Stan Sound Report

Stan’s Sounds / Cen – Tex Audio(SS/CTA)

Westville, Texas

To: Mr. Stan Kramer

From: Aditya Kumar

Subject: Report based on analysis of the offer received to open a new retail outlet in

Wardlow.

The management of SS/CTA must be congratulated for their efforts to make a name of their own in just six years. This report gives an analytical insight on the invitation to open a Stan’s Sounds / Cen – Tex Audio (SS/CTA) retail outlet in Wardlow.

I hope this report will help SS/CTA management to make an appropriate decision.

Kindly revert back for any further clarifications.

Executive Summary:

SS/CTA has been invited to open an outlet in Wardlow. Wardlow is 140 miles from Westville of a small population of just 185,000 people. The city has shown a preference for music equipment and thus the demand to open new retail outlet has come by.

The first and foremost consideration will be the distance. buying population is also almost 78% less than Westville.

The offer is analyzed considering SS/CTA track record from 1972 to 1977. Liquidity in hand, efficiency over the years, Return of Investment (ROI) have been computed and looked upon.

As per the analysis, it is recommended not to open any outlet at this point of time as the business in Westville requires more attention, ROI of Wardlow is expected to be low, low liquidity in hand. Additional investors are also not recommended due to already large accounts payable.

Word Count: 141

Table of Contents

S. No. | Contents | Page No. |

1 | Situation Analysis | 5 |

2 | Problem statement | 6 |

3 | Criteria for Evaluation | 6 |

4 | Options | 6 |

5 | Evaluation | 7 |

6 | Conclusion | 8 |

7 | Recommendation | 8 |

8 | Action Plan | 8 |

9 | Reference | 9 |

10 | Exhibits | 10 |

Situation Analysis:

Since the inception of Stan’s Sounds in 1972, the company has grown steadily. This has been largely due to the vision of Mr. Stan Kramer of owning a retail chain. He along with Mr. Robert...