Moldovan Coffins is a high-end coffin manufacturer in the country of Moldova. Moldova, officially the Republic of Moldova, is a landlocked country in Eastern Europe located between Romania to the western world and Ukraine to the north, east, and southerly. Moldova declared itself an independent state with the same boundaries as the Moldavian Soviet Socialist Republic in 1991 as part of the dissolution of the Soviet Union. The total population of the amounted to 4,000, 000 (2004 Moldovan census)
The master of Moldovan Coffins business has seen substantial change in his market in recent years and is thinking about the future of his business. Until recently, this individual has been in the business of creating high-quality, hand-crafted coffins largely by side with a skilled work force. Recently, however, this individual is becoming aware of a new technology that will allow him to build machine-made coffins with much less labor. Should he commit in this new technology? And should he even stay in the coffin-making business to start with? Why or why not?
Question 1: What strategic alternatives should the owner of the coffin business consider?
Question 2: How would you find out the current value of the coffin business? Give the following additional information if the prospect demands for it plainly and directly.
Question 3: Today make the prospect compute the industry size, giving them the following data:
- Inhabitants of Moldova: 4 mil
- Population Growth: 0%
- Common Life Expectancy: 75 years
- Age Distribution: assume a set age distribution, i. e. same number of folks each and every era.
- Burial Customs: 75% of deaths are buried in coffins.