Athlete’s Warehouse Essay

decision maker SummaryColins un duty status has caused him to get by generateing up his own ancestry. His plight is deciding where to finalise his tune both at great(p) eastern mental synthesis downtown or Exploits V every(prenominal)ey in the mall. imput adequate to him world unemployed, Colin put forward to grow understanding an income to put egress. To do so he of necessity to better his project sales so that his last(a) income would be sufficient to live on and to be able to conduct back Eds investing in the business organization.The intimately feasible etymon to Colins stain is opening up the business downtown at the Great eastern Building. This location produces a high uper(prenominal) net income and a humbleer notice purge point than the mall. Although the net income starts out quite low, once the business is launch as a persona insert with good sell and excellent node service, customers loyal to them leave return to their descent when the y surrender a need or compliments that they can fill.Before the business is up and running, Colin mustiness(prenominal)inessiness determine how he give integrate the four aspects of the trade mix to satisfy his coffin nail market. He will need to reconcile how he will promote his retention to the local anesthetic citizens in the best way possible, bit giving them what they want and need on good quality products at affordable, rivalrous prices.Statement of ProblemGiven that Colin is in an unfortunate situation, his primary concern straightaway is deciding whether or not to open up a business. His immediate return resulting from this dilemma is that he must decide where to locate his business. It is this particular dilemma that Colin needfully to confront the issue of improving intercommunicate sales for the possibility of incurring a profit. In addition to currently being out of work, Colin is looking to change his unemployed status. Colin must first consider his send market and then take into sum up the marketing mix when deciding where to locate and how he can make the business profitable. This is a two-step process that is the of import focusof any marketing music directors job.Analysis of SituationDue to Colins unfortunate state of personal matters and the situation of his brave business, he must immediately govern work to crystalise an income. Before deciding whether or not he should open up a business, he needs to clearly unsex the market which the company would be railroad train towards. Then he needs to mold the marketing process using product, price, place, and promotion. This is alike known as the four Ps of the marketing mix. His business plan must be feasible and conjectural to be able to make his business successful.many factors must be taken into favor before deciding where to locate. To do so, he must consider the rent, the size of the retention, challenger in the area, unglamourous dealing and separate thing s of a similar nature. Colin should construct a projected income statement and break up to now analysis to compare the two locations to find out which site is more profitable. Furthermore, to reduce his previous cash flow paradox he needs to make reliable his inventory dollar volume is not besides high and that he does not marry up all his capital in his assets. Either way would tie up his cash and he will not be able to pay his expenses once more causing him to hold up bankruptcy.This business has a better chance of succeeding than the last angiotensin-converting enzyme because this time around Colin will be able to devote all his time to the business instead of allow Ed take care of it for the intimately part.Action PlanFor Colin to start working, he must open up a business at the Great Eastern Building. Opening up a business in this location will not only provide Colin with work provided it can also help him earn an income. This location not only provides the memory board with a bring low rent than Exploits vale it also allows Colin to set his own investment company hours. This gives him the flexibility to work when he wants and needs to. Since Colin does not like working for former(a)s, this situation is ideal for him.To make his business successful, Colin must consider an integration of price, promotion, place, and product. He must also try and distance themselves from their competition. To do so the brothers must maintain the quality of theirmerchandise and customer service, reasonable prices, and improve their promotion strategies. For one thing, the price of his products must be within a reasonable range of his competition Sports Experts. Too low and consumers may think he is fling low quality merchandise withal high and most people will not consider purchasing from his store. Also, Colin must preserve the excellent service he is known for. Prospective customers will go to his store eventide though pedestrian traffic is not as high a s Exploits Valleys referable to his expertise in sports clothing and equipment. He must also uphold merchandise quality because even though he continues to provide advice to consumers, if his products are too shabby, most would not consider returning to his store.Attracting his target market will comprise of one thing in marketing providing them with what they want and need . To help promote his store to his target market, Colin must not depone on word-of-mouth advertising even if the location of the store is in a small town. He must appeal a potential customers eye to enter his store. Distribution of flyers or even through the local wireless station will suffice because the store is not located next to the highway.Although the projected sales are impose than the other location, the projected net income is higher (see viewing B). These figures are conservative due to the generally accepted accounting principles conservatism principle . Furthermore, for Colin to break even at G reat Eastern he can sell less than he would have had to at Exploits Valley (see submit C). Therefore, it will be easier to make a profit at Great Eastern than at Exploits Valley.ContingencyThe business may not generate the amount of sales projected, thus not being able to incur a profit. Furthermore, pedestrian traffic may also not be up to par which could possibly lower the number of prospective customers. This would lead to lower sales than expected. Similarly, Colins expenses may be more than predicted. There could be near unforeseen problems that need to be fixed. For example, his employee turnover could be higher than expected ifthe ply he trains is not satisfied working there, they will leave and find economic consumption elsewhere. Not only will they take his expertise with them, but Colin will have to train new employees. Consequently, more coin will be needed which will add to his expenses, therefore lowering his net income. Some of these problems combined could lead t o another(prenominal) closure. Should Colins new business pause after the first year, he should declare bankruptcy and start looking for employment elsewhere.