MÁRMOLES DEL SUR, S.A. (A) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Mármoles del Sur, S.A. (A) Case Study Solution

During the 1990s, MarSur started to work in tile generation as a system to contend in an undeniably value touchy market. Be that as it may, the upsides of this methodology faced significant challenges in the change procedure, with huge misfortunes, because of the natural delicacy of the item.

All things considered, it turned into MarSur's concentration to devise a creation procedure that would give more noteworthy protection from slight marble items and improved productivity in the yield from the volume of marble as far as definite surface region. Pepe Cuesta commented:

"Regardless of the market development, for all intents and purposes no organizations doing marble extraction and handling were productive. We needed to put resources into something new and, by exploiting the tasteful focal points of conventional marble, check the unwieldy procedure of creation and establishment."

MarSur had a fare office involving four experts and had procured six salesmen to be answerable for advancing the item's dispatch in Spain. By the by, Novamármol's business results for the primary year were baffling contrasted and the set up estimates.

The rundown cost of Novamármol was about €11 higher than it’s identical for a 2 cm piece, while genuine discount costs for wholesalers were €8 higher than for conventional marble which are shown in Exhibit 5 of the case. This higher introductory value was balanced by investment funds in establishment costs, making the item more serious and bringing higher edges than customary marble.

Decision:

It has been observed and seen in Exhibit 1 of the document that the estimated sales forecast of the year 2002 and 2003 is much larger than the year 2001 and first half of the year 2002. This assures us that the company should grab the new opportunity to take an equity stake available in the marble fabrication company, because a marble fabrication company has a patent for its productive process that could play an important role to revolutionize the traditional marble sector or industry in the country and worldwide which gives the competitive advantage to the company.

Action Plan:

Action plan for the new investment opportunity is to:

Make another forecast by taking other measures to invest in the new marble fabrication company to get the competitive advantage over competitors
Find the available and possible sources of funding through which the investors are willing to invest in the company
After availability of funds and making the new forecasts, company should bid the acceptable price per share for the new marble fabrication company
After getting success in the bid, company should make some changes in the new company in order to make this according to the company’s existing business model and organization culture

The possible sources of funding are

Angels:

Edges are well off people who search for speculation openings that can possibly give restores that beat conventional ventures like the financial exchange. As per "Forbes," heavenly attendants regularly contribute wholes of $25,000 to $250,000. They are generally rich colleagues, for example, neighbors and business contacts. A holy messenger financial specialist may request some contribution to business choices in return for subsidizing, however she can likewise give basic guidance, skill and assets.

Funding:

Financial speculators are huge speculators who try to buy proprietorship in flourishing organizations that are required to develop quickly sooner rather than later. Investment can give an enormous flood of speculation financing, yet VCs regularly request a state in the executives choices. Since funding firms look for organizations with fast development potential, organizations in the tech division are particularly appealing. Organizations working in conventional segments -, for example, physical retail locations and eateries - may experience issues drawing in funding.

The Public:

Entrenched organizations that need a significant shot of venture subsidizing can offer stock to general society by turning into an open enterprise through a first sale of stock. In an open organization, the investors all in all settle on choices about how the organization ought to work. Practically speaking, enormous investors, which commonly incorporate the author and early financial specialists, hold the genuine basic leadership power.....................

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