Case Study : Aaa Office World

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AAA Office World, a company with $40 billion in total sales volume, owns the Filex brand of file folders. In addition, AAA Office World’s largest customer, Business Center Incorporated, requests to purchase AAA Office World’s Filex folders. According to the case, Business Center Incorporated’s vice president seeks a line of “file folders similar in quality to AAA’s Filex brand,” as it holds “over 60 percent of the market” (Perreault). However, this becomes a tough situation for Stasia Acosta, marketing manager to AAA Office World. Acosta is concerned of Business Center Incorporated’s intention to sell AAA’s Filex brand, but under their own name. Understandably, Acosta must recognize several factors before making her decision: how this transaction by Business Center Incorporated could affect her business-should she accept-as well as Business Center Incorporated’s history with her company at the same time. According to the case, this situation is not the first time that Business Center Incorporated has approached AAA Office World about the matter. Moreover, Acosta had previously refused Business Center Incorporated’s offers to buy the Filex brand in the past, as it conflicted with her company policy- which does not allow them to make and sell exclusive brands. Ultimately, AAA Office World must not only decide what to do about the offer, but also determine if they need to develop a new policy, if they are to accept Business Center Incorporated’s proposal. Thereupon the

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