What business do they think we are in?Just look at that volume! How could they be anything but our best customers?

Case Study: Profitability Analysis at Best Potato Chips, Inc.

As Aaron sat in his office compiling information to complete the segment profitability analysis, he received several unsolicited offers for assistance. Bill Smith, manager marketing, urged him not to bother with the analysis:

Value Savings Stores is clearly our single most important customer. Look at the sales per store. We should immediately implement the suggested changes.

Steve Brown, director of manufacturing, disagreed. He felt the additional manufacturing cost required to meet Value Savings Stores’ requirements was too high:

We should let Value Savings Stores know what we really think about their special requirements. Stickers, of all things! What business do they think we are in?

The sales force had a different opinion. Jake Williams felt the grocery segment was most important:

Just look at that volume! How could they be anything but our best customers?

The broad interest being generated by this assignment worried Aaron. Would he have to justify his recommendations to everyone in the company? Aaron quietly closed his office door.