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Transcription of this question: 5.Accord have not yet made a decision about producing a range of snack bars.Kayla is certain that there is a market for the snack bar products. The snack bars wouldcomplement Accords product portfolio. The investment required, according to Kayla’sestimate (see Section B), is acceptable and she is certain that it is the right time for thebusiness to grow. Her information on the market (see Appendix 1) is very positive. Incontrast, she believes that it is too difficult to grow in the beverage market because ofcompetition, so she would prefer to switch from drinks to snack bars. She likes owning thebusiness and has very clear objectives for the future.Aran is becoming increasingly frustrated. His idea of targeting a mass market for Enrich andDetox has been rejected by Kayla and other managers at Accord. His efforts to introducetotal quality management (TQM) failed because employees resisted the change. He isinterested in perforrnance and not relaxation, so he does not like Detox as an idea for a product.Aran has been approached by Star Food (SF), a multinational company (MNC) that producesa range of food products including soft drinks. SF are interested in the Enrich brand nameand Accords contracts with sports centres. SF have offered to buy Accord for $5 million. Thisis approximately five years of eamings for Accord. Kayla and Aran would keep the Detoxpart of the business. Aran would be happy to accept the offer, particularly given the risk thatAccord may not survive (Table 1). Aran likes the certainty that the sale would bring. He wouldaccept a small payment from Kayla to sell his share of the Detox business to her.Table 1: Survival rates of small businesses (based on a survey of local businesses)When small businesses failYear 1Year 2Year 3Year 5Year 1()20%34%50%50 %70%Why small businesses failCash flow problemsInsufficient demandWrong management teamCompetition82%23%19%Appendix 1: Extract adapted from a Mintel report on sports nutrition food”New research shows that in some countries, such as the UK, as many as one in fouradults have consumed a sports nutrition product (drinks, bars etc) in the past 3 months.Sales are growing rapidly. The market is expanding beyond the elite sports peopleand gym fans. The products are increasingly attracting ‘lifestyle’ users who see theseproducts fitting in with a healthy, active life style. There are plenty of opportunities fornew developments of products.”[Source: Mintel’s Attitudes towards Sports Nutrition LIK 2016 report]IJsing the case study and the additional information on pages 3 and 4, recommend whetherAccord should start making and selling snack bars or whether Kayla and Aran should sellAccord to SF. A force field analysis of the options could help you in your answer.[20]

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