I will consider the following: * Put together a cost-justified solution that truly conveys value-added communication. * Send a break up of cost sheet over to Occidental to justify the price. * Try and understand through meetings and deliberations with the purchase team of Occidental what is that is not of value to them instead of assuming them. * Charging the support service separately from the machine * Take a critical look at the emerging competition in the next meeting to sustain profitability. * Suggest to top management the
However single sourcing can be devastating for a firm, worst scenario the firm would not receive any products. The supplier could also lack the capacity to meet the demand from the buying firm regarding such matters as quantity and quality. Multiple sourcing is more common when the firm seeks to enhance competition and flexibility. The cost will be reduced because of competition and the risk with not getting any products will be reduced. Also the buying firm will get more
Poor quality of goods or services can later cause early repairs that cost more money already unjustly spent. Corruption hinders economic development, reduces social services and affects the poor. When the quality of the products or service is poor it affects the health and human safety. Projects that do not comply with environmental standards can cause damage now or in the future to the environment. Innovation, better solutions or ideas into a good or service that creates value, is neglected or unwanted.
If Sheryl Conan uses the direct method as her supervisors wants her to it will distort the cost of goods sold and hides the decline in market value. Investors and stockholders in the company would be harmed if Dick Wright’s preference is used. By using the direct method to write down inventory it would be manipulating critical information that would be used to figure out costs of goods sold; which in turn would give wrong calculations to determine selling prices and to establish profit margins. These incorrect calculations would also mislead possible future investors in the company by not clearly showing the decline in market value. Sheryl Conan should use the allowance method that would reflect that would clearly disclose the decline in market value and not use the other method as her supervisor wants her to.
In contrast to above mentioned advantages of the inventory model, one biggest disadvantage of this kind of model is that one has to compromise on the capital efficiency. The reason is that the companies have to buy the product from vendors in advance. In one hand the capital gets tied in the inventory in the other hand the company is exposed to the inventory mark down risk. Flipkart currently follows the inventory based model. Market Place model: The disadvantage of capital inefficiency of inventory based model forced organizations to look for other options.
For instance, limiting price levels can force new suppliers within the market to function at a loss, thus, allowing the existing market to prevent any potential competition. Becoming an independent supplier means having absolute control over the market. Hence, the price level can be altered in their favour as consumers will have no choice but to 'take' or accept the price as there is only one producer within the given industry. Furthermore, the market equilibrium could be deliberately increased as consumers must accept higher prices. This broken interaction between supply and demand creates restriction of consumer choice, ultimately preventing an adequate level of market equilibrium.
Buyer Power Market size Size and value of each order Differences between competitors Price sensitivity Ability to substitute Cost of changing Buyer Power Market size Size and value of each order Differences between competitors Price sensitivity Ability to substitute Cost of changing Competitive Rivalry: Many competitors? Differences in the quality of competition? Switching costs for customers? Can you ensure customer loyalty? Cost of leaving the market?
Knowledge is power and for retailers, product knowledge can mean more sales. It is difficult to effectively sell to a consumer if we cannot show how a particular product will address a shopper's needs. One of the most important stages of selling is closing the deal, which are the actions taken by the sales person to gain agreement to the sale. There are many closing techniques in sales, which are prescribed actions that sales people take to persuade the customer to make the necessary commitment. No matter how hard you work, how well you prospect and qualify and regardless of how well you design solutions for customers, if you are weak in closing sales, you will suffer in the sales career.
Managers need to be careful of overpricing or under-pricing goods due to allocation of costs to each product. As was shown with the Wilkerson case on further analysis of costs using the activity based costing method the company had been under-pricing some goods while over pricing others. This was affecting their profits and their ability to make sound business decisions on the pricing of products to meet market demands. 6. Activity based costing is more complex to use however used correctly should improve the accuracy of allocating indirect costs to cost objects.
Delta’s Case Study Bases on Customer Service Theory Introduction For many corporations, gaining profits should be their primary assignment; otherwise a firm may face the possibility of budget deficit or closing down. Under this circumstance, customer service program becomes an unpopular, expensive and even dispensable item for an increasing number of firms. However, what firms cannot ignore is that they are doing business with customer. Ignoring customer service once might not lose much, but ignoring it repeatedly could bring a huge disaster to any business. In this connection, the situation of Delta indicates the lack of attention to customer service could finally hinder the running of a business.