sports guy answers
SPORTS GUY
Key Events / Case synopsis
- Maximum of six (6) sentences here. Provide a brief history of the company up to the time of the decision / problem.
The Sports Guy is an independent sporting goods store located in a small town outside the Greater Toronto Area. The Sports Guy is owned by Bob ("Rocky") Rhodes, age 32, who has for many years been a high-profile personality in the local sports community. The purchase of the land and construction of the store was financed in part by a $183,500 mortgage. Last year, the payments on the mortgage totalled about $18,400, of which approximately $8,000 was interest and $10,400 was principal. About 70% of The Sports Guy's sales consist of equipment and uniforms bought by local teams. About 30% of The Sports Guy's sales consist of regular ("walk-in") retail trade that consists of a wide range of sports and recreational merchandise.
Problem Statement and Objectives
- Be clear what the problem is. Sometimes it is a specific decision to be made, most of the time it is a larger issue. This means that the problem statement will rarely, if ever, be, “Should decider do A or B”
- Note the objectives of the key character. If secondary characters have objectives that might have an impact on the recommendation, note these here.
Rocky's accountant has pointed out his declining inventory turnover rate and the resultant growing levels of inventory, and how this is causing increases in his short-term debt and interest expenses. She suggested a couple of years ago that Rocky introduce more sophisticated purchasing techniques and a computerized inventory control system. However, Rocky has done nothing done yet in these areas -- he likes sports and selling more than record-keeping and working at a computer.
Situation Analysis
- Start with a paragraph that summarises the business situation (eg do strengths outweigh weaknesses? Is it an attractive industry (i.e. profitable) to be in? etc.
- Do whatever analysis you deem is
Key Events / Case synopsis
- Maximum of six (6) sentences here. Provide a brief history of the company up to the time of the decision / problem.
The Sports Guy is an independent sporting goods store located in a small town outside the Greater Toronto Area. The Sports Guy is owned by Bob ("Rocky") Rhodes, age 32, who has for many years been a high-profile personality in the local sports community. The purchase of the land and construction of the store was financed in part by a $183,500 mortgage. Last year, the payments on the mortgage totalled about $18,400, of which approximately $8,000 was interest and $10,400 was principal. About 70% of The Sports Guy's sales consist of equipment and uniforms bought by local teams. About 30% of The Sports Guy's sales consist of regular ("walk-in") retail trade that consists of a wide range of sports and recreational merchandise.
Problem Statement and Objectives
- Be clear what the problem is. Sometimes it is a specific decision to be made, most of the time it is a larger issue. This means that the problem statement will rarely, if ever, be, “Should decider do A or B”
- Note the objectives of the key character. If secondary characters have objectives that might have an impact on the recommendation, note these here.
Rocky's accountant has pointed out his declining inventory turnover rate and the resultant growing levels of inventory, and how this is causing increases in his short-term debt and interest expenses. She suggested a couple of years ago that Rocky introduce more sophisticated purchasing techniques and a computerized inventory control system. However, Rocky has done nothing done yet in these areas -- he likes sports and selling more than record-keeping and working at a computer.
Situation Analysis
- Start with a paragraph that summarises the business situation (eg do strengths outweigh weaknesses? Is it an attractive industry (i.e. profitable) to be in? etc.
- Do whatever analysis you deem is