Teaching note for product 9B10M030.

The chief executive officer of a large concrete block manufacturing facility is preparing a report for the board of directors meeting. The plant is looking at expanding its production capacities and the chief executive officer must determine the size of the expansion and the sources of financing. The company has been experiencing an excessive demand for its product and the expansion seems like the next step. The financial sources, like in many emerging .....more

Mr. Jose de Valencia must decide whether to recommend to his family and outside investors to invest a total of $4.5 million in a manufacturing facility to produce hand-blown, hand-cut leaded crystal housewares in the Philippines. This venture will be quite risky, since six Irish technicians will have to be employed for a period of two years to train the workers, and it is not known if export markets will accept high-quality crystal produced in the .....more

Dynamic Windows and Doors Inc. illustrates many of the difficulties faced in the creation of a new small business. Two entrepreneurs purchased assets from a bankrupt company and developed a new business strategy focused on a market niche that emphasizes high quality, customized production. Dynamic is now looking towards export markets and potential sites for production activities in other countries.