Case for Season

CASE 24 Inner-City Paint Corporation (Revised) Donald F: Kuratko and Norman J. Gierlasinski STANLEY WALSH BEGAN INNER-CITY pigment CORPORATION RUN-DOWN WAREHOUSE, IN A which he rented, on the fringe of Chicagos downtown business area. The play along is tranquillise located at its original site. Inner-City is a small follow that manufactures wall paint. It does not compete with giants such as Glidden and DuPont. in that location are small paint manufacturers in Chicago that summate the immediate area. The proliferation of paint manufacturers is due to the fact that the weight of the harvest-feast (52% pounds per 5-gallon container) makes the cosi of shipping great distances prohibitive. Inner-Citys chief product is flat sportsmanlike wall paint sold in 5-gallon plastic cans. It as well as produces colors on request in 55-gallon containers. The primary commercialize of Inner-City is the small- to medium-sized decorating participation. Pricing must be competitive; until recently, Inner-City had shown steady product in this merchandise. The slowdown i n the housing market combined with a slowdown in the overall economic system caused financial difficulty for Inner-City Paint Corporation. Inner-Citys reputation had been built on fast service: it frequently supplied paint to contractors within 24 hours.

Speedy delivery to customers became difficult when Inner-City was required to pay gold on delivery (C.O.D.) for its raw materials. Inner-City had been operating without management controls or financial controls. It had grown from a very small two-person company with sales of $60,000 annually five years ago, to sales of $1,800,000 and 38 employees this year. Stanley Walsh realized that tighter controls within his organization would be necessary if the company was to survive. This case was prepared by Dr. Donald F. Kuratko of The Kelley School of Business atomic number 49 UniversityBloon~ington Professor Norman J. Gierlasinski of Central Washington University. Copyright 0 1994 by Donald and F. Kuratko and Norman J. Gierlasinski. This case... If you want to get a estimable essay, order it on our website: Orderessay

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