Issues for Discussion
1. James Johnson, vice president of marketing for a major manufacturer of fiberglass
home insulation aimed at the DIY market, was elated after reading an
article in the Wall Street Journal about the recent steep rise in energy prices.
“This will be great for us—our sales could double next season,” he exclaimed
to his general sales manager, Bill Allan, who had just walked into the office.
“Tell your district sales managers to instruct their field salespeople to push home
center retailers to double their inventory and floor space for home insulation,”
continued Jackson. Bill Allan dutifully responded, “I’ll do it right away, but the
last thing the home centers are going to want is to stock up heavily on inventory
when this energy price spiral might cause a recession.”
Issues for Discussion1. James Johnson, vice president of marketing for a major manufacturer of fiberglasshome insulation aimed at the DIY market, was elated after reading anarticle in the Wall Street Journal about the recent steep rise in energy prices.“This will be great for us—our sales could double next season,” he exclaimedto his general sales manager, Bill Allan, who had just walked into the office.“Tell your district sales managers to instruct their field salespeople to push homecenter retailers to double their inventory and floor space for home insulation,”continued Jackson. Bill Allan dutifully responded, “I’ll do it right away, but thelast thing the home centers are going to want is to stock up heavily on inventorywhen this energy price spiral might cause a recession.”
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