Home • BUSA 200 Details • BUSA 203 Details • BUSA 320 Details • BUSA 323 Details

Foxy Originals is a jewelry manufacturer [check out their Web site at http://www.foxyoriginals.com/] They are trying to decide whether and how to enter the U.S. market. Two options are available: trade shows and a system of sales representatives. We will work through the analysis for the trade shows on Day 1 [October15th]. The complete case analysis is due on Day 2 [October 20th.] For your submitted analysis, you are to replicate the analysis for the trade shows in Excel and complete the analysis for the sales reps alternative. For each alternative, the case provides best case and worst case projections. Part of your assignment is to determine the relative merits of the two systems under each scenario and arrive at recommendations for Foxy's management. Think about a matrix to summarize your results [trade shows and sales reps on one axis, best case and worst case on the other. Note that it is important to think about the impact "per trade show" or "per sales rep" as well as the total annual impact for trade shows or sales reps.]  Specific assignment questions are as follows:

1. Evaluate the pros and cons of introducing the Foxy brand to the United States.

2. Assess each distribution strategy from a qualitative point of view.

3. Identify all costs, other than variable costs, for the trade-show distribution strategy. Categorize these costs as investments and fixed costs (per trade show and for fiscal 2005).

4. Identify all costs, other than variable costs, for the sales representatives' distribution strategy. Categorize these costs as investments and fixed costs (per sales representative and for fiscal 2005).

5. Do the variable costs for both products (necklaces and pairs of earrings) differ between trade shows and sales representatives?

6. Calculate the variable costs per order received at a trade show and the variable costs per order received through a sales representative.

7. For each distribution strategy, calculate the unit contribution and contribution margin rate for each of the two product lines (necklaces and pairs of earrings). What is the weighted average contribution margin for an order at a trade show and an order with a sales representative?

8. Calculate Foxy's breakeven point for each distribution strategy.

9. Which distribution channel will be more profitable in 2005?

10. Choose a distribution strategy (trade shows, sales representatives or both) based on your qualitative and quantitative assessment.

Evaluation of your work:

"A" papers will thoroughly address each of the issues enumerated above. Written work will be comprehensive and contain insights into the obvious issues as well as the subtleties involved in this decision. Numerical analysis will be accurate, complete and well organized. "A" papers will demonstrate a thorough understanding of the conceptual issues which are relevant to the analysis. "A" papers will have professional appearance and will be entirely free of errors in spelling, grammar and syntax. One primary differentiator between "A" and "B" papers will be the extent to which you are able to integrate the qualitative and quantitative assessments of this situation. "C" papers will tend to lack any such integration, and/or contain significant conceptual/mechanical errors. More serious [or more numerous] errors will result in grades of C- or lower. Historically, students' ability to address questions like So what? What difference does it make? Who cares? has been a major factor in the difference between higher and lower grades in all of my classes.

Submission:

1. Email your file no later than 7:45 am on 10/20/2009. Subject line is foxy. Filename protocol is yourlastnamefoxy.xls or yourlastnamefoxy.doc.

2. Hard copy due at the start of class. We will discuss the case in class, so bring a copy for reference during class.

Copyright © 2008 Gerald M. Myers
Last modified:09/05/2009 01:52:14 PM