6 The new president of an old established company is facing a problem. The company is currently unprofi table and is, in the president’s opinion, operating ineffi ciently. The company sells a wide line of equipment and supplies to the dairy industry. Some items it manufactures and many it wholesales to dairies, creameries, and similar plants.

Because the industry is changing in several ways, survival will be more diffi cult in the future. In particular, many equipment companies are bypassing the wholesalers and selling directly to dairies. In addition, many of the independent dairies are being taken over by large food chains. How might business research help the new president make the right decisions?