Dansk Minox Case Study
The point to be focused here is that though the new product might sell 85 tons at a poised price of $ 6. 85 per pack, it will incur losses on a full cost basis. Also it is not feasible to lower the production costs anymore because, the resources of AXIS Dank Minx which were specialized for meat processing were now processing Vegetables.
This is not their core competency and hence they would incur more costs in performing activities that they do not specialize in. Furthermore, the need for a single package containing sliced pork and red cabbage salad is itself questionable because the same packs are also individually available and these Individual packs are of teeter quality because slice pork is Dank Minors specialty and red cabbage salad Is its competitor’s specialty.
Hence, it is recommended that Dank Minx stop further production of ‘complete meal (because red salad Is not Its core competency) and concentrate on selling Its ‘standard packs, which are In fact having a significant boost in their sales or the management can look to collaborate with the best ‘red cabbage salsa making company Ana together give ten customers ten Test quality AT ‘complete meal at the best price. The final decision would however be dependent upon managerial discretion and organizational guidelines/bob]actives.