Assignment 2: Decorative interiors Inc
Submitted to
Dr. Gita Chaudhuri
By
Nitu Rai
Section B
On
03.08.2014
July 23, 2006 To,
Mr. Rocco Rapini
Owner, Decorative Interiors
Greater Toronto Area (GTA), Vaughan
Canada
Subject: Recommendation after analysis of various options for Decorative Interiors Inc.
Herein I have enclosed the detailed report of Decorative Interiors Inc. after analyzing the various options available considering the financial implications, health issues of Rapini, primary source of income of his family. After evaluating all the options hiring professionals is recommended for the business as it addresses all the criteria mentioned. Supporting exhibits are also …show more content…
Rapini, the owner of the company is very much worried about the company’s future as it is the only source of income for his family and he has two young children whose future and career needs to be shaped. So the stressed lifestyle has leaded him to heart attack and doctor advised him to change his daily routine.
In its initial period, despite having a very competitive market, DI earns much profit and marks its presence in the market. As the population increases, demand for houses also increase benefitting the business. It starts with home based operations wherein he excels in the customized window, covering diverse customer base contributing to profit. He outsources the draperies to a workroom. His 10 years of previous work experience as a salesman and communication ability has helped him in building strong network which directly benefits his business. When he expand his business then his skilled wife also joined him as helping hand.DI deals with customer either in store or in home consultancy. They provide quality service and guides with every details of the decoration which help them to convert half of the deals which also created a good brand value for DI in the …show more content…
Rapini come to know the disloyal and selfish activities of Morris so he expel her from the company. But as the market is very competitive DI faces many negative situation causing the company sales to stagnate which worries Rapini and also impacts his health.
Problem Statement:
Should Rapini continue his business, if so then from where (location) and how without influencing his health?
Options:
1. Selling the business
2. Sell the store & convert to a Home-based Operation
3. Sell the store & move the business to cottage country
4. Hire professional help
Criteria:
Below are the criteria in descending order of the priority:
1. Financial implications
2. Business Continuity
3. Health issues
4. Brand value
5. Vendor & customer base
Evaluation
Option 1: Selling the business
By selling the business though Rapini will get money (refer Exhibit 1) but it may not be sufficient as his expenses are too large. DI is the only source of income for the family as he has two young children he will have to take care of them also. By selling the business his health issues will be resolved as his lifestyle will change accordingly. But vendor and customer base and brand value will be of no significance.
As this option is not fulfilling all the criteria into consideration we cannot proceed with