Pride Industries
PRIDE Industries made a $2.6 million capital appropriation request to replace older electronics surface mount technology with newer and more capable machinery. PRIDE, a non-profit enterprise that hired workers with disabilities, wished to earn business and reputation based on the universal measures used by customers worldwide — price, quality and delivery — while maintaining its social mission. The proposal looked good on paper, and the company predicted that it was the only way to keep PRIDE’s current electronic manufacturing services customers happy as well as capture new business. One of the other important pieces of the capital expenditure analysis was to study trends in the manufacturing sector, especially evidence that manufacturing was returning to the United States from offshore. Yet, the investment represented a risk for PRIDE if the projected new business opportunities
did not materialize.
Learning Objective:
The case is primarily designed for a graduate-level operations management course but also contains material that could be relevant in courses on marketing strategy, organizational behaviour and human resources.
It describes the capital appropriation procedure for surface mount technology machinery in some amount of detail, as well as the overall structure and nature of the contract electronics manufacturing industry, emerging “onshoring” trends in the United States, social entrepreneurship and human resource practices.
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