Question

joseph is the sole owner of a local company named ‘Fruity Cups’ that is based in Virginia Beach, Virginia. ‘Fruity Cups’ manufacturers fruit cups that are sold at grocery stores primarily in the State of Virginia. The fruit cups are extremely popular with children throughout the state. Parents often include them in their daily school lunches. ‘Fruity Cups’ employees twenty people full-time. All twenty have been working for ‘Fruity Cups’ since the beginning in 2000. Joseph has become extremely rich from this business. A large, nationwide company has made a substantial offer to purchase ‘Fruity Cups’ from Joseph. Following the purchase, Joseph would no longer be involved in the operation of ‘Fruity Cups’.

Answer 1

External Stakeholder: Supplier of Flavours to Fruity Cups

Potential Impact on this supplier if Joseph decides to sell fruity cups are as follows:

• Changes in topline because of either loss of business as acquirer may end the contract with the supplier or gain in business due to new opportunities such as new market development and new product development.

• Renegotiation of contract leading to changes in the operational cost for the supplier such as cost of inventory management, cost of IT infrastructure integration with customer's IT infrastructure, changes in cost of entire supply chain of the supplier.

• Organizational changes in the supplier's company with respect to change of key person on the customer (acquirer) side and its supplier side.