Under what circumstances should a company’s management team give serious consideration

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Under what circumstances should a company’s management team give serious consideration to making an offer to supply private-label footwear to chain retailers in a particular geographic region?


Answer

Question:- under what circumstances should a company’s management team give serious consideration to making an offer to supply private-label footwear to chain retailers in a particular geographic region

Answer:- when managers determine that all of the company’s available production capacity will not be needed to produce branded footwear and that the total amount of idle production capacity at its production facilities will be sufficient to meet or exceed the 100,000 pair minimum delivery requirement of chain retailers in each region

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Answer:- When the company has excess production capacity it can be devoted to the production of branded footwear


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