ou are the new CEO of a major well-established automotive manufacturer in South Korea, but you are concerned that the longstanding price war in the industry is undermining profits for all firms in this sector. However, you have been warned by your company’s in-house corporate lawyers not to openly discuss pricing with rival firms. In several cases, you know the other CEOs personally because you graduated from the same business school as they did. Required: Given this dilemma, how would you develop an effective strategy to ensure you act in the best interests of your company, but without engaging in collusion, which is illegal? Discuss

ou are the new CEO of a major well-established automotive manufacturer in South Korea, but you are concerned that the longstanding price war in the industry is undermining profits for all firms in this sector. However, you have been warned by your company’s in-house corporate lawyers not to openly discuss pricing with rival firms. In several cases, you know the other CEOs personally because you graduated from the same business school as they did. Required: Given this dilemma, how would you develop an effective strategy to ensure you act in the best interests of your company, but without engaging in collusion, which is illegal? Discuss

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

Chapter2: The Purchasing Process

Section: Chapter Questions

Problem 1GPE

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When a carmaker offers different types of models under a particular brand, such as the Mitsubishi Montero Sport utility vehicle that is offered as GLX (around 1.2 million pesos), GLS (around 1.4 million), and GTV (around 1.7 million) variants, is this an example of product length or of product depth? Explain.
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