3.7. Case study& role play Case

At the beginning of 2001, particularly in January, Microcomtec Corporation, a small manufacturer of industrial microcomputers and application - specific software was having a difficult time competing in both the domestic and international markets. Actually, sales of its primary product, the Microcomtec 100 Microcomputer, were slow, and the company’s profit was practically nonexistent. It was obvious that Microcomtec was facing a serious financial crisis. In an attempt to save Microcomtec, its president, Mr. David Robinson, hired an outside consultant, Ms. Pauline Stanley, a seasoned professional with years of high-tech marketing experience. After scrutinizing the situation for a couple of weeks, Ms. Stanley made three recommendations. The first called for closing down the European sales office in Rotterdam and concentrating on the U.S. market. The second recommendation was for Microcomtec to shift from a hardware to software emphasis. Specifically, Ms. Stanley advised the company to begin manufacturing IBM-compatible software for general-purpose laboratory/technical uses. The third recommendation called for Microcomtec to shift its advertising and sales promotion from heavy reliance on journal advertising and press releases to direct mail advertising and trade show exhibits. All three conclusions, though not explicitly critical of the vice-president for sales and marketing, Mr. Henry Dixon, were implicitly so since Mr. Dixon had been instrumental in implementing the present marketing strategy. It was now up to the company to decide whether to risk its remaining capital on an entirely new direction or stay with the present course, namely, continuing Mr. Dixon's strategy of industry-specific hardware/software production.

Case Analysis

Analyse the case step by step.

Step 1. Clarify the Issue

Discussion questions:

1. What does Microcomtec Corporation do?

1. What is its major product?

2. For what market does it manufacture?

3. What are Stanley’s major recommendations?

2. In the background a number of problems with Microcomtec are mentioned, either directly or indirectly by way of proposed changes.

1. Make a list of these problems.

2. Then write a one-sentence statement describing each problem.

Step 2. Consider exhibits

Exhibit 1 Sales of the Microcomtec 100

Third and Fourth Quarter, 2000 (in US$)

	July	August	September	October	November	December	Total
Domestic	38,900	48,600	61,642	54,282	42,623	43,624	289,671
International	31,090	21,438	37,583	21,438	21,438	-	132,987
							422,658