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Question 1
You have the sole distributor for Lafuma products in Australia (you even got an agreement to prove it). Lately, you noticed that someone is importing the same products in huge quantities from Hong Kong (where it is 40% cheaper) and selling them in Paddy’s, Parklea Market, and other outlets (which are not your retailers) at a substantial discount. Assess the problems that this parallel import has on you. How would this parallel export problem affect Lafuma of France in terms of overall worldwide sales?
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- Which of the following is relevant to Kitchenware.com’s decision to accept a special order at a lower sale price from a large customer in China? a. The cost of shipping the order to the customer b. The cost of Kitchenware.com’s warehouses in the United States c. Founder Eric Crowley’s salary d. Kitchenware.com’s investment in its Web siteConsider you are Marketing Manager in a Toyota Indus Motors, which is the leading automobile manufacturer in Pakistan. As you know that lot of new players are coming in Pakistan recently and more are expected to come in result of lucrative government policies. Considering the current growing automobile market in Pakistan suggest best defensive and offensive strategies for Toyota to help them stay number one. Requirements: Before answering this question, you must do some market research about competitors and consumers to understand the current market situation. You will easily find lot of relevant data on internet. Relate your suggested strategies with current market dynamics. Provide proper references. Use bullets, tables, graphs etc to support your arguments.You are a supply chain manager at a UK firm. In 2010, a volcano broke out in Iceland, disrupting air travel across Europe. On the one hand, you are considering switching to local suppliers in the UK. On the other hand, you feel bad about abandoning your Asian suppliers, with whom you have built a pleasant personal and business relationship, and who – in the long run – may be able to deliver products much cheaper. Yet, your tightly coordinated production cannot afford to miss one supply shipment. How do you proceed?
- Consider a Japanese firm that sells product Y in the local market and contemplates sales to the US. If the Japanese firm enters the American market it will compete in quantities against a US firm already in the market. The inverse demand for Y in the US is Pus = 250 - Q (all prices and costs in this problem are in ŞUS), where Q = qu + qj, is total quantity eventually sold by the two competitors. The production of Y requires operating a plant at a fixed cost F = 300, as well as 1 unit of labor and 1 unit of capital per unit of output. Currently, at both the US and Japan the cost of capital is $15/unit and that of labor $10/unit. The Japanese firm has the option to either invest directly in operating a plant in the US, or use at no extra fixed cost its already existing plant in Japan, shipping its product to the US. In that case a transportation cost of $10/unit has to be paid on top of any production cost; also, American customs require a $5/unit duty for any Y imports. a) Find the…Please answer this question *Explain and discuss the direct and indirect impact of economic exposure on a UK department store (seller of a wide range of iterns; clothes, gifts, toys, electrical goods, etc.) if there were an * unexpected downward movement in the UK & that was expected to last for some vears. The department store has 80% of its stores in the UK and 20% of its stores in FranceQUESTION 1 Yat Tom Yam Sdn Bhd is a Malaysian resident company that carries out the "Thai Bowl" business as a franchisee in Northern Malaysia. "Thai Bowl" branches are placed in several delis in hypermarkets and have a lot of fans from local and also tourists because of its signature Thailand original taste. "Thai Bowl" is owned and originated by Mr. Pranom the founder of Thai Bowl Ltd, a company registered in Thailand. The following are scenarios that happen in Yat Tom Yam Sdn Bhd as a franchisee: i. To use the "Thai Bowl" name, every year, Yat Tom Yam Sdn Bhd has to pay a royalty to Thai Bowl Ltd at the beginning of the basis period of the company which is every 1 March. The royalty is amounting to 3% of the previous annual sales that the company made. The company made about RM1.5 million in sales in the year 2022. ii. Apart from that, the company is obtaining the supply to produce "Thai Bowl" from Thai Bowl Ltd for the "secret recipes" and also from Thai Bowl's trusted suppliers,…
- You own a small business that produces high quality cut flowers. While you have many customers your largest buyer is Blooming Smart Ltd, a large retail outfit with a national chain of outlets that accounts for 50% of your orders on average. Blooming Smart Ltd has now requested that you extend credit terms to them better than what you offer to your other buyers. 1)Do you see anything ethically wrong with what Blooming Smart is trying to do?Suppose Coca-Cola and Pepsi Companies have each one affiliate in Sultanate of Oman. But Coca-Cola affiliate was able to reduce the cost of its raw materials more than Pepsi affiliate which leads to the increase of its market share in the Sultanate of Oman. Which of the following exposures do 14 you think is the Omani affiliate of Pepsi Company facing? O a. Translation exposure O b. Economic exposure O C. Accounting exposure O d. Transaction exposurePlease explain all options 1) HST is A) Applicable on all invoices you issue but not on vendor invoices B) Applicable on all invoices you pay but not on invoices issued c) 13% is uniformly paid to the federal government in Canada d) A tax you include in your payments to your contractors 2) Competitive advantage can be gained through a) Skimming pricing strategy b) Focusing on distribution of your products in large retail stores c) Customer service enhancements d) Strategically following a low cost strategy 3) Which of the following is not a cash outflow a) Taxes b) Payments for future purchases c) Depreciation d) Payroll costs 4) If cost of goods sold is high relative to sales, it implies a) High variable costs b) That it does not matter c) High profit margin d) High fixed costs 5) Which one of the following is not true about franchising? a) Franchising contracts can include area developers b)Franchisee has full operational freedom c) Franchisor supports the operations of the…
- i-Qua group is a drinking water factory in US. As the business progresses, demand is increasing in Texas, Chicago and New York. And the company owner plans to build a factory so that customer needs in the area can be met without having to send from the main factory. Some of the considerations for decision making can be seen based on the data below: a. How much is the annual sales volume (box) for each area to be able to compete on a competitive advantage strategy with competitors? b. What do you suggest to the company based on the cost data above for the location of its factory construction? Explain why and use the calculation data so that decision making can be in accordance with the company strategy that you have learned.Which of the following is an example of managing economic exposure by flexible sourcing policy? An American company sells its products in Brazil and Portugal. Reduced sales in Brazil due to the dollar appreciation against the “real” can be compensated by increased sales in Portugal due to the dollar depreciation against the euro. If yen is strong, it is preferable for a Japanese company to open a manufacturing subsidiary in the U.S. to produce and sell its products there. An American IT company hires software developers in Ukraine because of the weak position of grivna against dollar. A Canadian company spends a lot of money for research & development activities to improve its reputation and gain more customers.Transfer Pricing and Ethical Issues Paterson Company, a US -based company, manufactures and sells electronic components worldwide. Virtually all its manufacturing takes place in the United States. The company has marketing divisions throughout Europe, including France. Debbie Kishimoto, manager of this division, was hired from a competitor 3 years ago. Debbie, recently informed of a price increase in one of the major product lines, requested a meeting with Jeff Philips, marketing vice president. Their conversation follows: Debbie: "Jeff, I simply don't understand why the price of our main product has increased from $5 to $5.50 per unit. We negotiated an agreement earlier in the year with our manufacturing division in Philadelphia for a price of $5.00 for the entire year. I called the manager of that division. He said that the original price was still acceptable - that the increase was a directive from headquarters. That's why I wanted to meet with you. I need some…