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Ethnographic Case Summary

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With the current level of sales, it no longer makes sense to operate Kendor out of the facility in Delevan. Therefore, I have researched two options. The first option, would move sales, printing and distribution to a competitor, Barnhouse Music. The second option would move printing and distribution to another company, Vick’s Lithograph. In both options, it will significantly reduce the amount of inventory on hand. Due to the current printing presses in Delevan, a 3-year supply of products our printed, which averages $252k of book value inventory, with an average turn of 2.5.
Barnhouse Music
Barnhouse Music is a direct competitor of Kendor Music, and is based in Oskaloosa IA. For this scenario, they would become the exclusive distributor of Kendor Music products. Kendor would retain its ownership of copyrights, and all sales, printing and distribution would go through Barnhouse. The facility in Delevan would close.
In preliminary discussions with Barnhouse Music, owner Andy Clark (personal communication, January 24, 2018, January 25, 2018, March 26, 2018) has provided a basic outline of how the sales/distribution/printing fees would work. Kendor would have full editorial control on what products are created and would be …show more content…
This new structure could be run by myself without any other employees. I would continue to be the editor in chief and oversee all marketing. The following would be hired on a contract basis: engraver, editorial assistants, proofreader, CPA, graphic artist and a royalty manager. Kendor currently has all these things on contract work except for the royalty manager. For the royalty manager, I believe this could be accomplished in 10-20 hours in a month. This eliminates FICA tax and unemployment insurance

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