1. Describe Destin Brass strategic context and its business model
OFFER: Destin Brass is a company dealing with water purification equipment. It was established in Florida in 1984, and it has been growing significantly from that moment on.
Its owner and top manager is Herb Alpert, who created the business considering problems that a large manufacturer had with quality of bronze valves.
PARTNER NETWORK: H. Alpert started a partnership with Les Paul, specialized in bronze-manufactured, high-quality boat fittings. This E.D. company is able to respond to the manufacturers’ need of labor skill and machine control in order to provide the best water purification valves. Part of the revenues are earned also because of the control on the crafting process. The two partners are joined by Mary Ford, an accountant with manufacturing experience.
COMPETENCES AND RESOURCES: TBM is equipped with an engineering department that is necessary to transpose the knowledge used in machine valves by Paul to new products on the market, such as pumps and flow controllers. Furthermore, a modern manufacturing facility allows TBM to machine and assemble materials from foundries.
DISTRIBUTION CHANNEL: The company is efficient because the equipment and labor are used for all products and also because it avoids them to remain in inventory as runs allow goods to be delivered in time. Scheduled runs are useful to adapt the production to the customers shipping requirements.
COST STRUCTURE: see tables attached.
REVENUE FLOWS: Destin Brass Product Co. is a company specialized in manufacturing three high quality product lines: brass valves, pumps and flow controllers. The production of these goods have a different impact on the growth of the company’s revenue: valves contribute for the 24% of the company’s revenue, flow controllers for the 21% and pumps contribute for the biggest part of the revenue with 55%. Regarding valves, the competition in the market is weak...