Opposing Vending Machines in Schools

 

You are the Director of Business and Finance for a school district in Texas. You have been lobbied by

representatives of the PTA and by the nutrition experts in the district to oppose an upcoming vending machine

contract renewal with a national soft drink and snack company.

Vending machines, loaded with soft drinks and high-fat snacks, are increasingly under attack in schools and

lunchrooms due to the obesity epidemic among youth. However, the School Board sees vending machines as cash cows.

The school district has two high schools, and, for an exclusive 10-year agreement at each school with the

vendor, the school district will receive $150,000 up front and an additional $150,000 three years later. Commission sales on the soft drinks and snacks will bring in an additional $650,000 over the 10-year period. In the past, the vending machine payments supported student body activities such as sending students to choir concerts and paying athletic participation fees. Part of the income from the latest contract is already earmarked for new artificial turf on the school athletic field at one of the schools.

You have decided to research this controversy, including what other school districts are doing about their vending machine contracts. Consider a range of alternatives. You will write a business report, including the financial implications, to the Superintendent of Schools stating your position and recommendation.

 

Instructions:

Research your topic. You will need to support your position with logic, credibility, and emotional appeal. Be sure to consider the financial aspects of your case. Your work should include a minimum of five (5) citations, at least one of which should be from academic journal. A Google search will not be sufficient. A Reference list of only online resources will not earn more than a grade of a “C”. Your report, including title page, Executive Summary,