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For the past few years, both Jess Foods and Schmidt Cake Boss have purchased generic blue icing from Coach Icing ( CI ) , the
For the past few years, both Jess Foods and Schmidt Cake Boss have purchased generic blue icing from Coach Icing CI the only maker of blue icing in the market. JF would like a blue icing that has a taste, texture, and color that would have unique appeal to Jess Foods' clients. SCB would like access to a greater volume of generic blue icing, as its cake demand analysis department predicts rising demand for cakes with icing. Both firms' CEOs are contemplating whether making their own icing instead of contracting with CI for their additional icing needs would lead to corporate advantage.How should we characterize the icing expansion in corporate scope that Schmidt Cake Bosss CEO is contemplating?
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