Question
Question: Case 1: After its analysis of the international market, Electrolux, an American company in the household appliance sector, has decided to export, for the
Question:
Case 1: After its analysis of the international market, Electrolux, an American company in the household appliance sector, has decided to export, for the first time, vacuum cleaners to some Asian countries; despite the existence of strong local competitors. Electrolux has signed many sells contracts with local importers.
The managers of Electrolux consult you to advise them by proposing a better transport mode for these vacuum cleaners and a better forwarder. So what would you suggest for this company? Argue your answer? What is the income that you would also recommend for this company? Why you recommend them this income? (5%)
Case 2: A French farmer wants to export fresh herbs to Quebec. But, while talking with the local distributor in Quebec, he realized that the costs of transporting this merchandise are very high; their price would therefore be not very competitive on the local market. For the first year, the distributor has decided to assume the loss of profit that will be caused by the costs of transport in order to make these products known to consumers. However, he knows that if the farmer could not find a solution to reduce the transport cost, his business would not be profitable, even practically impossible. So, he must discus with this French exporter.
In the place of this French farmer, what you will decide to do in order to resolve this transporting problem and to keep this business opportunity? Argue your answer? How to do in order to reduce the transport cost? (5%)
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