Precision Worldwide, Inc. Case Study Precision Worldwide, Inc. Case Study Involved Parties: Competitor-French Firm: Henri Poulenc Precision Worlwide,…

Precision Worldwide, Inc. Case StudyPrecision Worldwide, Inc. Case StudyInvolved Parties:Competitor-French Firm: Henri PoulencPrecision Worlwide, Inc.-German FirmHans Thorborg-General ManagerGerhard Henk-Sales ManagerBodo Eisenbach- Development EngineerPatrick Corrigan-Parent Company SpokesmanBackground: Precision Worldwide, Inc. (PWI) manufactures industrial machines and equipment for sale in numerous countries. Repair and replacement parts account for a substantial part of the company’s business. The replacement part in question, steel rings, occur in the machines manufactured only in PWI’s Frankfurt Germany plant, but can also be used on some competitor’s machines. The steel ring manufactured by PWI has an average normal life of about 2 months. Machines require between 2 and 6 rings to operate. Individual rings are replaced as they wear out. Over the years, competition had increased and now a competitor company, the French firm Henri Poulenc, has entered the market with a superior plastic ring that replaces the steel ring. The plastic ring is less costly to manufacture and has a longer life.what action GM take? and why?Accounting by Robert,devid, the mcgraw hill 12th editncase 26.3 & 4