Business and Strategy Hampton Machine Tool Company is specialized in manufacturing tools mainly for the automobile and the aircraft industry. HMTC business has been extremely successful during the booming of those industries in the mid and late 60s. HTMC have been considerably affected by the Arab oil embargo which had lead to a rise in gasoline price and thus to a turn down of the automobile industry and also by the decline of defense spending after the Vietnam War. However, HMTC which relies mainly on these industries has survived the decline of the automobile and the aircraft industry during the early 70s and has even increased its market shares with the rise of military aircraft sales. HTMC works mainly with large automobile and aircraft companies which are located in St. Louis. HTMC main weakness is its lack of diversification; in fact the company is really exposed to the business cycle of the aircraft and automobile industry. HTMC has survived the downturn of the industry thanks to its conservative policy, the company has a really strong working capital position and the co....

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