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promised dates should be entirely met.
Gemayel also indicated that though Arromani had continued to be a good payer, some of
the recent orders had met major problems with the end user certificates. One order,
initially specified as designated for Saudi Arabia, had appeared as supplies for a chemical
plant in Libya; a small order for Oman had been diverted for North Yemen. These orders
were however only a limited fraction of the total orders that had been placed with the
company during the last 5 years.
What action should you as J Franklin now take on the Bajin order?
a) Accept the order on current prices?
b) Accept the order at premium price?
c) Refuse it?
d) Continue to delay the order?
e) Contact the production department to ascertain the production problems associated with
the order?
Late on Sunday evening, you were also able to find the production manager, J Malran,
who had been caravanning in the country. J learns that they have had experience of
producing the series 5 valve in phosphor bronze and had indeed manufactured some for a
previous order for Arromani. None of this information had been included on the sales
literature as no decision had been taken by the Sales and Marketing Department as to the
future of phosphor bronze products.
What action should you as MD now take on the Bajin order?
a) Accept the order on current prices?
b) Accept the order at premium price?
c) Refuse it?
d) Continue to delay the order?
On the Monday morning, you as J Franklin finally manage to contact a junior member of
the Sales and Marketing Department. J learns that Arromani had been negotiating on this
order for the past 3 months. He was one of the more regular Middle Eastern dealers who
purchased products from Burke on this basis, and prices for his orders tended to be ad
hoc. Under the current system in the area, there were no agency agreements and a deal
of this nature would not cut across previous undertakings. Similar orders had gone through
without any trouble in the past.
The junior manager was not aware of any problems with orders turning up in the wrong
territories and suggested that this was probably a typical comment from Gemayel who was
always trying to get the company to establish firm agency agreements for most North
African and Middle Eastern markets. You are also told that these valves would not require
any form of government clearance, as they are not on any restricted list for international
sales.
What action should you as J Franklin now take on the Bajin order?
a) Refuse it?
b) Accept it at current prices?
c) Accept it but at a premium price?
By getting detailed information concerning the product, the customer, and the market, you
as J Franklin manage to gain two very profitable orders for Burke Engineering. You
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