please tell me the key events, problem statement,

situational analysis(SWOT), Porter's five, Alternatives

and its Pros and Cons and recommendations.

the last picture is a brief template about what I need to answer so please answer according to that. Please answer as soon as possible

Question 1 (1 point) Listen Read the case study and then follow the Marking Template to write your report in the space below. If you run out of space, you can go to Question 2 and continue writing it you don't run out of space, you don't need to use Question 2. In February 2016, Rick Fodemesi, director of Cleatsound in a small Oakville. Ontario manicure retailer of high quality headphones and headsets, had just met with purchasing agent from Best Buy Cud Inc. The agent had approached Fodemesi regarding the possibility of carrying a line of Clermond headphones, which involved a potential order of over three times the number of leadphones currently being manufactured each year. However, during the meeting it became apparent that Best Buy had expected a price much lower than Clearsound was prepared to offer. Rick was wondering if it would be possible to agree upon a price, and if so, was it in the best interests of his company to supply headphones to a large retailer such as Best Buy. As he left the meeting at the Best Buy office, Rick was aware that he would have to contact the purchasing agent within a few weeks. COMPANY BACKGROUND Clearsound was started in 1990 by Frank Fodemesi, Rick's father. Frank, an experienced sound engineer and electronics tinkerer, decided to specialize in headphones for people with poor hearing (especially at the higher end of the sonic scale 16,000hz to 20,000hz), a market that had not been fully developed. Typically people age they become less able to distinguish very high pitched sounds which can affect their enjoymer music headphones became his major retail segment Over the year, the company's image had evolved from catering to those who had lost some of their lang range to one of providing high quality sound. As these styles became more popular. Clear's reputation for value (good quality at a reasonable price) attracted a customer base that, while not very large was loyal and was growing gradually In 2006. Rick joined his father in the small family businks, after studying Business Administration at Sheridan College. One of the first things that Rick did was set up a corporate website and begin to engage on social media. He found that these were good for attracting interest, but very little sales, un people wanted to try the headphones before purchasing. The manufacturing and retail facilities were located in the same building in Oakville. Two product lines were manufactured: Clearsound, an over the ear headphone with custom moulded earpieces for mature adults, designed to let you hear sounds that only young people can": and Booster, a headset for those who worked in call centres, but had hearing difficulties. These lines sold in the company's own retail store and were also distributed to a small number of selected stores in southern Ontario. Other lines carried in the retail store but not manufactured by Clearsound included Klipsch, Bose, and Sennheiser, all imported from Germany, a country with a good reputation in high end audio equipment. The Company did not compete with popular lines of headphones and earbuds made by companies such as Beats by Dr Dre, Skullcandy, or Monster. when and The Company did made by companies such as by the Dr, Skudy. For one time. Riek bad wd te the company's of its andeutilized plant facilities Expansion was planned the both the number of retailers and additional product lines by adding that had MEETING WITH BEST BUY A representative from Best Buy had been impressed by a review for Clearsound in Audiophile Review.com leading high end audiophile blog and review website. Fodemesi was contacted, and a meeting and ar Best Buy's Jarvis Street headquarters in Toronto in February 2016. The Best Buy purchasing agent expressed interest in distributing Clearsound headphones o all of their major retail outlets and featuring in m their online store. First year volume was estimated by Best Buy to be as high as 20.000 sets. However, when the topic of price was raised, it became apparent to Rick that Clearsound's regular wholesale price of $130.00 was totally nacceptable to Best Buy. Although the meeting ended without a counter offer from Best Buy, Rick got the impression that Best Buy wanted a price in the S100.00 to $115.00 range. It was decided that the two parties would be in contact in a few weeks when Rick would send the agent several pairs of headphones for closer examination THE COSTING OF CLEARSOUND HEADPHONES The costs of a pair of Clearsound headphones consisted of materials, labour and overhead. Material costs included: Por of Cleansound phone roof rabo Material costs included frame $12.50 persel - electronics 22 50 perse earpiece 20.00 per set packaging: 5.00 per set labour cost: $30.00 per set, based on time studies overhead costs: $20.00 per pair, calculated as follows: overhead (fixed) costs of S120.000 per yout divided by the current production level of 6,000 pairs per year. Although only 6,000 units of Clearsound headphones were currently being manufactured annually (about 300 pairs per month), production of 26,000 sets per year (ovet 2.000 pairs per month) could be accommodated by the plant Rick estimated that if production were increased to the level required by the Best Buy contract, the costs of gearing up production capacity, including hiring new employees, to the higher level would be about 54.00 per headphone produced THE DECISION FACING RICK One of Rick's major corporate objectives was to increase the company's manufacturing activities, as the plant was underutilized. However, he was not sure whether the contract with Best Buy was the best way to do this. He was extremely reluctant to lower his wholesale price, since he was already undercutting his major competitors by 20%. On the other hand, he realized that a contract with Best Buy would allow the Clearsound brand to become established across Canada within a vaar. He felt that being carried by a maior electronics store could enhans Wunderutilized. However, he was not sure whether the contract with Best Buy they ctive was to incre company.com He was extremely reluctant to lower his wholesale price ince he was trying competitors by 2016 On the other hand, he realized that a contract with Best Buy would allow the clear and to be established across Canada within a year. He felt that being carried by a major electronics store could enhance his company's image, and that it would be easier to deal with one customer with a large volume of sales However, Rick was also concerned by the prospect of devoting about 80% of his capacity to one come He might also face problems with his suppliers, especially the electronics, which came from Germany shipments of which tended to arrive late. At the current low level of production, this was not a major problem. However, Rick was unsure how this problem would affect his company at the much higher production levels involved in the Best Buy contract Henso wondered whether or not a high quality specialised headphone wis suitable for mass merchandising and what effect the possibility of a lower retail price by Best Buy might have on his own retail business and on his sales and prices through other retailers. In addition, expansion would mean the hiring of additional workers, and the management issues that might arise. As he drove back from Toronto to Oakville, Rick realized that his decision could drastically change the nature of his company. His initial reaction was that he could not afford to lower the wholesale price, but he wanted to expand production and knew that $130.00 would not be an acceptable price to Best Buy. Within a few weeks he had to contact Best Buy, and wondered what he should do. end of case- Marks 5 Key Events / Case synopsis - Maximum of six (6) sentences here. Provide a brief history of the company, industry, key players, and relevant issues up to the time of the decision/problem. 13 Problem Statement - Be clear what the problem is. Sometimes it is a specific decision to be made, most of the time it is a larger issue. This means that the problem statement will never, be, "Should decide maker do A or B" 25 Situation Analysis - Start with a paragraph that summarises the business situation (eg do strengths outweigh weaknesses? Opportunities vs. Threats). What is the industry? Is it an attractive industry (i.e. profitable) to be in? Why? (3 marks) You will use the following frameworks: Porter's Five Forces, SWOT, Historical Financial Analysis (for some cases only - see following page). SWOT and Financials relate to the company: Porter's Five Forces is about the industry. - See over for allocation of marks by case. Marks are allocated for good points - an absolute minimum of 3 - 4 for each of SWOT Answer the 'so what question. Alternatives & Decision Criteria - Minimum of three alternatives. One short sentence to describe each if necessary. Make sure that your alternatives address the problem. If not, you may need to restate the problem or eliminate the alternative. Separate this section from your analysis (see below) - List the four-six main criteria that the decision maker will use to analyse the alternatives. Two criteria risk and return (profit) will be included in almost all the case studies - therefore no marks for these. 20 Analysis - Separate section from Alternatives. - Do whatever analysis you think is necessary to evaluate each alternative keeping in mind your decision criteria - Pros/Cons is acceptable, but I'd prefer sentences and paragraphs. - If your analysis has a large financial component, place table at the end of the section that summarises the financial results of the alternatives. Recommendation - You must have a sentence that says, "I/We recommend Alternative..." - Do not combine alternatives (if you wish to do so, do it at the alternative stage) - Present your rationale for selecting the Alternative; how does it best solve the problem Statement and Objectives. Why is your recommendation better than the other alternatives? 10 Overall Quality (grammar, sentence structure, logic, clarity, forcefulness of argument, etc.)