Task 310.2.1-05: Case Study

EST1: Task 310.2.1-05

Company Q is a local grocery store found in a major metropolitan area. The company recently made a decision to shut two of its stores down. They reported that the reason they shut down the stores was because of dwindling profits, however, it was also indicated that the location of these stores were in a high crime rate area. Apparently, this was not a factor to why they decided to shut down their stores. It is understandable that as a business, to survive you must make money. If the company was not making any money from these stores then it would be advisable that they close their doors. The decision that the company made may be considered rash and unsound. Given that the company may have other competitors, it was not mention that the reason they were shutting down was because there was another store competing for their business in that area. The issue of not making any profits may not be contributed to location. It could mean that the reason they are not making any money is because they are not catering to the customers in those location. The store may not be providing what is needed or wanted in those areas. Company Q must realize that the business will not succeed by selling just products; they must consider social responsibility and consider the
These products are all high in margin. Company Q’s response to these requests shows that the company is listening to their customers. This is a positive step to building and maintaining the relationship. However, selling only a limited amount and selling these high margin products may not please their customers. Company Q should consider the fact that it may not be good business to charge such high prices if the customer’s financial ability may not afford it. Overall, selling high margin products may not be good for their bottom line if customers can not