Unit 3/7: Management Research Project Stage 1 -Written Proposal- - Essay Example

Primary data used come from surveys, experiments and CBM company information. Secondary data used are from published economics sources. CNC – Bearbeitung Munzmann (CBM) is a company engaged in CNC – milling and turning products on contract basis. CBM was founded in 1998. At the moment, there are 20 employees and 4 trainees in CBM. The company had a turnover of 1,600,000 Euros in 2008. Now, in 2009 its turnover has fallen to 930,000 Euros. CBM’s customers are Brose, Bosch, Siemens, machine constructing companies, engineers and ship building companies.

World over, and especially in the industrialized countries, there has been a recession in 2009. This means that these economies are producing a decreased level of Gross National Product in 2009 as compared to 2008. The German economy is also facing a recession. The German machine constructing companies are not getting sufficient orders. Hence their turnover has fallen in 2009. CNC Bearbeitung Munzmann GmbH and Co. KG is in the German machine constructing sector. Hence, CMB is also affected by the economic crisis in Germany and the world.

As stated before, the turnover of CBM has fallen from 1,600,000 Euros in 2008 to 930,000 Euros in 2009. That is a decrease by more than 50%. The employee structure of CBM has also undergone a significant change. In 2008, the abrogation was 1 non expert employee. After the crisis, in 2009, the abrogation was 5, with one non expert and 4 experts. The work load change has also been significant. In 2008, the short time work was 0 hours. In 2009, it was 12.80 hours. In the worsened economic situation, CMB should not capitulate or resign.

This situation provides a chance to create new value for the organization. Since the turnover of CBM has fallen by more than 50%, there is a lot of unutilized capacity. This can be used for manufacturing other products. But the new field of activity must be near the focus of present activity of CMB. Presently, CMB is