Your Role/Assignment

Your Role/Assignment

Your Role/Assignment You are a business planner and accountant. Part of your expertise is in helping prospective business owners evaluate the various manufacturing and supplier options available based on the product they manufacture. You have a long history of working with widget manufacturers, which is why Gloria is meeting with you. Additionally, you are an expert in global business issues and can help Gloria review foreign supply options, including the applicable laws, customs regulations, and tax implications of using a foreign supplier versus a domestic supplier. Gloria has come to you to get some advice on which supplier will best meet her needs and objectives.

Your Role/Assignment

You are a business planner and accountant. Part of your expertise is in helping prospective business owners evaluate the various manufacturing and supplier options available based on the product they manufacture. You have a long history of working with widget manufacturers, which is why Gloria is meeting with you. Additionally, you are an expert in global business issues and can help Gloria review foreign supply options, including the applicable laws, customs regulations, and tax implications of using a foreign supplier versus a domestic supplier. Gloria has come to you to get some advice on which supplier will best meet her needs and objectives.

Key Players

Gloria Smithson

Gloria’s business is doing well. She has been manufacturing widgets in the United States, however, the costs for the raw materials have increased 200% with her current supplier. She has found a new U.S. supplier—Greenleaf Manufacturing—that is willing to negotiate costs with her. Gloria has scheduled an appointment with its CEO, Richard Franklin. She is also considering manufacturing her widgets overseas. She traveled to China and met with Jun Chin, who is interested in the contract. She also went to Brazil and met with Mateo Bonilla, who also discussed production with her. Currently, Gloria has been selling approximately 12,000,000 widgets per year, but she recently got a purchase order from a large retailer for 8,000,000 widgets and a guarantee for a minimum of 13,000,000 widgets over the next 24 months. The purchase order states that continued business is dependent on paying no more than $7.34 per widget. Gloria’s current cost to manufacture widgets is $6.22 and she has been selling them for $9.18. Doing business with this large retailer will take Gloria’s business to the next level, but she has to get her costs down.

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