Business Case

Submitted by: Submitted by

Views: 362

Words: 455

Pages: 2

Category: Business and Industry

Date Submitted: 05/30/2011 01:04 PM

Report This Essay

Business Case

We have the opportunity to make a contractual agreement to capitalize on the resale of innovative new staplers. This new type of stapler binds paper like a traditional stapler without the use of staples. Our goal as a business is to purchase our product, the “No Staple” stapler, from outside suppliers and sell them to other resale vendors and prospective customers. We plan to purchase in bulk as a way to lower our expenses. This becomes a major value to our organization as we plan to resell at a markup price of 50% above purchase value. We shall utilize the companies’ networking sources to shorten the payback period from 18 months to 12 months.

The organizations that are impacted: Finance department for the purchase and resale of the product where we will be making a marginal profit by buying the staplers at a lower price and reselling them at in inflated resale price. Human Resources will be affected by the hiring and training of new employees that manage the new transactions. Management will also be affected with the hiring of new employees and transfer of employee positions. Marketing will of course be a major part of the sale of the product to our prospective vendors and customers.

Alternatives:

• Paper clips

• Binder clips

• Binders

• Folders

• Traditional staplers

Feasibility:

• Economic: Yes because of businesses networking and buying in bulk.

• Technical: Yes because we have already incorporated SAP into our corporation and we have the resources to train new employees and implement the new product into the system.

• Organizational: No because the division does not yet exist.

• Legal: Yes because we will be following all import and export laws with our suppliers and vendors.

• Ethical: Yes, the product is “Green” because it uses no staples, which is cheaper for the user and better for the environment.

Risk:

• Our suppliers can go out of business or increase sale price to us.

• New technology or alternatives that were not...