March 26, 2011
Dr. Kamal L. Ranasinghe
CelluClear Wireless Goes Global
Cellular phones are the most sophisticated invention in this modern time. An individual can stay in touch with each other anywhere and use of cell phone on the go has been very popular. Cellular phones come in every shape and size that it is comfortable to carry and cell phones have become an essential gadget to almost everybody (Aiello, 1998). CelluClear wireless is the manufacturers that produce mobile phones in America. They produce the Alpha and Beta model cell phones that sell in the market (University of Phoenix, 2008).
CelluClear has the opportunity to secure an important business transaction with the Big Box chain, a telephone company from Canada that Kendra Sherman wants to close. Lars Norman the production manager shows interest because he has an excess of 70,000 units over the next three months and if the factory makes good profit he‘ll make a big bonus. An order of 100,000 Alpha units represents a substantial order for the factory. Lars Norman has several choices to consider. He must decide if Sherman should accept the order from the Big Box chain and produce the units in the factory. If he decides to accept the order, he could also decide to shift 30,000 unit production capacity assigned to the Beta model or contract the additional 30,000 units to the original equipment manufacturer (OEM) to complete order without compromising Beta unit production. A third choice would involve outsourcing the entire order of 100,000 Alpha units to the OEM. The order must be fulfilled within 90 days, and Lars Norman must make decisions to address the need (University of Phoenix, 2008).
Issues and Opportunity Cost with Exporting and Importing Strategies
The issues are how to determine the economic interest for the factory in terms of client relations (McConnell & Brue, 2004). Lars Norman can apply the concept... [continues]
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