Case Study Analysis

Group 6
 B2B partners involved

Perfect
Popcorn Paramount Dependable
Processing Distributing Equipment
Co. Co. Ltd.

Popcorn Processing company Distribution company Equipment manufacturer

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 3 highly
reputed
B2B
companies
Deal needs Operate in
to be closed food
in 5 biz. Gist of processing
days the case industry

Highly Deals in
competitive popcorn
industry &
keeps biz. Info processing
confidential equipment

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About the
company
Dependable Equipment Ltd.
 Has two components-
Well established and Has several manufacturing
processing equipment
certified food equipment divisions
(20% gross margin) and
manufacturer
parts biz. (air filters and
oscillating screens

Arch rival- Reliable Major share in biz- Popcorn

Equipment Ltd. equipment division

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 Current opportunity:
• Received two unsolicited inquiries

• Perfect and Pleasant Popcorn Processing Cos. interested in

purchasing popcorn equipment

• Has 5 biz. days to close the deal

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About the
company
Paramount Distributing Inc.

Large regional distributor
of supplies for the food
processing industry
Was able to stock about a
Sold to wholesalers
45 day inventory of all
commonly needed supplies

Popcorn business
represented a significant
Earlier supplier- Morton portion of its biz. (30%
Equipment gross margin)

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 Current situation:
• Experienced quality problems w.r.t air filters and oscillating
screens.

• Need to find a qualified alternate supplier ASAP.

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About the
company
Perfect Popcorn Processing Co.
 Long established popcorn Major supplier- Morton
processor Equipment

Competed vigorously on
price

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 Current situation:
• Badly in need of a new popcorn processing machine

• Granted approval to spend $1 million for the machine

• Contacted two other potential suppliers (Dependable and

Reliable)

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 Flow chart Potential s
eller

Dependable Inquir
y
Inq
uir Perfect Popcorn
y
r
Paramount
e ll e
enti
al s Distribution Co.
Pot
al s el l e r
Potenti
Reliable

Premier
Pleasant Popcorn Distribution
Company
er
ppli
Morton Old
s u

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 Leadership Structure

DEPENDABLE EQUIPMENT PARAMOUNT DISTRIBUTION PERFECT POPCORN

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 Purchase specifications: Perfect – Machine
(Dependable and Reliable)
• $1 million allocated for purchasing new processing machine

• Machine should have process speed of 100-120 bushels per hour

• Should be an OEM

• Should operate for >10000 hrs. mean between failures

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 Purchase specifications: Perfect – Parts
(Paramount and Premiere)
• Bought at $130 each

• 30 days of parts should be available on hand at warehouse

• Spare parts should be available within 24 hrs. for delivery

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 Selling specifications: Paramount – Parts
(Perfect and Pleasant)
• Agreed price ceiling for parts- $130 each

• $250000 – contract penalty

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 Sales process of Dependable
• Make regular sales calls and collect market info --- (completed) (sales representative)
• Gather info about discovered opportunities – (Perfect and Pleasant) (SR)
• Prioritize opportunities – (whether Perfect or Pleasant) (SR and Sales manager)
• Making sure their product meet or exceed all the company’s requirements (SR and Sales manager)
• Develop an action plan (SR and all concerned managers)
• Get approval to submit proposal (SR, Div. manager, sales manager and Mrktng Manager)
• Present the proposal and close the contract (SR)

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 Sales process of Paramount
• Make regular sales calls and collect market info --- (completed) (sales representative)
• Gather info about discovered opportunities – (Perfect and Pleasant) (SR)
• Prioritize opportunities – (whether Perfect or Pleasant) (SR and General Manager)
• Search for potential suppliers – ( Dependable and Reliable) (Purchasing manager)
• Making sure the product meet or exceed all the company’s requirements (SR)
• Request for quotation and evaluate (whether Dependable or Reliable) (Purchasing Manager)
• Develop an action plan (SR and all concerned managers)
• Get approval (SR)
• Present the proposal and close the contract (SR)

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 Sales process of Perfect - Machine
• Identify the need for CAPEX--- (completed) (CAPEX manager, Eng. Manager, President)
• Search for potential solutions --- (completed) (CAPEX manager, Eng. Manager)
• Qualify suppliers – (whether Dependable or Reliable) (Eng. Manager)
• Request for quotation and evaluate (CAPEX manager)
• Decide on which to select – (whether Dependable or Reliable) (Total Management)
• Get approval (CAPEX manager)
• Obtain purchase order acceptance from supplier (CAPEX manager)

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 Sales process of Perfect - Parts
• Identify the need for CAPEX--- (completed) (MRO Manager, Operations manager)
• Search for potential solutions --- (completed) (MRO Manager, Operations manager)
• Qualify suppliers – (whether Dependable or Reliable) (Eng. Manager, Operations manager)
• Request for quotation and evaluate (CAPEX manager) (MRO Manager)
• Decide on which to select – (whether Dependable or Reliable) (Total Management)
• Get approval (MRO Manager)
• Obtain purchase order acceptance from supplier (MRO Manager)

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Thank you
Aman Gupta
Shubh Sharma
Mayanka Swami
Mahima Swami
Vansh Bajaj
Noble M Babu