Handy Andy, Inc., a maker of trash compactors, had a problem with how the distribution of their products was being done by distributors and retailers alike. The company made two models of trash compactors the standard and the deluxe, the latter having more capacity thus a higher price. The distribution of the trash compactor to the end user worked like this, a customer makes an order for a trash compactor through a licensed retailer, once the order is made the retailer buys from the distributor to fulfil that order and then delivers it to the customer. The initial agreement between Handy Andy Inc. and the distributors was based on delivering and installing all units in a period of 5 days after an order was made by a retailer, as compensation …show more content…
There are several problems with the way distributors and retailers were handling the distribution of the trash compactors. First the retailers offered such a bad customer service that it was making customers wished they never bought the trash compactor in the first place. Retailers took longer than they should to deliver trash compactors to customers and after doing so they didn’t offer any help in the installation process and in some occasions were rude towards customers. If the poor customer service continues customers will eventually buy trash compactors from other retailers that do not carry Handy Andy Inc. brand. Customer service is considered the most important factor in order to generate sales and the quality of customer service is usually the factor that determines if the customer buys from you or the competitor, but somehow these retailers forgot that. Second because it was in the best interest of distributors to sell the deluxe trash compactors due to their higher price they would contact the retailer’s customers that made orders for standard trash compactors and …show more content…
In order to convince the buyer of purchasing the deluxe version distributors created the incentive of fulfilling repair orders of deluxe units before standard units. This behavior is not only unethical but it also decreases the quality of customer service because the customer already decided to buy the standard version and not the more expensive deluxe trash compactor. The last thing a customer wants is having to cancel his or her order due to the item not being in stock and having someone on the phone trying to sell them a more expensive version. This behavior would eventually result in lower sales due to customers having a bad experience when they buy from these retailers. Third, distributors were telling customers that they were the ones offering the one year warranty and not Handy Andy Inc. By doing this distributors were discrediting Handy Andy Inc. in order to gain popularity among customers. Once more distributors proved how unethical and unreliable they were.
There are several things that the distribution manager of the company can do to improve the distribution of the trash compactors and hopefully fix the problems mentioned above. In order to fix the problem of distributors taking the full credit for the warranty being offered, and contacting retailer’s customers
In the beginning of March the newly joint corporation, McKesson HBOC started a negotiating process with Oracle Corporation. Unfortunately for McKesson, the negotiations ended without a contract. On April 1 Bergonzi let Hawkins know that he found an offer that could be a good deal. The agreement would require McKessonHBOC to sell $20 million worth of software to Data General, along with a license and a right to return any inventory that was not sold during the period of 6 months. The corporation would also have to help Data General find customers for the product. In return, they could buy $25 millions worth of computer hardware. The contract was signed on April 5 the same year. The senior management thought that backdating the sales and purchases would raise the company's revenues up to the desired levels. In order to cover their actions, the company created a false delivery receipt that showed the date of the delivery as March 31, 1999, while in reality the product was delivered in April. Both, the information about the $25 Million purchase of hardware from Data General as well as the return agreement concealed from the public.
Friganim Importing Co. v. B.N.S. International Sales Corp. Facts: Friganim Importing Company sued B.N.S. claiming that B.N.S. breached warranties in two contracts that they had entered into. In the first of the two contracts, Frigalimnet had agreed to sell 75,000 pounds of 2.5 to 3 pound chickens and 25,000 pounds of 1.5 to 2 pound chickens. The second contract consisted of 50,000 pounds of 2.5 to 3 pound chickens and 25,000 pounds of 1.5 to 2 pound chickens. (smaller chickens where priced slightly higher in this contract than the first agreement)
Tommy Takem owns a small appliance store in the southwest part of the state of Virginia. Tommy has built his business on targeting the poor, unsophisticated, and uneducated in the Appalachian regions of Virginia, Kentucky, Tennessee, and West Virginia. There is little competition in the region where he sells his goods; therefore, he charges 10-20% higher prices than the nearest retail competition. Furthermore, as a ruse to increase sales, Takem’s has hired a few high pressure salespeople to go door-to-door selling the appliances and electronics at a markup of 30% more than his retail location, though this information is not disclosed to the purchaser. Also, as most of Tommy’s clientele have poor credit, the financing is handled by Takem’s Appliances as well, with an additional charge of 15% plus the highest interest rate allowable by
However prior to the modern understanding of Consumer Rights there was a understanding of Caveat Emptor – Buyer Beware –this has been a fundamental premise of consumer wellbeing prior to World War ‖ , relation to transactions, principle that the buyer purchases at his own risk in the absence of an express warranty in the contract . This common law rule assumes that buyers and sellers are in an equal bargaining position. However there has been evident change in consumer rights which have contributed to the precedence of using Caveat Emptor is no longer acceptable, apparent in the case ACCC v Hewlett Packard Australia (HP), illustrated that no longer can a company ...
The 3 percent decline in sales causing a 21 percent decline in profits can be attributed to the identification of the accounting concept of operating leverage. Operating leverage is what business managers apply to boost small changes in revenue into sizable changes in profitability. Fixed cost is the force managers use to attain disproportionate changes between revenue and profitability. Therefore, when all costs are fixed every sales dollar contributes one dollar toward the potential profitability of a project. Once sales dollars cover fixed costs, each additional sales dollar represents pure profit. A small change in sales volume can significantly affect profitability (Edmonds, Tsay, & Olds, 2011). So, therefore, if sales volume increases,
(Cheeseman2013)In the case of Metrix Warehouse V. Mercedes Benz of North America it was an exclusive franchisor of Mercedes-Benz dealerships in the United States and, among other things, it was responsible for the sale and distribution of Mercedes-Benz replacement parts to its franchised dealers. Metrix Warehouse was an independent automobile parts distributor who sold Mercedes-Benz replacement parts to independent garages repair shops and to Mercedes-Benz dealers. The franchise agreements Mercedes Benz of North America had with its dealers, however, required the dealers to buy Mercedes-Benz replacement parts only from Mercedes Benz of North America. Metrix filed a suit against Mercedes Benz of North America for putting into practice the requirement
Not all trash finds its way to a landfill. I have acquired amazing treasures: perfectly good furniture and toys from curbsides and Dumpsters. My Grandfather always said “one man’s trash is another man’s treasu...
The provisions for suppliers of products is to require them to provide proportionally equal assistance to all competing resellers of their products (Dufresne 1972). An example would be an instance in Lakeland, Florida consisting of ‘free’ offers of an established brand’s toothbrush with the corresponding brand’s toothpaste (Dufrense 1972). However, the 1971 ‘free’ guide only allows for situations in which the offer is proper, and if no sale has been made prior (Dufrense 1972). The 1971 ‘free’ guide addresses that when a new product or service is being introduced, it must be at the same price for which it was promoted for (Dufrense 1972). This means it would not be permissible in this instance to sell the toothbrush or toothpaste for any cost other than ‘free’ because when the supplier decided to sell the toothbrush when it came out as new as ‘free,’ The Lakeland example addresses how the supplier would then be required to offer the special promotion to all drug stores, grocery stores, and other miscellaneous shops in which are competing in and around Lakeland promoting the brand to be sold (Dufrense
Some quantities of the company’s products find their way to unapproved outlets or distribution channels. This gray market for Callaway’s products can undermine authorized retailers and foreign wholesale distributors who promote and support the company’s products and can negatively impact its image in the minds of its customers. On the other hand, stopping such sales could result in a potential decrease in sales to those customers who are selling Callaway products to unauthorized distributors and/or an increase in sales returns over historical levels.
Happy Chips, Inc. is faced with a serious problem, with only having one mass merchandise customer called “Buy 4 Less” being unhappy with the company’s operating performance. Buy 4 Less had several problems cited including frequent stock outs, poor customer service responsiveness, and high prices for the products being supplied. Buy 4 Less came up with solutions they think seem fit to fix the problems they found with Happy Chips, Inc. and if Happy Chips, Inc. wishes to remain a supplier to their company they will have to incorporate these changes. The problem however with this scenario, is that employees of Happy Chip, Inc. are not happy with the demands Buy 4 Less has bestowed upon them which include providing direct store delivery four times a week instead of three, installing an automated order inquiry system to increase customer service responsiveness, and decreasing product prices by 5%. Even though the easiest thing for Happy Chips, Inc. to do is to agree to the changes Buy 4 Less wants them to do, Wendell Worthmann, the manager of logistics cost analysis doesn’t agree to the changes right away. The main problem with this case is that Buy 4 Less is Happy Chips, Inc. one and only mass merchandise customer that accounts for 400,000 annual unit sales and 12% of annual revenue. With the mass merchandise segment having such a high profit potential, Happy Chips, Inc.
Waste Management, Inc. remains the industry leader in collecting and burying trash, currently holding 273 landfills capable of holding 4.8 billion tons of trash. Additionally, they hold 91 recycling facilities, and 17 waste-to-energy facilities. However, 75% of its profits currently come from collecting waste for landfills, which is worrying because customers are now reducing waste, with major corporate customers attempting to go completely waste free. Furthermore, customers now want their waste recycled, and advocacy groups are petitioning against current landfill practices. In addition to their evolving external environment, they also host an internal environment that seems unable to swallow the changes to their customer base. Their infrastructure
Dell, Tyson, Samsung, and watermelon farms purchase boxes to ship their products to stores and occasionally directly to consumers. Grocery stores and fast food restaurants purchase paper sacks to hold the customer’s goods. McDonalds and Starbucks acquire the coffee cups directly from the manufacturer. Cutsize paper is purchased and distributers, like Wal-Mart, Staples, and Office Max, break the pallets and sale individual reams and cartons to consumers. The vast majority of the buyers of paper are major customers, and they often prefer generic products; therefore purchasers have tremendous bargaining power. Manufacturers attempted to raise prices in the mid 2000’s, but they met with strong opposition and the efforts failed (“Paper business in mature”’, 2013). Even when manufacturers shifted modes and found methods to produce paper more cheaply by increasing productivity as much as 30%; buyers demanded, and received lower prices from the
Recycling should be a well-known phenomenon by now, right? In my community, homeowners are given a recycling bin and it is surprising to me how few actually take advantage of it. As I am driving down the street in my neighborhood, I often times see more trash bins than recycling bins on trash pick up day. I am appalled at the fact that many people fail to recycle and instead throw away items in garbage bins. One solution to this issue could be for Americans to become more aware of what they are buying and be sure not to buy goods they will not use or consume. "Average household credit card debt topped the landmark of $10,000 in 2006." (69) Most goods that were bought that year were thrown away just a few years later, which is a horrific statement. By purchasing only goods that are needed and paying closer attention to recycling, the landfills that cover America could be greatly reduced. Most individuals are not aware of what happens to their garbage, or they simply do not care where it ends up. I will admit that even I do not give much thought as to where my garbage ends up, but I do my best to recycle, as well as most of my friends and family. A large quantity of the garbage thrown into landfills escapes and ends up in oceans— especially plastic bags—but it could also be pieces of plastic, glass, and so
Dave Armstrong is about to graduate from Harvard Business School and is facing three career options. The decision problem that Armstrong should be considering is not which of these three jobs should he take, but rather what job will satiate his career goals. By asking this, Armstrong can gain a complete perspective of his options instead of being confined to three career options that may not be in his best interests. His objectives are not clearly outlined in the case; however, we can infer from the manner in which he is describing the jobs that he would like to have ownership in a company, enjoys thrilling non-office jobs, and wants to grow his network. Also, he has to take into consideration his wife’s objectives for him of having a job
Our world is getting to the point to where we will be surrounded by trash. There are hazards happening because of the excess trash, which could have been recycled. Although the government is not doing their best to make these hazards stop, surprisingly it is the non-governed organizations that are trying to make the difference. Proven studies and facts have been made about these issues, so people should take this into consideration and start recycling more. Recycling is a beneficial process that is not required globally like it should be because citizens are uneducated on the process and what it can do. People who are not recycling do not know the hazards they are causing everywhere.