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Essay text:
The criteria used are profits, risk, synergy and prospective. I used profit as the fundamental criteria and others are also the important consideration factors for my recommendation.
I firstly reviewed the latest income statement and separated the costs that change with the production and fixed. Some data were also adjusted to reflect the real operation of the company.
I listed four alternatives to outline which strategy Kleenwater should be using in order to maximize the profit and at the same time take risk, synergy and prospective into account. The four alternatives are
Reject the request from both Queenfisher and Ronaya,
Accept Queenfisher’s and reject Ronaya’s,
Accept Ronaya’s and reject Queenfisher’s,
Accept both and cut the sales in local market...
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