The decision problems faced by many firms in the business sector can be analyzed from one perspective. The general way of identifying the problems and proposed solutions is by analyzing the internal and external environment of the business to identify the strengths, weaknesses, opportunities, and threats faced by the company. The main strength faced by Sampson’s family relating to Hugh’s option is the expertise that Hugh is expected to have. The study indicates that Hugh has previously worked with different winemakers and undertaken different levels of training. The other strength faced by this option is the price superiority; the premium cider sells at a price higher than the regular cider.
The case studied also indicates that the set-up process for the new process, Hugh’s option, would not be costly, in fact, it is just an enhancement of current production techniques. This indicates that the company would not need to engage in substantial capital expenditure. The last strength that would be faced by Hugh’s option would be the ease of integration of the new process into already existing processes. As already mentioned, the old process would need a few changes to accommodate the new process, which would also improve the efficiency of the whole process. Because of the improvement, the company will get the wine breaking into the market at a lower price than it did before.
Despite the strengths mentioned above, the main weakness faced by the company in the consideration of Hugh’s option is the current workers. The introduction to the case studied emphasized the fact that since the company is family owned, the relations between management and employees has been favorable, as evidenced by the reluctance of the employees to join labor unions. However, the proposal by Hugh would drastically cut down the labor needed in the production process, a factor that might lead to worsening relationships with the employees. The other weakness of the proposed option is the source of financing since it seems that the option would require outside financing.
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