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Video Concepts

In: Other Topics

Submitted By nehatare
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Letter of Transmittal
From: Parul Srivastava
To:
Chad Rowan,
Owner, Video Concepts, Inc.,
Lexington, North Carolina, United States.

October 1,1993

Subject: Recommendation on future course of action to be adopted by Video Inc.
I hereby attach the recommendations after analysing present Video Inc.. finances and the course of action to be adopted for the business.
The report presents a overview of current problems on Video Concepts, Inc.. The various option available in future have been analysed upon the basic objective of economics that is profit maximization.
Based upon the current trend of revenues, it is recommended that you should accept the alternative of hiring someone to manage the business and find a job for yourself preferably in corporate.

Video Concepts, Inc
Summary
Situation Analysis
Video concepts is facing stiff competition from Blockbuster ahich has certain adavatages like

Problem: Should Chad continue with the current business and if yes should he continue being the manager or hire someone else and find himself some other job
Options
• Raising price of overnight rental to $2.49 per night
• Hiring someone to manage the business and find another job for himself
• Sell the business
Criteria
• Return on time and capital
• Future prospects of video rental business
• Personal Satisfaction
Evaluation of Options
Option 1
Option 2
Option 3
Recommendations

Word Counts: 350

Table of Content

SITUATION ANALYSIS | 2 |
THE PROBLEM STATEMENT | 5 |
OPTIONS | 5 |
CRITERIA FOR EVALUATION | 6 |
EVALUATION OF OPTIONS | 7 |
RECOMMENDATIONS | 9 |
ACTION PLAN | 9 |

Situation Analysis
In 1987 Chad Rowan started a video rental business and established Video Inc. based in Lexington a town of 25000 people....

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