Timken Company

The Timken Company

Key issue/Problem

How Timken should make decision on castiture into the Romania Company, if the company robeed, how did the company reduce the risk?


Alternative Actions

1. non invest on Romanian administration
2.Invest on Romanian government and phthisis acquisition for Rulmenti Grei ( acquiring firm’s gist business)
3.Invest on Romanian government and social occasion strategic alliance for Rulmenti Grei (contract/ownership of capital)


Evaluation of Alternatives

1.Not invest on Romanian government
Pros:
No risk for company
Cons:
Loss the opportunity to establish a stronger competitive position in the European industrial bearing grocery and to lower manufacturing be crossways its global bearing business

2.Invest on Romanian government and use acquisition for Rulmenti Grei ( acquiring firm’s core business)
Pros:
Has the opportunity to establish a stronger competitive position in the European industrial bearing market and to lower manufacturing monetary values across its global bearing business
Timken has chance to expand its crop line in response to European customer demand.
 cooperate Timken to learn and develop new capacity
Overcoming entry barriers on Europe.
Cons:
Timken should invest lot of money.




Has a big risk on acquisition.
Timken should mystify high probability of synergy and competitive advantage by maintaining strengths.
Large debt for Timken Company.

3.Invest on Romanian government and use strategic alliance for Rulmenti Grei (contract with Rulmenti Grei on production, marketing, and distribution)
Pros:
Reduce risk and cost for Timken
Easy to entry market, and save time
Cons:
Share profit with Rulmenti Grei

Recommendation

I recommend Timken acquiring firm’s core business.

strategical Intent
Timken company want to entry European bearing market successful, and get larger...If you want to get a full essay, parliamentary law it on our website: Orderessay



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