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Harry's Hi-Fi

In:

Submitted By RickyShah
Words 1032
Pages 5
Situation Analysis
First of all I consider your instant closing of old branch as a major setback from the operations point of view. Since last two years you built an amazing rapport there with your customers and established your technical acumen as a brand, you should have atleast provided some overlap plan rather than shifting instantly to the new Arcade so that it could have contributed to your image building at new location and consequently you should shut down this premise once your brand attained pinnacle in terms of value creation.
Secondly also looking at following projected Sales (in case if you continued at the same place) and Actual Sales at new place (considering the uniform trend for the next 6 months as initial 6 months), it can be easily inferred that continuing at the same place assuming you maintain uniform profit margin over second and third year, would have helped you to achieve higher sales projections than what you achieved in Arcade owing to lack the visibility substantially. Hence arcade should have been an option of extension of your services and visibility rather than core and sole functional premises. You should have invested part of amount recieved from partners into aesthetics development at same outlet and part of that should have been invested in your services improvement aspect.

Also, business lacked the important aspect of having a common mission among all the three partners, because of varying operating philosophies, at a very critical time of nascent stage. This variation in goal settings sends wrong signal to the customer as far as sense of satisfaction is concerned.
Finally, having recognised your technical knowledge your strength in the industry, I am amazed why you did not capitalised the same by adding your assets more on the product service side rather than expanding on product selling side.
Problem Statement
To prepare

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