Club_It

I’m doing my analysis on a Machine Tooling Business plan. In this paper I will discuss the strengths I think the business has and the weaknesses the business plan might have. I will give detailed information regarding these two areas of my analysis. I will also discuss what I think the opportunities the Machine Tooling business might have and the threats that this new company might face in their process of starting up a successful business. I selected Machine Tooling as my business plan because this is exactly the type of company I’m involved with at work. The company I work for runs parts through CNC machines and are constantly using and developing new types of tools to refine the machining process. The business plan I am researching is based in Kansas City and is devoted to providing quality machine tooling to companies in their market. I think the company has some excellent advantages to becoming successful. Machine Tooling provides high quality products, advanced techniques, and excellent customer service to their customers abroad. Machine Tooling has been operating for twenty plus years and has increased profits every year since their inception. They provide full- service, close tolerance contract machining of machine and tooling components, production machining, and automation of production lines. The diverse equipment at the Machine Tooling plant allows the plant to run self sufficiently. The owners of Machine Tooling have worked in their field for several years and established many business contacts to help pick up major business accounts. Machine Tooling started in 1989 and by 1999 Machine Tooling generated over 1.5 million dollars in revenue, not bad for ten years in the business. (PaloAlto Software, 1996-2009). Though this company has great strengths in the machine tooling demand, I did however find a couple of weaknesses. First of all Machine Tooling is asking for additional money for expansion purposes. I believe if Machine Tooling was such a successful business they wouldn’t have to ask for additional money. They should be able to use their own capital for their expansion needs. According to a leading market analysis magazine the machine tooling industry fluctuates year after year depending on the business cycle. This means that there is always a downturn in the machine tooling industry. (PaloAlto Software, 1996-2009). Machine Tooling has excellent opportunities in the markets they plan to target. Machine tooling is involved with automobile seating manufacturers, which require customized machine tooling to serve their clients. They also have a open market with the fine blanking and stamping manufacturers that demand specialized services that Machine Tooling provides. Both of these markets hold up 75 percent of Machine Tooling products. Machine Tooling is also devoted to developing new product lines in order to stay ahead of competitors. They have an engineering department specializing in the research and development of new products. I believe this department to be essential in the advancement of Machine Tooling’s growth and continued success. (PaloAlto Software, 1996-2009). I don’t see any true threats to the Machine Tooling business. They seem to have the market locked and continue to make improvements to establish a hold in their respected industry. The market for specialized machine tooling is increasing slowly but surely year after year and has showed profit increase in consecutive years and predictions show that this up turn will continue in the coming years. (PaloAlto Software, 1996-2009). Finally Machine Tooling has done an excellent job portraying their business needs. They have provided accurate information regarding the market growth in the machine tooling industry. I believe that the money needed for Machine Tooling to continue to make improvements will deem profitable for the eager investor. I was however skeptic on the fact that they needed more capital from outside investors, because they may seem that they have reached somewhat of a downfall in their market, but after reading their business plan I’m extremely confident that Machine tooling will incur profits for their company and their investors. Machine Tooling prepared an excellent proposal to further their growth in the demanding markets. Reference page PaloAlto Software. (1996-2009). Bplans. Retrieved from http://www.bplans.com