The Body Shop Canada Term Paper
Contents of the Case Report Executive Summary 3 Events and Incidents Leading up to the Primary Issue 4 Primary Issue 5 Objective 5 Analyze of the situation 5 Situational Analysis 6 SWOT Analysis 7 Identification of the Suggested Alternatives 8 Identification and Evaluation of the Alternatives 8 Financial Analysis 10 Decisions 11 Course of Action and Implementation 11
Executive Summary |
Richard Paul is about to graduate from his M.B.A program and planning to start running his own store. While scanning through job advertisement, he comes across of The Body Shop Canada. The notice stated that the company has number of operating stores available for franchise. Knowing the enormous success of the company, Mr. Paul decides to purchase the franchise. Cost to start a new franchise is estimated to reach approximately $257,900 maximum. Mr. Paul estimates that he can only afford with about $125,000 which obviously still not enough to cover the start-up cost. After examine the list of franchisees, Mr. Paul realizes that 13 of them own multiple stores. Knowing this fact, Mr. Paul comes with an idea of purchasing two stores instead of one because some of the start-up costs and operating expense would not be higher than operating a single store. Mr. Paul has two friends who are willing to involve with The Body Shop Canada franchise. Their equity holdings would provide Mr. Paul with additional capital and would lessen the work of operating two stores in separate two separate cities. In regards of the organizational structure, Mr. Paul planning to create a holding company with him as a sole owner and his two friends would be the limited partners. The body Shop Canada has two available franchise in City A and City B. Each city has its own advantages and disadvantages. Before jumping into any decisions, Mr. Paul has been informed with a new regarding the Goodwill cost for each city. After hearing the news, Mr. Paul rushes back to his house to
Executive Summary |
Richard Paul is about to graduate from his M.B.A program and planning to start running his own store. While scanning through job advertisement, he comes across of The Body Shop Canada. The notice stated that the company has number of operating stores available for franchise. Knowing the enormous success of the company, Mr. Paul decides to purchase the franchise. Cost to start a new franchise is estimated to reach approximately $257,900 maximum. Mr. Paul estimates that he can only afford with about $125,000 which obviously still not enough to cover the start-up cost. After examine the list of franchisees, Mr. Paul realizes that 13 of them own multiple stores. Knowing this fact, Mr. Paul comes with an idea of purchasing two stores instead of one because some of the start-up costs and operating expense would not be higher than operating a single store. Mr. Paul has two friends who are willing to involve with The Body Shop Canada franchise. Their equity holdings would provide Mr. Paul with additional capital and would lessen the work of operating two stores in separate two separate cities. In regards of the organizational structure, Mr. Paul planning to create a holding company with him as a sole owner and his two friends would be the limited partners. The body Shop Canada has two available franchise in City A and City B. Each city has its own advantages and disadvantages. Before jumping into any decisions, Mr. Paul has been informed with a new regarding the Goodwill cost for each city. After hearing the news, Mr. Paul rushes back to his house to