DAMARK PACKAGING INC

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DAMARK PACKAGING INC: WRAPPING UP MEXICO
Instructions: Prepare answers to the following questions. The case midterm will be two of these questions plus one on the case not listed below.  
QUESTIONS:
1. Size up Damark’s operations in Canada, the United States and Mexico. Assess the strengths and sustainability of its activities in each market. Canada
Highest Margin
Largest Potential Market for our machines
Best A/R management
Best Inventory Management
THESE ALL ALIGN WITH OUR SUCCESS FACTORS

MANAGEMENT PREFERENCES
Want growth ( New or expand in current markets?)
Want Europe

Need more research and resources to understand
Almost want to stop manufacturing and restructure collectibles and inventory ( so don’t think about taking on more strain) Children have interest to take over the business in the future Don’t want to sell damark

Maybe need to bring in someone from the outside to help put in better systems in place so they can position themselves better by controlling their costs and inventory. They really want future growth to come from Europe:

Prospects look favorable howeve needs more research
Couple of years ahead in technology
This works well for us in the future in our current markets since the technology application in Europe is much more sophisticated. Seriously need to do some research and time and effortrt to understanding theworkings of the market ( Right now there is no time) High indebtedness exposes us to credit risk so Europe right now is not a good idea ( How can we fix this in the future)

2. What are Damark’s reasonable growth prospects and options for the short and long term? a. Prospects for growth are highly dependent on Damark’s ability to manage its lead times, its orders and keeping track of its costs. Doing things on the fly is creating lots of waste and not allowing for Damark to plan based on its capacities ( Which are unkown to Damark because there is loose communication and controls internally) b. Reasonably,...
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