Table 1 Income & Expenditure, year 1 Income From Dawson's From Rowan's Other sales Advisory services Total Expenditure Materlals Salarles Other expenditure Total 140,000 140,000 45,000 325,000 216,000 144,000 54,000 13,500 427,500
Three years ago George Holmes, an engineer, hit upon an idea for a novel security device and produced a successful prototype in his workshop. He made some enquiries through friends to try and find a buyer and was introduced to Frank Jackson, a buyer for the wholesale company of Dawson's Ltd. Jackson offered to discuss the marketing of the product with his immediate superior, Harry Thomas who was the chief buyer with Dawsons. A meeting was arranged between the three men at which Holmes had a chance to form an opinion of the characters of Jackson and Thomas. He judged that Thomas was a somewhat distant man of high integrity who was prepared to leave action to his more vigorous subordinate Jackson, whose influence with Thomas appeared to be considerable. On the other hand, Holmes felt that Jackson was warm, unscrupulous where the interests of his company, and possibly himself, were concerned, and very active in furthering a cause in which he was interested. A trial batch of the devices was made for Dawsons and these were easily sold. Further quantities were made and sold in the same way and by the end of the first three months it became clear that the demand for the product was going to increase. There was also an increase in demand for an advisory service on the installation of the new device and mare generally on the problems of electronic security. With the demand on his time increasing Holmes recruited first one friend, and then two more, and between them they were able to manage the business on a part-time basis for the first year. Holmes spent some time cultivating Jackson, and generally being as friendly and affable as circumstances permitted. In turn Jackson assisted Holmes by pushing sales of the new product and,