Assume that you are a partner with the firm of Santos & Lopez LLP. You have been asked by Gonzales, Inc., an industrial supply company, to provide assurance about the change in existing customer satisfaction over the last three years. Gonzales' management has indicated that the criteria it intends to use to evaluate customer satisfaction are a combination of customer retention rate and increase in peso sales. Gonzales' management will provide a schedule of the customer satisfaction measures and a note that describes the criteria used Required If Gonzales wants to provide the presentation and CPA's report for general use by prospective customers, identify any available standards that provide guidance for such a service and the type or types of services that your firm could provide

Assume that you are a partner with the firm of Santos & Lopez LLP. You have been asked by Gonzales, Inc., an industrial supply company, to provide assurance about the change in existing customer satisfaction over the last three years. Gonzales' management has indicated that the criteria it intends to use to evaluate customer satisfaction are a combination of customer retention rate and increase in peso sales. Gonzales' management will provide a schedule of the customer satisfaction measures and a note that describes the criteria used Required If Gonzales wants to provide the presentation and CPA's report for general use by prospective customers, identify any available standards that provide guidance for such a service and the type or types of services that your firm could provide

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Suppose that Switch decide to extend the business operations to nutrition consulting whereby they offer consulting services with a focus on energy and performance enhancement. In addition, they provide nutrition plans that include nutrition plans that include recommendations for including Switch Energy drink into their diets. The business unit has been able to acquire many customers despite its recent entry into the market. However, management are concerned that they may lose customers, similar to their product line. Provide a report in which you recommend to management, how they could instil a service culture within this unit so as to avoid the loss of customers.
Petal Providers Corporation, described in Problem 1, is interested in estimating its additional financing needs to support a rapid increase in sales next year. Last year revenues were $1 million, the net profit was $50,000, the investment in assets was $750,000, payables and accruals were $100,000, and equity at the end of the year was $450,000. The venture did not pay out any dividends and does not expect to pay dividends for the foreseeable future. A. What would be your estimate of the additional funds needed next year to support a 30 percent increase in sales? B. How would your answer in Part A change if the expected sales growth were only 15 percent?
per board and fixed costs of $300,000. Determine: The number of skateboards required to sell to breakeven. The profit if they have been selling about 8,000 pr year. a) Now, they are considering undertaking an advertising program with GBC Promotions that would cost $150,000 (additional fixed cost) and increasing the price by $160 to $400. Find the number of skateboards required to sell at $400 and make the same amount of profit as in part “b”. b) What is the % sales decline that can occur in c, to make the same profit as before
Classique Designs sells a variety of merchandise, including school shoes for girls. The business began the last quarter of 2013 with 30 pairs of the “Aerosoles” brand at a total cost of $54,000. The following transactions, relating to the “Aerosoles” brand were completed during the quarter: October 3 Purchased 45 pairs of shoes at a cost of $1,900 each. October 15 Sold 55 pairs to Casually Elegant Ltd at a unit price of $2,780 October 26 Purchased 70 pairs at a cost of $2,400 each but these were subject to a trade discount of 5%. November 10 Sold 60 pairs to Best City Store which yielded total sales revenue of $192,000. November 14 Owing to an increased demand for this brand, the manager of Classique purchased 80 additional pairs of the “Aerosole” brand at a unit cost of $2,500, but additionally there was freight charge of $100 on each pair. November 24 Sold 60 pairs of shoes to Big Buy Company at a price of $3,600 each. November 30 A physical…
Sage Hill Inc. had the following balance sheet at December 31, 2016. SAGE HILL INC.BALANCE SHEETDECEMBER 31, 2016 Cash $ 9,600 Accounts payable $ 14,500 Accounts receivable 14,000 Bonds payable 8,800 Investments 15,500 Common stock 36,900 Plant assets (net) 35,500 Retained earnings 32,300 Land 17,900 $ 92,500 $ 92,500 During 2017, the following occurred. 1. Net income was $ 23,700. 2. Depreciation expense was $ 8,100. 3. Sage Hill liquidated its investment portfolio (comprised of available-for-sale investments), realizing a $ 3,200 loss. 4. Sage Hill issued $ 20,800 of common stock at par. 5. Dividends of $ 8,200 were declared and paid to stockholders. 6. Accounts receivable and accounts payable at December 31, 2017 were $ 15,800 and $ 13,900, respectively. 7. Sage Hill obtained $ 8,200in plant assets in exchange for issuing bonds. 8. Sage Hill purchased additional plant assets for $…
Assume Tea brands ChotooChai and BaraChai are competing brands in the market. With arrival of winter season, ChotooChai announces good promotional deals. Using ‘Comparative Statics Analysis’ of demand and supply model: a)How will the managements of the two brands study the short-run and long-run impact on Tea Sales, after the announcement of promotions in the market of Tea? B)Demonstrate and explain, with clearly labelled two panel diagrams, the ‘Rationing Function’ and the Allocating or ‘Guiding Function’ of Price
Betty, the chief of nursing executive, need to make a decision about buying 340 new hospital beds for patient rooms. After she interviewed nurse managers at the units where the beds were going to be placed, Betty compiled her findings and decided to contact a well-known equipment company to obtain prices and a bid. No bids from other companies were obtained. The equipment company’s executive salesperson, Jim, discussed options at length with her and invited her and her significant other to an upcoming all-expense-paid, lavish junket at a five-star hotel in Hawaii to see demonstrations of the beds and experience a comprehensive sales program. Betty thought, “We badly need some relaxations and stress relief. Hawaii would be so much fun. Would it be wrong for us to go? If you were Betty, what would you do? Justify your answer with ethical framework: theory, approach or principle. Discuss the ethical principles at stake. What breaches are possible? Do you consider this situation a conflict…
Jennifer has a small business mixing and selling essential oils. One product is a mixture of two oils, lavender and peppermint. She asked her assistant, Carmen, to check on two suppliers to determine the costs for her next batch. Carmen contacted the suppliers and got quotes from each for the order. She misplaced the number of ounces of each oil she needed to purchase. The information she has is: Supplier A: lavender: $5.80$5.80/ounce peppermint: $4.20$4.20/ounce Total cost: $128.40$128.40 Supplier B: lavender: $4.50$4.50/ounce peppermint: $5.00$5.00/ounce Total cost: $124$124 She decides to solve a system of equations to determine the number of ounces of lavender, LL and of peppermint, PP, she should order. What system of equations can Jennifer use to find LL and PP?
Joel Deaine, CEO of Deaine Enterprises Incorporated (DEI), is considering a special offer to manufacture a new line of women’s clothing for a large department store chain. DEI has specialized in designer women’s clothing sold in small, upscale retail clothing stores throughout the country. To protect the very elite brand image, DEI has not sold clothing to large department stores. The current offer, however, might be too good to turn down. The department store is willing to commit to a large order, which would be very profitable to DEI, and the order would be renewed automatically for two more years, presumably to continue after that point. Required: Explain two of the implementation tools covered in this chapter that Joel can use to implement his strategy.
Joel Deaine, CEO of Deaine Enterprises Incorporated (DEI), is considering a special offer to manufacture a new line of women’s clothing for a large department store chain. DEI has specialized in designer women’s clothing sold in small, upscale retail clothing stores throughout the country. To protect the very elite brand image, DEI has not sold clothing to large department stores. The current offer, however, might be too good to turn down. The department store is willing to commit to a large order, which would be very profitable to DEI, and the order would be renewed automatically for two more years, presumably to continue after that point. Required: Determine Joel’s competitive strategy (cost leadership or differentiation) and use this strategy to analyze the choice Joel faces.