Date

2001

Document Type

Thesis

Degree Name

Master of Arts

Chairperson (Advisor 1)

Dr. Kimora Kachelmyer

Reader (Advisor 2)

Craig Lien

Abstract

MCKALL Industries will be formed in the summer of 2001. MCKALL will be incorporated before the year closes in 2001. MCKALL. Industries is being formed because there is a market opportunity that exists because of the following:

  1. Industry experts have identified and confirmed particular weaknesses within the industry that need to be acknowledged and serviced.
  2. Most of the industry is coming close to being considered a commodity, but· there are a couple niche opportunities that will provide considerable margins.
  3. Although, most of the competition is localized by region, there are a few major competitive manufacturing firms that carry high operating costs. These major firms are the firms that would challenge MCKALL Industries in these niche markets, but because of their high overheads, probably will not.
  4. MCKALL Industries believes it can operate at lower overheads than its competitors, therefore increasing its opportunity for success. It will be price competitive when it needs to be without sacrificing margins because of competitive pressures that can be absorbed by the lower operating costs.
  5. MCKALL Industries will accomplish its goals because of the window of opportunity that exists that has been ignored for a substantial amount of time. The market entry will not be acknowledged until MCKALL has 5 to 10% of the market share. At that point it will be too late for the major competitors to derail MCKALL Industries efforts.
  6. MCKALL Industries desire to exist with extraordinary management experience, direction, talent, and commitment. MCKALL Industries extended support system that includes several business, community, and personal leaders who are friends as well.

Because of the aforementioned conditions, MCKALL Industries believes that there is a unique opportunity to enter, maintain, and grow in this industry. It believes it can capture 5 to 10% of the market in three years and substantially more shortly there after. This market share would produce $4,750,000.00 in sales by the third yearend with $654,060.00 in net after tax earnings.

MCKALL Industries is seeking a partner that will invest a portion to be negotiated in return for a percentage of equity in MCKALL Industries.

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