The CEO is about to walk in and she would like to hear the candidate’s recommendations- have him/her make some. *Make sure you say she and give the candidate feedback if he/she falls prey to bias and calls the CEO a “he”
Currently we are seeing revenues of $125M annually, but costs of $138M, meaning we are $13M in the red. However, we have studied the cost and revenue structure of your retail operation and found that there are a few actions you can take at this time. On the cost side, we recommend changing your means of shipping from air to boat, a change we have found will bring $4.5M in annual savings. Additionally, we recommend seeking a partner to share your rent/space at the
flagship store. We believe, for example, that placing a coffee shop within the store would save you 25% in rent, for a savings of $1.75M annually and perhaps encourage your customers to shop more. Finally, we recommend revamping your inventory for the American market by adjusting designs and sizes to better meet demand. We estimate this will drive $11M in additional annual revenue. Together, these measures will more than make you profitable, breaking even and making
$4.25M in profit. Potential risks of this plan include having an unreliable retail partner at the flagship store, making products that the American market still doesn’t like, and delaying inventory stocking through the new shipping method. For this, we recommend a study into whom the retail partner should be, engaging in extensive market research to produce the correct SKUs for the market, and adjusting US warehouse operations and lead times to ensure that stocking is not delayed.