Freeze

Cuts Ltd

Case
CASE 1

Presented by: Amigos Consultant Firm

Amigos
Consultant Firm
Tai Xin Yi (1181100867)

Li, Xiaozhu (1181302395)

Ang Yan Ping (1161204302)

Tai Mun Yee (1191301467)

 1 2 3 4 5 6
Protagonist Main Issue Issue 1 Issue 2 Issue 3 Recommendations

Agenda
Freeze Cuts Ltd Case
Protagonist
Mr Wang

Managing Director of Singapore

Provide solutions on the problems

arising from customer and plant
 The decision that Mr Wang should

Main Issue make to help Freeze Cuts Ltd out of

the current dilemma.

1 Lose biggest customer

Possibility of China's plant being

2 shut down or penalized

3 Unethical behaviour
 Lose the

Biggest

Customer
Issue 1
BizConz bargained on FFA

supplies price

High contribution margin

(BZ: $82/unit while EC: $42/unit)
 1 Shareholders

2 Suppliers

Stakeholders
3 Customers

4 Competitors
BIZCONZ'S IN-HOUSE TECHNOLOGY

Able to produce similar technology

LONG-TERM PARTNERSHIP

High cost in long-term

BIZCONZ'S COST REDUCTION Causes

Over material cost

RECOUPED OF FFA'S ORIGINAL INVESTMENT

Premium prices charged for 2 years

Solution 1:
Convince BizConz on the advantages of
hiring outsourcing (FC) and the
disadvantages in self-production
Guaranteed quality being produced

Focus on core business

Action
Plans
Greater flexibility and competitive advantage

Higher labor costs

Low capacity
 Solution 2:
Negotiate with BizConz the terms of
new supply contract 04
Action plans 03
ASSIST BIZCONZ
02 TO INCREASE
THEIR SALES
MAKE
APPROPRIATE
01 CONCESSIONS
PROVIDE
SUFFICIENT
EVIDENCE
DETERMINE THE Exp. Support in
RANGE OF PRICE 3 years warranty advertising &
FLUCTUATIONS better materials promotion
& UNDERSTAND & more
Explain why F C's complete and
THE TARGET products are more 3% rebate
PRICE OF strict testing
BIZCONZ expensive Priority

processing for
BizConz orders.
Solution 3:
Attract new customers

USE PROMOTIONAL CHANNELS

Webinars/social media posts/optimal
social media management (SSM)/ booth

START A REFERRAL PROGRAM

Promotion and referrals from existing Action plans
customers

OFFER SOME PRODUCTS FOR

FREE OR AT A DISCOUNT
provide introductory offer
FC'S REPUTATION
COULD BE DAMAGED
Why the contract renewal failed?

DISSATISFACTION OF
OTHER CUSTOMERS Risks
Results of the negotiations/terms of
new contract

FAILURE TO ATTRACT
ENOUGH NEW
CUSTOMERS
Cannot compensate for huge losses
 Possibility of
China's plant
being shut down
or penalized
Issue 2 Investigation carried out by the US
International Trade Commission

Export from China to US

 1 Accountant of FC

Stakeholders 2 US domestic companies

US International Trade
3 Commission (ITC)
 PRODUCT PRICE LESS THAN FAIR VALUE

Low cost of production

ANTI-DUMPING ACTIVITIES

Price charges lower than its

own home market
Import duty: 0% - 550%
Causes
Country '000 Selling price

Singapore $3,500/ 25 units $140

Europe $5,000/ 50 units $100

Action plans

03
02 APPEAL
AGAINST
01 STOP DUTY
EXPORTING DECISIONS
TO US
Amount of duty
INCREASE
charged is not
THE PRICE Give up on the
US market reasonable
Market research Stop suspected Appeal to HMRC
Licensed dumping
Customs Broker
LOWER PROFITABILITY
Less attractive to European customers
Lose annual sales of $5 million

HIGH LEGAL COST

Affect business activities

Risks
HIGH LEVY OF TAX
Fail to appeal against duty decisions

OVERALL:

Profitability
Cost
 Unethical
Behaviour
Mr Welly bargain to reduce the
Issue 3 price of FFA

USITC Investigate the anti-

dumping activities
 1 Freeze Cools Ltd (FC)

2 Mr Wang

3 BizConz

Stakeholders
4 Mr Welly

US International Trade
5 Commission (ITC)

6 Local agency team

Dissatisfied salaries
Theory hierarchy of needs
Lack of physiological and
safety needs

Causes
CAUSES
High opportunity to
have corrupted
behaviour
Theory of fraud triangle
REJECT THE BRIBERY
Maintain presence of mind Action Plans

INVESTIGATE THE PERSON

INCHARGE
Gather evidence

WHISTLEBLOWER
Local agency anti-bribery hotline
(China)
ICA Specialist Certificate in Anti-
Corruption (Singapore)
Difficulty to gather
evidence
Verbal communication

Risks
RISK
Company's
reputation damaged
Employee indiscretion
Lost of business
opportunity
NOT TO REDUCE THE
PRICE

CONDUCT MARKET
RESEARCH ON
SIMILAR GOODS
Recommendations

REJECT THE BRIBERY

 Q&A
Session Thank you