preview

Eco/561 Business Proposal for Clear Hear Inc Essay

Good Essays
Open Document

Business Proposal for Clear Hear Inc. ECO/561 February 7, 2011 Professor Noe Business Proposal for Clear Hear Inc. As Vice President at Clear Hear, I would like to address some issues that have come to light with our manufacturing of cell phones here at Clear Hear. I have taken economic conditions into consideration and will offer my recommendation that will increase revenues for our company while hopefully adding a new client to our distribution list. Overview Clear Hear is a …show more content…

Analyzing Clear Hear Phone Contract Concerns Accepting the contract Lisa knew that Clear Hear would no doubt live up to the organization statement of values with Big Box. The organization would meet the contract requirement at the cost of stopping production of the Beta Model unit. The Big Box contract would help Clear Hear to keep its employees working and the organization knew they were producing reliable phone that would exceed Big Box expectation. Anyhow, after analyzing the contract situation I feel that if Lisa accepts the contract as is, Clear Hear would lose more money than it stood to gain if Big Box decides to pay $20 per unit. For this reason I would recommend that Clear Hear do one of the following three choices: (1) Decline the contract to manufacture the phones for Big Box based on the revenue losses that the organization would incur if they agree to the contract. (2) Manufacture the phones at a loss to Clear Hear. Manufacturing the phones at loss would keep the company’s employee working which is fulfilling one of the organization’s statements of values. (3) Accept the contract but sub-contract the phone order to Original Equipment Manufacturer (OEM) who can produce the phones for $14 per unit. Since OEM produce the phones at $14 per unit, Lisa and Clear Hear stand to earn $1 per unit profit on the contract. Clear Hear would also

Get Access
Related
Get Access