Scenario 1

 

            You and a partner are the sole owner/employees of a quaint little bike shop in an upscale neighborhood. You can remember when young families and college students lived around here but since the urban renewal project 10 years ago things have changed. Large homes and expensive cars line the streets and your business has slowed down. Way down. The MEGA-BIKE-MART, a top of the line bike store with a sales staff of 10 is just a few blocks away. They sell expensive bikes faster than they can get them in. Meanwhile you can’t get your inexpensive, low-end bicycles out the door. With this information in mind, answer the following questions:

 

 

1.   What do you think could be the reason(s) for your bikes not selling well?

 

 

 

 

 

 

 

 

 

2.   For each reason you think your bikes aren’t selling well, what could you do to remedy the situation?

 

 

 

 

 

 

 

 

 

3.   Would your solutions in themselves pose any problems for your business? Explain.

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Scenario 2

 

            You have recently opened a store that sells computers and computer related products. You have a great selection of merchandise and your prices are the best in town, but there has been very little business. Opening the store generated a lot of overhead (expenses) so you initially had to put advertising and employee training on the back burner. A nearby competitor has terrible prices but excellent service and has outsold you and every month so far. Every time you turn on the radio he is advertising a different sale. Compared to your prices they certainly don’t seem like sales. With this information in mind, answer the following questions:

 

 

1.   What do you think could be the reason(s) that your merchandise is not selling well?

 

 

 

 

 

 

 

 

 

2.   For each reason you think the computers aren’t selling well, what could you do to remedy the situation?

 

 

 

 

 

 

 

 

 

3.   Would your solutions in themselves pose any problems for your business? Explain.

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Scenario 3

 

 

            You’ve owned the coolest coffee shop in town for the last couple of years. The shop sells exotic coffee, espresso, pastries and small coffee novelties. Profits have been small but that hasn’t been an issue until now. You have just gotten engaged and will be married in a year. You want to buy a house but it seems no matter how many cups of espresso you sell, profit margins are always small. With this information in mind, answer the following questions:

 

 

1.   What do you think could be the reason(s) that you cannot generate a large enough profit to expand your business?

 

 

 

 

 

 

 

 

 

2.   For each reason you can think of why profits are small, what could you do to increase them?

 

 

 

 

 

 

 

 

 

3. Would your solutions in themselves pose any problems for your business? Explain.