Mega Corp.

In 1994, Mr. Olano needs, special projects manager of Mega Corp. to make a recommendation to the mega-owner, Mrs. Lim, on mega-investment in a TV production at the Clark Special Economic Zone, the Philippines. First, the investment had been mega venture in life have an OEM channels, procurement and sale of parts of production for own. Recently, however, Aiwa and Mega had negotiations about the system to a single supplier for the new initiative Aiwa in t … Read more »

In 1994, Mr. Olano needs, special projects manager of Mega Corp. to make a recommendation to the mega-owner, Mrs. Lim, on mega-investment in a TV production at the Clark Special Economic Zone, the Philippines. First, the investment had been mega venture in life have an OEM channels, procurement and sale of parts of production for own. Recently, however, Aiwa and Mega had negotiations about the system to a single supplier for the new initiative in Aiwa TV production. Under the agreement, Mega TV for Aiwa would assemble parts of either relative or relative by Aiwa on its own – if these parts were less expensive yet fulfilled Aiwa standards. Mega profits would be about $ 2 per unit plus 50% of any cost savings for the components purchased it.
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Donald J. Lecraw
Source: Ivey Publishing
9 sides.
Publication Date: Oct 20, 1997. Prod #: 97G009-PDF-ENG
MegaCorp HBR case solution