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Essay's paper info
| Topic: |
Business
|
| Number of pages / Number of words: |
4 / 851 |
Essay's paper body
This is an extreme disadvantage for Merton who would be forced to basically “put all of its eggs in one basket.†Leaving no room for an eased transition where Merton would be able to gain knowledge and analyze its movements as each warehouse was opened. In the bigger picture of things Suzanne Goldman needs to also factor in the following expenses:
o Managing accounts receivable and extending credit to retailers
o Paying the necessary number of sales representatives and managers
o Transporting the products to the retailers
o Retail warehouse fixed costs
o Backlash from the retailers that are used to doing business through relationships built with the wholesalers...
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They would have to increase their sales by almost 19% in order to maintain their year 2000 net profit before taxes. If their sales do not increase than they will have negative profits of about $11,950,000. These numbers are low estimates based on Merton only needing to open five warehouses with eight sales representatives and one manager per warehouse...
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