Keurig System in the Office Coffee Market Case Study

Keurig System in the Office Coffee Market - Case Study Example This type of system is attractive in the office coffee market because it allows employees to choose the flavour they want. The chosen flavour is then ready in just 30 seconds. The cups are made to fit just the Keurig system. This would allow employees to only experience the different types at the office. This also eliminated maintenance associated with traditional brewers. Employees were also no longer tempted to take supplies home. Nick Lazaris has a huge predicament involving Keurig and MTS machine manufacturing. MTS is demanding more money than originally estimated. After finishing the project, MTS has asked for an additional $180,000 in payments. This was asked for because the machine took additional funds to get finished. There are many things Nick can do in this type of situation. Nick Lazaris should hold a meeting with MTS and discuss either continuing business or take up business with another manufacturer. If MTS required additional funds, they should have contacted Nick and explained that they would not be able to release the first packaging line until additional money was received. Instead of using unethical business decisions, MTS waited until the last minute and demanded additional funds. It would be in Keurigs favour in the long run to seek out business with a different manufacturer. The business ethics presented by Keurig at the beginning of production stages can only get worse as time goes on. MTS may start to demand more money and cause additional problems in the future. Nicks strategy needs to focus on letting MTS know that there are other manufacturers out there and MTS needs Keurig, not the other way around. The focused goal for production should achieve all the objectives of allowing all companies to succeed. Fair business is important. The amount should be the original $700,000 plus any additional cost that MTS had to pay out of pocket. The vendor selection for the brewing machines must be fair.