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ZebraRuns is a company that sells running shoes and accessories through a retail...

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sweet107 | Student, College Freshman | Honors

Posted March 7, 2010 at 11:38 PM via web

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ZebraRuns is a company that sells running shoes and accessories through a retail outlet.

Business has been exceeding expectations, and company executives are contemplating opening a second and possibly a third store.  

Your company has been asked to consult with ZebraRuns. You have been asked to be part of the team that will evaluate the ZebraRuns decision-making processes.  The team has tasked you with the following:
 

Propose decision-making techniques to ZebraRuns.

Describe the steps ZebraRuns should take to make an effective decision.  

Tagged with business, managers

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dano7744 | College Teacher | (Level 2) Educator

Posted May 25, 2010 at 2:58 AM (Answer #1)

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Even though business has exceeded expectations, will this trend continue in the current economic environment ? Will the required capital outlays for the new stores be burdensome if business takes a down turn? What will be the estimated ROI (return on investment) in the short run and then several quarters down the road? In short, will the additional expenditures be worth it in the long run? Everyone feels a need to expand when business is good, but what about the inevitable cyclical nature of retail? All business enterprises go through these ups and downs. Is the management of the company willing to, or are they financially able to stay the course in bad economic times ?

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