21. Evaluate Timothy Morgan’s current strategy and how the present offer fits in. What should he do now? Why?

Timothy Morgan, owner of Morgan Company, feels his business is threatened by a tough new competitor. And now Timothy must decide quickly about an offer that may save his business.
Timothy Morgan has been a sales rep for lumber mills for about 20 years. He started selling in a clothing store but gave it up after two years to work in a lumberyard because the future looked much better in the building materials industry. After drifting from one job to another, Timothy finally settled down and worked his way up to manager of a large wholesale building materials distribution warehouse in Buffalo, New York. In 1982, he formed Morgan Company and went into business for himself, selling carload lots of lumber to lumberyards in western New York and Pennsylvania.