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BU111 Informal Report Example .docx

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Leanne Hagarty

Memo To: Tony O’Callaghan From: Andreea Fatu Re: Increasing customer traffic and revenue for Studio Celtia Date: October 23, 2012 Studio Celtia’s Primary Problem and How to Fix It Much of Studio Celtia’s clientele came from the local Covent Garden Market, which attracted both locals and tourists. With its recent closure, Studio Celtia has seen a decline in sales along with a 60% decrease in customer traffic. To improve Studio Celtia’s financial position, a number of creative solutions have been combined to create an action plan. Firstly, operational hours should be shortened, from Monday – Saturday to Thursday – Saturday; from 11am to 8pm during the week and to 6:30pm on Saturdays. Open Stage’s offer of sharing the second floor space with College Celtia should be accepted and a fair deal negotiated. The 3 floor should be leased for events or to a permanent resident. Town festivals and traditions should be researched, and Studio Celtia should make every effort to have a presence at these events in an effort to increase tourist traffic and local awareness of the store. Asking employees on how they think Studio Celtia can improve sales (and perhaps making a contest of it) can inspire creative and successful ideas. Lastly, finding a way to work with the town juvenile hall in offering a youth rehabilitation program through Studio Celtia would be an excellent way to boost revenue, community involvement, and Studio Celtia’s image. The Financial and Social Benefits of this Action Plan To screen this action plan for its efficacy, four decision criteria were used: 1. Increasing customer traffic 2. Increasing revenue & profit 3. Creating and maintaining good relationships with stakeholders 4. Economical in nature The reduction in operational hours increases profit by decreasing wage costs and increasing operation during the optimal hours of 5-6:30pm (Carayannopoulos, 2010). It also caters to customer stakeholders in increasing operational times after their work hours. Accepting Open Stage’s offer creates an opportunity for a new professional relationship, opens a new avenue for revenue, and boosts customer traffic and local awareness of the store by having the performing musicians walk through the store on their way to the second floor. Similarly, leasing the third floor will achieve the same results as the above recommendation. Promoting Studio Celtia at community events spreads the word among locals and offers tourists (who will come to these festivals with no marketing expense from Studio Celtia) the opportunity to discover this specialty shop. Involving employees in the solution process, you can inspire motivation, loyalty, creativity, and overall well-being of the employees by showing them their importance to you and the business. Lastly, a joint venture with the town in youth rehabilitation offers numerous possibilities for Studio Celtia; it encourages the youth’s “cool” perception of the store, boosts community appreciation, offers the possibility of capital in the form of full or partial
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