P 1. Clothing Industries, Inc. is deciding whether to expand its line of women’s clothing called Sami Pants. Sales in units of this product were 22,500, 28,900, and 36,200 in 2010, 2011, and 2012, respectively. The product has been very profitable, averaging 35 percent profit (above cost) over the three-year period.

The company has 10 sales representatives covering seven states in the North.

Production capacity at present is about 40,000 pants per year. There is adequate plant space for additional equipment, and the labor needed can be easily hired and trained.

The organization’s management is made up of four vice presidents: the vice president of marketing, the vice president of production, the vice president of finance, and the vice president of management information systems. Each vice president is directly responsible to the president, Jefferson Henry.

Required 1. What types of information will Henry need before he can decide whether to expand the Sami Pants line?

2. Assume that one report needed to support Henry’s decision is an analysis of sales, broken down by sales representative, over the past three years. How would each of the four w’s pertain to this report?

3. Design a format for the report described in requirement 2.

The Value Chain