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Andrew runs a factory that makes cakes.

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Andrew runs a factory that makes cakes. Vanilla Extract is a vital ingredient in Andrew’s cakes and this is a monopolistic market. Andrew has noticed recently that the quality of the supplier’s product has reduced, and this has led to several complaints from customers. Andrew is considering entering into a Partnership with this supplier as he believes this will help increase the supplier’s performance. Is this the correct thing to do?

A.

Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer

B.

Yes- partnership sourcing will improve sales figures

C.

No- Andrew should use an alternative supplier

D.

No- Andrew should outsource the vanilla extract.

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