Cost Scenario Essay

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Cost Scenario University of Phoenix ECO 561PR October 22, 2012 Professor Adelaida Torres Dilan Cost Scenario The San Juan Cell Phones Scenario Summary talk about this company that manufacture cell phones where Maria Perez, a business development specialist, secured an order of 100,000 units with this major chain, which is an opportunity to the company to increase their production and their profit. Cell phones are very important to the community these days for business, to keep in touch with the family or just to feel independent and secure. The first cell phone was created in 1973 by Martin Cooper of Motorola and others assistants and in 1984 they were available to the public. Today cell phones are more than …show more content…

Our recommendation to San Juan Cell Phones, taking in consideration the risk is to accept the order from Big Box and buy the 100,000 phones from the OEM Company, which will be able to meet the deadline, make an identical phone to the Alpha model, and the price will be fourteen dollars for each unit. This alternative will generate a profit $100,000.00, since cell phones would be sold at fifteen dollars as shown in Table 1-3. The earning are not going to be substantial but at the end we are not going to lose the customer; promote our company, attract potential customers, which will bring even bigger profits to the company without cost control. Also we can expand the company and at the end is going to generate new employments and the possibility of take the company to a major chain level. In conclusion San Juan Cell Phones is a company that has the opportunity to grow and already have products that gave them a good profit, but there is always some space to improve their products. At this moment if when we use all the different strategies for the incorporation of new products starting with the cost comparison, identify alternatives that increment the cost, analyze the different risk, establish recommendation and elaborate a work plan that benefit the company. It is important to always involve the personnel because they are the heavy bones

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