Video Concepts, Inc.
Video Concepts Inc.
Written Analysis and Communication - I
Instructor
Nitin Parmar
Submitted by
Manisha Kabra
GMCS - Batch No. 25
Date
January 20, 2011
Date: January 20, 2011
To:
Chad Rowan,
Owner, Video Concepts, Inc.,
Lexington, North Carolina, United States.
From:
Manisha Kabra,
Consultant
Subject: Advice on alternative to select on account of no bright future growth in video rental business.
This report is a summary and analysis of current situation on Video Concepts, Inc. The analysis is based upon the basic objective of economics that is profit maximization. Based upon the current trend of revenues, it is recommended that you should accept the alternative of hiring someone to manage the business and find a job for yourself preferably in corporate.
As a student of ICAI, I thank you for providing me opportunity to learn about the situation at Video Concepts, Inc. This has taught me a lot as a learning process through Brain Development.
EXECUTIVE SUMMARY
Whether to accept the alternative of hiring someone to manage the business and find a corporate job for yourself, thereby continuing the revenue generation at price $1.99, has to be evaluated on the main objective of the firm, which is to maximize the profit. The suggestion for selecting this alternative is that, in future, growth prospects do not look bright as certainly in many years away, new technology which is presently in development stages could render video-store rentals obsolete. Moreover, looking to the future, the net income from the Video Concepts operation would not provide you high return on your time and capital. Hence, accepting the proposal is recommended.
Word Count: 109
Table of content
SITUATION ANALYSIS.................................................................................................1
THE PROBLEM STATEMENT….....................................................................................2
Written Analysis and Communication - I
Instructor
Nitin Parmar
Submitted by
Manisha Kabra
GMCS - Batch No. 25
Date
January 20, 2011
Date: January 20, 2011
To:
Chad Rowan,
Owner, Video Concepts, Inc.,
Lexington, North Carolina, United States.
From:
Manisha Kabra,
Consultant
Subject: Advice on alternative to select on account of no bright future growth in video rental business.
This report is a summary and analysis of current situation on Video Concepts, Inc. The analysis is based upon the basic objective of economics that is profit maximization. Based upon the current trend of revenues, it is recommended that you should accept the alternative of hiring someone to manage the business and find a job for yourself preferably in corporate.
As a student of ICAI, I thank you for providing me opportunity to learn about the situation at Video Concepts, Inc. This has taught me a lot as a learning process through Brain Development.
EXECUTIVE SUMMARY
Whether to accept the alternative of hiring someone to manage the business and find a corporate job for yourself, thereby continuing the revenue generation at price $1.99, has to be evaluated on the main objective of the firm, which is to maximize the profit. The suggestion for selecting this alternative is that, in future, growth prospects do not look bright as certainly in many years away, new technology which is presently in development stages could render video-store rentals obsolete. Moreover, looking to the future, the net income from the Video Concepts operation would not provide you high return on your time and capital. Hence, accepting the proposal is recommended.
Word Count: 109
Table of content
SITUATION ANALYSIS.................................................................................................1
THE PROBLEM STATEMENT….....................................................................................2