Why revenues are down next quarter

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Reference no: EM131449582

Question: Well, to the profound surprise of absolutely nobody, we are not going to be able meet the June 1 commitment to ship 100 operating tables to Southeast Surgical Supply. (For those of you who have been living in a cave the past six month, we have been fighting to get our hands on enough high-grade chromium steel to meet our production schedule.)

Sure enough, we got news, this morning that we will only get enough for 30 tables. Yes, we look lik fools for not being able to follow through on promises we made to the customer, but no, this didn't have to happpen. Six month's ago, purchasing warned us about shrinking supplies and suggested we advance-buy as much as we would need for the next 12 months, or so. We naturally tried to followed their advice, but just as naturally were shot down by the bean counters at corporate who trotted out the policy about never buying more than three months worth of materials in advance.

Of course, it'll be us-not the bean counters who'll take the flak when everybody starts asking why revenues are down next quarter and why Southeast is talking to our friends at Crighton Manuf Maybe, some day this company will get its head out of the sand and realize that we need to have some financial flexibility in order to compete. Collaboration: Working in Teams; Planning: Selecting Media [Chapter 2; LO-1] Working with at least two other students, identify the best medium to use for each of the following messages. For each of these message needs, choose a medium that you think would work effectively and explain your choice. (More than one medium could work in some cases; just be able to support your particular choice).

Reference no: EM131449582

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