Clear Hear Scenario - Running head: CLEAR HEAR SCENARIO 1...

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Running head: CLEAR HEAR SCENARIO 1 Clear Hear Scenario Charles Blackstone ECO/561 January 3, 2011 Dr. Saeed Tabriz
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CLEAR HEAR SCENARIO 2 Clear Hear Scenario Clear Hear is a manufacturer of cell phones. Recently Big Box, a telephone service provider has requested Clear Hear to provide 100,000 cell phones that are nearly identical to Clear Hear’s Alpha model. Clear Hear business developer Kendra Sherman, is the person responsible for securing the order, which she believes Clear Hear can produce. Kendra has to work out a plan with Lisa Norman Clear Hear’s production manager to see if the order is worth fulfilling. Lisa is interested in delivering the order because there is a current excess capacity of 70,000 cell phone units over the next 3 months, and part of her bonus is based on running the factory at capacity, but the larger part of her bonus is based on the factory total profitability. After analyzing the scenario, I realized that Clear Hear number one priority is to produce a reliable product for their customer. The time constraint of 90 days that Big Box has requested their order to be fulfilled presents a major problem to Clear Hear, and could impact the quality of their product if not carefully monitor. Clear Hear current production process does not support the quick production of 100,000 phones, now they have to create an alternative solution. Lisa has a few ways the company can produce the 100,000 phones being requested by Big Box. The first one is to use the excess capacity of 70,000 cell phone\ units, and switch the production of their Beta model line to produce the other 30,000 needed. The second option is to produce 100,000 new phones with Original Equipment Manufacturer (OEM), who has developed an award winning process for developing phones on short notice. Additionally, Lisa has to consider Clear Hear’s statement of values, which are to keep employees working, provide customers with products on time and that reliably meet or exceed their expectations, ant treat our business partners the same, as we want to be treated.
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Clear Hear Scenario - Running head: CLEAR HEAR SCENARIO 1...

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