Union Paint and Varnish Company - Case Analysis and Corporate Strategy

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Ramon V. del Rosario College of Business

(RVRCOB)

Financial Management FNC 535M

“Union Paint and Varnish Company”

Case Analysis and Corporate Strategy

Individual Report of

Jerelynn B. Hipolito

Group 6

BSA

Dean Atty. Joe-Santos Balagtas Bisquera

MBA Professor

Executive Summary

Union Paint and Varnish Company manufactures and sells paints and other related products. The company offers wood paints, leather varnishes, metal paints, car paints, and thinners. Its product products include wood paints, leather varnishes, metal paints, car paints, and thinners. As part of its business, the company offers contract painting services for housing materials, among others. One of their customers was Suburban Auto Stores Corporation.

On April 14, 1952, in Los Angeles, Mr Robert Maple – Credit Manager and Mr Harry Hill – Regional Sales Manager, both from Union Paint, met with Mr Sidney G. Snider, President of Suburban Auto Stores Corporation to discuss possible credit arrangements for sale of Union product Suburban. Mr Snider asked if Mr Maple would approve 3-year terms on an initial order.

Problem

        Institutional

Union Paint was operating near capacity in the sprin1952, but with anticipated return to a buyers’ market, Union began to prepare for increasingly keen competition. Accordingly, Union was aggressively seeking new outlets through which to sell the company’s expanding volume. In this connection, Mr Hill had pointed out that Suburban, whose account he had sought for several years, had an excellent reputation for being aggressive merchandising organization; with that information, will Union Paint agrees with the 3-year terms on an initial order?