Unit 2 Case Study-
“Fe’nix Del Sur is company that sources and sells a wide variety of South American and African Artifacts. They are also a major source of southwestern Indian authentic jewelry and pottery. “ One of the decisions they are faced with is whether or not to sign a contract that will inevitably increase their net worth but may change the face and market strategy of their business. To evaluate this decision I will use the DECIDE process. 1. Define the problem: The problem with the decision they are faced with is that the contract states they must increase their replica business significantly in order to work with a mass merchandise department store. This is not their go to market strategy and could affect current business and how their reputation in the market. Enumerate the decision factors: Alternative courses of action include renegotiating the contract to reduce the amount of replicas Fe’nix Del Sur must make to do business here. Uncertainties include the fact that the department store may simply say we are not interested and move on to another source, or they may say no; these are the terms set. Consider relevant information: Relevant information includes the fact that Fe’nix has current “gross sales of $25 million and consistently grow 20% per year over the last decade.” If they choose to sigh the contract and do business with the mass merchandise department store; their sales will increase $4 million. Fe’nix Del Sur prides themselves on authentic artifacts and have many loyal buyers that come to them for this specific reason. They do a small amount of replicas currently but will be required to increase these numbers significantly. Identify the best alternative: The best alternative must be decided by owners and upper management. What is more important? Significant growth in gross sales or the reputation they have built over the years? I feel that if their reputation is ruined then sales could decline over the years. This...
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