Netflix and Porter's Five Forces Model Coursework

Netflix and Porter's Five Forces Model - Coursework Example The HBO subscribers are able to watch any available movie on the network at any given time. For instance, Netflix customers have the ability to order movies online at a relative lower fee of $7.99 per month (Jones and Hill 42). Supplier power in the movie rentals is also recognized to be too low. The low supplier power can be attributed to few distributors who all sell their products at the same price. The customers’ bargaining power play a crucial role in determining the pressure they put on a particular market. According to the Five Forces Model, there are threats of substitute and services and they are moderately high. Free online streaming is another source of movie rentals. Websites such as Crackle.com and Hulu.com allow their users to watch movies online free of charge. Even though this provides a free alternative, there is a switching cost for the current Netflix users. Netflix customers can stream movies to their television sets through certain video game consoles. In the process of switching to the free online streaming, customers do not incur the monthly $7.99 fee. However, this only limits them to watch the movies on an internet accessible device (Kaplan 45). The threat of new entrants is the next force. This force can similarly be recognized to be moderately high. There are only a few barriers connected to the entry into the movie rental industry. The first barrier is the need to have the legal rights that will allow the company to supply copyrighted movies to its customers. This barrier seems tricky for a company entering the industry since it will hard for the company to overcome the barrier. Use of online services is another potential barrier to entry. With the current technological advancements, it will important for a new business to include online involvement. This point greatly emphasizes the threat of new companies entering the movie rental industry. With the option of free online streaming, a new web-based company will probably

The International Product Life Cycle Model Theory Economics Essay

The International Product Life Cycle Model Theory Economics Essay The intent of Vernon, International Product Life Cycle model (IPLC) was to advance trade theory beyond David Ricardos static framework of comparative advantages. In 1817, Ricardo came up with a simple economic experiment to explain the benefits to any country that was engaged in international trade even if it could produce all products at the lowest cost and would seem to have no need to trade with foreign partners. He showed that it was advantageous for a country with an absolute advantage in all product categories to trade and allows its work force to specialise in those categories with the highest added value. Vernon focused on the dynamics of comparative advantage and drew inspiration from the product life cycle to explain how trade patterns change over time. New products are manufactured, produced and consumed in the developed (inventing) countries. Then, other high-income countries import it. Production spreads to other advanced countries. The standardised product begins to be produced out of advanced countries into low-wage nation. Advanced countries import it from the low wage countries and Next generation product invented in the advanced countries. Globalisation- Business Environment The tremendous growth of international trade over the past several decades has been both a primary cause and effect of globalization. The volume of world trade since 1950 has increased twenty-fold from $320 billion to $6.8 trillion.1 This increase in the trade of manufactured goods exceeds the increase in the rate of the production of these goods by three times. As a result, consumers around the world now enjoy a broader selection of products than ever before. Additionally, a whole host of U.S. government agencies and international institutions has been established to help manage the ever-growing flow of goods, services, and capital. Although increased international trade has spurred tremendous economic growth across the globe raising incomes, creating jobs, reducing prices, and increasing workers earning power trade can also bring about certain kinds of economic, political, and social disruption. Because the global economy is so interconnected, when large economies suffer recessions, the effects are felt around the world. Trade decreases, and domestic jobs and businesses are lost. In the same way that globalization can be a boon for international trade; it can also have a crushing impact(www.globalization101.org) Offshoreing trend lower wages The shift of productive capacity from the advanced countries to poor countries can be viewed as a commonality of interest among advanced country business groups and Third World elites, who act in concert against workers both in the U. S. and in developing countries. It can also be viewed as a strategy to change the balance of power between Capital and Labour. By shifting production to jurisdictions which favour Capital, owners gain a larger share of revenue and power, while workers everywhere suffer Multinational enterprises (MNEs) had provided huge number of the employment in countries like Indonesian, Vietnam. It not only solves the countries unemployment rate furthermore it will increase the country GDP and lead to the industrialization process of the country by learning the technical know-hows and other industrial automation process. Countries Foreign Direct Investment (FDI) flow will increase; it will improve the exchange and currency rates .Good Employment opportunities directs to better living standard and high purchasing power. Nevertheless, the poor wages, Vietnam and low wage nations can welcome the offshore trend and implement the foreign policies accordingly. Over the last two decades, the advanced economies experienced a boom in off shoring and a doubling of imports of manufactured goods from low-wage countries. Over this same period, approximately 6 million jobs were lost in manufacturing and income inequality increased sharply.These parallel developments led many critics of globalisation to conclude that good manufacturing jobs were being shipped overseas at the expense of the domestic labour force, putting downward pressure on wages of American workers. Concern over these developments led the US Congress to pass the American Jobs Creation Act of 2004. Yet whether these changes in the US labour market are a result of rising import competition or relocation by multinationals to other countries (known as off shoring) is not clear. Paul Krugman (2008) claims that we will never know. He asks How can we quantify the actual effect of rising trade on wages?, and then answers: The answer, given the current state of the data, is that we cant. Yet Krugman suspects that the dramatic increase in manufactured imports from developing countries since the early 1990s has contributed to increasing income inequality. Earlier studies explained rising inequality as a result of technological change which favours skilled workers, a falling minimum wage, or weaker unions (Autor, Katz and Kearney 2008). Larry Katz and David Autor agree with Krugman, arguing that international trade and offshoring will be increasingly important rivers of wages in the future. Theoretically capital mobility should result in higher wages for workers in the developing world, but often it does not. An egregious example of this phenomenon is Nike, the sports shoe manufacturer. Nike makes shoes by contracting with producers in Asian countries. Aggressively seeking the lowest cost, Nike recently moved production from Korea to Indonesia, a military dictatorship which violently represses union activity. The shoes you pay $80 for in the United States are assembled by Indonesian women, working in squalid factories, who receive approximately twelve cents per pair http://home.home.pacbell.net/jfcowan) Benefits of relocating to poor countries For certain occupations there is a greater availability of highly skilled and experienced employees overseas for example manufacturing skills in china and Information technology, Bangalore, India. Cost advantage Companies can save 30-50% compared to the cost of a U.S.-based employee for the same level of performance, and of ten times the offshore employees are more committed, grateful for the work. By using an offshore employee, you eliminate the time you would normally spend on searching job boards, recruiting, interviewing, orientation, managing vacation time and absenteeism, career coaching, and managing employee morale and motivation. Employee issues can be time-consuming and can escalate into legal liabilities. Using offshore staff eliminates certain legal exposure to employment liabilities. Flexibility Unlike traditional employee relationships, off shoring eliminates hiring and termination costs, allowing companies to quickly expand and contract their overseas staff in accordance with business needs. Challenges and considerations Before deciding the relocation plant, the firm has to address the key challenges with respect to cultural, Tax policy, cost savings. Different cultures have different life styles, different attitudes toward conflict resolution and simply different ways of getting work done. Offshore outsourcing is a politically charged issue nowadays, for example the current US government has passed the bill against outsourcing. Expected cost savings might not result from offshore outsourcing. The offshore staff might not turn out to be as productive as expected. Quality of the product also matters for the firm Brand equity. Off shoring can lead to low production cost, if the firm can address all the above mentioned challenges. But, selling the large quantities of the new goods immediately in the poor and low wages countries are always uncertain and it is a risky process also. Every firm has their unique marketing plan and strategy of their products. But, in general poor countries Gross Domestic Product(GDP), Income per captia, and purchasing power of the consumers very less when compare with advanced countries like UK,USA,Germany,France.Canada. Selling a new product in the market requires lot of marketing research and sampling. Due to the uncertain market environment, political disability and consumer behaviour firms are finding difficulties in implementing marketing plan and strategies for the poor countries. In my opinion selling the new goods in the poor countries requires deep understanding of local market and consumer tastes. As per the WTO and ILO reports, more than 3.5 billion people are living in the poor countries. So, firms should understand the culture, life style, of the people to market and sell their products. The plant location and country alone cant decide the success of their products. Findings and recommendations Todays globalization and dynamic business environment has made Production life cycle Theory out of date. Global trade has increased significantly in the last 10- 15 years, thanks to the globalisation world but in the same time inequalities are also increasing. Shifting the production facility or off shoring the manufacturing jobs can increase the profit of the firm due to talent pool, low wages in the poor countries but to achieve this, it has to addresses the challenges of off shoring and draft the business strategies and plans effectively. But quality of the product /service and productivity are the major concern to be addresses by the off shore industry. GDP, income per captia, purchasing power, consumer behaviours are the major deciding factors for buying a new product in any part of the world. All poor countries above mentioned ratios are very less when compare to advanced countries .So launching a new product in poor countries is risky and uncertain even though the product is m anufactured in the same country. Firms should analyze the marketing plans strategy for the poor countries and apply in the poor counties with respect to the market and other demographic factors. Conclusion Globalisation phenomenon gaining across the globe. Trade and culture are exchanging rapidly, thaks, to the advance technology. Shifting the production jobs or off shoring the manufactured jobs has their own advantage and disadvantages. Off shoring has lot of benefits to their own or home country (capital abundant) and new host country (labour abundant) as well. in the same time it has to address the lot of issue in both host and home country with respect to culture, tax policy , environment and other factors. In the open market world firms have the rights to maximize the profits doing offshoreing if obey the terms and condition of the both own and host countries and it should be follow the framework of WTO and ILO

Distance Learning Essay -- Education Educating Learn Essays

Distance Learning missing works cited Definition and Description of Distance Education Distance education is any academic learning method that lets the teacher and the student participate and communicate in a convenient manner, while sometimes in different places and sometimes at different times. The distance education concept has allowed a diverse set of individuals to continue their education, whether it is for personal or professional satisfaction. The teacher is still able to create, design, and plan with goals and objectives, and the student is able to learn and experience through the distance (Davey, 1999). Another word that is associated with distance learning is multimedia. With the use of multimedia, the learning is literally at the "fingertips" of the teacher and the learner. The long distance allows the multimedia, or the use of video, audio, graphics, images, animation, and text, to let the teacher relay information from one location to the learner in a totally different location. This is a process to use when face-to-face interaction is not possible (H ancock, 1999). A summative definition of distance education is a system of instructional learning in which the student(s), in groups or singly, and the teacher are physically separated. The methods of learning takes place with technology consisting of various combinations of telecommunications, hardware and software (Ely; Foley; Freeman, & Scheel, 1995). This learning promotes change in both business and education. This change has its features, benefits and concerns in both fields, which will be discussed (Holloway, & Ohler, 1999). Business and Instructional Technology Side of Distance Education Inc. magazine reports that in the business and instru... ...mind (Hancock, 1999). Holloway and Ohler suggest to keep talking and reading literature about distance education. Other educational systems and organizations may be willing to share resources and technologies associated with distance education (1995). Also, the technologies need to associate to the learning environment. Blumenstyk, Goldie, and Kelly state that "institutions should not go overboard with technology, but to keep it in perspective as one aspect of a balanced educational philosophy" (1999). At this point, distance education is starting to become an outstanding use of learning in higher education. Distance education can be classified as an innovation that combines theory and implementation in "educational technology", better than other trends (Ely; Foley; Freeman, & Scheel, 1995). Distance education is part of out past, present, and future.

Jim Teague in Tanzania

Jim Outage, an MBA associate with a diploma in engineering, is hired for a summer internship in rural Africa to be an officer of a U. S- based social investment firm that is looking for an important agribusiness project in Africa. A small successful company in Tanzania â€Å"Cigarillo† is in the run for being financed by Agrarian. Upon his arrival in Tanzania, he is faced upon two issues: Cigarillo faces some major health-safety issues with the risks of spreading E-coli among the population.Another problem Jim Outage is facing is the fact that he does not know exactly whether the company that identified the potential contamination of E-coli found a real problem or is Just looking for a payoff as Baby is stipulating. The quandary Jims employer is subjecting too is either to withdraw their investment or Just ignore the allegations against the local company. This paper will identify the issues in the case, explain the legal issues and give some recommendations on how Jim Outage c an resolve these issues to save his company's reputation.Identify the major cultural differences and the resulting ethical, or legal challenges Jim Outage faced working at Cigarillo in Tanzania. Jim Outage faces some cultural differences when he went to Tanzania. The major cultural difference he encountered is the fact that people in Tanzania are easily variable. In the video â€Å"Spotlight on India and Mexico† both countries are attractive markets with low cost manufacturing bases, but they have high risks business environment. This is the case for Tanzania, the difference in culture makes it hard for foreign people to do business.First, when he first got to Tanzania, to find his apartment he had to give some money to the person who helped him find his apartment because he had some issues finding direction. That was the first cultural shock he encountered. Second, he was facing himself with some major ethical, or legal challenges in Tanzania different from what he encounter ed in the United States. When he was first arrested by the police officer he had no choice that to bribe a police officer who stopped him illegally without no Justifying reasons.Facing with making the decision of either spending the night in a Tanzania Jail or giving something to the police officer so he can leave in peace he offered the police officer the Cad's of Jim Reeves that belonged to Baby. When Baby mentioned that the Tanzania Certification Agency (TCL) had discovered traces of E-coli in Sourpuss's most popular product, Baby immediately assumed that it is a case of bribery because that is the legal environment in Tanzania. People are faced with constant bribery so it pertains on their ability to make a good Judgment of any situation they enter.The cultural differences Jim Outage encountered since his arrival in Tanzania blurred his ability to think critically. Jim Outage was sort of bribed by Baby and his wife. Since his arrival they treated him as a king and Baby even went head and offered him a car, and they invited him all the time for a meal. In Tanzania, they treat business partners as family members. As the case with Jim Outage, Baby and mama treated him as he was their son and even took the liberty to ask Jim to marry a woman from â€Å"Tanzania† called â€Å"shaggy woman† (p. 3). How did Jim Outage get into the difficulty in which he finds himself?Does he bear some responsibility for his predicament? There are many reasons why Jim Outage found was supposed to. He was blurred by everything Baby and Mama offered him. By doing that, Baby was making sure Jim Outage was closed to him. So when he explained him the situation about the company that discovered E. Coli, Jim Tease's opinion was already biased because he was forced to think as a local citizen will think. He put himself in this situation because he felt for what Baby and Mama did for him. They were only business partners, he should have kept some boundaries and do his Job the way he was supposed to.He believed what Baby told him about the TCL without making his own research first. In addition, when they went to the farm, he decided not to talk about his impressions and findings to Baby knowing the risk the farmers where taking by using cow manure. The fact that Jim Outage is inexperienced also played some responsibility for this difficulty he encountered. He was not prepared enough for the problems facing the society in Tanzania. What encouraged Jim to pay off the police? Do Stagehand's â€Å"five rules† suggest methods Jim could have used to avoid paying bribes?Jim a couple of days after coming to Tanzania found himself in a complicated situation with a police officer who arrested him illegally. He decided to pay off the police officer with the Cad's of Jim Reeves belonging to Baby. Jim was encourages to pay off the police officer because he did not want to go to Jail. It was either paying off the officer or go into the pain of being locked up f or something he did not do. He did not think about it twice while he was giving the CD because his decision was the most rational decision at the time. He could have avoided bribery by using Stagehand's â€Å"five rules† to avoid bribery.The first rule according to Eastland is to never assume that you have to give bribe. In Jims case, he did not try to negotiate with the office; he directly assumed that the police officer wanted something in return of his freedom that is why he gave him the Cad's. The second rule is to â€Å"Just say no. According to the author even if asked people have to resist the urge to bribe by Just saying no. Jim could have explained to the officer that he was new in the city and he did not intend to violate rules while driving and assume the consequences of his act.The third rule is to look for legal and ethical ways to meet the person needs without bribing. Eastland gives three examples of ways to do that: offer an expense paid visit to the home cou ntry or offer training course in home country, make an accommodate donation, and finally do something personal for the person. In Jims case knowing that the officer arrested him illegally thou no reason he could have done him a favor by doing something personal for the officer such as invite him to the restaurant if he let him go or offer him a pass for an event.The fourth rule is to find some creative ways to attend your goals without jeopardizing your integrity. Jim Outage could have found some ways not to bribe the officer by using his head. The fifth rule is to know the culture of the country in question. By knowing exactly how the Tanzania culture works, he could have avoided to give away Abs's CD and still get away without any problem. What action should Jim recommend to his U. S. Oppressor, Allen?In proposing a responsible solution, consider international standards for business practices, the varying impacts, determine the economic outcomes, consider the legal requirements, a nd evaluate ethical obligations. How would you communicate your decision to Baby? Business practices, the impacts his decisions will have, determine the economic outcomes, consider the legal requirements, and evaluate ethical obligations. Jim should tell the truth no matter what to his U. S. Supervisor. He should make a decision based on the facts and those facts state that Cigarillo flour is contaminate.In addition, he saw some additional proofs even though that could explain the E. Coli contamination by the use of cow manure. He needs to weigh both situations and decide which one will make the most arm. He has the choice of letting go of the situation and act as if the Tanzania company Just want a bribe or say â€Å"no† which will make a big impact on the population in Tanzania. DRY states companies should take into account the micro-risks they will face in a given company such as systemic, procedural, distributive, and catastrophic (p. 107). In this case, the procedural po litical risk is the one related to Tanzania.Countries transactions or authorizations to do something important in a given country could be stopped by political actions, public fraud or a partisan Judicial system. Jim should take into considerations the micro issues while talking with his supervisor. That will help him elucidate the problem because he is the one in the country; he understands better the culture now that he lives there. The video â€Å"the new global challengers† explains that internationally active firms create Jobs thereby create increasing the living standards of the population concerned. Tanzania is considered as an emerging market.According to the video, merging markets are characterized by inadequate infrastructures, underdeveloped legal system, and high risks business environments. This is exactly what Tanzania is going through. Knowing those issues will help Jim determine the best solution. In this case, a negative answer will be more beneficial and mor e economic because the company will save money by not investing on a business that is doomed to failure in the long run. Even if they decide to ignore the allegations against Cigarillo, they will still pay the price if people find that such a reputable company such as Agrarian was implicated in such allegations.This will completely mess up their reputation. Jim should recommend not toggle the loan to Cigarillo no matter what will happen to his relationships with Baby. This is for his best interest. The ethical obligations force him to tell exactly what is going on by being neutral without taken any side. That meaner explaining the use of cow manure while making the flour and take into account the content of the report even though Baby thinks the company is Just looking to be bribed. Jim should communicate his decision to Baby by explaining him the danger that E. Coli will have on the customers.Baby should understand that ensuing the loan ill have a big impact and endanger the health of thousands of people and put Agrarian at risk. Henequen He should also explain that he has his hands tight and that he might get fired if he does not make the right decision. This technique might alleviate the anger Baby will have against Jim after telling him. Where would you go for guidance, either within or outside your company and organization. In the absence of guidance, what would you do? For guidance within the company I will ask my follow coworkers what they think of the situation, and what they think I should do.It's always good to know what other people think before acting. In Jims case, his friend's remark helped me realized that if he was in the United States he would have acted differently. In the absence of guidance, I will Just follow my instinct and do what is the loan will deprive hundreds of farmers their income. The right thing is this case seems to be going a â€Å"no† decision because it will have less effect than going with a â€Å"yes. † Brief ly outline the key components of an ethics or compliance program for a small-sized foreign company that would provide guidance on the types of issues Jim faced at Cigarillo.Effective compliance programs fits exactly the specific business ND the risks associated with the business in question. 1. Develop open lines of communication. For a compliance program to be effective, the most important element is that employees feel comfortable asking questions and reporting possible violations. * Establish an open-door policy for the compliance official or committee and the highest level of on-site management to receive employee reports. * Guarantee that there will be no retaliation against employees who make good-faith reports of misconduct. Provide an anonymous suggestion box, which may induce some employees to report problems. 2. Identify the risks. Management must first ferret out risks that the company faces, so the right factors can be monitored, audited and evaluated. A wide range of po tential risks should be considered, including: Environmental risks (clean air and water, hazardous waste disposal, transportation of hazardous materials, etc. ) * Health and safety * Money laundering, especially when involved with foreign entities 3. Establish standards and procedures.Some fundamental standards and procedures should be included in any organization's compliance program. For example, every business should: * Adhere to a record retention policy. Perform background screening of potential employees. * Develop forms to address recurring issues, so that incidents are recorded fully and consistently. 4. Designate a compliance official or committee. Every compliance program must be overseen by an individual or committee that has ultimate accountability. These duties might include: * Overseeing and monitoring the implementation of the compliance program. Establishing methods to improve quality of service and reduce vulnerability to fraud and abuse.

Hunter Worth Essay

Communication is the process by which information is exchanged and understood by two or more people. A manager must not only possess good communication skills, he must also be able to communicate effectively. When communicating internationally, managers should be aware of critical factors that may affect communication. For example, language barriers, cultural differences, and the channel used to communicate to name a few. Based on Vicente Ruiz’s actions and his conversation with Chuck Moore, the differences in cultural attitudes towards communication in the United States as compared to Mexico that can be detected can be explained according to Geertz Horfstede’s value dimension. Americans tend to be individualistic in that individuals are expected to look after themselves. Mexicans on the other hand lean more towards collectivism, as they prefer a more tightly knit social framework, where members of an organization protect each other’s interest. Where Americans have a low power distance, in contrast Mexicans have a high power distance. Power distance refers to the degree to which people accept inequality in power among institutions, organizations and people. Both sides seem to be very assertive; however, it is obvious that there are differences in cultural attitudes toward communication between these two countries. Americans tend to do business directly, whilst Mexicans prefer to build relationships before going into business, and they also don’t seem to value punctuality as time is a flexible commodity. Understanding these differences is therefore very important in doing business, as cultural attitudes play an important part when doing business internationally. Also if consideration is not given to channel richness, the wrong message could be sent. The channel used in this case caused Chuck Moore’s communication to be treated routinely. Communication, although it appears to be a simple process, must be done properly and effectively to ensure success in business in not only the domestic environment, but also when communicating globally. What was the main purpose of Chuck’s communication to Vicente? To Michael Sato? What factors should he have considered when choosing a channel for his communication to Vicente? Are they the same factors he should have considered when communicating with Michael Sato? Chuck Moore is the national sales manager for Hunter-Worth. He was concerned that a shipment of a new interactive cuddly plush toy would not arrive on time for the Christmas season sales. He therefore communicated with Vicente Ruiz, the plant manager of the Mexican subsidiary that manufactured the toy. The main purpose of Chuck’s communication to Vicente was to inquire about the status of the latest order, which was late. He asked for a production schedule for pending orders, and also requested a specific explanation as to why the Mexican plant seemed to be having problems with shipping orders on time. Michael Sato is the executive vice president for sales and marketing, and he is also Chuck Moore’s supervisor. The man purpose of Chuck’s communication to Michael Sato was to appraise him of the problem he was having with Vicente Ruiz and also his concerns as to the availability of the toy that could be the season’s best seller. Chuck used upward communication, which are messages transmitted from the lower to the higher levels in the organizations hierarchy, and this falls in the type, problems and exceptions, where a manager would inform his supervisor of any serious problems, and to make senior managers aware of difficulties. His communication to Michael was also to inform him of what he had done so far, and also to get advice on what else could be done. Chuck had a choice of many different channels he could have used to communicate with Vicente. He chose to send an email. When choosing a channel for his communication to Vicente, Chuck needed to think about the urgency of the information he required or the nature of the message he was sending and use the best possible channel of communication. This is where channel richness comes in. Channel richness is the amount of information that can be transmitted during a communication episode. The channel that Chuck chose to communicate with was low in channel richness. In the hierarchy of channel richness of which face-to-face communication is the highest and reports or bulletins are the lowest, there are advantages and disadvantages. High channel richness has the advantage of being fast, two-way with fast feed- back. There was a breakdown in communication due to the Chuck’s choice of channel of communication, as his message was distorted by noise in the form of interference by Vicente’s secretary, who treated it as a routine message and handled it accordingly. These are the same factors Chuck should have considered when communicating with Michael Sato, as he was sought a quick resolution to the situation. He again used a channel low in channel richness and his message was dealt with. Since Michael Sato was also his friend, he could have taken the opportunity to meet with him and discuss ideas on how to resolve the problem. Instead Michael Sato dealt with the situation as it was communicated to him. Face- to-face communication in this instance would have been a better channel, thus avoiding misunderstandings. If you were Chuck, what would you have done differently? What steps would you take at this point to make sure the supply of the popular new toy is sufficient to meet the anticipated demand? With an understanding of the cultural differences of his Mexican counterpart, if I were Chuck first of all I would have developed a personal communication network with Vicente Ruiz. This is the cultivation of personal relationships that cross departmental, hierarchical and even organizational boundaries. Since Mexicans like to build relationships before doing business, it would have been profitable to build a personal communication network with the Mexican subsidiary. At this point Chuck may treat this situation as he would a crisis, and taking into consideration the short period of time to fix the situation, he needs to begin with effective communication, since prompt and thoughtful communication with Vicente can turn the situation to his advantage. He should not lose focus at this time, and he should also pay a visit to the Mexican subsidiary to do damage control. With mutual understanding of Vicente’s supply problems and Chuck Moore’s urgent need for an ample supply of the popular new toy, both managers should meet, and listen to each other’s problems and come to a solution that would benefit both sides, thus building a relationship for future references.