Please help me with this case, thank you!

This memo is further to my memo dated September 25th, to all the staff regarding the OSR issue. I would like your team to assess what, if anything, PPP Inc. is currently doing which would fall under the category of OSR. Also, what, if anything, you think we should be doing, given our limited resources. As you will know, I have a team looking at the possibility of outsourcing the production of our skis in Mexico. I believe there will be obvious financial advantages in doing so. On the other side of the coin there will be negative social costs as such a move would entail laying off employees. You may want to express an opinion as to the OSR advantages and disadvantages of such a move. I take particular pride in our product being marked as a 'Product of Canada'. It speaks to quality. If we have parts made in Mexico and then assemble them in Canada, we can no longer mark the product as before. We would have to mark it 'Made in Canada.' Our customers would probably not understand the difference. Please conside the ethical implications of this. You may want to make some suggestion as to what might be done, in the event that the Board of Directors votes to proceed with the outsourcing option, keeping in mind that the Outsourcing Team will be dealing primarily with the business and legal aspects. Any suggestions from you should take into account the business aspects of the decision. If you have any questions, my door is always open. ("PPP Inc.") Minutes of the Board of Directors Meeting held on the 16th day of May, 2022. Present: Regrets: ., Absent: Opening comments: Benton Counter discussed the difference between the use of a 'proxy' and a 'power of attorney'. A proxy is used by a shareholder who is unable to attend a shareholders meeting, to designate another shareholder to vote for the absent ahreholder. A proxy cannot be used by a director who is unable to attend a board of directors meeting. The director who is absent must grant a power of attorney to another person, who can then attend and vote. 1) Meeting called to order at 11:41 on May 16, 2022. 2) Approval of the agenda as circulated. Moved: Mackenzie Baker For: 31 Against: None 3) Adoption of new Logo Second: Matthew Carew Abstentions: None 3) Adoption of new Logo Discussion: Simran Grewal like the colour of the proposed logo; Mackenzie Baker suggest that the existing logo was more thrilling like our sport; Matthew Carew asked about the cost of switching and suggested using the existing colour; Benton Counter confirmed that different departments were already using the existing logo with different colours; Janelle Hagerman and Aynsley Hurtado were in favour of the existing logo. Firoz Vohra offered another logo for consideration; Benton Counter said that the motion on the floor was between the existing and proposed logos. So, the new suggestion would have to be considered at the next meeting. The motion was called. Moved: Simran Grewal Second: Firoz Abstentions: 2 For: 18 Against: 9 Board of directors decided to stay with the old logo according to the votes. 4) Report of the President: The President, Benton Counter, brought to the attention of the directors the quote received from G'Day, Mate River Rafting Supplies Limited. The total sale price is $38,500.00. Counter cautioned the Board that such a sale without instruction on the use of the skis might well result in numerous returns, reducing the profitability of the transaction. Furthermore, the quote does not include an order for poles which are necessary for the successful operation of the skis. And are bindings included? Counter explained that accepting the order as is would result in a direct loss of $533.10. The President reported that rather turning down the G'Day Mate offer, he will attempt to negotiate a more formal, long term relationship with G'day Mate, such as a distribution agreement, and Mr. Counter will report further at the next board meeting. Firoz raised the point that the taxes are paid by the buyer so what if the taxes are also deducted from the price, this way there will be negligible loss in case 5) are also deducted from the price, this way there will be negligible loss in case G'day continues to do business with the company. Strategic Planning Regarding the possibility of 'Going Global. . The current financial position of the company was brought to the Board's attention by the circulation of the Comparative Financial Statements for the Year ending June 30, 2020, which shows a loss of ($107,008.50) compared to a profit of $102,102.00 for the previous 2019 year. Although the current position of the Company is not critical, if growth is to continue then changes may be in order. What followed was a brainstorming session on the possibility of the outsourcing of production and other alternatives as a strategic response to the reduced sale of skis domestically. The following suggestions were discussed: The President raised the point that it is not that dire, we are coming out of the pandemic and things are settling. Some overview about the analyzed Income statement. One of the BOD raised the point that our Marketing specialized pointed out that we should send our guides to other countries for instructions and demos. One of the BOD pointed out the article about going global and how outsourcing could be a good option for the company's growth. And how outsourcing the production to India can be beneficial as it will cut down the cost of fiberglass. Janelle Hagerman suggested other Products to build up brand loyalty. Hans Berg suggested new protective products such as helmets, padded gloves and body wear. Consider opening a plant In India. (Not financially at the stage to open a whole new business in another country) Simran Grewal warned of slow market acceptance in India. Consider opening a plant in Mexico with Made in Canada vs Product of Canada considerations.. Condition of workers unto standard. Monitor for outsourcing. Improve working conditions here to prevent unionization. Firoz Vohra suggested How about white-water rafting in Mexico? If we are going to Australia, we could go into New Zealand as well because it is a similar market. If we are going to Australia, we could go into New Zealand as well because it is a similar market. Argentina and Brazil are big on water sports. Rental companies at the beach. Before exploring the global market, the company should have a solid foundation in the domestic market. Does the company have that? The President answered that we have been in the market for a while and according to him we have a stable domestic market (BC). What about focusing more on the traditional Water sports market. How about Europe? Ours is a luxury product and Europe has money that could afford the product. Focus on Mexico for now. Has potential. Outsource. Frank Allen said if we go after Australia we should go after New Zealand, too. Amya Arora suggesting expanding to Southern Islands such as Cuba, Barbados as people come from all over the place and it is an expanding market and top tourist spots. Expand the personnel for training. Gimena Machado suggested Uruguay. Ansley Hurtado people try such extreme sports activities on vacation to places like Mexico. Accessory products: Putting logos for brand loyalty. People don't pay attention to that. According to today's generation it is more about social media. Social Media marketing: Instagram, paid campaigns, sponsor products through Tik tok as it is more global. App to connect with apple watch and some kind of reward for that, Website displays. Kenia suggested and Counter agreed on a scoreboard system - most ski days, most rivers, etc.. Matthew Carew suggested GoPros on helemts. Both Simran Grewal and Gimena Machado suggested working on the website. Janelle Hagerman suggested sports spokesperson and sponsorships. Outsourcing can lead to losing jobs inside Canada initially but expanded sales means creation of more assembly jobs here. Corporate social Responsibility: Zoe jodoin suggested sustainable sourcing such as river clean ups.. 6) The President dealt with Information Items: as river clean ups.. 6) The President dealt with Information Items: Employee roster to be circulated for review as to accuracy. The use of first and last names in inter office communications CETA will facilitate trade with the EC CUSMA in force as of July 2020 ensuring continued movement of goods tariff free between the three countries. 7) There being no other business, the Chair of the meeting requested a motion for adjournment. Moved and unanimously approved. This memo is further to my memo dated September 25th, to all the staff regarding the OSR issue. I would like your team to assess what, if anything, PPP Inc. is currently doing which would fall under the category of OSR. Also, what, if anything, you think we should be doing, given our limited resources. As you will know, I have a team looking at the possibility of outsourcing the production of our skis in Mexico. I believe there will be obvious financial advantages in doing so. On the other side of the coin there will be negative social costs as such a move would entail laying off employees. You may want to express an opinion as to the OSR advantages and disadvantages of such a move. I take particular pride in our product being marked as a 'Product of Canada'. It speaks to quality. If we have parts made in Mexico and then assemble them in Canada, we can no longer mark the product as before. We would have to mark it 'Made in Canada.' Our customers would probably not understand the difference. Please conside the ethical implications of this. You may want to make some suggestion as to what might be done, in the event that the Board of Directors votes to proceed with the outsourcing option, keeping in mind that the Outsourcing Team will be dealing primarily with the business and legal aspects. Any suggestions from you should take into account the business aspects of the decision. If you have any questions, my door is always open. ("PPP Inc.") Minutes of the Board of Directors Meeting held on the 16th day of May, 2022. Present: Regrets: ., Absent: Opening comments: Benton Counter discussed the difference between the use of a 'proxy' and a 'power of attorney'. A proxy is used by a shareholder who is unable to attend a shareholders meeting, to designate another shareholder to vote for the absent ahreholder. A proxy cannot be used by a director who is unable to attend a board of directors meeting. The director who is absent must grant a power of attorney to another person, who can then attend and vote. 1) Meeting called to order at 11:41 on May 16, 2022. 2) Approval of the agenda as circulated. Moved: Mackenzie Baker For: 31 Against: None 3) Adoption of new Logo Second: Matthew Carew Abstentions: None 3) Adoption of new Logo Discussion: Simran Grewal like the colour of the proposed logo; Mackenzie Baker suggest that the existing logo was more thrilling like our sport; Matthew Carew asked about the cost of switching and suggested using the existing colour; Benton Counter confirmed that different departments were already using the existing logo with different colours; Janelle Hagerman and Aynsley Hurtado were in favour of the existing logo. Firoz Vohra offered another logo for consideration; Benton Counter said that the motion on the floor was between the existing and proposed logos. So, the new suggestion would have to be considered at the next meeting. The motion was called. Moved: Simran Grewal Second: Firoz Abstentions: 2 For: 18 Against: 9 Board of directors decided to stay with the old logo according to the votes. 4) Report of the President: The President, Benton Counter, brought to the attention of the directors the quote received from G'Day, Mate River Rafting Supplies Limited. The total sale price is $38,500.00. Counter cautioned the Board that such a sale without instruction on the use of the skis might well result in numerous returns, reducing the profitability of the transaction. Furthermore, the quote does not include an order for poles which are necessary for the successful operation of the skis. And are bindings included? Counter explained that accepting the order as is would result in a direct loss of $533.10. The President reported that rather turning down the G'Day Mate offer, he will attempt to negotiate a more formal, long term relationship with G'day Mate, such as a distribution agreement, and Mr. Counter will report further at the next board meeting. Firoz raised the point that the taxes are paid by the buyer so what if the taxes are also deducted from the price, this way there will be negligible loss in case 5) are also deducted from the price, this way there will be negligible loss in case G'day continues to do business with the company. Strategic Planning Regarding the possibility of 'Going Global. . The current financial position of the company was brought to the Board's attention by the circulation of the Comparative Financial Statements for the Year ending June 30, 2020, which shows a loss of ($107,008.50) compared to a profit of $102,102.00 for the previous 2019 year. Although the current position of the Company is not critical, if growth is to continue then changes may be in order. What followed was a brainstorming session on the possibility of the outsourcing of production and other alternatives as a strategic response to the reduced sale of skis domestically. The following suggestions were discussed: The President raised the point that it is not that dire, we are coming out of the pandemic and things are settling. Some overview about the analyzed Income statement. One of the BOD raised the point that our Marketing specialized pointed out that we should send our guides to other countries for instructions and demos. One of the BOD pointed out the article about going global and how outsourcing could be a good option for the company's growth. And how outsourcing the production to India can be beneficial as it will cut down the cost of fiberglass. Janelle Hagerman suggested other Products to build up brand loyalty. Hans Berg suggested new protective products such as helmets, padded gloves and body wear. Consider opening a plant In India. (Not financially at the stage to open a whole new business in another country) Simran Grewal warned of slow market acceptance in India. Consider opening a plant in Mexico with Made in Canada vs Product of Canada considerations.. Condition of workers unto standard. Monitor for outsourcing. Improve working conditions here to prevent unionization. Firoz Vohra suggested How about white-water rafting in Mexico? If we are going to Australia, we could go into New Zealand as well because it is a similar market. If we are going to Australia, we could go into New Zealand as well because it is a similar market. Argentina and Brazil are big on water sports. Rental companies at the beach. Before exploring the global market, the company should have a solid foundation in the domestic market. Does the company have that? The President answered that we have been in the market for a while and according to him we have a stable domestic market (BC). What about focusing more on the traditional Water sports market. How about Europe? Ours is a luxury product and Europe has money that could afford the product. Focus on Mexico for now. Has potential. Outsource. Frank Allen said if we go after Australia we should go after New Zealand, too. Amya Arora suggesting expanding to Southern Islands such as Cuba, Barbados as people come from all over the place and it is an expanding market and top tourist spots. Expand the personnel for training. Gimena Machado suggested Uruguay. Ansley Hurtado people try such extreme sports activities on vacation to places like Mexico. Accessory products: Putting logos for brand loyalty. People don't pay attention to that. According to today's generation it is more about social media. Social Media marketing: Instagram, paid campaigns, sponsor products through Tik tok as it is more global. App to connect with apple watch and some kind of reward for that, Website displays. Kenia suggested and Counter agreed on a scoreboard system - most ski days, most rivers, etc.. Matthew Carew suggested GoPros on helemts. Both Simran Grewal and Gimena Machado suggested working on the website. Janelle Hagerman suggested sports spokesperson and sponsorships. Outsourcing can lead to losing jobs inside Canada initially but expanded sales means creation of more assembly jobs here. Corporate social Responsibility: Zoe jodoin suggested sustainable sourcing such as river clean ups.. 6) The President dealt with Information Items: as river clean ups.. 6) The President dealt with Information Items: Employee roster to be circulated for review as to accuracy. The use of first and last names in inter office communications CETA will facilitate trade with the EC CUSMA in force as of July 2020 ensuring continued movement of goods tariff free between the three countries. 7) There being no other business, the Chair of the meeting requested a motion for adjournment. Moved and unanimously approved