EL_Tek

EL Tek Magnetic Advances and Audio Components have a same business object in the company. Obviously, it is to maximize their profit. Meanwhile, the new magnetic material “Z-25” was developed and became a commercial reality by Audio Components. This is small, high-powered, inexpensive one and it is expected to be a hot product. But as regarding how to handle this product in the next few years, there is a conflict between Magnet advances and Audio components. Magnet Advances thinks that the product has a great potential in the open market and wants to produce it by their own. Therefore, Magnet Advances want to get the right as cheap as possible from Audio Components to sell it to external clients. On the other hand, Audio Components thinks that the new magnet is a key component to keep their competitive advantages against their direct competitors and do not want to produce externally. However, they had spent a lot of money ($12million) for product development. So it could be assumed that they want to obtain a reasonable profit somehow to recover the development costs as soon as possible. Thus, each division stands on different position mutually, and has different objectives for the matter. As table1 shows magnet, advances, components, possible, audio, sell, product, new, sales, opportunity, externally, division, different, development, cost, because, z-25, tp, table2, profit, price, position, option, money, external, each, charter, years, try, thus, thinks, soon, simulation, shows, scenario, rights