The Sports Guy

In: Business and Management

Submitted By dropwizz
Words 1150
Pages 5
Key Events / Case synopsis
The Sports Guy is an independent sporting goods store located in a small town outside the greater Toronto Area. The store is owned by Bob (“Rocky”) Rhodes, age 32 who has for many years been a high-profile personality in the local sports community. Ten years ago, Rocky decided to go into the sporting goods business for himself. Family members and friends provided some equity capital and the new business was incorporated, with Rocky owning 60% of the shares and his family members and friends 40%. The land package that Rocky bought consisted of two lots on a corner, the store was built on one lot; the other remained vacant. After 2004, the town grew and the area around Rocky's store became built up into a quite prosperous neighborhood. Strip malls developed, and The Sports Guy is now located in a busy commercial area.

Problem Statement and Objectives

Problem Statement
The sales growth of the store is relatively slow and at the same time the level of debt is rising so are the inventory, Rocky is not sure what to do and is looking for suggestions as to how he can improve the financial performance of the business.
Objectives
The main objective is to improve the financial performance of the business by increasing the amount of successful sales, which will lead to solid profits. The store also needs to implement more sophisticated purchasing techniques and a computerized inventory control system to increase the inventory turnover rate, thus reducing short-term debts and interest expenses. Rocky also wants to expand and grow his business with the town but to do so he will require external finance and investment, but to do so he needs to improve the stores profitability as mentioned earlier.

Situation Analysis

Current Business Situation
At the moment we believe The Sports Guy is not performing well with its declining inventory…...

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