In this paper we shall focus first on the key characteristics of TCE (transactions cost economics) giving a theoretical introduction of its concepts. We will then analyze the vertical boundaries of Ross & C, the company I currently work for, and we will see how they evolved during the years. The discussion will concern the “to buy or to make” dilemma applied to the real case of the sales force. We will in fact show the transition from the sale force as outside agents (to buy) to the sale force as direct employee (to make) showing how the change of the environment can influence the modus operandi of a company. Key characteristics of Transactions Costs Economics (TCE) Transactions costs economics (TCE) theory, introduced by R. Coese …show more content…
In such situation, if the contract is incomplete, the firm can revise the parameters of the deal reducing for example the price per unit that the company is willing to pay to its supplier. The inevitable consequences of the holdup problems are (1) more difficult contract negotiations and more frequent renegotiations, (2) distrust and (3) reduced investment in relationship-specific investments (Besanko – 2010). Vertical integration and outsourcing: the case of the sales network in PT Ross & C Indonesia. In this section we will analyze the make or buy dilemma in the sales network of the company I currently work for, Ross & C Asia wood division, a subsidiary of Ross & C Group. The case will then focus only on the selling area of Indonesia explaining when it is preferable to operate with direct sales (to make) rather than with sales reps (to buy) and how these choices depend on the environment and its changes. Brief introduction of Ross & C Group Ross & C Group is an Italian company manufacturing machines and integrated systems for processing wood, glass and stone. The company can offer several solutions that range from the design of complete lines for large furniture firms to single machines for small-medium companies. Ross & C Group is a multinational entity marketing its products thanks to a network of subsidiaries and branch offices located in strategic markets. The main Ross & C Wood customers are furniture manufacturing industries which
Apple Incorporation is one of the biggest high technology company that operates worldwide. Is was established on April 1, 1976 in California by Steve Wozniak, Steve Jobs and Ronald Wayne.The company is known for designing and manufacturing several technology devices include Smart Phones (iPhone), Tablets, iPods, iPads, Mac, Apple TV, Apple watches as known as smart watches, it also produce software’s like the OS X and iOS operating systems, and offers several online services such as iCloud, Apple Pay, Apple Care. The company strategy is to designee and enhances its own operating systems, software, hardware and other services by providing customers with new developed technology.
Introduction: In this assignment I will be giving information the following point talk about each sales staff must do or be like when working for these different scenarios. Also I have included the sales technique out of four of them: Cold-calling, Face to face, Telemarketing and drop in visits. Also I have included their own personal interpersonal skills of what it takes to be a sales staff to be working for those scenarios, I have also included examples and relevant pictures.
| managerial approach of seller, capacity of seller to do the work, and ability of seller to make a reasonable make-or-buy decision.
In today 's business environment companies are choosing to renegotiate contracts rather than go to court to have the contracts enforced. A court remedy breach of contract can be lengthy, costly, and in the end no one wins. Companies such as Span Systems and Citizen-Schwarz (C-S) should have a clear understanding of contract laws, as well renegotiation practices designed to remedy breach of contract. Both parties are obligated to fulfill each part of the agreement, and failure to meet the terms of the contract by law can be consider a breach of contract. This breach can occur when parties such as Span Systems, whom fail to perform within the guidelines of the agreement.
Which company do I trust to get it right? Which company would I rather do business with?” (Mckenna 5).
Not honoring existing contracts, since this might be illegal and is breaking a promise GM made to the supplier who might have invested heavily for this contract.
|5000 employees at the beginning of the 1990s, it has grown to exports of $70 billion and 2.8 million employees today, and a globally dominating |
In this paper, I will be addressing a big topic in the automotive retail today. This topic is should car manufactures be able to sell directly to consumers. In this paper I also answer questions like why would a manufacturer want to sell directly to consumer and the potential causes if they were allowed to sell directly to consumers. I also state why this topic is important to me.
Which of the following is NOT normally regarded as being a barrier to hostile takeovers? (Points : 5)
Define the situation (case summary) Define the major issues, conflicts, and the network . Describe the options (alternatives) for solving these issues. Several internal and external influences serve as contributing factors in the reconsideration of the company’s current system. Changes in customer demands, domestic and global competition, and a unique decentralized management system is now forcing the Westminster Company to reevaluate their traditional supply chain practices. (Bowersox & M.B., 2014) Westminster’s domestic operations consist of three separate companies that sell and distribute products to several of the same customers. (Bowersox & M.B., 2014) At first glance consolidation of the systems can significantly improve
6. Captive Suppliers within a Production Circuit- Small suppliers transactionally depend on large buyers. Suppliers face high switching cost.
2. Assume that an investor lends 100 shares of Jiffy, Inc. common stock to a short seller. The bid-ask prices are $32.00 - $32.50. When the position is closed the bid-ask prices are $32.50 - $33.00. The commission rate is 0.5%. The market interest rate is 5.0% and the short rebate rate is 3.0%. Calculate the gain or loss to the lender. Assume the lender is not subject to a bid-ask loss or commissions. (Points : 1)
(Lewicki, 2010, p. 585) Fontaine and Gaudin did not prepared to negotiate the full contract. They did not anticipate nor prepare to resolve additional issues. Due to their inexperience, Fontaine and Gaudin were not the correct pairing to conduct the renegotiation, as well, they did not have decision making authority. They had to contact senior level management in order to reach a final agreement. This delay extended the negotiation timeline. Adding to the already stressful situation, the prospect of losing Reliant as a consistent client prosed a potential major issue, especially relating to supply as it would be difficult to identify another client to fill the former demand level. Also, Pacific senior leaders delayed their decision to expand into PVC products, over a year. This delay created uncertainty with the forecast for VCM and derivate products, which had a negative marketing impact for one of the top essential products. Also, contributing to the list of weaknesses, Fontaine’s definition of a successful negotiation differed from the corporate office, in that, he linked a successful negotiation outcome to keeping Reliant as a client by extending the current terms of the contract, solely. However, just as important, Fontaine neglected to take into account all the other potential issues or points of
Therefore the firm should buy the engine since the engine produced by the firm is more than the engine provided by the other firm.
1)The sales manager’s (at FRAM oil filters) key objective is to provide his or her salespeople with the skills and traits that will push FRAM products through the distribution channels at a faster rate and larger scale, skills that will encourage distributors to stock FRAM products and buy extra amounts. In order for a sales manager to achieve this objective, he or she must look at ways that will motivate their sales people through theoretical solutions devised by experts