Dunwich Marine Harvard Case Solution & Analysis

Dunwich Marine

What next steps would you proposed for the client and consultant respectively?

Recommendations for clients

Step 1: TheDSC and DMR should merge in order to make a synergy between their primary value chain in order to save cost, which is very crucial.Bymerging the corporations they will have low expenditures.Moreover, they will have a high level of merged expertise as well as they can use their back and forward channels in order to increase their profitability.

Two or more companies can be combined while one offers the stocks on exchange and other surrenders for their stocks.After merger two companies become one and both of them lose their separate identity.

Step 2 :It seems that the DSC was unambitious and it was unable to market its product or service.In this situation it

will have no chances of growth as if the consumers will not be aware then it will be very difficult to provide its

service to end consumers, which will ultimately affect the firm performance. They can focus on their forward channels to improve their reach to customers in order to give customers maximum satisfaction and efficient customer service.

Step 3: Also, the company can take debt financing or make an IPO in order to increase the cash flows.Afterincreasing these cash flows, the company can use multiple options to improve the performance and also enter into different segments where they are not working.

Step 4: By acquiring funds, if the company is not going to merge then it can also improve performance by hiring new talent, acquiring latest technology, whichwould helpto increase productivity.On the other hand it can also use different options such as making alliances with backward and forward channels (Sherman, 2011).

Strategic technological alliances are used to make effort between two companies in order to make new innovative technology which can make long lasting effects on the product of the participating companies.
Backward channels will help in acquiring the best quality spare parts or other things, which are being used in the business. Moreover, forward channels can provide the best distribution channels to increase their customer frequency reach.

Recommendations for Consultants
Step 1 :Consultants also have multiple options as they can make mergers between the two key players and can make synergy between them to operate in the existing industry.Furthermore,if one of the companies can be sold then they can make proper selling structure from costing to the entire acquisition requirement.

Step 2: Also, the consultants can make an agreement between these two as a strategic alliance in order make the same work as it works in merger. They can make and check the feasibility of the options.
Step 3: Consultants can also get debt financing on easy conditions such as bonds, debentures, and Term Finance Certificate (TFC) (Czarnitzki, n.d).

All of the above options can help the company under the following situations and how they work separately for the company’s stake.

• Through debt financing the company can take loan from banks, DFIs and other government institutions and can give them their payment back in easy installments.
• The company can make issuance of bonds to investors and set a principal amount and a rate of interest and also the time of payment it may include a coupon payment. In addition, the time of returning back the principal amount could also be included, which would be 5, 10 or more years as per the agreement with the investors.
• TFCs are also a type of bonds but slightly different from it as under TFCs the rights of decision goes to the investors. It is also a feasible option under the company’s present situation.................

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