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Essay / Business Management Analysis - 1007
Rocco Rapini, 47-year-old owner of Decorative Interiors Inc (DI), suffered an unexpected heart attack on July 8, 2006 and doctors advise him to significantly reduce his stress in his daily routine. This forced him to make a proper decision regarding his business. He finds himself in a dilemma and is unable to decide which course of action will benefit both his business and his health. With this in mind, he retained the services of a management consultant to help him make a decision on the way forward. Putting ourselves in his shoes, we analyzed different alternatives based on the following data:-a) Balance sheet as of December 31, 2005.b) Statement of earnings for the year ending in 2005.c) Population and housing statistics from the Canadian suburbs.d) Business background and experience of Rocco Rapini. The criterion of our analysis is that he must change his lifestyle according to the doctor's advice. and at the same time earn enough money for the future financial stability of his family. Selling the current large showroom and moving to the suburbs: He will have to incur rental expenses of $1,200 per month ($14,400 per year), which is quite comparable to rents in the Greater Toronto Area ($16,200 $ per year starting in 2004). In addition, his travel costs will increase by 5%. Additionally, according to statistics, there is low population growth in the suburbs of Meaford and Thornbury compared to the township of the Greater Toronto Area (GTA) where it is around 37%. As he recently suffered a heart attack, he will need constant medical monitoring, which is rarely available in the suburbs. Her daughter came to pursue her higher education in Toranto and wants to stay with...... middle of paper ......ctory services, her clients often recommend her services to their friends. This word-of-mouth publicity has earned him so much recognition that he uses it effectively as a marketing tool. If circumstances require it, his wife Conchetta can support him by taking an administrative job elsewhere in the surrounding area, as she has shown. his sense of administration and sales in the past and has taken several courses in interior design and decoration. This will cheer him up. Conclusion: We have analyzed all available options. Since his wife Concheta cannot manage the current business alone, we recommend that he sell his current large showroom and move to a smaller showroom. This is the most viable of all the options available. This will also keep him active and be as stress-free as possible, which is the need of the hour..