Running head: CLEAR HEAR - MARKET STRUCTURE PROPOSAL
CLEAR HEAR
Market Structure Proposal
ECO/561 – Economics
November 14, 2009
To: Clear Hear, President and CEO
Lisa Norman, Clear Hear Production Manager
Kendra Sherman, Clear Hear Business Development Specialist
From: Economist Staff Analysts
Subject: Clear Hear – Market Structure Proposal
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As Economic analysts here at Clear Hear, we are aware of the dilemma that currently exists between our need to operate at full capacity with the in-house product lines we manufacture on-site, and the customer relationship scenario we currently have with Big Box going on just now and the need to resolve it. Upon presenting this proposal we needed to take into consideration Clear Hear runs two production lines in its factory, the Alpha and the Beta, as well as the fact that Clear Hear is a fast-moving manufacturer which sets high standards and values for both its company and its leaders. Apparently there are also some decisions to be made as Kendra Sherman, our in-house Business Development Specialist is anxiously awaiting an appointment with Lisa Norman the production manager here at Clear Hear. We understand Ms. Sherman is excited over an order of 100,000 cell phones she has just secured and that the phones are virtually identical to Clear Hear’s Alpha model. Ms. Sherman’s excitement revolves around the fact that this particular order would support the current order that our largest customer, Big Box, a major chain is running with its own customer - a telephone service provider. However as I am I sure you are aware, with any big get, there are stipulations. Big Box has given Clear Hear a delivery date of 90 days. Lisa is interested, in part, because the order would use the excess capacity of...