Starfire

  Good morning, all appraiser committee members. We’re very glad to stand here and make a presentation.
  PPT 1 Content
  Our goal is to help Starfire decide whether to accept FHP’s offer.
  There is an outline of our presentation. We divide the presentation into the following five parts: case overview, current situation & capacity analysis, financial analysis, strategic analysis and overall summary.
  PPT 2 Case Overview
  Let’s review the case first. Starfire Trucking Company was founded in 1968 by Alan James and has grown into a sizeable operation with 90 trucks and 180 trailers. With Starfire already operating at (or near) full capacity, whether the company can handle the additional routes become uncertain. Starfire’s largest customer FHP Technologies submitted a proposal to James to add delivery routes that would improve the efficiency of FHP’s supply chain.
  PPT 3 Case Overview
  Now Starfire is in a dilemma.
  If Starfire say no to FHP, it will help the competitor build loyalty with FHP
  If Starfire accept the offer, it will Grow the business and possibly incur addition debt to buy more trucks.
  We elaborate three independent scenarios to meet FHP’s demands (Squeeze out more capacity; Purchase additional equipment; Outsourcing) and gave our final proposal according to our analysis of the company’s capacity, financial and strategy in the end.
  PPT 4 Current situation & Capacity Analysis
  The current situation is that the economy of macro environment is in the tank and in terms of industry environment, it has slim profit. In addition, we will conduct strategic analysis with Porter's five forces model later. According to SWOT analysis, we can know that though the macro environment is unexpected, the scale and gross profit of Starfire Trucking Company is keep growing. Moreover, FHP’s new offer gives an opportunity to the company. However, Starfire’s weakness is the debt burden meanwhile facing the threat of the growing fleet.
  PPT 5 Current...