Murry

Task Subjects

Finance Management

Dr. Mudjilah Rahayu, SE., MM.

"The Murray Ohio Mfg. Co..."

(Dividend Policy Case)

Group Members:

1. MARINDA PRIEALENA DAUGHTER-041224353051

2. APRIS SETYA-0412243530 52

3. NA DY A AQUARISTA-0412243530 53

4. HULAIL -041224353054

Programme Master Of Management

Universitas Airlangga

Surabaya

MM 40 /AFTERNOON

CHAPTER I

BACKGROUND

I. 1. COMPANY BACKGROUND AND HISTORY

Murray Ohio Company founded in 1936, based in Brentwood, Tennesse, engaged in the manufacturing of electric cut machine and bicycle (bicycle and power mowers). Here is the share of both products during the period 1982-1984:

| Sales | Profit |

| 1982 | 1983 | 1984 | 1982 | 1983 | 1984 |

Power Mowers | 54% | 53% | 62% | 73% | 68% | 88% |

Bicycles | 46% | 47% | 38% | 27% | 32% | 12% |

I. 1.1. Bicycle

                Murray Ohio started its business in the field of bicycle manufacture in 1936. Murray Ohio manufacturing of bicycles for children to bicycle racing. In 1984 the Murray bicycle products hold 1/3 of the bicycle market in America. Its main Competitor is the Huffy, Roadmaster, Columbia and Ross. Competition has increased, as more companies enter the market, both domestic and foreign. Greater competition in the presence of imported products, it does result in less favourable for the Murray Ohio. But the cockpit so bicycle demand expectations in the long term remains strong. The number of requests will depend on the existence of a bike an extra income from consumers. And the biggest number of requests in the marketplace is derived from households with higher income.

Total Shipment Data for the Bicycle Industry

Bicycle and Parts Shipments |

in millions dollars | 1980 | 1981 | 1982 | 1983 | 1984 |

Domestic | 649 | 733 | 565 | 644 | 683 |

Import | 281 | 327 | 208 | 329 | 494 |

I. 1.2. Power Mowers

                  The market for cut machines was opened in 1968 and in...