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Unifine Richardson Case Solution

Solution Id Length Case Author Case Publisher
1138 471 Words (3 Pages) Carol Prahinski Ivey Publishing : 902D20
This solution includes: A Word File A Word File

Unifine Richardson is a subsidiary of a large company in the Netherlands, which has operations in North America and Europe. The company’s strong background strengthens its financial backbone and its experience in manufacturing food products. This not only enables the company to provide high-quality products to the consumers, but it also enables it to get large orders from restaurants and other food manufacturers who use their sauces or honey in their products i.e. large retail franchise which uses honey as a dipping sauce for fried chicken and 80% of company’s honey sales were based on the retailer.

The company’s customer demand consists of honey and other products. The company ensures that the right combination of Chinese and Canadian honey is provided to the customers. Facing the current problem, Pincombe is mostly worried about consistency in the offered honey products. This shows the emphasis laid on consistency in the taste and quality of the products.

Moreover, the company provides various SKUs (sizes of packaging) to its customers. Moreover, the company’s products are widely available in different forms. The company has diversified its customer base by targeting large businesses and individual customers who demand small packaging for their personal use.

Following questions are answered in this case study solution

  1. What are the order winners for Unifine Richardson –, i.e., why would customers buy from Unifine Richardson? How can you tell?

  2. What options should Rob Pincombe consider and which of these options would you recommend to Pincombe if you were hired as a consultant? Why?

Case Analysis for Unifine Richardson

2. What options should Rob Pincombe consider and which of these options would you recommend to Pincombe if you were hired as a consultant? Why?

Pincombe has three options. The first option is to buy pure American honey, the second option is to buy pure Canadian honey, and the third option is to buy Canadian-Argentinean honey. Pincombe's personal opinion suggests that Canadian-Argentinean would not taste good, and he thinks that customers would agree to his point of view. Apart from that, the United States of America has imposed an anti-dumping tariff on Argentina and China. Moreover, Argentinean honey is regularly tested for adulteration and the authorities are keeping a keen eye on its products. Clearly, it would not be wise to pursue the third option.

Pure American honey costs $1.10 per pound and pure Canadian honey costs $1.75 per pound, whereas Canadian-Argentinian honey costs $1.42. Given the quality, taste, and tariff on the Argentinean honey, it does not seem feasible. Pure Canadian honey is quite costly for the company as the cost difference would be $0.67 (1.75-1.08). On the other hand, the price difference for American honey would be $0.02. It needs to be noted that once the cost is set, it would be pursued in the long-run despite market fluctuations of prices. Given the financials, the company should buy pure American honey as Unifine Richardson’s customers demand consistency not only in quality but also in prices. It will be easy for them to bear the extra cost of $0.02.

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