To: Staken Farm’s Limited
From: Kim Gubbels
Subject: Taking on grading tasks
Date: December 1989
Recommendation: Take on Grading Tasks
Staken Farms Limited was taken over by Robert and David Kennedy. Within the company, an egg grader was purchased, yet it has been idling for years and therefore was consistently losing value. In order for Staken Farms to be the most successful, it is critical for the business to prevent the grader from idling any longer. I recommend that Staken Farm’s Limited put the grading equipment to use, rather than sell it to expand their business operations and generate increasing revenue’s.
This solution was chosen after applying the following decision criteria:
• Grow the Staken Farms Business
• Generate additional profits
Support
Taking on grading tasks will grow the Staken Farms Business
Taking on grading task will allow Staken Farms to grow significantly. As a large supplier to Northern Dairies Limited, providing 35% …show more content…
Before they can begin making a profit through sales, they must set up all stationary aspects of the business, including the machinery itself. After these aspects are completed, grading tasks and sales can begin. In the long term, a review of this plan must take place.
A potential risk Staken Farm’s may face while undergoing their plan is continuous pressure from Northern. As Northern is an already established grader, they have the resources needed to lower their egg prices to potentially drive Staken Farm’s out of business. If this occurs, Staken Farm’s will need to utilize their promotional campaign to exert a force onto wholesalers and retailers that will make them seem more attractive. They may also need to adjust their contract with these wholesalers and retailers to make more frequent deliveries and make working with Staken Farm’s more convenient. Appendix 1:
From: Kim Gubbels
Subject: Taking on grading tasks
Date: December 1989
Recommendation: Take on Grading Tasks
Staken Farms Limited was taken over by Robert and David Kennedy. Within the company, an egg grader was purchased, yet it has been idling for years and therefore was consistently losing value. In order for Staken Farms to be the most successful, it is critical for the business to prevent the grader from idling any longer. I recommend that Staken Farm’s Limited put the grading equipment to use, rather than sell it to expand their business operations and generate increasing revenue’s.
This solution was chosen after applying the following decision criteria:
• Grow the Staken Farms Business
• Generate additional profits
Support
Taking on grading tasks will grow the Staken Farms Business
Taking on grading task will allow Staken Farms to grow significantly. As a large supplier to Northern Dairies Limited, providing 35% …show more content…
Before they can begin making a profit through sales, they must set up all stationary aspects of the business, including the machinery itself. After these aspects are completed, grading tasks and sales can begin. In the long term, a review of this plan must take place.
A potential risk Staken Farm’s may face while undergoing their plan is continuous pressure from Northern. As Northern is an already established grader, they have the resources needed to lower their egg prices to potentially drive Staken Farm’s out of business. If this occurs, Staken Farm’s will need to utilize their promotional campaign to exert a force onto wholesalers and retailers that will make them seem more attractive. They may also need to adjust their contract with these wholesalers and retailers to make more frequent deliveries and make working with Staken Farm’s more convenient. Appendix 1: