Bergerac Systems The Challenge of Backward Integration Case Solution

Case Solution

Bergerac Systems can be a small, rapidly growing manufacturer of diagnostic instruments found in veterinary practices. The business introduced the OmniVue chemistry analyzer, which enables veterinarians to function a range of blood stream and blood stream chemistry tests by themselves animal patients at the office instead of delivering those to outdoors labs. OmniVue is straightforward to operate and produces highly reliable results employing a proprietary cartridge for holding the blood stream specimen throughout case study. Sales of individuals single-use tubes are an integral part from the revenue stream for your items. The firm is dependent on two outdoors companies for your plastic facets of the tubes. The CEO is anxious about sporadic delivery within the cartridge companies which have brought to shortages and stock-outs. To handle the supply chain problems, the CEO sights acquiring one of the companies, GenieTech, because the director of planning proposes building the appropriate capabilities within the company's existing manufacturing facilities. Students must perform quantitative and qualitative research into the make versus. buy decision while considering expected production abilities, market forecasts, as well as the company's overall sourcing strategy.

Excel Calculations

Questions Covered

Introduction and Problem Identification

Strategic Alternative 1- Forward Integration

Strategic Alternative 2- Backward Integration

Strategic Alternative 3- No Integration

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