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Market Leader Intermediate 3rd edition SB


ACTIVITY FILE 9 International markets, Skills, Exercise E, page 88 Student B 1 You are a buyer for a department store. Because the market for handbags is very competitive, you want to: • pay the same price this year as last year • have a shorter delivery time of two weeks • get a three·year contract with the supplier. 2 You are the director of a kitchen equipment company. Because business conditions are difficult, you want to: • continue to pay ali your European agents a commission of 5% • communicate with agents more frequently by phone and e·mail • use as many different distributors as possible to seli your goods • offer agents shorter contracts, with a maximum period of three years. 9 International markets, Case study, page 89 Information file: Pampas Leather Company Models Quality Quantity You can supply three models: the Clubman, the Nightrider and the Look. The Clubman wili be costly to produce, as it is hand·finished. made of high·quality leather and has a unique design. To reduce costs of production, you wili outsource the manufacture of the cheapest model, the Look, to a Chinese firm. You want WCA to place an order for at least 3,000 jackets. You need a large order to cover the costs of the additional workers you wili have to hire to deal with the order. Try to persuade WCA to buy a large number of the Clubman model, as you make most profit from this model. Prices Unit cost of production Prices quoted to WCA Payment Discounts Delivery Guarantee Clubman $110 $380 Nightrider $100 $280 Look $80 $150 By bank transfer as soon as the goods have been despatched. Your policy is to offer new customers a 2% introductory discount on list prices for a first order, and 3% for further orders. Prompt delivery within one week of the agreed date. Three years. Working across cultures 3, page 90 The six mistakes were: 1 Hospitality is a matter of honour in the Arab world. It is polite to accept at least one cup of coffee or tea. 2 AI-Jabri was probably surprised that Coliins hadn't bothered to see at least something of Riyadh, a city that AI-Jabri was proud of. 3 Coliins shouldn't have been upset that AI-Jabri interrupted the meeting to take telephone calis. This is usual practice in the Arab world. 4 If a guest admires something belonging to an Arab host, the host may sometimes offer it as a gift. 5 Coliins did not prepare properly for his presentation. 6 He misinterpreted AI-Jabri's comment 'if God pleases'. This did not mean that AI-Jabri had agreed to place an order. 138 scanned for Paul Jennings

ACTIVITY FilE 11 leadership. Case study. page 111 Director 1 In your opinion, the company should do the following: • Agree to be taken over by the French retailer Universelle, so that the company will become stronger financially. • Focus on other sports, such as golf, rugby and ice hockey, where the competition is less fierce. • Reduce the company's dependence on the football and athletics market. • Concentrate more on lifestyle and fashion products, e.g. trainers and footwear for informal occasions. • Introduce a more open slyle of management, giving responsibility for some decision·making to lower levels of management. This will improve staff morale. Prepare your presentation. You may add any other ideas of your own for improving the company's performance. 11 leadership. Case study. page 111 Director 3 In your opinion, the company should do the following: • Bring out collections of footwear and clothing by famous international designers, aimed at the top part of the market. The profit margins on such products will be high. • Go upmarket and aim to build a strong image for making luxury sports goods. Source all materials from Europe rather than from the Asia·Pacific region. This will help to keep both prices and quality high. • Make more customised shoes, bags and sports accessories aimed at the top end of the market. This will help to attract consumer attention to the brand. • Restructure the company into a series of business units, each with its own management reporting to the CEO. This will increase competition within the company, leading to greater efficiency. Prepare your presentation. You may add any other ideas of your own for improving the company's performance. 12 Competition. Case study. page 119 Buyers • You each meet one of the suppliers. - Buyer 1 meets Rashid Singh Enterprises. - Buyer 2 meets Pacific Traders. - Buyer 3 meets The Artisans (o·operative. • Get details of the missing information and negotiate to get a good offer to bring back to your company. You would like the following: - delivery by 15 November - a discount of at least 5% on all goods ordered - to be able to return all unsold goods, with the amount credited to your account - a two·year guarantee, if possible. scanned for Paul Jennings 139

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