e) What should Richarson do?

How will
his personality and experience shape his
decision?
Evaluating the options:
Option A:
▪ ▪ Option 3:

▪
Pros:
▪ Pros:
It prevents oxidation and improve consistency and
fruitiness. ▪ Greater complexity

▪ Capital expenditure will be nil. ▪ Lower cost

▪ Cons: ▪ Cons:

▪ It decreases complexity and disruption estimate ▪ Customer may reject the product.
will be higher
Option 2:
▪ Pros:
▪ Improve customer reception and there will be 10%
price increase
▪ And, production disruption estimate will be lower
▪ Cons: 2
▪ Taste will be altered and cost will be cost is high
Final Recommendation and Based on
personality, how will decisions change:

▪ Given the quality parameters in Exhibit-2 and calculations in

exhibit-1, it is definitely clear that the option 2 is best choice.
Expenses are least and the investment can be easily recovered
due to price increase. And the customers will be ready to pay
higher due to increased quality.
▪ Given the personality of Richardson, he will choose option 3. He
will be hiring more no. of employees to do work which has
become standardized. He can devote his time for option 2 and
resources for option 3.