Profit of Wald press is proportional to that of Campbell Brother’s. But during recession work given by Campbell Brothers reduce. This created troubles for Wald Press in terms of workers satisfaction and profit. Wald Press thus got outside contract for more work. After recession, sales of Campbell Brothers increased greatly. Hence, Campbell Brothers started pressurising Wald Press for dropping outside contracts to get their work done. Thus, the optimal solution for maintaining reputation and goodwill with both the Campbell Brothers and the outside contractors is by reducing outside contract and not dropping it completely.
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• Campbell brothers have been the major source of revenue for Wald press.
• During the depression of thirties sales of Campbell drop. This made Wald press to work below reasonable output level and also decrease its reliability on Campbell.
• Wald press then approached other contractors for work since decreased work caused skilled workers of Wald press to leave job.
• Wald press had assured outside contractors to get work that their work would not be abandoned in future even if Wald press got work from Campbell brothers in future.
• Again in forties, Campbell sales increase but they could not find alternative printer for their increase work. Hence they started pressurising Wald press to drop outside contract for them. This put Wald Press’s manager into dilemma of dropping the outside contract or not.
• Campbell also assured by Wald press for providing enough work for 2-2.5 years.
• Wald press was getting little or no profit from outside contractors. Production cost was also high on outside books. Its actual profit came from Campbell Brother.
• Also it could not find other printers for outsourcing outside contract. Plant capacity could not be increased immediately.
• Inventory costs on outside contracts were high as books were not shipped until...