Ebac's company objective was to diversify into a new market, boosting the wealth of the business from 15 million to 50 million through the acquisition of Norfrost. The acquisition was a huge risk to take for Ebac, considering the assets they were obtaining and planned to use may not all be functional. Not only this, but how many more years would they get out of these machines in order to make it profitable before they have to invest in entirely new machinery?
The time scale set for completion was very unrealistic, 6 weeks until completion of the factory was not enough time, a more suitable time period as Digby suggested should be 2-3 months. This would have given them more time to inspect the machines thoroughly before they left the Norfrost factory to ensure they would be in working order once dismantled, shipped and re-assembled.
It is clear that the family run business is in need of some outside expertise, specifically on the marketing front. They failed to identify a target market with enough time until completion of the factory. As the market is already dominated by foreign companies (e.g. Beko) which can afford to produce goods and import them for a low price, Ebac needed to implement a strategy in order to give themselves a competitive advantage as they simply could not afford to sell their goods at as low prices. Understanding consumer demand in a market they had just dove into was vital. Basing their market on Norfrost's standing customers was a large risk to take, as they may have already found other suppliers, leaving Ebac with no orders upon completion of the factory. In order to gain a competitive advantage Ebac needed to invest heavily on ensuring the quality of their goods was of a very high standing, sticking out from competitors products.
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