IndexIntroduction 3Industry Analysis 4Competitive Rivalry 4Substitute Products 4Threat of New Competitors 4Strategy 5Operations – Cost Analysis 5Administration – Cost Analysis 6Proposed Complex Papers – Cost Analysis 6Recommendations 7Conclusion 8Appendix 9Table 1: Hammond Cards Cost of Production 9Table 2: Production Costs of Creative Designs 10Table 3: ABCs 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 due to the fact that their annual revenues equate to less than 1% of the industry leaders as described in the case. In an effort to spur growth, however, Wendy Hammond tasked me with analyzing the potential acquisition of another company, Creative Designs. My analysis will first examine the main issue behind this acquisition and then further break it down into sub-issues which I will address individually. Since both of these 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 the two companies which will help me identify whether Wendy's intentions can be realized. In my analysis I will aim to understand companies' practical capacity and get an indication of whether their current operations are using the optimal level of capacity and minimizing waste. This data will help me with my strategic recommendation to acquire Creative Designs and fit it into Hammond C's current strategy......middle of document......26 25 $6.50 Total COGS $190.07 COGS per units $0.38 gross Profit $259.93 Cost of sales and administration Customer contact hours $34.90 1.92 $67.00 Orders 8.70 1 $8.70 Shipments with different paper styles 0, 75 10 $7.50 Boxes packed 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). SWOT Analysis of Hallmark Cards, Inc., 1-7.Mulligan, P., Hall, O., Nanni Jr, A.J., Hall, L., & Ansari, S. (2006). Hammond Cards, Inc: The 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.