Case 5.1 Gleason Printing Amy Morton is marketing manager at Gleason Printing. F

Question

Case 5.1 Gleason Printing Amy Morton is marketing manager at Gleason Printing. For nearly seven months sh has been researching the printing needs at the Metro Alliance for Wellness, a consor tium of hospitals and therapy centers in Uniopolis. Amy figures that, excluding forms and billing, Metro contracts for about $800,000 in commercial printing business each year. Granted, some of the jobs involve special imaging or sizing that doesn't match Gleason's printing capabilities. But there's about $600,000 in business that Gleason could do well. It's been rumored for some time that Metro is looking for a printing supplier to get involved in its internal operations, setting up a communications net- ork for electronically transferring images and text-primarily for shared creative in- put and rough copy checking-that would enable even more rapid and efficient contact with its various stakeholders. Indeed, Metro's CEO often appears on the lec ture circuit talking about harnessing technology, the efficacy of the "virtual organiza need for the modern enterprise to "negotiate favorable terms" with all its stakeholders. Morton has also resecarched the systems and intranet parameters that Metro need for this vision. Assuming Metro bought all the hardware, any printer in on the setup would have to invest approximately $400,000 in installation, training, and testing-and, frankly, the numbers could well be twice that estimate. Morton was grateful for Metro's enthusiastic response to her proposal for some "in-context research," which basically would be a chance to live with Metro systems and personnel to better understand the issues and activities at Metro. Still, she needs to review what might come from the ms and intranet parameters that Metro needs for research-she is just not sure if Gleason should seek the business.

Explanation / Answer

Answer:

Yes,Gleason should seek the business from other printing suppliers as they donot have the capability to process special imaging or sizing.Because of this lack in capability they could not contract with some printing business.This lack in capability may stop their business growth.If they donot seek business from other printing suppliers then they have to buy their own hardware ,printer and this would cost them $400.000 for installation,testing etc.This cost would would be more than hiring printers for its internal operations.So they can seek the business from other printer suppliers for their internal operations and deal a contract with them by providing a comission to them for each of their work. They can seek the business rather than spending $400,000 in new hardware and printer because their total contract itself is $800.000 each year and this would cost them too much.So the company can seek the business by providing comission to them and by this way it woulod also help the gleason company to fulfill their capabilities and get more commercial printing business contracts.This may improve their efficiency and also may help them in their growth rather than spending too much on new hardware and printers.

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