Case Study : Entrepreneurial Retail Business

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Entrepreneurial Retail Business Summary This case explains a prompt of a local, successful car dealership, in which I will be the general manager and partner of. This Ford dealership has net worth of $1,800,000. And at the weekly meeting with the business’ sales force, I find out that we are on track for another successful year, by being ahead of our sales quota. Things could not be going any better for this business. We will be exceeding the goal of $8.5 million in sales. The expected expense of cost of goods sold are only 88 percent of sales, and the fixed operating costs to be held at $30,000 a month. The variable costs are expected to average about 5 percent of sales. Even with these costs, the business’ profits are expected to be close to a quarter of a million dollars before taxes. Just when things couldn’t get any better the other partner of the dealership gives you a call and asked if you have heard the news. In order to reduce the local property taxes (and help keep voters happy), a council member has suggested that the city increase its sales tax by one percent. This would cover anything sold in the city, including automobiles. Even though you would hate to pay this extra tax, this isn’t the worst of your problems. Just last year, a few other car dealerships had moved into the area. They represent most of the major domestic and foreign car manufacturers. The competitors are positioned in the suburbs of the city, and they have created a “car mall” where
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