Situations - Help me!

You are a business manager working for Vietnam Steel Corporation (VSC)- one of the biggest state owned companies in Vietnam. Under the pressure of inflation in the last year, the Government of Vietnam has asked VSC to control the selling price of steel in the domestic market. The Government wants to keep a maximum level of steel price. However, most raw materials to produce steel are imported and prices of steel products are increasing dramatically in the international market.

Your General Director is now facing a dilemma of how to control the price of steel in the domestic market. What do you think about the difficult situation for VSC and what solution could you propose to him?