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Essay / Research Paper Abstract
This 3-page paper examines ClearHear and supply chain decisions. Bibliography lists 2 sources.
Page Count:
3 pages (~225 words per page)
File: D0_MTcleahear.rtf
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Unformatted sample text from the term paper:
Alpha model) to support major chains Big Box promotion. Though ClearHear has an excess capacity of 70,000 phones, Big Box wont pay more than $15 for each of the cell
phones (which are based on the $20 Alpha model). Its possible to switch the line to the Beta model, which would be cheaper to produce, to complete the order. However,
the quality wouldnt be quite the same. Further complicating the matter is that an OEM offered a prototype of an Alpha unit - not only could this OEM product up
to 100,000 units of Alpha on short notice, the price would be $14 per unit. In other words, if ClearHear went with this OEM, it could realize a dollar per
phone of profit. Mixed up in this are profitability reports demonstrating underutilization. Furthermore, going to the OEM, on the surface, goes against the companys statement of values. How, then, should
ClearHear proceed? On the surface, it would seem natural that going completely with the OEM would be the best way to go. Though it seems to go against the grain
of keeping employees working, depending on a business partner can actually create value in an organization (and its supply chain) (Sytch and Gulati, 2008). Sytch and Gulati point out that
when managed properly, dependence on a partner can provide a boost to the companys performance (Sytch and Gulati, 2008). How does this work? When two companies are working together (rather
than competing against each other), they can enhance the others value base (Sytch and Gulati, 2008). In the case of the scenario above, its probably better to have the OEM
working on behalf of ClearHear, rather than against it. Furthermore, there is little doubt that most supply chains are more interorganizational, meaning everyone, from the business partner, to the employees,
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