Introduction
Freezing out profits is an article that discussing on a company based in Singapore with an oversea factory in China, which is Cold Cuts Ltd. The managing director of the company is Mr Dali. The company produce the refrigeration fragments and specializing in it. The company also industrialized its own product which known as Fuzzy Frost. They upgrade Fuzzy Frost to become Fuzzy Frost Alpha System which will improve features in the refrigerator. It is the product of refrigeration process technology and is being exported international.
In this case study, the company is facing few problems where one of it is regarding on their pricing strategy and production in Singapore, with their long-time partner, Secconz. The company is in danger …show more content…
Whether or not to keep Secconz as their major customer or partner. The first main issue in the case of Cold Cuts Ltd. (CC) is with their biggest and long time partner, Secconz. Mr Nelly whom is the supply manager in Secconz had a meeting with Mr Dali through phone call and proposes CC to lower the price of the products. The proposed issue is due to the competition faced by Secconz from China who have been offering the products at much cheaper prices. Potential actions or decision making: CC can try to convince their customer about the quality of their product so that they can maintain their relationship with them. CC They can tell Secconz that if Secconz are going to produce the product themselves, they will incur more cost and expenses such as the training cost, the research and development cost, the capital and production cost. Discussion: If Cold Cuts Ltd (CC) would like to keep Secconz as their customer, it may lead to better collaboration such as merger to combine their effort to achieve some goals. Cost-volume-profit (CVP) analysis can be use to determine how much changes in a company's costs, both fixed and variable, sales volume, and price, affect a company's …show more content…
Discussion: In order to prove their innocence, CC can seek advice from professional bodies for example legal advices from the World Trade Organisation. Dumping is defined as the product commerce less than normal value according to the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trades 1994. According to the article, the determination is made after the investigation when the dumping is occurring, the domestic industries producing the same product suffer material injury and there is casual link between the two. Besides, international business lawyers can provide CC with legal assistance throughout anti-dumping investigations as well as in legal actions.
Going concern issue. Whether or not CC disclosed the uncertainties in financial statement According to the case, they are having a problem with the going concern issue. The company might close down if they found guilty and have to pay a huge anti-dumping tax. Potential action: Do not disclose uncertainties in the financial statement and to disclose uncertainties.
Freezing out profits is an article that discussing on a company based in Singapore with an oversea factory in China, which is Cold Cuts Ltd. The managing director of the company is Mr Dali. The company produce the refrigeration fragments and specializing in it. The company also industrialized its own product which known as Fuzzy Frost. They upgrade Fuzzy Frost to become Fuzzy Frost Alpha System which will improve features in the refrigerator. It is the product of refrigeration process technology and is being exported international.
In this case study, the company is facing few problems where one of it is regarding on their pricing strategy and production in Singapore, with their long-time partner, Secconz. The company is in danger …show more content…
Whether or not to keep Secconz as their major customer or partner. The first main issue in the case of Cold Cuts Ltd. (CC) is with their biggest and long time partner, Secconz. Mr Nelly whom is the supply manager in Secconz had a meeting with Mr Dali through phone call and proposes CC to lower the price of the products. The proposed issue is due to the competition faced by Secconz from China who have been offering the products at much cheaper prices. Potential actions or decision making: CC can try to convince their customer about the quality of their product so that they can maintain their relationship with them. CC They can tell Secconz that if Secconz are going to produce the product themselves, they will incur more cost and expenses such as the training cost, the research and development cost, the capital and production cost. Discussion: If Cold Cuts Ltd (CC) would like to keep Secconz as their customer, it may lead to better collaboration such as merger to combine their effort to achieve some goals. Cost-volume-profit (CVP) analysis can be use to determine how much changes in a company's costs, both fixed and variable, sales volume, and price, affect a company's …show more content…
Discussion: In order to prove their innocence, CC can seek advice from professional bodies for example legal advices from the World Trade Organisation. Dumping is defined as the product commerce less than normal value according to the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trades 1994. According to the article, the determination is made after the investigation when the dumping is occurring, the domestic industries producing the same product suffer material injury and there is casual link between the two. Besides, international business lawyers can provide CC with legal assistance throughout anti-dumping investigations as well as in legal actions.
Going concern issue. Whether or not CC disclosed the uncertainties in financial statement According to the case, they are having a problem with the going concern issue. The company might close down if they found guilty and have to pay a huge anti-dumping tax. Potential action: Do not disclose uncertainties in the financial statement and to disclose uncertainties.