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Complex problems in a global business · Part 1 of 4
3 exam-style questions with model answers, plus 3 quick multi-choice questions — every question on this part of the standard, grouped by the 1 page of notes they come from.
Write a full answer before you reveal the model one. That comparison is where the learning happens.
Invented resource. Tāwhiri Outdoor is a New Zealand-registered maker of camping stoves selling in Australia, Japan and Canada. It appointed a Canadian distributor 18 months ago. Since then:
Identify ONE problem facing Tāwhiri Outdoor, and explain why it is a complex problem.
Invented resource. Tāwhiri Outdoor's Canadian distributor also carries two competing stove brands. Tāwhiri's stated goal is to make Canada its second-largest market within three years.
Fully explain how the distributor carrying competing brands may affect Tāwhiri Outdoor's ability to reach that goal.
Invented resource. Tāwhiri Outdoor earned $840,000 in Canadian wholesale revenue last year. It is considering two responses.
Option A: appoint its own in-market sales representative in Canada, at a cost of $128,000 a year.
Option B: move to an exclusive distributor that carries no competing stove brands, which requires Tāwhiri to concede 6 percentage points of margin on its Canadian revenue.
Which option would you recommend? Justify your recommendation, including any new information.