No Essay Example | Topics and Well Written Essays - 750 words - 1

No - Essay Example It would be hard for the company to be able to do the transaction without it being a donation. From the proposal, the company would be selling the Panini at three dollars per piece. Considering that the company spends four dollars on every Panini in the production, the company will be operating the transaction at a loss of one dollar every sale. His being the case, the company can only accept the proposal only where the transaction is a donation to the MBA students or if it were a marketing strategy and they would increase the prices later. b) Starbucks currently sells a Stainless Steel Clip Handle Tumbler - Gold, 16 fluid ounces in its stores for $22.95. Starbucks buys the Tumbler from a manufacturer in China for $ 9.00. A representative from a company in Vietnam is offering to sell them for 25% less than cost from the manufacturer in China. Discuss the issues that you would consider in deciding whether or not to accept this offer. In deciding whether or not to accept the offer from the manufacturer in Vietnam, I would consider various factors. These factors include: the quality of the products, the durability of the products, the ability to serve the purpose for which they are acquiring. Mainly, I would consider the quality, considering the low cost of the products; the quality of the materials would probably be compromised. Due to this, I would critically evaluate all the aspects of the product to ascertain that the quality of the products is at par. Besides this, I would consider the accessibility of the products from the supplier. Since Vietnam is a country that is not well developed, I would consider how the goods are to be moved from the country to Starbucks premises since the cost of acquisition would be higher in the long run due to transport costs. Basically, I would focus mainly on these areas. When preparing an incentive plan for the store managers, it should be budgeted to