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Chilean electric industries Secret instructions from Eduardo Monroy (Vice-president of Chilean electric industries) You are the vice president of Chilean electric industries, one trade that make some parts for cars. Many months ago, you get a agreement with the Japanese company fabricator of assembler Takeuchi Car’s, to produce a special kind of halogen focus (one edition of “four rays) to a motorcycle of high performance, that the assembler Takeuchi was soon to fabricate in the plant of Bogotá city, Colombia. Through the years, Chilean electric industries to provide an others parts of the assembler Takeuchi with a many products. Their bosses, let it clear that, to this business of alogen focus although their unity probably lost money with the accorded price 15 dollars the unity, to 60.000 yearly unity’s you should, with the final of deepen the relationship Chilean electric – assembler Takeuchi, provide the focus to assembler and find the form to reduce their minimum lost. However, what started as Little financial headache, is becoming now in a realistic nightmare, their engineers to find serious problems in the delicate process to lining of focus. Happens that, owing to atmospheric impurities, of neighboring chemical plant, the process can’t be do in the plant initially program for the production of focus, and must be do it in another installation of Chilean electric industries, that only can be available one year after to the date in that must begin to the delivery of focus to Takeuchi assembler, which is within three months. You, request your bosses’ authorization for to visit Takeuchi assembler to tell about the situation and request that find others providers to the focus. Your bosses to decline naturally. They say you clearly that Takeuchi assembler couldn’t to know about this. However, they gave permission to find other manufacturer who could be contracted for the production for one year, until Chilean industries can to fabricate the focus again. You investigated with many competitors of national level if they want and can to accomplish with the production of focus. For different reasons, only a Chilean firm, direct competitor of Chilean industries agreed. However, the price of this company, to the focus distributed in Colombia, after lengthy negotiations finally was determined in 35 dollars for unity. This form you could to pay 2.1 millions of dollars to production for that year.

You should let give to know your definitive answer to this company. You are right now in Bogotá after to travel to E.U. in which attended to engineer school many year ago. It’s nice come back to Colombia, where you lived long time, before to change of career and company, three year ago, to work in Chilean electric industries, in the city Santiago of Chile. You were to visit the assembler Takeuchi, where you admit have some problems with the process of produce, but you secured them that the focus Will be delivered according the accord. The manager of sales to express his full trust that Chilean industries electric Will be efficient to handle the problems effectively. Whit the final of collaborate in the handle of the situation recommended in extremely positive terms to a new plant builded by technological el Guavio 9 months ago in Bogotá, to fabricate one similar kind of halogen focus, that technological el Guavio was selling to one of more important marker of car’s. He says that the president of assembler Takeuchi in Bogota, was be to visit recently the installations of technological el Guavio and him was really impresionate. Apparently this plant had already exceeded his program of qualified expansion, and can that inclusive could have some capacity of extra capacity. To return to the Tequendama Hotel in Bogota, you receive a call from technological Guavio, the Mr. Gustavo Rodriguez, to according a meet whit the final of study one possibility in technological el Guavio could to produce to Chilean industries electric the focus provisionally. You agree a meet with the Mr. More late, before of return to chile this night. Although of your high hopes of technological el guavio could be a source of comfort for the terrible financial implications in the accord whit he assembler takeuchi, you was pessimistic with the possibilities You say to Mr. Rodriguez sincerely, however even if the contact was possible between technological el Guavio and Chilean industries electric, the decision of proceed and the price, has to be accord the same day, because you need time to another business in Chile and the short time that still existing is just available to appoint modifications and to make the line of production request.

After to accord the meet with the Mr. Rodriguez, you call the center offices of Chilean industries electric to inform to your boss about the perspectives with technological el Guavio. Your boss was really happy with this change in the events. He says that, although the result with the business of the focus with the assembler isn’t good, you can rescue a good accord with technological el Guavio. Having the indications, schedule to delivery and quality already fixed for the assembler, you only preoccupation is the price. Any price lowers those 5 dollars the unity let you improve the cost of 2.1 million in the incurring against the production of Chile. Your boss emphasizes that you should to attempt to do business with technological el Guavio given these conditions. You kwon that finally they will judge in the company depending of your capacity to reduce the cost of 2.1 million of dollars. Ideally you can get an accord with technological el Guavio by which Chilean industries electric could even get winnings. You are revising the approach.