Office Vending Machines Case

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Office Vending Services Inc. Background Office Vending Services Inc. Situation Office Vending Services Inc. is a global leader in vending machines services for small and large businesses. They provide a full service to their clients. This includes installing machines at client site, refills and repair. They collect revenues only from snack sales and choose the variety of products they sell in their vending machines themselves. Complication Over the past few years, their profits have dropped significantly and the CEO is unable to figure out why. The CEO asks you to identify the root causes of the problem and propose actionable solutions. 1. You would start to tackle this problem by looking at which factors: A) Industry Trends & B) Revenues and Costs When an enterprise has problems, these come from to possible ways: Outside and Inside the Company. With this I mean: The Company may face problems like entrance of new competitors, change in customer preferences, economy, etc. (Outside) Or reduction in sales, changes in costs, etc. (Inside) Choosing these factors, we would be able to determine if the industry is having troubles, or if it is something specifically related to “Office Vending Services Inc.” 2. Please select the report you want to purchase. Analyst Report This report includes information of every competitor, so it would help to know if everyone is facing the same problems. How it goes the profitability for every Company, the changes in sales & costs, market share, etc. At the same time that can help to make a comparison of “Office Vending Services Inc.” vs the industry. 3. Based on Exhibit 2, would you conclude it’s an internal or external profitability problem? Is an Internal Problem The report shows that the general Growth Rate of the Industry (CAGR) is 5%. The industry by itself is growing positive. The

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