Why had Carvel not been as successful in China as it had expected?
What will be an ideal response?
I. Problem of quality control: Dust, pollution, and coal ash found in Beijing made it difficult to keep the work area clean.
II. Problem of production:
A. Water in Beijing was not potable. Therefore, it had to be boiled and filtered before it could be used.
B. Carvel was accustomed to using single use items in its production for sanitation reasons. China considered this a waste. Thus, cultural outlook became a problem here.
III. High cost of imported inputs: Items such as nuts, flavorings, fruit fillings had to be imported from the United States.
IV. High labor costs: In addition to the fact that the employees demanded higher wages from a foreign company, government payroll tax and additional contribution for health care, training, and child care costs raised the labor expenses to 149 percent of their actual cost.
V. Lack of market understanding: Carvel did not understand the factors that impacted ice cream sales in the market. They assumed that the market would develop along the U.S. lines.
You might also like to view...
How should an efficiency variance that is material in amount be treated at the end of an accounting period?
a. Reported as a deferred charge or credit b. Allocated among work in process inventory, finished goods inventory, and cost of goods sold c. Charged or credited to cost of goods manufactured d. Allocated among cost of goods manufactured, finished goods inventory, and cost of goods sold
To receive the information being transmitted on a specific frequency, all you need is a device with a(n) ____ that allows you to tune in to that frequency.
A. antenna B. port C. gateway D. tuner
To be of practical use an intrusion detection system should detect a substantial percentage of intrusions while keeping the false alarm rate at an acceptable level.
Indicate whether the statement is true or false.
3M implemented the Six Sigma process that focuses on specific events rather than system-wide causes of problems. This is a positive example of a learning organization.
a. true b. false