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Ferro Case Study Answer

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Garima Sharma has quite some experience in terms of handling relationships : she was the head of human resources at Norton Network for 10 years before joining Ferro, and has been entrusted by her husband to organize Metal Star's representative, Sheikh Yusuf's trip to India to inspect the product he coveted.
We believe her decision to release the shipment was a wise one for many reasons.

First of all, 45% of Ferro's revenues come from foreign operations, 5 of the top 10 Ferro's clients are foreign, and although Metal Star isn't one of them, it cannot be ignored as the company had agreed to buy 6 machines for 10 million INR. Plus, with both the domestic and foreign competition that can offer pretty much the same high-quality machines at lower prices, Ferro needs every deal they can strike in order to manage to get the company through with its investment plan and get up to speed in terms of cutting-edge technology.

In a nutshell, Ferro needs to find a solution which satisfies both parties. Garima is known to have a good and quick understanding of people's traits, which makes her able to offer customized treatments to her clients, even during turmoiled times (i.e payment crisis with Sheikh Yusuf). And this is exactly what she has done by finally agreeing to split the demurrages between Ferro and Metal Star before eventually releasing the machines to Yusuf, in hope of receiving payment.

I don't think there would have been any better solution, as some other ways have already been explored and unfortunately failed, such as facilitating payments terms. Plus, assuming Ferro wouldn't release the machines to Metal Star and gets them back in India, there would very little chance to sell them to other clients, as all the products are tailor-made, and that would be not to consider definitely losing Metal Star despite all the money and effort spent for them. So they might

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