Management
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Situational Analysis
Sorzal has been an importer and distributor of wise variety artifacts since the 1900s. Today, Sorzal has many competitors in this artifacts business. Many competitors and even Sorzal try to sell their products at a cheaper price. Some areas try to increased trade regulations, which made it harder to export or import items around the worlds. Even though Sorzal has face many problems through out the years, Sorzal still have a gross sales about $25 million and have increased at a relatively constant rate of 20% per year over the last decade.
Problem
The key problem is that Sorzal should make a decision to whether or not they should sign a contract with a mass-merchandise department store chain.
The mass-merchandise department store chains want to increase the line of Sorzal products and an assortment of authentic items.
If Sorzal agree to sign the contract, the chain would purchase the products at 10 percent below Sorzal existing prices and that its initial purchase would be for no less than $ 750,000.
Alternative Plans
Sorzal can sign the contract with mass-merchandiser
Sorzal can not sign the contract with mass-merchandiser
Advantages- Sign the contract
At least $4 million annually in sales
Sorzal able to expand their market share
More products for customer to choose from
Competitive advantages
Disadvantages- Sign the contract
Triple its replica production
Not a unique company anymore
Have different business strategy
Customer might found it difficult to continue do business with Sorzal
Advantages- Not sign the contract