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Presentation/PPT
27/08/2022
“Global CommerceThe president of Eastvaco is considering recommending to the Board of Directors expanding into the Asian market. He suggests that the Company open a manufacturing facility similar to the Charlotte facility. The plant would purchase its raw material from local sources and produce envelopes, paper cups and packaging. He contends since the Charlotte plant is having difficulty obtaining recycled material and he does not want to tarnish the plant’s “green” image the Asian plant could produce non-green products. The product would be marketing heavily in China and Indonesia (where the plant would be established). Excess production would be sent back to the States to meet market demand. The President tells you that additional funding, if needed, should be obtained from Asian sources.Required:You are asked by the President to prepare a short report regarding the following issues:a. What information regarding the Asian rim region should the President include in his report to the Board?b. Eastvaco’s strengths and weaknesses that would help and/or hinder the Asian expansion.c. Your conclusions and recommendations regarding the proposed expansion.Organize your answer by requirement. Your answer should not exceed three pages and be well written. There is no minimum page requirement. This exercise requires research, imagination and writing skills. “Eastvaco, incOrganizational Structure and Inter-company TransfersYour answer should be organized and well written.1. What type of center is the Charlotte facility? Would you characterize it as an investment center, profit center, revenue center or cost center? Give specific reasons why you chose your answer.2. What are the advantages and disadvantages of a decentralized organization structure?3. The Charlotte plant receives some products used in the manufacturing of envelopes, cups and packaging from the South Carolina plant. Recently there have been some heated discussions about the prices charged Charlotte by the South Carolina plant. The product, cremodium, has cost Charlotte $80 per batch. This covers all marginal costs incurred by the South Carolina facility. The South Carolina facility is a profit center and agues that they can sell cremodium on the open market for $120. Which method, as presented in your text, should be used in this instance and why? Does it make a difference if the South Carolina plant has no idle capacity?”
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