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West Lake Home Furnishings Ltd.

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West Lake Home Furnishings Ltd.
West Lake Home Furnishings Ltd.

Written Analysis and Communication - II

Instructor

Submitted by

Section- D
2/08/2008

Date: May 30, 2007

To:
Charles Bowman,
CEO, West Lake Home Furnishings Ltd., Ontario, Toronto.

From

Subject: Advice on whether to accept the offer of reducing the price of signature product to $29.99 for a year.
This report is a summary and analysis of current situation on West Lake Home Furnishings Ltd. (WLHFL) The analysis is based upon the basic objective of economics that is profit maximization. Based upon the present trend of consumer income and preference it is recommended that WLHFL should accept the offer to reduce the unit retail price to $29.99.

As a student of WIMWI, I thank you for providing opportunity to learn about the situation at WLHFL. This has taught me a lot.

EXECUTIVE SUMMARY
Whether to accept the proposal of one of the retailers, to reduce the price to $29.99 by WLHFL, thereby boosting the sales, has to be evaluated on the basic objective of economics of a firm. The main objective of the firm is to maximize the profit. In order to attain this at retail price of $29.99, quantity of sales should increase to a substantial level. The present situation at Canada, higher disposable income with Boomer population and reduced price leads to higher demand of quantity are in favour of higher quantity of sales. The proposal ensures the required quantity of sales. Hence, accepting the proposal is recommended.

Word Count: 107

Table of content
SITUATION ANALYSIS.........................................................................................1
THE PROBLEM STATEMENT…...................................................................2
OPTIONS..................................................................................................................2
CRITERIA FOR EVALUATION...........................................................................3
EVALUATION OF
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