Company RL has an expanding chain of business which had grown to 705 locations with $2.6 billion in country U’s annual sales. Though there were many competitors in the market, the growing business of company RL indicated that the firm has large room for growth. The director of marketing development, Person RR, is incharge for identifying sites which will maximize the store sales without compromising existing sales. The features for identifying a good location has not changed in the past 40 years but the time duration of decision making has been minimized due to software development. Company RL parterned with company MIC which contains powerful GIS for analyzing the trade area. MIC allows Person RR to develop psychographic profile of potential trade areas for company RL. MIC segmented country U into 72 segements of customer profile. Person RR wants the new site to be atleast 3 mile from the exisiting RL firm and which not negatively impact its sales more than 8%. A specific spot selected lies in the hands of seven real estate brokers of company RL. To determine : The three classes of the chains which has most restaurant.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 1.3VC

Summary Introduction

Introduction:

Company RL has an expanding chain of business which had grown to 705 locations with $2.6 billion in country U’s annual sales. Though there were many competitors in the market, the growing business of company RL indicated that the firm has large room for growth. The director of marketing development, Person RR, is incharge for identifying sites which will maximize the store sales without compromising existing sales.

The features for identifying a good location has not changed in the past 40 years but the time duration of decision making has been minimized due to software development. Company RL parterned with company MIC which contains powerful GIS for analyzing the trade area. MIC allows Person RR to develop psychographic profile of potential trade areas for company RL.

MIC segmented country U into 72 segements of customer profile. Person RR wants the new site to be atleast 3 mile from the exisiting RL firm and which not negatively impact its sales more than 8%. A specific spot selected lies in the hands of seven real estate brokers of company RL.

To determine: The three classes of the chains which has most restaurant.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Johnson & Johnson Healthcare consumer packaged goods giant Johnson & Johnson's (J&J) European operations were comprised of 12 distribution centers in seven countries. The company's initial analysis showed there was little or no consolidation among facilities. The facilities had high operational costs (U.S. $10 million+), but transportation costs were relatively low (U.S. $6 million+). The distribution centers were geographically located to help meet the specific needs and service expectations of their European customers. Since J&J is always on the lookout for ways to streamline and improve its supply chain practices, it was very interested in ways to improve its manufacturing and distribution activities in Europe. An initial result of applying the network optimization software was a reduction in the number of distribution centers from 12 to 2. Although this scenario was accompanied by increases in the transportation costs to customer locations, overall systems costs…