BMGT317 CaseStudy2

Topics: Customer service, Strategic management, Shopping mall Pages: 7 (1575 words) Published: November 6, 2014

Case Study #2

Yuji Shimojo

BMGT 317
Instructor: Prof. Brandon L. Cohen
April 28, 2013


This paper mainly discusses current business analysis of Rest Assured, consideration of four acceptable alternatives to solve the problems which Rest Assured has, and suggestion of one recommended solution to achieve the business objectives. Before considering alternatives, I organized the given information to analyze current business environment which Rest Assured is facing by using Marketing Mix and 3C's model (Boone, L. E. & Kurtz, D., 2012) as shown by Figure 1 below.

Figure 1: Rest Assured's Current Business Environment
The town has 8,000 people.
It swells to double that size in the summer when families and retirees make their way to the coast to enjoy the beautiful Pacific Ocean for a week or two.
Tourists pulled back on their beach vacations and retirees opted to stay at home for a while until the economy became more stable.
The past few months have shown some evidence of increased visitors to the town and to the mall, though potential customers don't seem to be visiting Rest Assured as they have in the past. The new store specializes in discounted house wares including discounted bedding materials. Competitor

The store largely relies on synthetic bedding materials made by Chinese workers It offers its products at significantly lower prices than the products offered by Rest Assured. Rest Assured is a small retail business specializing in bedding and bedroom accessories: mattresses, comforters, blankets, pillows, sleep ware, and small decorator gift items for the bedroom. The store’s goose down materials and high quality synthetic fabrics, along with its clear focus on customer service, Product/Service have made the store a successful enterprise...until recently. The store is owned by a husband and wife. It employs three full-time people, and the store owner and his wife fill in when employees are ill or off on vacation. One of the store employees has been with the store since it opened; one was hired five years ago; the third came on board as a replacement hire for a person who left the store two years ago. The objectives are:

1. To achieve and sustain a profit level in the business that will help the owners fund their current lifestyles and prepare for their future retirement plans.
2. To provide fair and equitable treatment of employees by offering competitive pay and reasonable benefits in order to Price
attract and retain the highest quality customer service employees for the store. 3. To offer Made-in-the-USA products as a way to express support for the country and its workers. Corporation
4. To demonstrate respect and appreciation of customers by seeking to understand their needs, offer products at reasonable cost that meet those needs, and interact with them in ways that ensure their long-term satisfaction and loyalty as customers.

The store is advertised through the mall’s regular advertising programs. The owners of Rest Assured also purchase an Promotion
ongoing ad that is run in the local movie theater in advance of the movies. The store opened eight years ago within the only shopping mall located in a small coastal town in the Northwest. The company leases space in a rear corridor of the local shopping mall, back from the area that gets the most mall traffic.

An advantage to their leased space is its large size that enables the store to display more of its product line than it would have if it leased one of the smaller spaces in a higher traffic area in the mall. It also costs less than spaces closer to the high traffic area.

About a year ago, sales began dropping off, and expenses began outpacing revenues. Even the Christmas season, Management which is usually a tremendous boost to store sales, wasn’t enough to make up for the losses last year. Rest Assured was dealt a major blow when the national economy slumped.


References: Hammond, J.S., Keeney, R.L., & Raiffa, H. (1999). Smart choices: A practical guide to
making better decisions
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