Critically analyse how competitive forces in the industry have shaped Foschini Group (TFG) strategy.
Q: CASE BACKGROUND The MGMT Insurance Ltd. accepts payments on various insurance policies from…
A: A marketing department is a section or team within an organisation that is in charge of coming up…
Q: What are workplace dynamics, and why are they important for creating a positive and productive work…
A: Workplace dynamics are necessary to create a positive and productive work environment. They help to…
Q: FAO-Funded Aquaponics Project Launched In Barbados Barbados GIS – The United Nations Food and…
A: Note: The answer has been framed in a generalized manner. The above case is about training 30…
Q: Project management ethics matter.
A: Introduction: The ideals and principles that direct people's conduct and decision-making are…
Q: What are the considerations in designing a quality survey?
A: A survey is an efficient way of gathering data and opinions from people. It allows the collection…
Q: Can you please give an answer how can we as managers convince people to do things they don’t want to…
A: Workplace motivation is a key factor in the employee relations. It is important because it can be a…
Q: 1. Is the corporate governance framework of PSBI effective: What operational policies did its major…
A: Introduction:The collapse of the Philippine Savings Bank, Inc. (PSBI) in 2019 has raised questions…
Q: Do you think interruptions might boost machine efficiency and reduce idle time?
A: Note: The solution is provided in a generalized way. Interruptions are a common occurrence in many…
Q: What types of safety issues can arise when we finalize the specifics of our action plan and…
A: In the design and execution of every project, safety and risk management must take precedence. It is…
Q: Which of the following argues that scientific findings should form the foundation for management…
A: Management education is critical in preparing future leaders to navigate complex organisational…
Q: a. Suppose that the government stimulates the economy by altering es to keep supply the same (solve…
A: Introduction: The given model represents the relationship between price, demand, and supply. We are…
Q: write an action plan with 6 Smart objectives in order to better my self, my team and my organisation
A: An action plan may be considered as a roadmap of what must be done to achieve goals. It lists the…
Q: Explain how leaders best meet the motivational needs of employees?
A: Introduction A business leader is someone who inspires a team to work together towards a single…
Q: ________ commitment exists when there is a sense that staying at a firm is the "right" or "moral"…
A: Normative commitment is based on a principle that states employees feel committed towards the…
Q: What are the challenges which organizations face to be competitive in the present global…
A: The global economy and other concepts like it are no longer just of academic curiosity because of…
Q: You will be creating a Project Implementation Plan for the new service to be offered by your…
A: Culinary tourism refers to the exploration of food as the goal of tourism. It is the type of tourism…
Q: It has been argued that leaders are either made or born. Using leadership theories demonstrate if…
A: For many years, people have argued about whether leaders are created or born. While some individuals…
Q: What is the most effective leadership style for managing a diverse team with varying levels of…
A: An effective leadership style develops a great workplace culture, supports personal development and…
Q: Business Strategy and Policy Scenario A group of University students are considering opening a new…
A: Starting a new business in the tourism sector is a challenging task due to the highly competitive…
Q: Please provide more information on the Service Process Structuring.
A: Service process structuring refers to the design and organization of the activities and tasks that…
Q: Analyze TCS' HR practices with respect to its policy related to compensation of its employees.…
A: Introduction: Tata Consultancy Services (TCS) is a leading global IT services, consulting, and…
Q: How can job specialization be used to develop employee skills and career paths?
A: The process of job specialization involves an organization breaking down work into more specialized,…
Q: From the perspective of your department and management level, discuss the impact that your issue…
A: Introduction: As an Information Technology Manager, it is important to analyze and understand the…
Q: What is the role of continuous improvement in the management process, and how can managers…
A: Introduction Kaizen, or continuous improvement, is a process for finding opportunities to eliminate…
Q: The importance of employee motivation
A: Employee motivation refers to the driving forces behind an employee's behavior and actions in the…
Q: What are the different forms of ownership that a business can adopt, and what are the advantages and…
A: Ownership refers to the legal right of an individual or group to possess, control, use, and dispose…
Q: Why would a business need physical barriers?
A: Introduction Natural disasters like thunder or man-made structures like walls or doors can create…
Q: There may be a difference between the performance of a manager and the performance of the…
A: In an organization, managers can be found at several levels. They could serve as the organization's…
Q: Howcan a manager create a culture of accountability and ownership within team?
A: Concept Introduction : Accountability refers to the idea that team members are responsible for their…
Q: Identify the contextual influence that you believe will pose the greatest challenge to companies’…
A: A company's competitiveness refers to its ability to compete effectively in the market, attract and…
Q: Explain the benefits of the Wholly-Owned Subsidiaries Entry Mode 1.Control 2. Brand Recognition…
A: The organization will have a specific structure based on the organizational size, and market…
Q: Which of the following is true about the CPI and Transparency International? a. The CPI tracks…
A: Introduction: The CPI (Corruption Perceptions Index) and Transparency International are important…
Q: How can leaders use their leadership style to foster a positive organizational culture?
A: Leadership is the capacity to uplift, encourage, and direct people towards a common objective or…
Q: Internal Factors: Leadership Great leaders inspire and direct. Often the way they do that most…
A: An organization is defined as a collection of individuals who associate together to accomplish a…
Q: Which of the following examples shows an effective way of dealing with the international element of…
A: Organizational behaviour (OB) is a field of study that investigates the behaviour of individuals and…
Q: List and describe several Internet e-commerce options, including company models, payment methods,…
A: The Internet has transformed shopping and business practices. E-commerce, or electronic commerce,…
Q: Can you help me respond to this question, please Why is it important for international marketers to…
A: According to our guidelines, we won't be able to provide you with references and citations. The…
Q: What are the similarity or difference between United States and Germany in terms of the following:…
A: Introduction The United States and Germany are close allies today. Millions of Germans immigrated to…
Q: How are strategic managers built? briefly please
A: Strategic plans are established in a business by key planners, analysts, and risk leaders known as…
Q: Compare and contrast covert and overt leadership in terms of their significance in the exercise of…
A: Leadership is the capacity to persuade and inspire people to work towards a common objective.…
Q: How do you give an explanation about the laws that impact salary?
A: Introduction Employees are required to be paid on time and fairly by The Equal Remuneration Act and…
Q: Please review this Gantt chart it should consist a minimum of 10 tasks Create a partial project…
A: Gantt Chart A Gantt chart is a project management tool that shows the relationship between work…
Q: By reference to the data in part A: 1. Return on investment (ROI), residual income (RI), and…
A: Introduction: In today's business environment, understanding the financial health of a company is…
Q: Describe Lean Development and its advantages in five lines and provide two instances from your…
A: Lean Development is an approach that focuses on minimizing waste and improving development…
Q: You have recently been hired at a medium-scale food factory in Grove, East Bank Demerara, which…
A: If not properly processed and disposed of, the waste from food manufacturing facilities can have a…
Q: What are the potential risks and uncertainties that may arise during the implementation of a…
A: Concept Introduction :-. The strategic plan typically includes a statement of the organization's…
Q: Question. . Describe how can a manager create a culture of accountability and ownership within…
A: Being a successful leader requires holding oneself and others fully responsible for one's attitude,…
Q: Is there anything you would have done differently as an IT manager to ensure the success of an ERP…
A: Enterprise Resource Planning (ERP) systems have evolved into an indispensable instrument for…
Q: Critically analyse the extent to which DAK’s organisation structure influenced its overall business…
A: Please note that, the snapshots provided are not at all readable; however, the question is clear, so…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Examine strategies that Foschini can use to gain more market share in the retail industry.
- Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Based on this case, do you think international purchasing is more or less complex than domestic purchasing? Why? Is it worth the additional effort?The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Calculate the total cost per unit of purchasing from Original Wire.
- The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Based on the total cost per unit, which supplier should Sheila recommend?The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Calculate the total cost per unit of purchasing from Happy Lucky Assemblies.The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Are there any other issues besides cost that Sheila should evaluate?
- Ay 1 - mcq Company X and Company Y Ahrens Vitamins. Inc., have high market commonality, both geographically and in the market segments in which they compete. Company X, the number two firm in the industry, has undertaken a major strategic attack upon Company Y, the market leader. Which of the following statements is MOST likely to be true? A. Company Y will respond after a long delay as the nutrition supplement industry is a slow-cycle industry. B. As the market leader, Company Y has little to fear from an attack by Company X and will not expend organizational slack ana major response. C. Company Y will respond aggressively because of the high multimarket contact between both companies. D. Company Y will not respond aggressively since this is a strategic move and not a tactical action.The Cebu Pacific Group is a Filipino airline group headquartered in Manila that operates subsidiary low cost-carriers; Cebu Pacific and Cebgo. The group aims to create the largest budget airline network between Asia and the Philippines. CEBU AIR Inc., The listed operator of budget carrier Cebu Pacific, faced some devastating financial losses on its operations during the pandemic due to the “heavy impact” of the global health crisis. In the years prior, the company has recorded billions of increasing income before tax, however, 2020 is a different story. In the said year, the company’s total revenues dropped along with the number of passengers it carried and the number of flights it directed. In the early months of 2021, Cebu Air announced that its board of directors had approved the company’s employee long-term incentive plan.Cebu Air would allocate up to a total of 2% of its issued and outstanding common shares to be granted to “eligible employees.” The purpose of the plan was to…Air Asia is a low-cost airline operating primarily in Asia. It was the first airline in Asia to operate under the low fare no-frills model first introduced in Europe. Air Asia enjoyed for quite a while some success in a very competitive industry where many firms have failed. This case considers Air Asia’s development, its business model, and the reactions of some of its competitors. The objective is to use Porter’s Five Forces Model and seek to evaluate if Air Asia’s success is sustainable in the market it has defined for itself. What competitive advantages does Air Asia enjoy at the time of this case? Do you think these advantages are sustainable?
- Kantanka Limited is a family-owned automobile manufacturer with origin in Agona Swedru in the Central Region of Ghana. Kantanka Limited manufactures and sells saloon cars, trucks, SUVs, and trailers with related accessories. The Company is the current market leader, but is considering outsourcing their automobile production to increase margins. A large scale outsourcing move would be a first for the industry, and the Company wants to know if this is a worthwhile proposition. There are two options being explored: (i) full outsourcing an automobile manufacturing plant in China; (ii) outsourcing final production in Ivory Coast with parts provided from China. You are free to use relevant diagrams/frameworks/figures in supporting your answers to the questions below What could be the problem(s) justifying the outsourcing decision? Should the Company outsource their automobile production and why? Which outsourcing option is the optimal choice? Your response should engage with the criteria…Kantanka Limited is a family-owned automobile manufacturer with origin in Agona Swedru in the Central Region of Ghana. Kantanka Limited manufactures and sells saloon cars, trucks, SUVs, and trailers with related accessories. The Company is the current market leader, but is considering outsourcing their automobile production to increase margins. A large scale outsourcing move would be a first for the industry, and the Company wants to know if this is a worthwhile proposition. There are two options being explored: (i) full outsourcing an automobile manufacturing plant in China; (ii) outsourcing final production in Ivory Coast with parts provided from China. You are free to use relevant diagrams/frameworks/figures in supporting your answers to the questions below NOTE; PLEASE I NEED A DIFFERENT VIEW OR ANSWER APART FROM THE PREVIOUS ANSWER GIVEN. What could be the problem(s) justifying the outsourcing decision? Should the Company outsource their automobile production and why? Which…Kantanka Limited is a family-owned automobile manufacturer with origin in Agona Swedru in the Central Region of Ghana. Kantanka Limited manufactures and sells saloon cars, trucks, SUVs, and trailers with related accessories. The Company is the current market leader, but is considering outsourcing their automobile production to increase margins. A large scale outsourcing move would be a first for the industry, and the Company wants to know if this is a worthwhile proposition. There are two options being explored: (i) full outsourcing an automobile manufacturing plant in China; (ii) outsourcing final production in Ivory Coast with parts provided from China. You are free to use relevant diagrams/frameworks/figures in supporting your answers to the questions below a. What could be the problem(s) justifying the outsourcing decision? b. Should the Company outsource their automobile production and why? c. Which outsourcing option is the optimal choice? Your response should engage with the…