Question

Last year Bold and Best accounted for 56.5% of Baldwin's sales. Over the next few years, what should worry Baldwin's management most about these products? Pick the top four worries at Baldwin about Bold and Best.

Answer 1

Answer:

Explanation:

4 worries about Bold and Best (BB) are:

- Demand for BB may fall in the next few years, as customers are now less interested in purchasing BB or there is another substitute product for BB which is available in the market.

- Input costs/Production cost for BB may rise in the next few years, may be because of shortage of raw materials.

- The decline in BB sales may affect Baldwin's profitability as a whole because BB's revenue is currently the largest portion of the total revenue.

- Real purchasing power of customers fall because of a rise in expected inflation in the economy, which will lead to a fall in sales of BB.