Analyze of OzWidget Company - Case Study Example

OzWidget is an Australian manufacturer of mining equipments, under the same brand name - the OzWidget. OzWidget currently operates only in Australia, serving its Australian customers which include BHP Billiton, Rio Tinto, Woodside Petroleum and many others in the mining and exploration industry. It's office and manufacturing plant are in Launceston, Tasmania. The Chief Executive Officer (CEO) Mr Barry Cade has been terminated by the Board as he had resisted all efforts to expand the business. The Board has now appointed a new CEO, Ms Anna Prentice, to pursue opportunities for growth. A number of strategies have been proposed by the Board. The OzWidget is a success in the market and is poised for greater growth. Currently, clients using the OzWidget have reported an average of 25% increase in production per day compared to traditional extraction methods. Thus the OzWidget is in high demand in commercial mining and petroleum/gas extraction in Australia. The OzWidget weighs 173 tonnes and is delivered from the manufacturing plant in Launceston to Australian customers by a combination of sea, rail, and road transport. There is a proposed move to relocate the manufacturing plant closer to the market to minimize logistical costs. However, the OzWidget’s clients are distributed over different states in the country. Data on mineral exports at state level and merchandise from each state will be used to assess which is the best location. The report will thus make regression analyses on the available data to make informed recommendations on the best location for the new plant. Trends in Metalliferous ores and metal scrap Growth in the production of Metalliferous ores and metal scrap is more promising. The trend is upward and steadier compared to the chart for Petroleum products and related materials as shown below. Trends in Petroleum products and related materials The production of Petroleum products and related materials is somehow volatile with production seeming following a bit as of April this year. Read More