Ek Kathak Aur Uski Kathayen

Monday, September 22, 2008

Another CP Blooper...

This one's from Operations Management class.

Case fact #1: Cost of high quality imported raw hides - 2X
Case fact #2: From selling goods made from highest quality hides, the company earns - 4X
Question: How much would the company be willing to pay the local market to get the highest quality hide?
My Answer: 4 times! (The culture where I come from, Profit is a dirty word anyway. Heh heh!)

On a totally different note, the take away from today's case was that many business backward integrate. And we, then decided that since we anyway own the cow, and the whole backward integration is a never ending process, and that before we know it we will be buying land and growing fodder and setting up own own 'water' manufacturing facility, and then a parallel universe all together... we should also make money selling the meat, the milk, the milk products, and the cow dung as safe, bio friendly fertilizers! (Differentiated value anyone?)

Moral of the story? "Don't be shy about buying the cow".
And I thought we were discussing a tannery here!

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