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Reviewing the Decision - Essay Example

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Reviewing the Decision

The reason why the manager of "ABC" with whom we work decided that they would manage to promote fully equipped base cabinets in the future was due to the request of one of their key customers for the immediate installation of 25 pcs. of such advanced base cabinets, plus their reasoning that because of the increased convenience of the more expensive base cabinets the same quantity can be rather quickly installed at other locations as well. Considering our general positive experience with "ABC", our history of making similar supplies of equipment which "ABC" quickly exhausted, and their leading position in their market segment, I decided to place the order at the manufacturer for the mentioned amount of equipment. After we brought to our stock 50 pcs. of fully equipped base cabinets, it turned out that by then the key customer of "ABC" bailed out from his liability before them, and the general market response to the prospect of purchase of more expensive cabinets was much less enthusiastic than expected. As the result of the mentioned facts, by this moment we still have on our stock 38 pcs. of fully equipped base cabinets for table-top coffee machines, which translates into 12,500$ of frozen assets. ...Show more

Summary

Six months ago company "ABC", which for several years had been among our most important customers, approached me with the recommendation to place an order for 50 pcs. of fully equipped base cabinets for table-top coffee machines. As you may remember, "ABC" specializes in sales of coffee and soluble products for preparation of hot drinks, and our company is supplying equipment and providing service maintenance for many of the customers of "ABC"…
Author : mcculloughjulia
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