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Celluclear Wireless Goes Global

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Submitted By Chris340542
Words 1309
Pages 6
CelluClear Wireless Goes Global
Christopher L Kearney
University of Phoenix
ECO/GM 561 International Economics
Watson T. Ragin
July 4, 2011

Celluclear Wireless Goes Global Kendra Sherman, a business development specialist for Celluclear Wireless has secured an order for 100, 000 cell phones from Russia, who has a promotion with a telephone provider there, the order must be ready in the next 90 days. These phones are somewhat identical to the Alpha Model currently produced by Celluclear, which runs $20 a unit. However, the Russian Company is only willing to pay $15 per unit for the order that has been secured by Kendra. Kendra is eager about meeting with Lars Norman the production manager to ascertain whether or not she can win and deliver on such a big order in the 90 days. Celluclear Wireless is a company who has conducted business extensively in the United States; however, the production manager Lars Norman is considering going global and outsourcing to Japan, who is widely known for manufacturing cell phones and has received awards for his outstanding product processes. The Japanese Manufacturer further claims that the product would be identical to Celluclear’s current product and would cost at least $14 a unit. If Lars decision is to go with the Japanese Company this would be a substantial savings because the Russian Company is willing to pay $15 per unit, so there would be a $1 profit on each unit. Lars Norman, production manager for Celluclear must decide to either go global or to remain with his current Big Box retailer here is the United States. Going global can be defined as considering options beyond his immediate world and trying something he would not normally try. If Lars decided to go global there are additional factors he must take into consideration with a global market, and the first is educating him to the customs and practices of the

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