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ClearHear Scenario

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Based on the attachment, answer 4 questions:
1) What alternative solutions are needed to meet the end-state goals?
2)How would you analyze and evaluate those alternative solutions?
3)How would you identify risk analysis to identify potential risks and negative consequences of the alternative solutions?
4)Which one is the best alternative solution and how does it meet the desired end state?

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ClearHear Scenario is discussed very comprehensively in this explanation..

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Based on the attachment, answer 4 questions:
1) What alternative solutions are needed to meet the end-state goals?
One alternative is to offer Kendra is to make her a counter offer of $17 so that Lisa can run the factory at full capacity and would not have to incur a loss.
The second alternative would be to continue production of 30,000 units and give Kendra a counter offer of $20 so that Lisa does not compromise on price for the production.
The third alternative is to accept Kendra's offer and accept a price of $15.
2)How would you analyze and evaluate those alternative solutions?
The method of analysis is that the contribution to the fixed overhead has to be evaluated. If the price of $17 is ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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