RSM225/MGT 393 – ASSIGNMENT #1 – value 5%; DUE DATE – As assigned in class.
Please Note: This assignment must be completed in groups of 2 and be no longer than 6 pages (typed, space and one-half;
Times New Roman – Font 11; 1 inch margins) in length. Given TA restrictions, your group must be formed with both members of the group being registered in the same section. It must be handed in at the beginning of class of your registered section. Only one assignment per group must be submitted. Any departure from this requirement may result in a grade of zero being assigned. - ALL ASPECTS OF THE SITUATION ARE FICTIONAL.
Hunter Hayees, is a creative and wealthy businessperson. Keith Urbane does not have much by way of assets but is highly skilled as a tailor – particularly when it comes to leather related products. Carrie Underwoode is a super salesperson “with an eye for style”. The three individuals are in their twenties and they all knew each other from back in grade school and high school – having remained close friends. All three grew up and continue to live in London, Ontario.
The three decided to open up a retail store with a Country and Western “spin”. Within the store, each would “do their own thing”. Hunter would focus on importing high end men’s country sportswear, as that is where he had expertise. Carrie would focus more on young women’s – jeans and tops and Keith would make and sell custom-made leather cowboy boots. Hunter negotiated a five-year lease at a new mall that opened in Milton, Ontario. The lease is a gross lease with an annual rent of $120,000 per year. As Keith and Carrie are always worried about money, and never seemed to have that much, Hunter thought he would not raise their stress levels – and so told them that the lease was “monthly” and could be terminated at any time with two months notice. This was not the case.
When the store opened, a sign was erected out front that said – “UUH Country”.
The store was