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In: Business and Management

Submitted By Gunel
Words 1695
Pages 7
This document is an authorized copy for the course MBA-16-D Analysis of Business Problems taught by prof. Carlos García Pont at IESE B.S.

September 2003

Intermarket Technology, Inc.
In 2001, InterMarket Technology, Inc., a fully integrated point-of-purchase display manufacturer for the beverage industry, was trying to overcome an operations bottleneck in its plastics division.
For the past decade, the division had been converting plastic sheeting into sturdy, threedimensional outdoor beverage-merchandising units. These units not only protected and secured beverage products in the out-of-doors, but functioned as powerful advertising and sales vehicles for some of the world’s largest, most international beverage brands. The outdoor units were typically used at gasoline stations which sold soft drinks, in addition to fuel and other products. Each unit could hold up to 24-can cases.
The product line consisted of 10 base units, offering clients various merchandising “pack-out” and size options. To customize the products for advertising purposes, client logo artwork was printed on plastic sheets prior to structural manufacturing. To print the sheets, the plastics division contracted with InterMarket’s wholly owned printing division.
The plastics division did its own fabrication in a modern 15,600 square foot facility located near a residential area.
The printing division operated as a shared services group and provided print services for all three manufacturing divisions of the company (plastics, metal and wood). Intracompany print jobs were priced on an “at cost” basis + a nominal administration fee, or cost + 4%. To function as a profit center for the company, the print division also offered its services outside of InterMarket on a “for profit” basis. It was located in an industrial park close to a brewery and a chemical plant and had…...

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