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Part 1: Case Details

1. Describe EU Design’s primary activities. What are some of EU Design’s main lines of business?

2. Use boxes and arrows to map EU Design’s supply chain. Where does EU Design fit into the Apparel Supply Chain shown in Exhibit 1 of the case? Are they a separate box, or part of one already in the exhibit? Who are their downstream buyers? Who are their upstream suppliers? 

3. Identify market segments for EU Design. What did large vs. small companies get from EU Design?

4. The case says it was initially a distribution and customer service center. What, specifically, did the Hong Kong office do initially, and for what parties? What was it distributing and who was it providing customer service to? 

Part 2: Strategy

Make some recommendations for what Berardi should do, given the problems discussed in the last 2 sections. Be specific about what you recommend, and in what order. Be sure to address changes to the company structure (who does what? who reports to whom? how will units interact?), performance management (which requires setting goals), and incentives. How should performance be measured (e.g. objectively, subjectively, formally, informally, at the individual, group or organizational level)? What kinds of incentives would be most effective to address EU Design’s problems?

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