Northern Drilling Inc., an exploration stage company, diamond drilling, was asked, an offer of a lucrative, highly complex contract with Moon nickel advertised. Northern has no drill or the team currently requires on the contract, the experienced drill work. Compounding the problem is a shortage of skilled workers in the industry. At the same time, Northern is the largest customer, Noranda nickel, geological results look bad on a job in the same area. Northern Management has decided … Read more »

Northern Drilling Inc., an exploration stage company, diamond drilling, was asked, an offer of a lucrative, highly complex contract with Moon nickel advertised. Northern has no drill or the team currently requires on the contract, the experienced drill work. Compounding the problem is a shortage of skilled workers in the industry. At the same time, Northern is the largest customer, Noranda nickel, geological results look bad on a job in the same area. Northern Management must decide whether additional costs and allow a capacity cushion in an effort to maintain its excellent relationship with his current client, or whether they instead use the drill on the new job. The primary question that Northern management is whether Northern can the new contract, both financially and technically without treating the current job.
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from
Michael Taylor,
Robert Bremner
Source: Ivey Publishing
9 sides.
Release Date: 13 August 2012. Prod #: W12137-PDF-ENG
Northern Drilling Inc.: The Moon decision nickel Contract – A Tactical dilemma in a growth strategy HBR case solution