Plumbers Case Study


Small business is a rapidly growing sphere of the development nowadays. Therefore, a great variety of strategies and concepts must be considered by the entrepreneurs in order to succeed in their endeavors. Therefore, for the large guild of plumbers to succeed in their enterprise, the models that have already been elaborated by the league of the gardeners may happen to be in use.   The things that must be considered by the managerial staff are different in their natures, and undoubtedly each issue must be weighted as carefully and attentively as possible, in order the ensure that the right conclusion has been achieved by team. The key question is what is more lucrative from the economic and technological points of view: to have the business merged with the Gardeners guild or to have their technology licensed and incorporated into the course of the business.                                               

The aim of this paper is to outline how the information is likely to be assembled and proceeded, what information shall be assembled and to discourse on the advantages and disadvantages of the both options that are currently available.

The Type of the Information required and the Ways to Obtain it

First and foremost it is vitally important to find out whether the introduction of the new technologies will help to minimize the industrial costs and to increase the profits which may hypothetically accrued by the firm.  Otherwise, the incorporation of the systems elaborated by the gardeners shall not be even considered by the managerial staff of the firm.  Secondly, it is important to ascertain whether the new technologies can be virtually integrated to the service facilities of the plumbers’ enterprise.  And finally, it is necessary to know whether the costs for the incorporation will be less than the profits which will be ultimately accrued as a result of the incorporation

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As far as the methods of obtaining the information are concerned, I find it reasonable to contact the authorized representatives of the Gardeners League for fee. If the refusal happens , then the most attractive strategy is to refer to the customers of the Gardener and to consider their opinion.  If the outcomes of the interviews are positive, then it is highly desirable to proceed with the data collection.

3. The First Option. The Enterprises Must Be Integrated

This option has been widely reviewed by the entrepreneurs and the following conclusions have been drawn as a result of their deliberations.

The advantages are the following:

a) Tax planning is substantially simplified and the overall amount of the collected taxes and other obligatory payments is increasingly diminished as a result of the potential merger. Subject to the provision that the tax deduction have been correspondingly decreased, the freed financial resources can be channeled to other areas and the promising business areas may be thoroughly discovered,

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b) The costs of business maintenance are substantially minimized. If the merger takes place, there will be no need for both companies to upkeep their own teams of lawyers, accountants and other staff. Moreover, the premises can be integrated and the  rent pay will be diminished

The disadvantages of the merger

a) The independence in the decision making process is permanently lost. In other words, the managerial functions will be divided equally with the managers of the gardeners’ guild.

b) The enterprise of the plumbers may by hypothetically bring to liability for the actions perpetrated by the merged company.  In other words, the firm, or to be more exact the newly formed joint venture may be brought to liability for the violations of the contracts which the firm did not conclude.

c)  Technically, the merger of the industries is of considerable difficulty and many technological aspects are to be obligatory considered by the engineers and the projects will be undoubtedly very expensive for the enterprises.

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The Second Option. The License Shall be purchased

Considering this possibility, which in fact does seem to be considerably more attractive for the firm than the previous option the following advantages and disadvantages, shall be accentuated.

The Advantages:

a) The managerial process remains independent and the assent of the representatives of the gardeners’ guild is not required to render a specific operation.

b) The accrued profits are not shared with the conjoined enterprise and can be justly shared among the partners of the Plumber group.

c)  The liabilities of the Gardeners’ guild will not be considered by the managers of the Plumbers’ group

The disadvantages:

a) he license is considerably expensive and significant financial resources shall be allocated to finance the transaction.

b) The process of incorporation of the technological advancements may happen to be considerably expensive from the technological point of view. Although the changes in the production  are not big in their nature,  the extensive implementation of the ones  will be expensive from the monetary perspective.


Having considered the options which are currently available on the market, it has become evident that both the prospective merger with the gardeners’ guild or the purchase of the license from them to render specific types of services must be carefully weighted by the managers of the company. However, having analyzed the available options more intently, it can be recommended for the firm to follow the second strategy and to purchase a license and to pay regular payment for it. This strategy is both monetary friendly and is less technologically complicated.



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