ContentIntroduction 3Industry Analysis 4Competitive Rivalry 4Substitute Products 4Threat of New Entrants 4Strategy 5Operations – Cost Analysis 5Administration – Cost Analysis 6Proposed Complex Maps – Cost Analysis 6Recommendations 7Conclusion 8Appendix 9Table 1: Hammond Cards Production Cost 9Table 2: Production Costs of Creative Designs 10Table 3: ABC of Combined Administrative Functions 10Table 4: Complex Cards Sold to Hammond Customers 11Table 5: Complex Cards Sold to Creative Customers 12References 13IntroductionHammond Cards, Inc. is a small player in the greeting card industry in the United States of America, as their annual revenues are less than 1% of those of the industry leaders described in the case. However, in her efforts to drive growth, Wendy Hammond hired me to analyze the potential acquisition of another company, Creative Designs. My analysis will first look at the main problem behind this acquisition and then break it down into sub-issues that I will address individually. Since these two companies follow a different strategy, I will evaluate the two different companies and discuss the implications of their strategies on the merger. I will then perform various cost analyzes to determine the cost structures of both companies, which will help me determine if Wendy's intentions can be achieved. In my analysis, I will aim to determine the practical capacity of companies and whether their current operations are using the optimal level of capacity and minimizing waste. This data will assist me in my strategic recommendation to acquire Creative Designs and adapt it to Hammond C's current strategy...... middle of paper ......26 25 $6.50 COGS total 190 $.07 COGS per unit $0.38 gross Profit $259.93 Selling and administrative costs Customer contact hours $34.90 1.92 $67.00 Orders 8.70 1 $8.70 Different shipments card styles 0.75 10 $7.50 Packaged boxes 3.46 1 $3.46 Billing transactions 14.78 1 $14.78 Total S&A cost per order $101.44 Margin $158.49 Margin per card 0 $.32 References SWOT Analysis of American Greetings Corporation. (2013). SWOT Analysis of American Greetings Corporation, 1-7. SWOT Analysis of Hallmark Cards, Inc. (2013). Hallmark Cards, Inc. SWOT Analysis, 1-7. Mulligan, P., Hall, O., Nanni Jr, AJ, Hall, L., & Ansari, S. (2006). Hammond Cards, Inc: Creative Acquisition. Inc: The Creative Acquisition (July 31, 2006). Porter, M.E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 25-40.