Fineprint Case Study
Case 1: FinePrint Company
Introduction The given case, FinePrint Company, is a case to determine whether or not John Johnson, the owner of FinePrint Company, should (1) accept a one-time discounted special pricing order and (2) whether or not he should consider outsourcing some of his printing. Throughout the report, the different issues will be identified, alternatives identified and assessed and a recommendation will be made for John Johnson in which he should execute upon as well as a conclusion.
Issue Identification In the case, John Johnson was called by Abbie Jenkins, who indicated that she needed a onetime print job done for her 25,000 brochures. Abbie mentioned that she could only afford to pay him $10 per 100 brochures which is drastically less than his normal $17 per 100 brochures. At the time, John knew he did not have the capacity to take on Abbie’s printing job. John tells Abbie he will check into it and get back to her because he wants to work with her. John Johnson was also contacted by Ernest Bradley from SmallPrint Shop. Ernest has been seeing a reduction in customers lately, and is struggling to keep his doors open. He was contacting John to see if FinePrint Company was interested in outsourcing some of their work. Ernest’s offer to John and FinePrint Company was for up to 30,000 brochures per month for a total cost of $8 per 100 brochures.
Later on, we will look at and calculate the operating costs as well as operating income for each alternative to decide which is going to be best for FinePrint Company. By doing so, it will help to decide which option (alternative) would maximize profitability. Alternative Evaluation With all of the information given, the following are all of John Johnson and FinePrint Company’s options. The calculations can be found in Appendix 1. Option 1- Decline both offers. John Johnson would decline Abbie’s print job and choose not to outsource it to SmallPrint Shop. At FinePrint Company’s current capacity of
Introduction The given case, FinePrint Company, is a case to determine whether or not John Johnson, the owner of FinePrint Company, should (1) accept a one-time discounted special pricing order and (2) whether or not he should consider outsourcing some of his printing. Throughout the report, the different issues will be identified, alternatives identified and assessed and a recommendation will be made for John Johnson in which he should execute upon as well as a conclusion.
Issue Identification In the case, John Johnson was called by Abbie Jenkins, who indicated that she needed a onetime print job done for her 25,000 brochures. Abbie mentioned that she could only afford to pay him $10 per 100 brochures which is drastically less than his normal $17 per 100 brochures. At the time, John knew he did not have the capacity to take on Abbie’s printing job. John tells Abbie he will check into it and get back to her because he wants to work with her. John Johnson was also contacted by Ernest Bradley from SmallPrint Shop. Ernest has been seeing a reduction in customers lately, and is struggling to keep his doors open. He was contacting John to see if FinePrint Company was interested in outsourcing some of their work. Ernest’s offer to John and FinePrint Company was for up to 30,000 brochures per month for a total cost of $8 per 100 brochures.
Later on, we will look at and calculate the operating costs as well as operating income for each alternative to decide which is going to be best for FinePrint Company. By doing so, it will help to decide which option (alternative) would maximize profitability. Alternative Evaluation With all of the information given, the following are all of John Johnson and FinePrint Company’s options. The calculations can be found in Appendix 1. Option 1- Decline both offers. John Johnson would decline Abbie’s print job and choose not to outsource it to SmallPrint Shop. At FinePrint Company’s current capacity of