Southwestern Ohio Steel Company L
Case Analysis – Southwestern Ohio Steel Company, L.P.: The Matworks Decision
Submitted by Group -19, BBMK Section B
Anish Sengupta (13407) Pushkar Parashar (13439) Payal R Singh (13533) Kiran Sunny (13622)
TAPMI, Manipal
Case Background:
Southwestern Ohio Steel Limited Partnership (SOSLP) was a supplier of steel to many large and small organisations. It had approximately 500 customers and its top 25 customers constituted two – third of the company’s sales. SOSLP customers had a long standing relationship with its customers which was established through mutual respect, loyalty and good business understanding.
Matworks was one of the important customer of SOSLP which had a long standing relationship and assured business with SOSLP every year. But however from past few years Matworks number is declining in SOSLP’s top customer list. Also their order quantity is also declining Y-o-Y.
Recently Dan Wilson, Vice President of SOSLP received a letter from Mathworks with a strange request of SOSLP’s participation in sponsoring a portion of Matworks annual sales meeting. SOSLP has never promoted in such a way nor do they have any budget allocation for such kind of promotion. But however Mathworks being one of the key customer it was not so easy for SOSLP to turn down its request as the decision taken now would determine the future relationship between SOSLP and Mathworks.
Promotional activities of SOSLP: SOSLP believed in long term relationships through loyalty, honesty, integrity and open, cooperative practices hence their spending on additional advertising and promotions were less than 1 percent of sales. Few activities carried out informally were gifting
Submitted by Group -19, BBMK Section B
Anish Sengupta (13407) Pushkar Parashar (13439) Payal R Singh (13533) Kiran Sunny (13622)
TAPMI, Manipal
Case Background:
Southwestern Ohio Steel Limited Partnership (SOSLP) was a supplier of steel to many large and small organisations. It had approximately 500 customers and its top 25 customers constituted two – third of the company’s sales. SOSLP customers had a long standing relationship with its customers which was established through mutual respect, loyalty and good business understanding.
Matworks was one of the important customer of SOSLP which had a long standing relationship and assured business with SOSLP every year. But however from past few years Matworks number is declining in SOSLP’s top customer list. Also their order quantity is also declining Y-o-Y.
Recently Dan Wilson, Vice President of SOSLP received a letter from Mathworks with a strange request of SOSLP’s participation in sponsoring a portion of Matworks annual sales meeting. SOSLP has never promoted in such a way nor do they have any budget allocation for such kind of promotion. But however Mathworks being one of the key customer it was not so easy for SOSLP to turn down its request as the decision taken now would determine the future relationship between SOSLP and Mathworks.
Promotional activities of SOSLP: SOSLP believed in long term relationships through loyalty, honesty, integrity and open, cooperative practices hence their spending on additional advertising and promotions were less than 1 percent of sales. Few activities carried out informally were gifting