For Sale Magnets, Inc. Fmsi Mba Case

Topics: Lead time, Logistics, Safety stock Pages: 3 (1124 words) Published: March 15, 2009
Question 1: Was taking on the large and powerful companies the right thing to do? Ultimately, firms enter markets to compete for market share and grow their bottom line. Marly saw the opportunity for growth and went for it. However, FSMI has no experience with large customers. The best option to address the experience issue would be to take on one major customer and learn the ins and outs of what it takes to satisfy their demand. Then, once FSMI is able to accommodate that customer, they should approach additional large customers. If there were problems or glitches with the initial large customer, FSMI would be able to find alternatives. Once the issues with the initial large customer have been resolved and the necessary systems put in place to maintain that customer, we recommend that FSMI take on the additional large firm. This would lessen the risk of alienating two large customers at the same time. We recommend that FSMI take on the project with Shop Co. initially because their demand requirements are relatively known. Then, we recommend that FSMI take on the project of Car Trader. This would allow FSMI to generate revenue from Shop Co. that may be needed in order to implement the necessary processes to meet the demands of Car Trader. Also, Car Trader would be more agreeable to the delay because it is simply a value-added offer to their website customers with Car Trader brokering the sale while maintaining no stock. FSMI must also continue to maintain the current relationships with the smaller customers for sustainability of FSMI.

Question 2: If this is the route the company wants to take, then what’s the best way to purchase the magnets and packaging? If the company did take the route we recommended in question one, we would further recommend that FSMI continue to work with existing suppliers to maintain the relationship with their small customers. For Car Trader, we recommend that FSMI work with a supplier from Mexico or Central America....
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