1. In the context of this course, you will be asked to address the issues/questions below for The Walt Disney Company (DIS). When addressing the issues/questions, be sure to do so in the context of this course and Disney. You have been appointed as the special assistant to the Chief Executive Officer, Robert Chapek who has asked you to address the following two situations:

(3 pts) a) Disney currently buys most of its store equipment from a manufacturer in India. A representative from a company in Vietnam is offering to sell the equipment for 30% less than the cost from the manufacturer in India. Discuss the issues that you would consider in deciding whether to accept this offer.

(12 pts) b) Mr. Chapek wishes to develop an incentive plan for the retail store managers. Before the plan is implemented, he wishes you to make sure that budgeting in the stores is done correctly. He has asked you to submit a document, which discusses the key points related to budgeting that you have learned in MBA 640. Be as thorough as possible.