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Lab 4 Case BU111.docx

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Wilfrid Laurier University
Sofy Carayannopoulos

TO: Tony O’Callaghan FROM: Tabitha D’Souza DATE: October 4, 2011. SUBJECT: Recommended Expansion of Studio Celtia As you have requested, I have taken a look at the current problem at hand that ‘Studio Celtia’ faces. It is in your best interest to allow the production company ‘Open Stage’ to rent a part of your building. My decision is based on the assumption that you wish to continue operating this business, granted it remains profitable and safe. The decision criteria I used are as follows: a) Revenue and cost b) Safety c) Location 1. Expansion Increases Profit The rental of your premises to ‘Open Stage’ for concerts would increase revenue. Even though entrance to the concert area would be through your store, and therefore require labour cost it could allow your business to be open. With the public entering and exiting through your store, some people are bound to stop and purchase something. The revenue would not only be generated from the rental to the ‘Open Stage’ organization, but also from the sale of your items which go 100% back to you. If artists walk by to attend these concerts, it may also mean that they could be looking to sell art work through your company. The concerts being located in your building would also help to build your publicity, allowing more and more of the public to become aware. The possibili
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