1. Should Nature's Way open a store in Plainesville? (分析)
| The following appeared in a memorandum written by the vice president of Nature's Way, a chain of stores selling health food and other health-related products. "Previous experience has shown that our stores are most profitable in areas where residents are highly concerned with leading healthy lives. We should therefore build our next new store in Plainsville, which has many such residents. Plainsville merchants report that sales of running shoes and exercise clothing are at all-time highs. The local health club, which nearly closed five years ago due to lack of business, has more members than ever, and the weight training and aerobics classes are always full. We can even anticipate a new generation of customers: Plainsville's schoolchildren are required to participate in a 'fitness for life' program, which emphasizes the benefits of regular exercise at an early age." |
In this memo, the vice president of Nature’s Way (NW) recommends opening a store in Plainesville. The conclusion is based on the previous experience that stores can earn more profit in areas where residents are highly interested in their health. To prove that people in Plainesville are such residents, the vice president provides the evidence that sales of exercise shoes and clothing are at all-time high there and the local health club there is more popular than ever. In addition, he also points out that the city’s schoolchildren are required to participate in a fitness program. Yet, the experience and those facts could not lend strong support to the recommendation.
Motivation is the first thing the vice president should consider. Why do residents buy those exercise apparel? Perhaps it happens to be fashionable at the moment or inexpensive compared to other types of clothing. It is also likely that the weight training classes are so popular just because that those members care about their weight, not their health. Moreover, the fitness program might be driven by the authority, not by the inhabitants, who may oppose the program. Therefore, these observations do not necessarily indicate that Plainesville residents would be highly concerned with living healthy lives.
Even if the residents think highly of their health, it is not sure that NW will earn a profit from a store in Plainesville. There are many other relevant factors that might affect the business of NW in Plainsville. The Plainesville residents may prefer other merchants that sell similar products or they may be so fit and healthy that they don’t need a health food or any health-related products. Furthermore, the cost of setting a store there, the population of the area, and the consumption ability of the residents also should be taken into consideration.
In sum, the recommendation would be a money-wasting investment without deliberate estimation. To bolster the recommendation, the vice president should provide clear evidence—perhaps by way of a local survey—that Plainesville residents who buy exercise apparel, the members of that health club and those schoolchildren do think of healthy lifestyles. What is more, the vice president should look further into what situation NW might face in Plainesville before he takes action.
Comments (0)
You don't have permission to comment on this page.