Monster Electrical - Case Study - Management Assignment Help

Assignment Task:

Task:

Problem Scenario

Monster Electrical is a privately held company in the retail consumer electrical market sector. They sell domestic whitegoods, kitchen and personal grooming appliances, audio, video and television and home cleaning appliances. They operate from three moderately large, leased shopfronts on major roads in Dandenong, Clayton and Oakleigh. The floor space in each shop is relatively small for a whitegoods retailer at 300, 250 and 250 square metres respectively. Each shop is supplied from a 500 square metre warehouse and administration office in Rowville that is owned by Monster.

The market is tough and Monster Electrical is not making enough money with their current operational set-up. They need to reduce costs or increase revenue, and preferably both. In the last financial year the net return on sales (net invoice value minus costs of purchase)

Schedule 1:
Summary of Problem Scenario
? Small electrical Co selling white goods electrical from three shop branches supported by a warehouse and administration office.
? Profitable Co need to reduce costs or increase revenue.
? Last financial year - net return on sales (net invoice value minus costs of purchase) was $4.937m and operational costs (wages, insurances, advertising, property leases, electricity, gas, water and council rates) were $2.472m (sales return almost double than operational cost)

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