113. Bruno and Gino are worthy competitors in the bakery business in a small upscale resort
town. Gino recently negotiated a contract with a supplier for really cheap cooking oil. He knows
that bakery customers want cheap products. In this competitive environment, keeping the price
down is all that matters.
114. Brett runs a lawn-care service. Although he and his employees could service eight
households in one day, he averages six yards per crew member, per day. Brett recently
restructured his work crew and provided each cutter with an incentive to acquire two new
customers each month through customer referrals. As a recent business graduate, you tell him
he’s probably on the right track.