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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1009 |
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Analysis of Each Alternative
Alternative #1
It could be to SMC’s advantage to enter the arrangement because it would provide them the chance to reach consumers they currently do not. Accepting the proposal would triple unit sales:
Current: 4200 units
(potential) 1996: 4200 + 8200 = 12,400 units
It could also allow SMC to take advantage of unused manufacturing capacity, and, however, force them to run overtime...
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The contract would only lock SMC in for 2 years, so they would be free after the short trail period. SMC would also have the opportunity to introduce the T-44 if they took the proposal.
On an opposing side, this alternative would create a large additional liability for SMC because of the contract terms that state they will assume liability for personal injury that may occur from use or maintenance on the mowers...
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Swisher Mower Case Write-Up
Swisher Mower Company
Swisher Mower and Machine Company
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