On Sunday morning, a major international news organization broke a story that the company who manufactures three critical custom John Deere parts is treating their employees as slave-labor. To compound problems, a terrorist group launched an attack in a Middle Eastern country where the back-up supplier is located. The back-up supplier’s factory was badly damaged by a bomb and will be out of commission for at least 12 months. The “good news” is that they will sell you one-month of parts at 1000% the normal price. The final challenge is that the US government in January 2022 will require tracking and auditing on manufacturing inputs purchased abroad, which means that John Deere will have to devote extra company resources to maintaining compliance. Discuss options for addressing this situation in the short-term and long-term. Put together detailed strategic recommendations for managing future costs and risks over the next 5 years (Branding; Production; Sales;
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
On Sunday morning, a major international news organization broke a story that the company who manufactures three critical custom John Deere parts is treating their employees as slave-labor. To compound problems, a terrorist group launched an attack in a Middle Eastern country where the back-up supplier is located. The back-up supplier’s factory was badly damaged by a bomb and will be out of commission for at least 12 months. The “good news” is that they will sell you one-month of parts at 1000% the normal price. The final challenge is that the US government in January 2022 will require tracking and auditing on manufacturing inputs purchased abroad, which means that John Deere will have to devote extra company resources to maintaining compliance.
Discuss options for addressing this situation in the short-term and long-term. Put together detailed strategic recommendations for managing future costs and risks over the next 5 years
(Branding; Production; Sales; etc.
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