difficulties. What options are available for alleviating Massey’s financial problems? Given its current financial situation, the following alternatives are available to Massey-Ferguson. a) Merger/Acquisition A merger offer would raise the stock prices of Massey-Ferguson, if the deal is perceived as synergic for the company in the long run, and would infuse financial resources and flexibility into the company in the short term. In the light of Massey-Ferguson’s negative performance, however, a merger offer from any company seems highly unlikely due toShow MoreRelatedMassey A71345 Words   |  6 PagesCASE STUDY MASSEY-FERGUSON 1980 Group A7: †¢ Elisenda Sumarroca †¢ Martin Von Vopelius †¢ Finn Pilath †¢ Dimitris Sotiriou †¢ Lorenzo Masserini †¢ Ilia Antipov Q1: DESCRIBE THE INDUSTRY AND THE KEY FACTORS TO BE SUCCESSFUL Industry †¢ Competition between large multinational companies with a large portfolio of products and medium to small companies with a limited range of products. †¢ Main companies in North America: Deere Co, Massey-Fergusson and International Harvester. †¢ Increasing importance of DieselRead MoreUGT in the 21st Century14999 Words   |  60 Pagescommunication scholars today refer to as the uses and gratifications (UG) approach is generally recognized to be a subtradition of media effects research (McQuail, 1994). Early in the history of communications research, an approach was developed to study the gratifications that attract and hold audiences to the kinds of media and the types of content that satisfy their social and psychological needs (Cantril, 1942). Much early effects research adopted the experimental or quasi-experimental approachRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pages2000 (the collapse of the Soviet Union, the reunification of Germany, the surge of globalization from the mid-1990s) and afterward (9/11, or the global recession of 2008) when one could quite plausibly argue that a new era had begun. A compelling case can be made for viewing the decades of the global scramble for colonies after 1870 as a predictable culmination of the long nineteenth century, which was ushered in by the industrial and political revolutions of the late 1700s. But at the same time