TO: Derek Wade
FROM: Ivana Jadrinko
DATE: October 14, 1994.
SUBJECT: Expansion of “Kids at Play”
As you have requested, I have taken a look at the current problem at hand and I believe that it is in your
best interest to pay the $1 000 000 to expand “Kids at Play” and have your three managers who have
been there from the beginning become partners.
My decision is based on the assumption that you wish to continue operating sales and that there will
always be a market for children’s toys. The decision criteria I have used are as follows:
b) Profitability and Costs
1. Loyalty of Mangers
In expanding your business it would be key that the three managers that have been with the company
since it was established be made into partners. This would be key because with the expansion there
would be a lot more things for you to look over. These three managers would be ideal for the job
because they know how you run things and have always been there, whereas anyone else hired would
not be. They have been approached by competitors a