Product details

Pastas Alimenticias del Norte, SA (Palnosa), a company specialised in the research, development, manufacture and sale of pasta products, must decide whether or not to extend trade credit to a prospective new wholesale distributor, Central de Alimentos, SA (Casa). If Casa is accepted as a customer, it will give Palnosa entry to the Catalan market, allowing it to grow and expand geographically. Casa has a significant market share in the traditional retail and hotel and catering segments, and has one of the industry leaders as its supplier. Now it wants to change supplier and asks Palnosa for payment terms that are more favourable than anything Palnosa offers to the rest of its customers.