CelluClear Wireless PAGE \* Arabic 7
Running Head: CelluClear Wireless Goes GlobalCelluClear Wireless Goes GlobalMilton RamosUniversity of PhoenixHRM 531 Human Capital ManagementGroup: MBAY0SRFZ5Instructor: Juan StegmanOctober 11, 2010Workshop 3, Assignment 3IntroductionCelluClear Wireless a manufacturer of cell phones in the United States just received a request of an order for 100,000 cell phones, willing to pay no more than $15 dollars per unit, with a complete delivery of the units in 90 days to Big Box, a chain retail store located in Canada. CelluClear manufactures two models of cell phones, the Alpha model, which sells for $20 dollars and is the high moving item for CelluClear and the Beta model that sells for $30 dollars per unit and is the more slowly moving model. CelluClear is currently able to handle an additional 70,000 units by switching the Beta line to manufacture Alpha models. Another alternative to fulfilling the order is using the original equipment manufacturer (OEM), who has made it known that they can manufacture the Alpha model cell phone for $14 dollars per unit, at any time, and for any quantity required. To decide what to do CelluClear will evaluate and analyze how fixed and variable cost should be adjusted to understand the opportunity cost of each alternative.Considerations for Importing and ExportingRelevant cost associated with importing and exporting to foreign countries includes the processing of the application, the cost can vary depending on the export or import and country in which the transactions will take place. In addition to the application to export or import considerations for permits, duty free rates, tariffs, value-added taxes, and if used broker license fees to facilitate the import of export from Mexico. Time required for custom clearance and inspections for documentation and compliance is another consideration for making timely deliveries. The North American Trade Agreement (NAFTA) provides for the free trade of goods, via customs between the three signing countries, Mexico, the United States, and Canada. This trade agreement facilitates the trade of goods and established rules and guidelines to adhere by such as certificates of quality, origin, labeling, and authenticity (Custom Regulations, 2010).Identification of Issues and OpportunitiesCelluClear has the opportunity to increase sales volume by 100,000 units for a cell phone unit similar to the Alpha model currently produced by CelluClear. CelluClear manufactures two cellular phone models; cost structure is shown on table 1.
Table 1 CelluClear Scenario, 2010The Business Development Specialist for CelluClear has a potential order for 100,000 units of the Alpha model. The customer Big Box is not willing to pay more than $15 dollars per unit, which would mean a $5 dollar profit loss to CelluClear...