Pieles de La Garriga Case Study

Pieles de La Garriga's case study summary Pienes de La Garriga's case study needs to decide whether to accept Comerpiel's proposal and under what conditions. To make a decision, several criteria must be taken into account. The most important criterion is to withdraw the strategic importance of the contract risk and decision making, when the overall order, deciding to take profit and loss, Comerpiel lacks capacity in the first month.

First of all, can Pieres de la Garriga make the expected number of rabbit bands according to the schedule defined by Comerpiel? Pieles de la Garriga faces unusual needs in terms of production. Can the company satisfy this demand? Individual orders (see Chart 1: Potential revenues of EUR 12 million) represent 75% of the sales of today's Pieles de la Garriga and Comerpiel (1.5 million euros). In addition to purchasing essential machinery to meet the final criteria of customer requirements, are the production capacities of today's companies adequate or do companies need to increase their daily production hours? If so, what financial impact will these choices have? Instead, is the company 's existing inventory sufficient to supply Comerpiel in connection with production over the coming weeks?

What is the problem that Pieles de la Garriga must face? The company has to choose from several options. First, it's a simple choice. Decide that Catalonia 's manager bids or does not respond to Proposp for Request (RFP). In the latter case, they will undoubtedly subject their company to commercial risk. However, even if you decide to bid, you need to decide which products to suggest. They can come up with two kinds of bands made of Pieles de la Garriga (small and large), or just one band.