NEWAD (B): The Tobacco Sampling Project

The co-found of NEWAD, a media company with $10 million in revenues, is being presented with an interesting opportunity for a large tobacco firm: exclusive access to 3,000 locations for a tobacco sampling program. Although this new opportunity would bring a potential $4 million in revenues, the request for exclusivity threatens NEWAD's relationship with two other tobacco manufacturers. In coming to the decision, the co-founder has to consider both short-term and long-term effects, corporate scope and resource allocation.