Bill Schwartz, the owner of Newvalue Supply, a medium-sized wholesaler of plumbing supplies, was furious. He had just gotten off the phone with the sales manager of Jefferson Industries, the manufacturer of a very profitable line of high-quality faucets that Newvalue had been selling for several years. "That manufacturer is now going to start selling the big home center accounts directly," fumed Bill Schwartz to his son Paul."We've worked hard to establish this line, and then when it finally gets going with some real volume, Jefferson wants to cut us out," he continued.

(a) Discuss the possible underlying causes of the conflict that seems to be emerging in this situation. (10 marks)

(b) Now, from the manufacturer Jefferson's perspective, what could be the reason(s) to sell to big home centers? (10 marks)