North Well Inc, exploration diamond drilling contractor, has been invited to submit a bid to the lucrative, highly complex contract with nickel Mond. North does not have a drill or the crew is now to work on the contract, which requires an experienced drillers. Compounding this issue is the lack of skilled labor in the industry. At the same time, the largest client North in Noranda nickel, sees the poor results of the geological work in the same area. Management of the North needs to decide whether to incur additional costs and keep capacity cushion in an attempt to maintain their good relations with its current customer, or it should be used instead of drills for a new job. The main issue facing the management of the North if the North can not cope with the new contract, both financially and technically, without prejudice to the ongoing work. "Hide
by Michael Taylor, Robert Bremner Source: Richard Ivey School of Business Foundation 9 pages. Publication Date: August 13, 2012. Prod. #: W12137-PDF-ENG
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