Baxter Tech Case

FUTRONICS Inc. is a private company located in Lexington mainly categorized for modems, monitors, disk drives and terminals. It is moreover in to sales and services. This case is about the replacement of Futronics’s central office stores by an outside service provider. In this case supply management manager have an opportunity for investigating selected outsourcing in-house services.

✓ You would have access to a network of distribution and It would more easy to access the market with a local partner who knows the market.

 Jolson Automotive Hoist, Inc only sells this product in addition to a number of versions

Please choose from one (1) of the scenarios below. Note: The scenario that you choose in this assignment will be the one (1) with which you continue for Assignment 2.

Based on the Excel Problem of chapter one, if the total capacity for this business is 725 will you stay in it? If you want to stay in it what price you need to obtain a break even point of 725?

Second, Pfizer may be able to argue that it has better records than Rector. Courts have not consistently dealt with records as evidence of product identification. Courts are currently divided about whether plaintiffs must provide records to satisfy their product identification burden. Many courts have implied that a plaintiff must provide more than just their testimony to establish product identification. Mississippi Valley Silica Co. v. Reeves, 141 So. 3d 377, 383 (Miss. 2014); Osorio v. Baxter Int'l, Inc., 2011 U.S. Dist. LEXIS 48820, *2 (N.D. Ohio May 6, 2011). For example, in Reeves, the Court found that the plaintiff did not meet his burden on product identification because there were no records that the plaintiff ever interacted

Peak Garage Doors Inc. is a privately owned firm and has had 2003 sales of $9.2 million and net profits before taxes of 460,000. Given is a 2003 income statement (pg.411) which states that cost of goods sold was $6.9 million. With the sales and cost of goods sold numbers we can figure out that the contribution margin for Peak’s garage doors is $0.25 for every dollar sold. The company has 2 distribution centers and employs 8 sales representatives for independent dealers and 2 sales reps for the exclusive dealers, each rep with a salary of $80,000. Below is the summary of employee composition.

To establish our presence in retail stores this alternative opts to give the necessary 35% margin to the retailer and a 20% to the wholesaler. The wholesaler realizes a lower margin due to them supplying multiple locations, thus having more products pass through their locations. The unit break even volume is slightly higher then what may be achievable at first entrance but, since our marketing promotional mix is quite extensive we should be able to capitalize on gaining consumers that are just entering into the market. This marketing mix will slowly taper off as our products become more popular thus reducing costs and creating a more reasonable unit break-even volume. Our promotional mix includes all the TV sponsorships suggested, all of the consumer shows (utilizing the bigger 10 x 30 foot booth) and the three step merchandising plan. These three big promotions should give us exposure to approximately 1.7 million people reached, not including the merchandising (variable). The total cost of our promotions is $768,677.00. To get the product on the shelves we will use the warehouse distribution method. It will cost more to distribute this way in the short run but in the long run it may prove crucial to eliminating the problem of stocking shelves when SSP gbecomes popular.

Koala Tech, Ltd., produces office equipment for small businesses and home offices. Some months ago they started selling PFS 1000’s, which are a multi-function color printer, color scanner, color copier, and fax machine all in one. The PFS 1000’s originally received praise on its functionality, price, and innovative design. These accolades combined with Koala Tech’s reputation quickly led to a high demand for PFS 1000’s, which also created a backlog (Meredith & Shafer, 2013). Nevertheless, Koala Tech’s plant has been unable to meet this demand. So, Koala Tech’s president, Nancy Samuelson, is concerned about the backlog and has applied pressure on the plant manager to increase production. Conversely, the president has suddenly shifted gears since

Hartley Electronics Ltd is a well-established company that has been trading since 1977. It has a good technical, financial and marketing section, but its human resources have been neglected, which has led to some problems within the company.

As Star River is a private company and has not issued stock, we need to make several assumptions when calculating market value of equity and price of equity. Analysis of similar companies reveals that Wintronics, Inc. and STOR-Max Corp. are the most similar firms in the market. To calculate Star River’s market value of equity I used market to book value method. I found M/B for Wintronics to be 4.4 (market price per share/book value per share) and 3.9 for STOR-Max. an average M/B ratio is 4.15, so multiplying Star River’s book value of equity of 47004 by 4.15 I found Star River’s market value of equity to be SGD195,066.6M. Average beta of these two companies is 1.615. The global equity market premium is 6%, and I use 10 year Singapore T-bond yield of 3.6% as my risk free rate.

a. Assuming the most current operational cost levels, what sales must it generate to recoup the above investment?

2. Expanding the international market within a period of 4 years by heavily investing in power economies such as China, India, Japan and some parts of Africa.

The approach I would use is the global strategy. I choose the global strategy because Electronic Visions will have completive prices and will plan to increase their profits and sales with their products. I don’t feel Electronic Visions is a well-known name but by moving into Asia I feel their name will become a major name in the Asian countries. I also feel if they move into Asia it wouldn’t take them

Our intention is to achieve the already given targets and also prepare BT for an opening to new horizons. In addition, in order to face the fast changing environment we have to introduce within the companies activities like cross selling and e-marketing.