SITUATIONAL ANALYSIS
Rocco Rapini, founder and owner of Decorative Interiors running his business for the past 18 years which has been the primary source of income for his family. Rapini was himself looking after the installations whereas his wife Conchetta who was also full time into the business was looking after the administration and sales. DI grew moderately from 1992 to 2002. In 2003, Rapini hired Mary Morris who was a professional decorator having contacts with the local wealthy people. She joined DI on commission basis and her efforts raised DI to the new records of sales. Due the disturbances between Rapini and Mary, Mary was dismissed from the job whose direct affect was seen on the business. Gradually there was a downfall in the…show more content… He will get a handsome amount of $528,971 (Refer Exhibit 1) after selling off his business which will be sufficient to get her daughter complete her education and the family can easily. Also his Conchetta who was earlier working the assistant executive will find a new job very soon. Main problem in selling the business is making Rapini idle and made to sit at home but he has a passion of doing the business.
In order to take care of his health, shifting the business to carry to home based operations is a good option as it will provide the flexibility of working hours. His passion to continue his business will be continued as Rapini already has a good customer and vendor base. The business will keep the financial condition of the family stable and his daughter’s education will get completed without any hassles. He will gain profits of 23.74% (Refer exhibit 2) of the revenue which is even more than the profit percentage of year 2004 &…show more content… Rapini. This would not put much pressure on Rocco and the business will be generated and operations will run smoothly. The business will be able to generate the profits of $98230 (Refer Exhibit 3). The family will be in financial crisis for one more year and there will be no buffer finances but after one they will start generating profits. The health of Mr. Rapini will be at stake because there will be no guarantee of profits and loyal professionals.
RECOMMENDATION
Rapini Rocco should shift his business to home based operations as he will be able to remain busy with work and his passion, also he will not consider himself of no use. The flexible working hours will give him time to take care of his health and will be able to spend time with his family. By selling the store will make him stress free about the loan which he has taken for his new showroom and he will get approximately $350,000 extra as buffer in his bank account after selling the showroom and paying the loan. His business will be continued as it has made space in market for the last 18 years.
ACTION