The Pollocks small Bakery is faced with a big conclusiveness on whether to let in a proposal from an airline nutrition supplier, which may significantly change its future business if it does involve the proposal. Considering the various issues and weighing the alternatives available, I would recommend that John accept the proposal.
Though enjoyed a steady increase of business, the Pollocks is experiencing some problems: steep cost, broaden product line with small-volume items, fully occupied schedule, unprofitable, less shit equity, imminent competition threat. The core problem is how to transform the bakehouse into the Brownie Factory to ensure long-term profitability.
Accepting the proposal could efficaciously solve most of the problems. By cutting the surface by 1/3, cost could be lowered down, quality maintained, contentedness increased, brand equity easily established, overwork time lessened. virtually importantly, profitability could be achieved. The contract could bring 4000*13 * [(0.3-0.15) - 0.03)] = $6,240 with high possibility of future business. Pollocks could also use the brand leverage to explore other alternatives: distributors, existing customers, and other airline forage suppliers.
The business proposal is an excellent opportunity for Pollacks. It could help Polacks to throw a fit its existing customer base, forestall possible competition, realize a strategic move, and become profitable. This is a good example that trade to organizations should understand, create and deliver value to clients. By cutting size of the brownies serve the purpose and John should positively consider the proposal.
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