Erica Carson

In: Business and Management

Submitted By aisan
Words 494
Pages 2
Case 1-2
Erica Carson

Item | So What? | They already have two reliable suppliers.
Both suppliers had provided quick and quality services during the last five years. | It seems that there is no immediate need for Erica to make a decision. They already have something that works. Why should they change anything? | The cost analysis of both suppliers had determined that the current price is fair. This makes the Kolloran proposal suspicious. | It seems impossible for Killoran to be able to provide the same services like current suppliers with less profit. They might have a hidden agenda. | The Killoran proposed to supply Wesbank with 10% less than what Wesbank is paying to their current suppliers right now. | The Wesbank has to taking into account all the costs associated with new supplier (e.g. learning curve, growing period) These costs may outweigh the 10% potential savings. | Erica had a cost studied run on their current supplier. | Erica is doing her job very well. It might be best for her to go with her intuition and not trust Killoran |

Problem Statement:
How should Wesbank select and manage its suppliers in order to get the highest customers satisfaction?
Analysis:
Strengths – Active promotional efforts that attract consumer deposits, the existence of two efficient suppliers with fair price structures
Weaknesses -
Opportunities –by investing in online banking Wesbank could attract new customers
Threats – The danger of losing its customer due to changes in customers’ demographics and the tendency of new generation toward online banking
Qualitative -
*Killoran’s offer is suspicious; they might want to steal Wesbank account information.
If this is right, Wesbank could lose its customers and will risk its reputation.

Quantitative
10% reduction on pronting and mailing of checks will provode $800,000 profit for…...

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