1. Problem Definition
Quetzal Collections, Inc. is an established dealer of native crafts originating in the South Americas and Africa. Quetzal¡¦s primary business is in authentic artifacts such as jewelry, pottery and wood-carved products. A minor share of its sales product is gained through dealing with high-quality replicated artifacts which are modeled after authentic items. The production of replicas is managed by Quetzal, which employs native craftspeople in the corresponding countries of origin. Quetzal has earned brand name status, and has established a reputation of overall high quality standards and authentically looking replicated products. Quetzal provides its products in a two-level price range. Quetzal provides collectors with original artifacts, while serving decorators and gift buyers with its replicated offerings. Most business transactions are conducted through direct customer contact such as showings. Moreover, Quetzal¡¦s products have been distributed through a number of specialty dealers and a few exclusive department stores, and have been offered in two of those department stores¡¬ Christmas catalogues.
Quetzal Collections, Inc. has been approached by a mass merchandising store chain to offer a range of its products, in particular its replica products. Currently, Quetzal¡¦s major business is in the trade of authentic artifacts. Quetzal is faced with the question of whether or not this proposal is a desirable alternative/addition to its current business structure. Quetzal is now faced with the question of whether or not this proposal is a desirable alternative/addition to its current business structure.
2. Situational Analysis
Quetzal¡¦s sales department states a gross sale product of $ 20 million with a growth ...