Ben Jose is an established entrepreneur in your neighborhood. He has been running an Italian restaurant for the last 10 years and has enjoyed great profits due to his good relationship with his suppliers.

However, recently he noticed a drop in his profits that he couldn’t explain initially. After thorough investigation, he noticed that the problem was caused by his suppliers. He was able to identify several factors that impacted the ability of his suppliers to exert pressure on him, and suppress the profitability of his business directly and the industry indirectly.

As his business advisor, explain to him the effect suppliers can have on a business.