Problem
1. Critical opportunity:
o Ella's kitchen success in formulating new products and their success in 45+ countries potentially translating that to the international market, given leadership adoring UNC sustainability goals.
2. Critical Threat:
o Ella's Kitchen exclusively sources ingredients from within Europe, Brexit may force them out of the European market owing to higher production costs, which could lead to less profitability. Trade between EU nations and the UK would be subject to tariff costs if the UK were to leave the EU. Since the EU accounts for a sizable amount of Ella's Kitchen's demand, shipping prices will go up.
3. In the case Ella's Kitchen: Assessing Environmental Uncertainty in Business
o How much does option 2 cost?
o What is the potential of option 2 that you forecast (profits, ROI, etc.)?
o How well does the option meet decision criteria?
o How well does the option resolve the critical issues?
o What are the risks of your analysis?
4. Shift to low-cost suppliers (e.g. China/India)
With this option, Ella shifts from EU/UK raw materials suppliers to low-cost suppliers from China, India, etc.
Assumptions:
o Assume that Ella's sources all current raw materials from the EU or cost-equivalent areas
o You must make reasonable assumptions about how shifting to low-cost supplier countries will impact the business.