Question: Overview: These problems are meant to encourage deeper thinking on the material presented in the textbook. You are to answer ALL questions presented in the
Overview: These problems are meant to encourage deeper thinking on the material presented in the textbook. You are to answer ALL questions presented in the problem using the knowledge you have gained throughout the textbook. However, do not simply repeat what is in the book. Use that information and interpret it the best you can to apply it to the situation.
Requirements: Review the information and questions below. Provide a detailed 4-5 sentence explanation on how you would solve the problem or issue, based not only on the readings in the chapter, but your own personal experience and/or any additional outside research you perform. If quoting a source directly, make sure to cite that source, but do not rely solely on quoted materials.
Issue: Swan Sports manufactures golfing equipment. Traditionally, the company has been busy all year but has noticed that over the past few years business has fallen off in October and November. If new business does not come in this year, the company will have to lay off some long-time employees for those 2 months. Rob Patell, a sales representative, received an order from Better Equipment Co., a competitor. Better Equipment cannot meet a customers rush order on time and is willing to subcontract the work to Swan Sports on the condition that the Better Equipment Co. namenot Swan Sports nameappear on all products. The order is at a price substantially below Swan Sports usual selling price. The only way this order can be produced is to use lower-quality materials than Swan Sports normally uses in its own products. Rob Patell has recommended to his supervisor that this order be accepted and that lower-quality materials be used. Patells reasoning includes the following points: a. It is clearly a one-time order. b. Swan Sports name will not appear on it. c. Workers will not have to be laid off during October and November. A differential analysis shows that Swan Sports will lose $1,000 on the order.
Questions to be Answered:
1) What should the sales supervisor consider before making a decision?
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