Reference no: EM132778475

Drink Co Ltd. specializes in a variety of beverage products. The Company realized that there was growing demand for healthy, energy drinks for which they had no product to offer. Therefore during 2017, the Company undertook the development of a healthy, energy drink by having the marketing team determine the types of healthy, energy drinks the market may be looking for. Early research showed that consumers preferred a vegetable-based drink rather than a drink made from fruit. Therefore, the company focused on developing two types of drinks: one with carrots and the other with spinach. Once developed, Drink Co Ltd. conducted taste testing at local shopping malls and fitness centers. It was estimated that the spinach flavored drinks would sell more than the carrot flavored drinks. The Company decides to start making Spinach flavored drinks; they estimate the product cost to be $2.00 per bottle and that they can sell each bottle for $3.75. Production costs are budgeted at 1,000 bottles at $2.00 per bottle. Actual production costs are higher than expected at $2.15 per bottle, so the Company adjusts the purchase of raw materials to bring down the costs. Drink Co calculates its market share to have grown by 1% after the new product is introduced in the market.

Required

Problem 1. For the scenario above, identify one event for each step of the decision-making process.

Problem 2. For the scenario above, identify one planning decision and one control decision.