Corwin Case Study Summary

Corwin Corporation

* Manufactures low-cost, high quality rubber components

* Successfull, good reputation

* Organization: same structure for more than 15 years; rather conservative (already existing product lines), no exploration for new products

* Inquiries about manufacturing specialty products. BUT: conservative/ do not want to take risks

* Therefore: policy was established to evaluate specialty-product requests (yes needed)

* 1. Same profit margin as existing product?

* 2. Total projected profitability / follow-on contracts?

* 3. Development of the specialty product into a product line? Require-

* 4. Can the spec.prod be produced with minimum disruption? ments

* More than 90% of inquiries were turned down.

The Peters Company Project

* 2000: specialty-product assignment was accepted from Peters Comapny -> potential for follow-on work.

* Good working relationship developed.

* Dec 2002: unusual phone call G.Frimel (Corwin) and Dr. F.Delia (Peters Company)

* Dalia: no available personnell to undertake project (research); wants Corwin to do the work

* Frimel: We are no research group but are going to take over the production end.

* Delia: willing to commit to a 5year contract.

* Frimel: specification sheet cannot be replied to in this (2002) year, closed over Christmas time.

* Delia: does not accept, immediate reply (48h) (signed, sealed)

* Problem: bid/no-bid decision made by a four-man committee; 2 on vacation.

* Necxt call

* Do not want to destroy good working relationship with Peters Company

* Other man called Royce (vice president of manufacturing) wants to look at specification sheet, Frimel tries to reach president by phone (-> authorizes sheet)

* Next problem: prepare a proposal within 2 days and be prepared to make an oral presentation to Peters Company.

* Frimel then goes on vacation and...