1.Distribution channels. Product distribution to date has either been "in house" or through the network of independent sales representatives. One possible change is hiring "distributors" to service customers. Distributors typically require a 20% discount on the wholesale price, and act as dealers (as opposed to the broker function provided by the independent sales representatives). The distributors visit stores more regularly, physically stock shelves themselves, and hold sufficient inventory to maintain the shelves. Further, several of the retail chains to whom ST sells regularly use distributors to stock their shelves, and prefer that form of service.

2. The owner is reluctant to hire distributors for two major reasons: first, and most importantly, is the 10% "lost" margin associated with the distributors. Second, once the distributors acquire the merchandise, ST has no real control over the distribution of it. He is concerned that it may appear in such "low-end" outlets as Walmart or Albertson's. Such placement may jeopardize STs relationship with their current premium customers. Another possibility is the hiring of additional in-house sales staff, though that is impractical for servicing many of their small customers.

3. A more integrated supply chain. Management agreed this was probably a good idea, but they lack the expertise to develop and manage such a system. The plant manager, Felicity Hammon, expressed her concern about the company's reliance of TH for most of the tea. She noted their costs have been rising substantially, mostly due to the appreciation of the British pound relative to the dollar.

4. Inventory control. In addition to the distribution problems noted above, the current system of infrequent "batch" shipments from England seems inefficient. Management would like to consider a way to solve this problem.

5. Financial payment system. Some members of the team feel that such a system could speed A/R collections from the current 52 days. Others question whether it would be "worth it".

6. Sales/Marketing. Was it time for a substantive review of the entire marketing plan