BROADWAY METAL EQUIPMENT CORPORATION: CASE ANALYSIS
Broadway Metal Equipment Corporation (BME) is a medium-sized (a) engineering and design firm and (b) manufacturer and suppliers of metal processing equipment. BME is an American company, and this case focuses on a potential contract wherein BME would be the prime and managing contractor for a major equipment supply contract for a large, fully integrated steel company located in Mexico. The data for the case analysis are provided in the Broadway Metal Equipment Corporation case (Mathis, Narayama, & Keat, 2001).
The major policy issue involved in this case concern the capacity of BME to assume the lead role in the proposed metal equipment supply contract for Acero Del Norte (ACN). The monetary value of the contract, attendant funding concerns, and the financial risks involved, considering the size and financial position of BME, combine to make BME's financial capacity in relation to the proposed CAN contract the major policy issues involved in the case.
Relevant Issues (Big Issues Surrounding the Question)
A number of relevant issues were associated with the major policy question concerning BME and the ACN contract. The time frame of the case is mid-1998, and the major issues (stated in the form of questions) associated with the policy question, are as follows:
What are the risks for BME in relation to the ACN contract?
What are the implications of BME's financial position in relation to the demands of the ACN contract?
What challenges conform BME with respect to doing business with a company located in Mexico?
What is the likelihood that Mexico will experience a financial crisis comparable to the one experienced by the country in 1994-1995 during the life of the ACN contract?
How best can BME manage the financial risks associated with the ACN contract?
Should the ACN contract be denominated in US dollars or Mexican pesos?
Should BME accept or declin...