Donald Eagle Acquired Benning's at a Low Point

question 106

Essay

Donald Eagle acquired Benning's at a low point. The distributor of automotive parts and accessories had been criticized for a number of wrongdoings. Without fully realizing the extent of Benning's problems, Mr. Eagle purchased the distributorship in hopes of turning it around. "But the harder I work," Mr. Eagle admitted, "the more Benning's earlier problems seem to unfold."

Donald Eagle began to rethink his strategy, trying to put a sound plan in place that would allow Benning's to move forward.

-Explain how Mr. Eagle's mission may change under a sense-of-mission marketing approach.

---

Definitions:

Common Fixed Costs

Costs that are not directly attributable to a specific product, service, or segment, but are shared among different parts of a business or project.

Contribution Margin

The amount of revenue remaining after deducting variable costs, contributing towards covering fixed costs and generating profit.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Total Manufacturing Costs

The aggregate of all costs involved in the process of producing a product, including direct materials, direct labor, and manufacturing overhead.