O'Reilly Associates and T&D International

Paper Summary:

This paper reviews the case of O'Reilly Associates, an ad agency -- in order to determine whether it should retain a seemingly unprofitable account: T&D International. The brief paper reviews the problem, the nature of the service provided, the alternatives available to management to being the account in line with profitability, and the specific facts. It is concluded that the account should be terminated.

From the Paper:

"Following the findings of a recent profit audit, it has come the attention of the management of O'Reilly Associates that the company's relationship with a long-term business client, T&D International, may not be a profitable one for the advertising agency. In fact, in an income statement dated 12/31/89, it is clear that the agency has lost $72,000 in the previous calendar year, on an account in which commissions and fees to the agency were only $154,000."

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