EBI Special Order Analysis

This case study focuses on a business opportunity that has recently been offered to the Earth Baby Inc. (EBB). It concerns a business proposal that will increase the company’s sales dimensions while also adding integral quality to its value chain through an alliance with a retail discount business, I. E. Great Deal Inc. (GUI).

This analysis will take into consideration one or more strategic measures that should perhaps be taken by EBB in order to assist in identifying and mainlining risk and in order to insure that the proposed business agreement is in the best interest of the company. Aside from the more familiar decisional strategy which has always proven to be reliably effective, e. G. , a SOOT Analysis, an examination of the possible benefits arising from the use of an available heuristic approach that utilizes-foresight and hindsight Judgment parameters’-will be discussed.

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Keywords: EBB, GUI, SOOT, availability heuristic, hindsight bias, foresight knowledge The proposed opportunity that has presented itself to EBB entails increasing the company’s market share of baby food products through Geld’s distribution chain and there resources. The proposed venture will offer EBB an increased profit percentage only if the company agrees to alter its current food processing formulas as well as turn-over a substantial portion of its branding rights to GUI.

It is in the best interest of EBB at this time to conduct a comprehensive risk analysis with regards to the changes that will be made concerning the impact upon Bi’s new product formula, new business environment and customer base along with branding techniques, marketing strategies and supply chain activities. Risk Analysis Conducting a thorough SOOT analysis would be advisable at first in order to assess Bi’s internal strengths and weaknesses and how they will measure up against the- opportunities which may inadvertently turn into threats-with respects to the changes that will occur within Bi’s newly adopted business environment.

EBB will be challenged to weigh those resources that make up the force behind its competitive advantage(s) because it will be risking the success of its current business strategies against the sum of those changes that will impact it, should the company accept Geld’s proposal (Bateman & Snell, 2009). Bi’s management might consider backing up the information it garnered from a SOOT analysis with another method that examines the potential of risk involved with regard to opting for a reconfigured or otherwise entirely new and untried business strategy.

A method that undertakes the available heuristic approach has been shown to provide business decisions makers with unique way -if optimal results are obtained- of incorporating intuitive Judgment-, referred to as-‘hindsight bias’- and integrating the more positive properties of this mind set with more quantifiable intellectual data referred to as -foresight knowledge’- with respects to formulating new strategies under the constraints of various risks.

This method gauges the two schools of thought by measuring and matching up- and then mapping and mathematically analyzing -the positive relationships between probable outcomes of certain risk factors, as in this case-they may pertain to and/or have- significant bearing on a number of business decisions, their outcomes, and their consequences based primarily upon their -perceived and qualitative’- susceptibility to risks.

Conclusion Although at this Juncture, Bi’s decision to employ the use of the availability heuristic may seem precarious, however the opportunity to identify and neutralize the risks of he proposal while also discovering some new and innovative strategies does present itself. A safer strategic analysis could be provided through the use of one or more of the conventionally known analytical tools, e. G.

SOOT or Porters Five Forces. In any event it would be within Bi’s very best interest to thoroughly investigate all the avenues of risks as well as opportunities before making a final decision to accept Geld’s business proposal.

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