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MAK Brake Lining Company Analysis

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MAK Brake Lining Company was founded by A. Wahab as an automotive parts manufacturing firm that was located in Egypt and financed by the El Kharafi Investment Company of Kuwait. Created in January 1991 according to Egyptian investment law #230 as a shareholder company with paid up capital of 4,000,050 Egyptian pounds, a total of 26,700 shares were issued at par value of LE 150 each (Gupta and Hatem, 2). MAK found a technology partner with credibility with the Original Equipment Manufacturer (OEM) or vehicle assemblers. This partner was Ferodo, one of the most reputable companies in the industry and a producer of both brake lining and disc brake pads for passenger cars (PCs) and commercial vehicles (CVs).

The firm entered into a Licensing and Technical Assistance Agreement (LTAA) with Ferodo providing the technical expertise and MAK, under Wahab, developing the products. However, the scope of the agreement did not include the use of the Ferodo brand name in export-oriented products.

In short order, as it became apparent that an international vehicle manufacturer was not going to invest in Egypt, MAK changed its direction and decided to deal with the replacements or after market (AM) (Gupta and Hatem, 3). Today, MAK's products include friction products such as automotive disc pads, commercial brake lining and rivets and disc pads, and related molded, rolled materials and brake fluid. The firm had a competitive advantage in the Eg

. . .
with Ferodo and to give new consideration to finding a technology partner that would allow it to use proprietary non-asbestos technology in its production activities. The company has recognized over time that international standards regarding the use of asbestos in such products have changed and that these changes make it difficult for a company using asbestos to be competitive in the international market. As data generated by Gupta and Hatem (14) indicate, MAK's exports have begun to decline quite significantly in virtually all areas, including automotive disc pads, commercial vehicle brake lining, and molded roll and industrial friction products. This has occurred while local sales have tended to increase between 1992 and 1997. However, in 1998, a company called T&N purchased Ferodo and in turn was purchased by Fedral Mogel. The Ferodo license was terminated at that juncture, essentially leaving MAK without a technology partner which is desperately needed if the firm is to continue producing and improve its product lines as a means of increasing exports. Corporate resources include certain strengths, weaknesses, opportunities, and threats. Among the firm's strengths are excellent working capital, a high level of equi
. . .

Some common words found in the essay are:
Gupta Hatem, Centre Egypt, Kharafi MAK, Mogel Ferodo, Teves Ferodo's, Dr Wahab, Al Kharafi, Egypt Ferodo, Created January, Manufacturer OEM, gupta hatem, brake lining, brand name, technology partner, gupta hatem 7, non-asbestos technology, disc pads, hatem 7, joint venture, local sales, mak brake lining, brake lining company, relationship ferodo, disc pads commercial, international standards regarding,
Approximate Word count = 1316
Approximate Pages = 5 (250 words per page)

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