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Essay / Research Paper Abstract
This 5-page paper provides an overview of Cameron Auto Parts and the concept of whether or not licensing is the best way to go when it comes to expansion. Bibliography lists 3 sources.
Page Count:
5 pages (~225 words per page)
File: AS43_MTcameauto.rtf
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Unformatted sample text from the term paper:
Cameron came on board, he was wise enough to understand that there was no future in simply servicing the Big Three ad infinitum. As a result, he sunk money and
manpower to develop flexible couplings that could be used across a variety of industries. Sales took off for this product, meaning Cameron Autos
problem now involved extra capacity and expansion. Another factor was foreign presentation. On a trip to Scotland, Alex dropped in on Sandy McTaggert of McTaggert Supplies Ltd., a customer of
Cameron Auto Parts. After flattering Alex and his flexible couplings, McTaggert struck a deal with the much younger Alex to license the
flexible coupling technology and then sell the product throughout the UK and Europe. Cameron, in the meantime, would receive royalties on products sold.
When he returned to Canada, Alex received mixed reactions. His by-the-numbers accountant breathed a sigh of relief, seeing more cash flow and liquidity, and less going into capital investment. Meanwhile,
the production manager was angry, claiming that Alex sold out the entire coupling production to the UK for a pittance. Cameron Autos competitive advantage was the know-how and technology, and
he felt Alex had gambled that away for a small royalty. What are problems of this company? Unlike many case studies
of this ilk, Camerons problem isnt too much competition or too much overhead or anything along those lines. Rather, its too much success. So much success that older, more cynical
individuals such as Sandy McTaggert are hungering for a piece of the Cameron Auto pie. But the question we ask here is, did Alex get fleeced? Did he give away
...