New products for ISC would be a great idea but a challenging one as it has been known to produce sausages since it started. The company was started by Mr. Perrone who have been running the firm in New York for over six decades since 1948. On my first meeting with Mr. Perrone, I would ask the following questions.
What has made the Italian Sausage Company (ISC) successful in New York over the years in sausage business?
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What are the strategies that ISC applied over the years to shake off competition from other companies?
Have you ever thought of extending the Sausage business out of New York?
Have you ever thought of venturing in any other business besides the sausage business?
What are your (Mr. Perrone) thoughts about venturing in the hot-dog business?
The general approach to the account would be to evaluate the potential of the proposal presented. I would look at the weaknesses and the strengths of the proposal. I would also require analysis and researched information of the idea by Mr. Bucks I would consider the support of the claim of the potential hot dog market as proposed. The general approach is to evaluate how implementable the idea at hand is in the real market ( Phadtare, 2010) . The goal is to see the depth of the idea and the data based on actual market research available to support the idea.
My first meeting with Mr. Big Bucks would be a conversation and not an interview. The discussion would aim at understanding the origin of Mr. Big’s ideas and what were the motives behind the proposal ideas. The reason is to evaluate how well the proposal had been thought and researched. Therefore, I would have available data on the consumption of sausages and hot dogs in New York. The information would serve as a benchmark to evaluate the knowledge of Mr. Big Buck on the knowledge about the market structure of meat products such as sausage and hotdog ( Wheelen & Hunger, 2011) .
I would involve Mr. Big Bucks in my work as to try and see the economic value of the proposal and how well it fits with the sausage business ( Wheelen et al 2017) . I would not dismiss Mr. Big Bucks idea without fully involving him to get his views and evaluate the possible economic strategies that he is willing to apply to see the hot dog business through. I would ask for a possible cost-benefit analysis of a new venture to ensure that he had considered all the possible outcomes of the new venture. I would only involve Mr. Big in the initial stages of evaluating his proposal to help me understand the critical aspects of the proposal. The reason is to ensure that Mr. Big will not influence my opinion of the proposal.
Mr. Big Bucks’ recommendations are is a great idea, but I disagree with the timing of the proposal. At first, he should prove that he can run ISC. Although hot dog contains sausages, I would disagree with Mr. Bucks that sausage making is similar to a hot dog. Hot dog production would involve baking which would include a new business line. According to ISC history, the company has been engaged in sausage production which does not require baking. It would be a new responsibility for the company to purchase new machinery and materials to be used in the production of the baked part of hot dogs. Alternatively, ISC would be forced to contract a renowned baking company to ensure the production of quality product. While Mr. Bucks see the potential market in New York, I would require to know how much he knows about large hot dog producers such as Nathans Famous Skinless Beef Franks. Entering in hot dog business would be a new venture, and there is already enough competition in hotdog industry. The idea of the hot dog venture is not well informed as it lacks any supporting information from research ( Wheelen & Hunger, 2011) . Proposals are based on analytical research that shows that the idea is well studied to identify the gap.
I would gather extra data on the hot dog industry and market in New York that can help me carry out a cost-benefit analysis to make a sound decision. I would also gather data on the capital investment required to invest in the new idea. Market research to evaluate the barriers to entry in the highly competitive hot dog market.
From the case Description, I would not recommend the implementation of the hot dog idea at the moment. The reason for that it is a new idea, and it would deviate the attention from sausage production into the new product. I would recommend that there is a need for research on the hot dog market before implementing the proposal. I would say that it would be better to extend the sausage business past New York than venturing in a new business. I would tell Mr. Perrone to stick to sausage production but ask for well-developed research on hot dog market that would help us evaluate the hot dog market, and it’s potential. I would also discourage the adoption of the idea at the moment until strategies on market entry for the new products are developed and tested ( Phadtare, 2010).
References
Phadtare, M. T. (2010). Strategic management: Concepts and cases . PHI Learning Pvt. Ltd..
Wheelen, T. L., & Hunger, J. D. (2011). Concepts in strategic management and business policy . Pearson Education India.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy . pearson.
