The document analyzes the case study of Circuit Board Corporation (CBC). It discusses forecasts for industry growth after 2001 events. A SWOT analysis shows CBC's strengths in pioneering technology but weaknesses in outdated equipment and technical ability. Recommendations are made for CBC's leader Meggie, who is unsure whether to invest more or withdraw, as the company faces threats from cheaper overseas competitors and changing technology requirements. Overall, the recommendations suggest Meggie sell her shares and exit the business, as CBC is unlikely to survive the economic downturn.

1. Circuit Board
Corporation: Case Study
Analysis
Presented By: Group 4

2. Various forecasts of industry growth and
economic recovery
● The year 2001 saw the aftermath of two important
event: dot com burst and 9/11.
● There was a forecast that the electronic component
sales would increase by 5%.
● The aftermath of 9/11 saw an upswing in the demand of
security system and defense contract, which was hoped
to continue in the coming years.

3. SWOT Analysis of CBC
Strengths
● They were the pioneers in electrochemical
production of printed circuit boards.
● The company had a strong customer base.
Weakness
● The company didn’t adhere to the latest
fabrication techniques;
● They didn’t had the fund to invest in new
equipments.
● They didn’t had the technical ability to produce
high end complex circuit.
Opportunities
● Rise in defense contracts with preference for
domestic producers.
● The industry capacity reduced due to the
recession.
Threats
● CBC attained volume through its presence in
the mid and low end segments; these segments
where open for attack by cheap offshore
contractors of Asian countries.
● With advancement in technology, the
complexity would increase along with the
requirement for multi-layered circuit boards.

4. Recommendation of the Board
Ben Cashman Don Armour Dane Lombard Will Tatelman
President & CEO M&A specialist Turnaround specialist Auditor & Maggie’s personal
counsel
● Use of inventory,
● Wait for market
turnaround,
● With cutbacks-profitable
at $20 million
in sales,
● possibility is up to $30
million.
● Chapter 11
● Convenience creditors
to be paid full to stuck
by the company.
● Acquisition of small and
financially weak firms.
● Target sales of
$100million.
● Market will not get any
turnaround.
● Throw a light on firm’s
valuation.
● Firm as an entity is less
valuable than to sell it
in pieces.
● A deal should be made
to get Maggie
ownership of the
building for her shares.
● Then she can lease the
plant back to the
company.
● Needham & Co.’s
prediction on industry
growth.
● Chapter 11 will allow to
renegotiate all bills with
creditors.
● This will help to buy
● Optimistic scenario
projection.
● Firms are ready to
make deals.
● Needham & Co.’s
prediction of rebound
for 6 months.
● Henderson Ventures,
DLouhy Merchant
predicted no recovery
till 2003.
● Turbulent scenario:
Two contradicting
reports
1)kaufman & Co.’s
report
2)Wells Fargo’s report..

5. Meggie’s role as leader and her dilemma
● Not clear what can be done
● She wants to secure her life
● Not fit for the role of chairman
● What to do with CBC ?
● Withdraw or Invest ?
● Poor decision making ability

6. Recommendations for Meggie
● Maggie should sell her shares.
● Get out of the business.
● Strong possibility CBC will not survive in
economic downturn.
● Not worth risk to rent
● Should think about retirement