Platinum Box

Platinum Box

Executive Summary

My decision would be to recommend Pnutype Press to the Platinum Board for purchase. Based on several key technical and commercial factors, I believe this would be the best choice. They offer new print technology which has been proven to produce extremely high output at a very low cost.

Key Assumptions

- The Pnutype Press is a reliable piece of equipment, despite their lack of experience in the market.

- Pnutype is financially sound and produces a high quality product.

- Prime rate will remain low enough to provide cost savings after 5 years – or the bank will be able to offer them a good interest rate at that time.

- The press will last at least 10 years (as per estimate)

Statement of Issues

The main issues in this case are to determine what evaluative factors weigh the heaviest on Platinum’s decision to choose a supplier for their printing presses.

The biggest factor in the case was the total cost of the press. This did not just cover the initial purchase of the equipment, it including operating and maintenance costs too. Just as the case concluded – it mentioned that Jim had been very specific with his staff about controlling costs of the purchase and remaining “cost conscious”.

I think the second biggest factor to take into consideration was the level of quality Platinum wanted to achieve with their new presses. They were looking to expand into the United States to maximize their sales potential and become a leader in the box business. In order to achieve this, they needed high quality printers that could produce extraordinary products. Their new mission was to become one of the “top ten fold down box manufacturers in western Canada praries”.

In my opinion, the third biggest factor to take into consideration would be the service level that each press company offered. If machines break down or need repairs, it will cost the company in down time, as well as maintenance costs....