Case_Report

Case_Report - Problems Immediate problems She has to choose...

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Problems Immediate problems: She has to choose one of the three options as soon as possible to maximize her profit from sales. She is concerned about the profit that would be generated from the James offers. Primary problem: Business is not generating at the level she desires and wants to expand her company to generate more profit. Secondary problem: She is not receiving enough profit to fund her university education Her company is successful on very small scale due to low sales volume She is not receiving profit at the level that she desire. The dimensions of the products were restricted. Her capital was restricted The deal between James and Samantha was a consignment. She has to sell stuff her self if it’s not sold in spa. Analysis of situation

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Appendixes one to four analyze the three options that are available for Samantha through several steps. Appendix four finds out the final profit that Samantha would be able to make. which was also one of her main concerns. According to appendix four, Option two goes in loss of \$1, where as option one makes \$38 profit. Therefore option one is certainly better than option two. This could have been found by looking at Appendix one, where option one earns \$39.38 revenue more than option two, ultimately more profit then option two, since the fixed and variable costs are same for both options. On the other hand, in Appendix four option three with option one shows that if Samantha sells 150 clips then she will be able to make more profit relative to other products sold at the same quantity. Total sales from 150 clips with option one would make profit of \$100.5. Other products either go in loss or make relatively low profit. See Appendix four for detailed calculation on the above analysis. So it comes down to option three combined with option one which is to Sell 150 units of clip with fixed monthly charge of \$120, and it will generate \$100.5 profit. This is the best choice for Samantha because her main concern was which choice would generate the most profit, which she would use for her university education. From quantitative point of view, the above analysis perfectly matches the expectations of Samantha, which was to make profit. But from qualitative point of view, it might not be the right choice. First of all, this marketing approach would not entirely advertise her business because she will be selling only one of her products. Whereas, the main point for all this was to expand her business, and this could only be done by selling all her products. This qualitative approach issue would vary to a certain degree depending on the results from her survey. Also according to
the survey conducted by Samantha, clients were indifferent to the type of product sold in the spa. Therefore, the above choice would sell her products but may have some unsatisfied clients who

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Case_Report - Problems Immediate problems She has to choose...

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