Freezing Out Profits

Freezing turn up profits Synopsis Freezing emerge profits is an article that discussing on one company which is Cold Cuts Ltd (CC). The managing coach for this company is Mr. Dali. It produces Singapores only refrigeration parts and specializing in it. He is the one that is responsible for all the close making that carry to be through with(p) in the company. CC was essentially a subcontractor of components for customers who were sea captain equipment manufacturers (OEMs). This company non only faced competition from supplier that cater same product, but it was also on whether the customer should manufacture in-house on their own.The company developed its own product of refrigeration process applied science known as Fuzzy Frost. Their product of Fuzzy Frost was merchandiseed worldwide. both years ago, the company had a major development cerebrate to their product. They supercharge Fuzzy Frost to become Fuzzy Frost Alpha brass which will enhance features in the refrigera tor. One of the enhancements is, it will enable perishable items to be stored far longer than conventional fridges. At the same while on the FFA product discover, the company open its second factory in china which product old Fuzzy Frost.CC had main customer in Singapore which known as Secconz which is a local customer and long-time partner. The supplier Manager of Secconz is Mr. Nelly where in China the Plant Manager is Mr. Rithisak. The company export their product worldwide include Europe country. There atomic number 18 dickens major fusss that were faced by the company. Firstly, the problem is in term of the determine in Singapore, with their long-time partner, Secconz. Secondly, it is the investigation on their export activities by United States supranational grapple Commission on their products in China.Decision Maker / Protagonist The decision maker or protagonist for this face on Freezing out profit is Mr. Dali. He is the one that is responsible for the decision m aking done in the company. This is because he is managing director for Cold Cuts Ltd. He will go down what to be done and what to not be done. Based on this case battleground, he needs to make big decision making. Firstly is associate to their major customer in Singapore, Secconz. Secondly is related to their company in China related to the anti-dumping things.Problem faced by the decision maker / protagonist. The problem faced by the decision maker or protagonist in this case is related to the pricing of the products that were sold whether in Singapore or in China. Mr. Dali need to decide whether to reduce the premium terms charged to Secconz or proceed taking the enormous amount of profit because they already achieve payback on its investment in the refreshing machinery in spite of appearance two years. He is also faced problem related to the anti-dumping fairness in China. Major Issue The major issues in this case study is between Cold Cuts Ltd. nd Secconz. Secconz is th eir major customer in Singapore. Secconz has requesting for the price reduction of FFA product. This is because CC still charged the same price later 2 years even though the investment in the new machinery on FFA component has already been recover. Despite of better quality FFA components and not burden by any overhead costs, Secconz still experience the huge margin from the sales price impose to them compared to sales price in Europe and USA. The supply manager from Secconz, Mr. Nelly asked for price reduction.He said that company whitethorn produce the technology by themselves if Mr. Dali did not want to reduce the price of FFA. Second major issues are related to the anti-dumping activities by China related to their product that produces over there. It was said that CC pricing products much let down than the fair value. It leads to the investigation made by the United States International Trade Commission whether to find CC was guilty or not. The effects are they might have to close down their business in China or levy with huge anti-dumping tax.