The following appeared as part of the business plan of the Capital Idea investment firm.
“Across town in the Park Hill district, the Thespian Theater, Pizzazz Pizza, and the Niblick Golf Club have all had business increases within the past two years. Capital Idea should therefore invest in the Roxy Playhouse, the Slice-o’-Pizza, and the Divot Golf Club, three new businesses in the Irongate district. As a condition, we should require them to participate in a special program: Any customer who patronizes two of the businesses will receive a substantial discount at the third. By motivating customers to patronize all three, we will thus contribute to the profitability of each and maximize our return.”
The following appeared as part of an article in a magazine devoted to regional life.
“Corporations should look to the city of Helios when seeking new business opportunities or a new location. Even in the recent recession, Helios’s unemployment rate was lower than the regional average. It is the industrial center of the region, and historically it has provided more than its share of the region’s manufacturing jobs. In addition, Helios is attempting to expand its economic base by attracting companies that focus on research and development of innovative technologies.
The following appeared in a memorandum from the business department of the Apogee Company.
“When the Apogee Company had all its operations in one location, it was more profitable than it is today. Therefore, the Apogee Company should close down its field offices and conduct all its operations from a single location. Such centralization would improve profitability by cutting costs and helping the company maintain better supervision of all employees.”
Greentree Grocers has been experiencing high sales volume but decreasing profit margin. Its customers are wealthy people looking for gourmet food and luxury shopping experience, so it must cut costs without hurting the customers' shopping experience. So it plans to layoff 10 employees per store and eliminate expensive displays and free samples. In addition, it will partner with XX Cafe to have a coffee shop in each store. This is supported by a recent survey that the Grocers and the Cafe attract similar types of customers. The conclusion is that Greentree Grocers will experience high sales volume as well as high profit margin.