Westlake furniture 2

Westlake furniture 2 - Executive Summary USRC has proposed...

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Executive Summary USRC has proposed prominent shelf space and a quintuple rise in the sales of West Lake’s signature line, provided West Lake brings down the retail cost from $69.99 to $29.99. Considering a competitive Canadian retail market, this proposal could entice other retailers to enforce a reduction in their retail price, thereby reducing the gross margins. The lower retail price may hamper West Lake’s potential to get into the luxury segment. But USRC being the biggest retailer for West Lake, a successful deal would greatly total sales turnover, its overall profits and improve its negative operating cash flows. Hence West Lake is recommended to accept the offer. Word Count: 108
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TABLE OF CONTENTS Situation Analysis                                                                                                                              .................................................................................................................... 3    Problem Statement                                                                                                                             ................................................................................................................... 4    Options                                                                                                                                                ...................................................................................................................................... 4    Criteria for evaluation                                                                                                                        .............................................................................................................. 4    Evaluation of Options                                                                                                                        .............................................................................................................. 4    The Recommendation                                                                                                                        .............................................................................................................. 7    Action Plan                                                                                                                                          ................................................................................................................................ 8    Exhibit    
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