Bonton Creamery Case

somsak jirattikorn interested in Boston Creamery is actually one of the divisions of a larger group that

specializes in the Food Industry, and Boston Creamery specializes in low-end traditional activity (ice cream). Boston Creamery is a Profit Strategic Business Unit (SBU). They recently installed a new Financial Planning and Control System, and the forecast for 1973 was different from the actual results of

operations. This was the first year when they could compare the forecast to the actual operating results. They need to make a forecast for 1974 that will be closer to the actual results.

Supplier Power: The two primary suppliers of key inputs are dairies that produce milk and companies that sell sugar in bulk quantities. There are many

suppliers, to it is not easy for suppliers to drive up prices. These two key inputs

are not unique products, so their strength and control over Boston Creamery is

low, and there is little cost of switching from one to another. Boston Creamery

does not have a great need for suppliers' help, and the company has many

supplier choices. The major factor is national prices for milk and world prices for sugar.

somsak jirattikorn interested in Boston Creamery is actually one of the divisions of a larger group that

specializes in the Food Industry, and Boston Creamery specializes in low-end traditional activity (ice cream). Boston Creamery is a Profit Strategic Business Unit (SBU). They recently installed a new Financial Planning and Control System, and the forecast for 1973 was different from the actual results of

operations. This was the first year when they could compare the forecast to the actual operating results. They need to make a forecast for 1974 that will be closer to the actual results.

Supplier Power: The two primary suppliers of key inputs are dairies that produce milk and companies that sell sugar in bulk quantities. There are many

suppliers, to it is not easy for suppliers to drive up prices. These two key inputs

are not unique products, so their strength and control over Boston Creamery is

low, and there is little cost of switching from one to another. Boston Creamery

does not have a great need for suppliers' help, and the company has many

supplier choices. The major factor is national prices for milk and world prices for sugar.