Question 1: Identify at least two significant issues you see that Green Cuts should consider in

evaluating the proposal from the North Dakota firm;

Question 2: Provide a thorough description of the information relevant to each significant issue

you identified in 1;

Question 3: About the issues identified in Item 1, please describe thoroughly the consequences

that Green Cuts faces, both positive and negative, of accepting or rejecting the proposal; and

Question

4: Provide a well-thought-out recommendation to accept or reject the proposal supported by an explanation of how items 1-3 led to your recommendation.

For purposes of this exercise, assume that you are a member of the management team of Green Cuts, LLC, which is evaluating a proposal made by a potential vendor to provide a different type of packaging than currently used by Green Cuts. Background information Green Cuts, LLC, is a New Mexico limited liability company, Green Cuts manufactures and sells electrical powered lawn mowers that are coupled with solar powered recharging stations. It is currently developing a full line of outdoor power tools, all of which are electrical powered, and all of which will be able to share the same solar powered recharging stations. The full line, which the company hopes to unveil within the next 18 months, includes a hedge trimmer, a chain saw, a leaf blower, and a leaf mulcher. Information concerning Green Cuts' current operations and its market share as reflected in the included charts: Chart 1 - Cost of Labor; Chart 2 - Market Share for Electric Powered Lawn Mowers; Chart 3 - Number of Units Sold; Chart 4 - Profit Margin. Green Cuts, LLC, distributes its lawn mowers through "approved distributors" across the United States. There are currently 412 approved distributors in 48 states (Green Cuts does not have any approved distributors in Alaska or in Hawaii). All of the approved distributors sell other products in addition to Green Cuts' lawn mowers, including products that are in direct competition with Green Cuts (i.e., the approved sellers sell other powered outdoor equipment, including lawn mowers). By contract, however, the approved sellers are prohibited from selling any competitors rechargeable power tools that are sold with a solar powered recharging station. Operating information Green Cuts sells an electrically powered lawn mower, together with the solar powered recharging station, to its approved distributors for $118, plus shipping costs. The suggested retail price is $229, but the units are retailed anywhere from $169 to $269. $229, but the units are retailed anywhere from $169 to $269. Green Cuts' facilities are wholly located within the State of New Mexico. It buys component parts from a variety of sources, both from within the State of New Mexico and from suppliers in other states. The components are shipped to Green Cuts' factory, where they are assembled into the final product, then packaged and shipped to approved distributors. The lawn mowers and recharging stations are currently shipped in a box suitable for retail, which is made out of biodegradable 1 recycled cardboard. The packaging materials cost $6.00 per unit. The cost of labor to package each lawn mower is $2,00 Proposal A firm based in North Dakota has approached Green Cuts with a proposal to provide a different type of packaging. The proposed packaging is made out of a non-biodegradable plastic and would only cost $2.00 per unit. It would be more difficult to package the lawn mowers in the plastic packaging and would require Green Cuts to hire 15 new employees in its New Mexico factory. The additional labor would increase the cost of labor to $4.00 to package each lawn mower. A firm based in North Dakota has approached Green Cuts with a proposal to provide a different type of packaging. The proposed packaging is made out of a non-biodegradable plastic and would only cost $2.00 per unit. It would be more difficult to package the lawn mowers in the plastic packaging and would require Green Cuts to hire 15 new employees in its New Mexico factory. The additional labor would increase the cost of labor to $4.00 to package each lawn mower. Task Analyze the issue presented and then provide the head of the Green Cuts management team, Gerry Adams, with a comprehensive and concise written memorandum concerning the proposal made by a vendor to provide a different type of packaging. While reading through the case, you might want to think about the issues facing the company regarding the proposal. Chart 1 - Cost of Labor (per unit) Chart 2 - Market Share for Electric Powered Lawn Mowers Remember, you are writing this as a part of the management team to the CEO of the Corporation. Question 1: Identify at least two significant issues you see that Green Cuts should consider in evaluating the proposal from the North Dakota firm; Question 2: Provide a thorough description of the information relevant to each significant issue you identified in 1 ; Question 3: About the issues identified in Item 1, please describe thoroughly the consequences that Green Cuts faces, both positive and negative, of accepting or rejecting the proposal; and Question 4: Provide a well-thought-out recommendation to accept or reject the proposal supported by an explanation of how items 1-3 led to your recommendation