Strategy Notes Yellowtail

Given financials, any strategy should make sure:

More sales

Don’t want production to stop

Can the company’s financials handle the following shocks?

Some Options:

Sailboats, fancy boats

        Build out fancy boats now and then can later go into sailboats after financials look better

        Need more $ for the sailboats cash investments

New markets (geographical) – may need cash investment to transport, or open up new factories

Acquiring saggitarius

        Long term? Short term no!

Diversify – water ski/sports boats

        Outboard motors increase in sales for water and winter sports

        Trailer sailers

                Can increase regional presence farther away w minimal transport costs

                Must consider competition

Aluminum & fiberglass craft boats double b/w 65-71

Marketing (hire!)

        Outboard boats for waterskiing – advertise!

        May not contribute to shock

        Robyn has experience as marketing director of winter sports

SAGGITARIUS

        + can use manufacturing plant and technology

        +brand value

        +has good distribution channels

        -asking price is 20x earnings

        -company not financially in a place to buy