Chilean electric industries

Secret instructions from Eduardo Monroy (Vice-president of Chilean electric

industries)

You are the vice president of Chilean electric industries, one trade that make some
parts for cars.

Many months ago, you get a agreement with the Japanese company fabricator of
assembler Takeuchi Cars, to produce a special kind of halogen focus (one edition
of four rays) to a motorcycle of high performance, that the assembler Takeuchi
was soon to fabricate in the plant of Bogot city, Colombia.

Through the years, Chilean electric industries to provide an others parts of the
assembler Takeuchi with a many products. Their bosses, let it clear that, to this
business of alogen focus although their unity probably lost money with the
accorded price 15 dollars the unity, to 60.000 yearly unitys you should, with the
final of deepen the relationship Chilean electric assembler Takeuchi, provide the
focus to assembler and find the form to reduce their minimum lost.

However, what started as Little financial headache, is becoming now in a realistic

nightmare, their engineers to find serious problems in the delicate process to lining
of focus. Happens that, owing to atmospheric impurities, of neighboring chemical
plant, the process cant be do in the plant initially program for the production of
focus, and must be do it in another installation of Chilean electric industries, that
only can be available one year after to the date in that must begin to the delivery
of focus to Takeuchi assembler, which is within three months.

You, request your bosses authorization for to visit Takeuchi assembler to tell
about the situation and request that find others providers to the focus. Your
bosses to decline naturally. They say you clearly that Takeuchi assembler couldnt
to know about this. However, they gave permission to find other manufacturer
who could be contracted for the production for one year, until Chilean industries
can to fabricate the focus again.

You investigated with many competitors of national level if they want and can to
accomplish with the production of focus. For different reasons, only a Chilean firm,
direct competitor of Chilean industries agreed. However, the price of this company,
to the focus distributed in Colombia, after lengthy negotiations finally was
determined in 35 dollars for unity. This form you could to pay 2.1 millions of
dollars to production for that year.
You should let give to know your definitive answer to this company.

You are right now in Bogot after to travel to E.U. in which attended to engineer
school many year ago. Its nice come back to Colombia, where you lived long time,
before to change of career and company, three year ago, to work in Chilean
electric industries, in the city Santiago of Chile.

You were to visit the assembler Takeuchi, where you admit have some problems
with the process of produce, but you secured them that the focus Will be delivered
according the accord.

The manager of sales to express his full trust that Chilean industries electric Will be
efficient to handle the problems effectively. Whit the final of collaborate in the
handle of the situation recommended in extremely positive terms to a new plant
builded by technological el Guavio 9 months ago in Bogot, to fabricate one similar
kind of halogen focus, that technological el Guavio was selling to one of more
important marker of cars.

He says that the president of assembler Takeuchi in Bogota, was be to visit

recently the installations of technological el Guavio and him was really
impresionate. Apparently this plant had already exceeded his program of qualified
expansion, and can that inclusive could have some capacity of extra capacity.

To return to the Tequendama Hotel in Bogota, you receive a call from

technological Guavio, the Mr. Gustavo Rodriguez, to according a meet whit the
final of study one possibility in technological el Guavio could to produce to Chilean
industries electric the focus provisionally.

You agree a meet with the Mr. More late, before of return to chile this night.
Although of your high hopes of technological el guavio could be a source of
comfort for the terrible financial implications in the accord whit he assembler
takeuchi, you was pessimistic with the possibilities

You say to Mr. Rodriguez sincerely, however even if the contact was possible
between technological el Guavio and Chilean industries electric, the decision of
proceed and the price, has to be accord the same day, because you need time to
another business in Chile and the short time that still existing is just available to
appoint modifications and to make the line of production request.
After to accord the meet with the Mr. Rodriguez, you call the center offices of
Chilean industries electric to inform to your boss about the perspectives with
technological el Guavio. Your boss was really happy with this change in the events.

He says that, although the result with the business of the focus with the assembler
isnt good, you can rescue a good accord with technological el Guavio.

Having the indications, schedule to delivery and quality already fixed for the
assembler, you only preoccupation is the price. Any price lowers those 5 dollars
the unity let you improve the cost of 2.1 million in the incurring against the
production of Chile. Your boss emphasizes that you should to attempt to do
business with technological el Guavio given these conditions.

You kwon that finally they will judge in the company depending of your capacity to
reduce the cost of 2.1 million of dollars. Ideally you can get an accord with
technological el Guavio by which Chilean industries electric could even get
winnings.

You are revising the approach.