State Manufacturing - Minicase

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Slide 1: Title
Slide 2: Story
1. State Manufacturing Company
a. Farm Equipment
2. Italian Distributor
b. 2 companies represented said he it was genuine
c. Paid bills regularly
d. No problems
e. Open account
3. Jim Mason – Sales Manager
f. 1st impulse
i. FOB factory price + Export Packing + inland freight cost

FOB Price 21,500.00
Containerization 200.00
Inland Freight 798.00
Semi Total 22,498.00
ii. Additional fees that the buyer would bear:

Documentation Fees$ 90.00
Ocean Freight 2,633.00
Semi Total $ 2,723.00
Total $ 25,221.00
4. Traffic Manager
Called freight forwarder to ask on the frequency of trips
5. Freight Forwarder (exporting agents)
g. Handle documents
h. Offers advice regarding shipment transports, packing, insurance, markets, regulations etc. i. Forwards documents to the bank after shipment
j. Offers help to Jim Mason
iii. CIF (cost, insurance, freight, foreign port) to be more competitive Containerization$ 200.00
Inland freight less handling 798.00
Forwarding and Documentation 90.00
Ocean freight 2,633.00
Commercial risk insurance 105.00
Marine insurance – total of items 167.15
Plus value of materials21,500.00
TOTAL $25,493.15
Slide 3: Problem
1. Afraid of LOSING to Competition
Slide 4: Cause
1. Mason was a NOOB
a. First time to quote a sale for export
b. FOB price of the export sale
i. 20% Sales expense
ii. 10% Advertising and Promotional
iii. 10% Research & Development
Slide 5: Recommendation
1. Has 2 phases
a. 1st research
i. Competition
ii. Market
c. 2nd depends on the firms objectives
iv. Low competition
v. High competition
vi.

State Manufacturing...
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