As the new owner of a local ice cream store located in a strip mall adjacent to a university campus, you are contemplating how to organize your business – whether to make your ice cream in-house or...

As the new owner of a local ice cream store located in a strip mall adjacent to a university campus, you are contemplating how to organize your business – whether to make your ice cream in-house or outsource its production to Fan Milk Ghana Ltd., whose brand is in most of the local supermarkets; and how much authority to delegate to the two assistant store managers and employees working at the counter and cash register. You plan to sell 20 flavors of ice cream.

REQUIRED:

1.   What are the pros and cons of contracting Fan Milk Ghana Ltd to custom-produce your product line?

2.   Since you do not plan to be in the store during all the hours it is open, what specific decision-marketing authority would you delegate to the two assistant managers?