NUST BUSINESS SCHOOL (NBS) Spring 2022 COURSE: Managerial Accounting, MBA-2K21 Group Assignment (Maximum 4 Members) Total Marks/Weightage Marks: 100/5 Deadline: Tuesday 27 May 2022 at 23:59 hrs Late Submissions even by a second are not allowed and no marks will be awarded This is your responsibility to form a group of 4 or less members and coordinate with each other online to find a suitable answer for the task. Your answer should not go beyond two pages. Allowable similarity plagiarism lumit is 19% You will have to submit a single soft copy via email (irfan sahibzadanbs.nus.edu.pk) from cach group, having all group member names on first page before the deadline. The Required Task Toyama Manufacturing Limited (TML) It is late May 2014 and Antonio Inoki, who is the GM of the South Japanese plant of Toyama Manufacturing Limited (TML), plan a meeting with his sales manager, accountant and development engineer to discuss the introduction by the Indian firm Reliance Industries (a competitor) of a plastic spare part substitute for the steel spare part (SP-01) presently used in certain machines and sold by TML. The plastic spare parts that are new to the market, not only had a much longer life than TML. spare parts (SP-01) but they are also costing a lot less in comparison. Inoki's problem come from TML's large quantity of steel spare parts (SP-01) on hand and the substantial inventory of special steel that had been purchased to manufacture these spare parts. Following a thorough investigation, he also concluded that the special steel cannot be re-used in other products neither it can be sold even for a scrap value. The total value of this steel is around $390,000. TML is manufacturing and selling industrial machines and equipment to several countries for more than 6 decades. The machines involved in Inoki's dilemma were made only at the company's plant in South Japan, where about 1,000 employees are working. The various models of the plant were priced between $18,900 and $28,900 and were sold by a separate sales company. Repair and replacement parts that are accounted for a substantial part of this plant's business, were sold separately. As for as these specific steel spare parts (SP-01) are concerned, they can also be used in similar machines manufactured by competitors. The company's head office is in Tokyo and generally plants outside Tokyo have permission to manage their own affairs up to a good extent. However, the head office is also accessible by email, telephone or during executive visits to various plants. Competition in this industry has increased substantially during the late 1990s because of the Chinese manufacturing firms, who entered the market with low priced spare parts. Other companies entered the market with lower quality and lower priced machines. Therefore, it was clear in the 1990s that future competition would be more intense. The existing steel spare part (SP-01) manufactured by TMI. have a normal life of about two months, depending upon the use of the machine. The replacement of the spare part is easy and quick. Some machines will require up to six spare parts, but they are all the same size and easy to be replaced. Jushin Liger, the sales manager came to know about the new plastic spare parts as soon as they appear in the market and therefore asked, when TML will be able to supply them, specifically for sale to customers in South Asia, where Reliance Industries is the strongest competitor faced