Part -1:
Case study - Catherine's Confectionaries
1. What are the three major types of customers Catherine serves? How do they differ from one another? What do you think the order winners are for each group?
2. Consider Catherine's decision to lease the restaurant space (a structural decision). Was this decision consistent with the needs of her different customers? Why or why not?How did this decision change Catherine's business?
3. Consider Catherine's initial decision to hire unskilled labor to help with the walk-in business (an infrastructural deci¬sion). Was this decision consistent with the needs of her different customers? Why or why not?
4. Catherine is clearly unhappy with the way things are going right now. What would you suggest she do? What infor¬mation would you like to have before making a decision?
Part -2:
Case study - Pagoda.com
1. Calculate the total cost of outsourcing the online help desk versus staying with the current solution. Which op¬tion is cheaper?
2. What other factors, other than costs, should Pagoda con¬sider? How would you weight these factors? Given the above, how might you use a weighted-point evaluation system to evaluate the two options?
3. Should Pagoda.com outsource its online help desk? Why or why not? Be sure to consider Table 7.6 and 7.7 when framing your answer.
4. A statement of work typically specifies performance mea-surements that the buying firm can use to determine whether the service provider is meeting the terms of the contract.
What performance measurements would you recommend be put in place? What should happen if the service provider fails to meet these requirements?
Part -3:
Case study - Forster's market
1. What are the two capacity options that Robbie needs to consider? What are their fixed and variable costs? 'What is the indifference point for the two options? What are the implications of the indifference point?
2. Draw the decision tree for the roaster decision. If Forster's does not invest in the roaster, does Robbie need to worry about the different demand scenarios outlined above? Why or why not?
3. Calculate the expected value for the two capacity options. Keep in mind that, for the roaster option, any demand above 14,400 pounds will generate revenues of only $2.90 a pound. Update the decision tree to show your results.
4. What is the worst possible financial outcome for Forster's? The best possible financial outcome? What other factors core competency, strategic flexibility, etc.-should Robbie consider when making this decision?