Capital One Case Background: In this case, we will be talking about ice cream. This case is not about financial services. A lot of problems we deal with on the daily basis are broader than banking. You are president and CEO for our ice cream corporation. There is a Chief Financial Officer (CFO) and Chief Operating Officer (COO), but you determine the business because you own the product and sales. By owning the product, we mean for example that you have chocolate and vanilla, but you could also add swirl. Keep in mind that ice cream flavors are well established. Our ice cream is non-perishable Your job as sales is to maximize profit, not only the amount of ice cream you sell. You are also responsible of setting up prices. We are already a leading domestic supplier. Were in every market, and not looking to add any. We know the competition is fierce but defined: there are national and regional players. We are not expecting any new entrance into the market or innovation. Just steady competition. Pricing is the one factor we can control, we are not looking to enter any new markets, and we know the competitions going to make up their minds.

Problem: What are the key factors you would take into consideration as you build strategies to grow profits for this company?

Consider: - Number and size of markets - Number and size of competitors - How would competition react if there is any change? - Role of pricing - What would happen if price changed? - How would competitors react with your new profit growth strategy? - What risk should consider and how would you mitigate them? - Are there any other factors you could think of in the long run? Important information: Price = $5 dollars per carton Cost = $1 dollars per carton (Fixed price is neglected = $0) Assume you sell 100 cartons each month. Elasticity of demand is -4.