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For the coming year, you have two offers to sell exactly 5000 compasses in the markets where company had no existing sales, and opportunity to grab the growth in the existing market. With the maximum available additional capacity to produce 7,500 compasses, we have determined that we must investigate and reach recommendation as to what opportunity(ies) should the company avail.
To reach a recommended course of action, we come up six criteria – Profitability; Cannibalization; Opening a new market; Risk of future predictions; Management interest; and Simplicity in business. As the strategy adopted by the Norton Compasses at this stage will have significant long term impact on its business scenario, we argued that all the listed criteria should be given equal weights...
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