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 - Company Summary
- AMT is a 10-year-old computer reseller with sales
of $7 million per year, declining margins, and market pressure. It has a good reputation,
excellent people, and a steady position in the local market, but has been having trouble
maintaining healthy financials.
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- Company Ownership
- AMT is a privately-held C corporation owned in
majority by its founder and president, Ralph Jones. There are six part owners, including
four investors and two past employees. The largest of these (in percent of ownership) are
Frank Dudley, our attorney, and Paul Karots, our public relations consultant. Neither owns
more than 15%, but both are active participants in management decisions.
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- Company History
- AMT has been caught in the vise grip of margin
squeezes that have affected computer resellers worldwide. Although the chart titled Past
Financial Performance shows that we have had healthy growthin sales and it also shows
declining gross margin and declining profits. The more detailed numbers in Table 2.2
include other indicators of some concern: The gross margin % has been declining steadily,
as we see in the chart. Inventory turnover is getting steadily worse. All of these
concerns are part of the general trend affecting computer resellers. The margin squeeze is
happening throughout the computer industry worldwide.
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- Startup Summary
- PROMPT: Summarize your start-up
plan. Explain the attached start-up table, detailing
start-up costs and financing. The start-up table
will print automatically as Table 1. It is illustrated by
the Start-up Chart, which prints automatically as
Illustration 2. The start-up balances will load
automatically into the balance sheet worksheet.
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- Company Products
- SAMPLE: The Acme Widgets Company product line grew
out of a combination of existing market needs:
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- Company Services
- SAMPLE: The Acme Services Company sells graphic
design and implementation services, including advertising and
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- Products and
Services
- AMT sells personal computer technology for small
business including personal computer hardware,
peripherals, networks, software, support,
service, and training.
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- Company Locations
and Facilities
- We have one location-- a 7,000 square foot store
in a suburban shopping center located conveniently close to the downtown area. It includes
a training area, service department, offices, and showroom area.
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