Case 1. Performance Indicator

1. 1) Find references in the case for the numbers in Exhibit 3 and Exhibit 5. Try to understand the calculations in Exhibit 3 and Exhibit 5. For instance, in Exhibit 3, in Line 4, it stated that the total sales of new golf balls is 49.2 millions of dozens. Where can you find the number 49.2 in the case?

2. 2) What are the reactions of manufacturers such as Bridgestone, Titleist, Spalding?

3. 3) Why has it been so difficult for Osinski and Winskowicz to get a golf ball manufacturer to sign a contract for their new technology? To tackle this question, it is easiest to focus first on one particular prospective customer such as Bridgestone. How does Bridgestones profit change when the Performance Indicator technology is added to a dozen Precept balls? (Precept is the brand name of Bridgestones golf balls.) Hint: Follow a dozen Percept balls through their life cycle from production to destruction. Consider how the life cycle of a Precept ball with PI technology is different from that of a Precept ball without PI technology. What is the economic impact of each difference? Who, if anyone, benefits? Who, if anyone, loses?

4. 4) How much do you think a potential customer (that is, a golf ball manufacturer such as Bridgestone or Acushnet) should be willing to pay for Performance Indicators technology?

5. 5) In light of your analysis, what should Osinski and Winskowicz do?