Final_Case_Report - To: Hair Impact From: Humair Noor Date:...

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To: Hair Impact From: Humair Noor Date: June 10, 2008 Subject: Recommended Solution for Profitability As requested, I have examined the situation that you are going through, including the exhibit containing the costs and options that are offered by Mr. Jamie. As you indicated that you are looking for the option that produces most profit, that’s why I have analyzed all the options that are available to you and have made my decision based on the results in Appendix one to four. I think that you should accept option three with option one to make $100.5 profit. You should sell 150 units of clip and pay flat monthly fees of $120. This would help you make greater profit, assuming that you sell all the products. You will be able to expand your business at a small level or rather slowly since you will be selling only one of your products. It’s not easy to expand and make profit All the above recommendations are based on business owners’ concerns. Business is not running at the level she desires and wants to expand her company to generate more profit, is the most important problem. Samantha has to choose one of the three options offered by Mr. Jamie as soon as possible to maximize her profit from sales. There were a lot of other problems surrounded by the business’s main problem. Samantha is not receiving enough profit to fund her university education. Her company is successful on very small scale due to low sales volume. The dimensions of the products were restricted Page 1
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and her capital was restricted. The deal between Mr. Jamie and Samantha has to be a consignment and she has to sell the products her self if it’s not sold in spa. Money is crucial for every business My recommendations are based on the immediate and short term implementations of the company. The main criteria that I kept in my while making the recommendation were: Profitability Promotion costs for expansion Quantity of each product Degree of business expansion thorough promotion The above decision criteria are based on Samantha’s profitability concern and the expansion of her business. She has to choose between the three available options that would generate the most profit, as shown in Appendix four. This would also allow her to fund her university expenses and would help her manage the capital available for investment. Promotional costs that were involved in the expansion of her business are very crucial because it would affect her ability to make profit. Quantity of each product is also one of the main concerns, because one of the options is based on the number of quantity of each product. Finding the right combination would result in greater profit, as shown in Appendix three and four. This would affect the expansion of the business both quantitatively and qualitatively, and degree to which it would help expanding the Page 2
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business. After profitability, expansion is Samantha’s second most important concern and deciding which choice would help her expand the most. Choose the right product, profit will come automatically
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Final_Case_Report - To: Hair Impact From: Humair Noor Date:...

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