Research Papers Cameron Auto Parts

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Alex took the control in 2001 in order to implement a process of modernization of the company.

His “operation survival” consists Of cutting the production costs by being more soused on the workforce (mainly lay-offs).

Case Problem: In this case we can identify several problems, like in the beginning, that there was no diversification of the product or there was no major sales contracts that with the “Big Three”.

Due to the crisis experienced at the beginning of the century, they were forced to improve their production, modernize and diversify it.

Two years after signing a license agreement in the UK, the company now faces an opportunity to establish with another firm a joint venture in France for the European market.

However, the prospect upsets the UK licensee who is clearly doing very well, and who even wants Cameron to consider joint venturing with him in Australia.

As Cameron was not financially prepared to make that commitment, the options were either to wait a year to generate more profits and financial stability, or license production of the flexible coupling.

In the spring of 2004, Alex signed a five-year agreement with licensing Supplies Ltd. Mc Taggart had to pay $ 100,000 in fees in advance for the help of Cameron to make things right and a royalty of 3% on the first ? Mc Taggert was forced to give a feedback of technology back to Cameron should get an improvement.

Cameron Auto Parts was founded in 1965, as consumer’s they haver three biggest car manufacturers.

Cameron Auto Parts began having crisis in 2000 due two major problems: the first is about the drop in sales that were stopped at $ 48 million and in 2001 dropped to $ 18 million, and the second one is because the entry of Japanese competition to the market.


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