Northern Lights Limited
Situation Analysis

the case has focused mainly on how a customer can influence their supplier and how that influences the organisation’s predefined environment and policies. it is known that amtron pvt. ltd. has been one of NLL ltd.’s leading customers for more than 60 years and has been the most loyal customers to NLL. though their orders have gone down last year, they are still one of NLL’S leading customers and one of our most valued.
NLL is a company that does not believe in spending large amounts on sponsorship and other promotional activities and it was considered completely out of line with NLL’S marketing practices. Also, if NLL sponsors an event in the meeting, it will give a way for other customers to start asking for sponsorship for their events.
Maintaining customer relationship is the other factor to be looked upon. from the amtron side they were very consistent in maintaining loyalty with NLL but now it’s NLL’S time to repay that loyalty. however, before deciding not to sponsor, one has to think about the risks of not sponsoring. firstly, if we do not sponsor, company relations could suffer as a result we may lost the contract they did not sponsor an event that would have cost them a very small amount, but the worst case scenario is that amtron does not renew their contract and other competitors would get their account. this could potentially hurt NLL and its revenue , since amtron is expected to rebound from their slump. also, if NLL loses amtron as a customer, they could also lose the customers that amtron had referred to them. so potentially, this is a big risk considering that the sponsorship amount of $20,000 is very small compared to the revenue generated by amtron for NLL.
The decision of giving sponsorship is in favour of NLL b, firstly it will give a good impression on amtron that we are ready to negotiate and