Case Study Australian Hardware

Task 1

1. Australian hardware’s are leading suppliers of hardware and home wares in Australia; they started their business operations in Melbourne Central business district. They are committed to provide quality products with excellent services to their customers. That’s why they earned a lot in their starting years of business. The success of their business can be accessed by expansion of their business to four stores who are located at different places in the same city. But with the passage of time the sales of the company have been dropped. The drop in sale have been recorded since they had opened their forth store.

After reviewing the case of Australian Hardware, there are number of problems that I identified. Some of the important problems that must be highlighted are, although they have opened four stores but there is a problem in the feasibility of each store. They

The problems are identified in questions are analyzed from the business expansion timeline of the company. From the time line they have give explanation of how they expand their business at what time, the location and size of stores are also mentioned. The third retail store that they opened at heart of business and legal area. This place is among the expensive areas of the country. Therefore, the expenses that are occurred in this area are greater than any other subsidiary opened. The sale at this store is under budget. The forecasted sales are not meeting up. Same goes with the store four, Store four is also opened at the prime location with the aim to attracted more customers. The size of the store is greater than all other three with large sitting area is designed for the customers to give customers great ambiance. The response of the customers is different that is never expected. Customers bought only cheap products. The inventory of the store has not been changed for 12 months that foster negative image of store. The data that is provide in appendix one or two are used for