Great Western Bank H7-1 Case.docx - Case Preparation Chart...

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Case Preparation Chart v2017 Case Title: Great Western Bank Case H7-1 Name: Jooseung (Jason) Kim Character Name Position Who: The Great Western Bank The Bank Buyer Section Blank See Student Worksheet Section II – Start of Case Analysis A. Issues Immediate Basic (Requires immediate attention) 1. Recovering from the loss. 2. Replacement of the new accounting machines 3. Breach of contract 4. Shipping it to different carrier Designate Urgency/Importance (high or low) (Derived by grouping related facts) 1. Communication Issue 2. Shipment Insurance 3. Lack of Risk Management 4. Relationship with vendor Designate Urgency/Importance (high or low) B. Case Data Analysis Apply problem solving tools The Great Western Bank of San Diego ordered 12 special-purpose accounting machines with the Data-Max Corporation of Cincinnati, Ohio. They both agreed on $9,500 firm-fixed price with FOB the shipping point. The Bank buyer designate a particular carrier (Yellow Freight) which Data-Max confirmed and returned a signed acknowledgement copy without changing any of the terms and conditions. Three months later, Data-Max shipped them via a different common carrier than Yellow Freight and at the same time, Data-Max sent an invoice to the bank. Data-Max has chosen a different carrier than Yellow Freight, and they also offered 2% discount if the bank pays it immediately. At that time the shipment has not been arrived. During the shipment, there was a accident and the machines were all broken. All the 12 machines were total loss. At this moment both parties are arguing for the responsibility. Data-Max is claiming that the contract was in FOB and the bank has signed the invoice (which stated all of the dates and method of shipment). However, the Bank is arguing that Data-Max did not use the
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