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II. REENGINEERING CASE STUDY Section I PAGE 2 II. REENGINEERING CASE STUDY Section I PAGE 1 Company History and Background TrashPro Service Company TrashPro Service Company is a privately owned commercial garbage collection and disposal company based in a major metropolitan area in the Northeast United States. The company was formed 12 years ago by two former front end loader truck drivers, Nate Diamond and Louis Spalding, as the result of after-work beers in the parking lot of a convenience store. Company revenue has grown about 20% per year over the last 5 years due to exceptional service and a number of financed acquisitions. Annual revenue is estimated to be about $120 million in 1992. Earnings before interest and taxes (EBINT), however, have decreased from about 12.6% in 1987 to an estimated 4.2% in 1992. Nate and Louis blame the decrease in profitability primarily on the inefficiencies in the companies absorbed during acquisitions and expect margins to increase over the next 3 to 5 years. Nate and Louis decided to start TrashPro because they believed they could do as good a job as their former company without the bureaucratic red tape. As a result, in 1980, Nate and Louis borrowed $50,000 to purchase a front end loader. They merely serviced customers with existing bins until 1981 when they borrowed an additional $250,000 to purchase a small company who owned 500 bins and 3 front end loaders and had a customer base of about 450 customers. Due to the lack of red tape, the company was able to compete with much larger companies and thrived on an operations focus and the lowest prices in town. Several acquisitions later, the company has become the largest garbage collection and disposal company in the city. The company consists of five districts, the largest by far being the Braintree District. Braintree District The Braintree District has over 6,000 customers serviced by 33 front end loaders and 89 total employees. The district is officed and serv