Fenix del Sur, LLC is a regulated liability company that sources and sells a extensive variety of South American and African artifacts.

Relevant Information(Quantitative/Qualitative

        There are two main decisions you can make in this case. Either you can accept or reject the contract. Accepting or declining the contract has its strengths and weaknesses. As part of the qualitative analysis we decided to use a SWOT to identify the strengths, weaknesses, opportunities, and threats of case. Accepting the contract could lead to a possible 4 million dollar revenue increase is an strength in this case. Also another advantage is that they have a great reputation with customer trust, and their sales have gradually increased by 20% each year.  A weaknesses that the company has is being eliminated as a middleman meaning that no longer are they the buyer from the supplier and the seller to the customer. Also possibly loosing current dealers that only deal in authentic antiquities would be another weakness. The case states that there have been dealers who have been sent to deal directly with some of our Hopi, Navajo, and African sources. Also there has been a problem finding attaining artifacts from certain countries like Africa and South America. Some opportunities that have been presented are the increase in the company’s revenue sales accounts. Another opportunity would be with declining the contract they could just improve their product and branch out. The company’s major threats are the government regulation taking place in Africa and South America, and the low quality replicas being sold by unidentified slum dealers. Also the most important threat would be that the company could also lose customers that held them to a certain standard.

        In the case the contract indicated that it would buy at 10% below the company’s current prices. This plan may generate sales revenue, but  it may not necessarily create gross sales profit due to the decreased  price.   Also, while acquisitions are estimated to be at $4 million yearly, the company’s shortage of market research delays them because the firm is unconscious of customer developments.  Also there wasn’t much evidence explaining the replicas sales, it wasn’t stated whether it was an increase or decrease in revenue. So that makes the $4 million annually an non-factor.  This could also be considered a threat but, Fe’nix would have to triple its replica production to gratify the predetermined commitment.  Renegotiating the contract to sell to a percentage lower than 10% to make up for the replica problem can be an risk but at the same time the best plan. If Fe’nix justified a growth in the original purchase of $750,000 with additional measures showing that replica demand is increasing and that investing more than $750,000 would help settle both parties. In the world today, many companies thrive because of advertisement and other marketing tools.

Identify Solution

        Fe’nix should decline the contract and just improve their business sector.  The company also should just try to expand their brand into other department stores giving them an audience. Also the company has good trust with its customers so their work is recognized. Fe’nix should improve their marketing team so they can reach the audience on a global scale.

Implementation Plan

        Fe’nix del Sur plan should be to try to become an more global company.  With this advantage they could potentially generate a sufficient amount of revenue.  After generating enough revenue Fe’nix should try to buy out some of its competition. This could potentially lead to another increase in revenue. In a maximum of 10 years Fenix del Sur should be the top artifact seller globally. The main motivation to attaining all of these goals is just to improve Fenix del Sur market. For example, give buyers a general explanation of why this product is the best.