Engineered Extraction Systems Australia Pty Ltd was established by Silvio De Luca and Andy Hamilton in 1997 at Port Adelaide. The business designed and manufactured custom-made exhaust extraction systems for Australian automotive racing and after-market industry. In 2008, the company was relocated to Elizabeth where it got more opportunities to grow and soon it turned from part time venture to full time operations. The ability to meet the diverse range of market demand, Engineered Extraction quickly developed expertise to design and manufacture systems for several more popular models of the cars common to motor racing and other street cars in Australia. Company’s entire focus was on custom-built systems; each being exactly designed to the engine in request which made the company successful and most demanding. Then, in 2008, Silvio and Andy took a decision to grow their business and started manufacturing off the shelf systems, initially for Holden and Ford. These systems were not specifically tuned to the engine in question and were designed to fit standard production cars. Customers were appreciated by the brand and were more than happy with a slight drop in performance to that of custom-made extractors as the purchase price also decreased.
Engineered Extraction System’s competitive position remained attached with the production of custom-made extractors as the appropriateness of design specifications to functions was imperative to many performance motoring enthusiasts. Generally, when quality increases, productivity will also increase. So, the company adapted the Quality Productivity strategy. Customers are stimulated and promoted by quality of the product. High quality is associated with winning competitive position of the organization. When the quality is accentuated and subsequently improved, waste is eliminated or decreased from economic point of view. Hours are not wasted and material is not thrown away. Costs of the operations are reduced without compromising the customer satisfaction. Prices can be decreased to increase the firm’s market share. Understanding and accepting the Quality Productivity strategy is first step towards its achievement. (Everett E. Adam, 2010)
Silvio and Andy decided that forecasting enables their company to respond more quickly and accurately to increase in demand of their systems. Estimating the future production is associated to management process of planning, organizing and controlling. Business plans are need to be revisited and updated regularly with the continuous change in market conditions. As the business grows, business strategies should also need to be reformed to respond the ever changing circumstances. Engineered Extraction System also focused to change from maximising growth with existing customers and building profitable relationships by wining new customers. Existing business relationships often have greater potential for profit and can also provide consistent cash flow. While relationships with new customers may increase revenue, but the profit margins may be lower, which may not be bearable. Business growth and brand reputation gave the opportunity to Silvio and Andy to diversify their products and they started manufacturing off the shelf systems with the same work schedule. Initially, the productions were limited and off the shelf system were designed to fit in standard production cars. Consumers were had the opportunity to buy off the shelf systems from other manufacturers but Engineered Extraction brand name was enough to satisfy them. The company took the advantage of its progress and did not take the risk of just relying on existing customers. The key behind the growth of nay business is to be alert to new opportunities. Risk can be spread by diversifying and classifying the customers. Engineered Extraction’s general business strategy was to follow the same business model but at bigger length to get the route of growth. It means company got expanded to purchase new
