1.0 Introduction
The company is a yarn manufacturer open up in the early 1900s to service both the interior(prenominal) and the international fabric industry. The major sectors the company provides services to ar the hosiery, knitted underwear, wovens and industrial and specialty products.
The companys major source of revenue is from the employment of cotton yarns which accounts for 43% of sum of money revenue, in which the company is the largest volume producer in the linked States, other sources of revenue are from knitted outwear which accounts for 35% of Auroras sales, woven which account for 13% and the industrial and specialty products which account for 9%.
Aurora like every(prenominal) other companies in the textile industry in the joined States has been affected by the dramatic changes due to globalization, government stack policies, cheaper production cost overseas and customer preferences and fads. These changes have lead to companies finding ways to cut cost drastically, modernize operations, pliant manufacturing to supply customized markets and also use information technology to remedy production methods.
Also the implementation of free trade policies through the NAFTA and CBI has also had an effect on the manufacturing industry.
Aurora at the scrap uses the Rotor Spinning and ring spinning in the production of its yarn, which has enabled it achieved the profits it has so far, the company is contemplating whether to acquire the Zinser 351 taking its monetary position over the past five years into consideration.
2.0 Facts And Issues
A. Facts
* The Zinser would switch an older generation spinning machine at the huntsman plant.
* Produces a finer quality yarn, that would be used for higher(prenominal) quality and higher margin products
* The price of the Zinser 351 is increasing at a rate of 5% annually
* Buying and installation of the Zinser is capital intensive
* 90% of the companys revenue came from domestic textile market
*...If you want to get a full essay, order it on our website: Orderessay
If you want to get a full essay, wisit our page: write my essay .
No comments:
Post a Comment