Clear Hear Essay


ClearHear Scenario: An Opportunity Cost Analysis
Tosha Jones
University of Phoenix

Kendra Sherman works as a business development specialist for ClearHear, a cell phone manufacturer.   Big Box has placed an order for 100,000 cell phones and Kendra wants to fill the customers order, but is faced with a dilemma because the current volume ClearHear has is access to 70,000 cell phones in the price range Big Box is willing to pay.
a.) Identify alternative solutions to meet the end-state goals
End state goals define what is important about what is to be achieved and have a fundamental effect on the business's goals. They are sometimes identified through the vision and mission for the company. The end-state goals for ClearHear are to provide their customers with products on time and that reliably meets or exceeds their expectations. ClearHear would additionally like to keep the employees working as well as treat their partners the way they would like to be treated. Kendra would like to fill the order with the best product at the highest level of profitability. The problem is that the order must be filled within 90 days and at current production, ClearHear does not have the volume to complete the order with out using and alternative solution.
Kendra’s first option is to not accept the order from Big Box. This doesn’t seem to be a viable option since, “she has an excess capacity of 70,000 cell phone units over the next three months, and part of her bonus is based on running the factory at capacity.”  
An additional alternative would be to have the original equipment manufacturer (OEM) produce the remaining 30,000 phones needed to complete the order for Big Box. The OEM can produce the phones at $14 each and ClearHear could sell them for profit of $1. The two alternatives that appear to have the best outcomes lie between shifting the 30,000 units production capacity assigned to the Beta model OR the (OEM) to...