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Carey makes scented candles using soy, coconut or beeswax. She values the environment and gives both her time and a portion of her profits to Sustainable Coastlines, an organisation that works to reduce plastic pollution in our oceans. In her candles, she uses jars made from 100% recycled glass and has a special range where she uses tea cups and glasses she has purchased from second-hand stores.
Her standard range of candles sell for $15 each. Her special range sell for $19 each. She currently sells her candles online and sells approximately 50 candles a week but by the end of the year she is predicting sales could reach 100 a week. This increase in sales would still be manageable by herself, but any more than 100 candles a week and she would need another part-time staff member. Each candle costs her approximately $7 to produce.
She currently makes the candles in her garage but due to the predicted increase in sales she is looking to expand. She is not yet sure if she should look into acquiring a permanent retail space. Depending on the location this could have the potential to increase sales.
She has several options available to her for expansion.
In your own words, describe the need/opportunity that Carey has.
In your own words, describe the pūtake of Carey’s Coastal Candles.
Explain different stakeholders’ perspectives in relation to each individual option. Stakeholders could include, but are not limited to, suppliers, customers, neighbouring businesses, Carey’s whānau, Sustainable Coastlines.
Option One: Hire a portable building for her backyard
Option Two: Rent a full shop space in a suburban block of shops
Option Three: Rent a shared space in the mall in the CBD
Option Four: Continue without expansion
For each of the options available to Carey, complete a Weekly Cash Budget. Where possible, conduct your own research for the dollar amount of the Expenses such as rent.
Option 1: Hire a portable building for her backyard
| $ | $ | |
|---|---|---|
| Surplus/Deficit |
Option 2: Rent a full shop space in a suburban block of shops
| $ | $ | |
|---|---|---|
| Surplus/Deficit |
Option 3: Rent a shared space in the mall in the CBD
| $ | $ | |
|---|---|---|
| Surplus/Deficit |
Option 4: Continue without expansion
| $ | $ | |
|---|---|---|
| Surplus/Deficit |
Select the option that Carey should choose and explain why this is the best option. You should include supporting financial information from your cost-benefit analysis.
Analyse how the decision responds to possible consequences and how the decision is the best decision after considering the consequences. In this response you should consider the pūtake of Carey’s Coastal Candles.
Analyse how the decision responds to stakeholder perspectives. Include a discussion of to what extent stakeholder expectations will be met.