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Case study A - Essay Example

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There are several disadvantages of Judd being in business for himself. First and foremost he is facing stiff competition from large retail stores that can sell more models of vacuum cleaners at a relatively lower price than he can. It’s quite obvious that he cannot enjoy…
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Case study A
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Case study There are several disadvantages of Judd being in business for himself. First and foremost he isfacing stiff competition from large retail stores that can sell more models of vacuum cleaners at a relatively lower price than he can. It’s quite obvious that he cannot enjoy economies of large scale businesses, and this is really hurting him. It seems he has a large service business but does not sell many vacuum cleaners. The sales are also not steady throughout the year, which means there are some months that he goes without business. The other disadvantage is that he is overworking himself. He works an average of ten hours per day Monday through Friday and an half day on Saturday. This gives him very little time for other activities, which means if he falls sick, then the business will just go down with him.
2.The major reason Judd wants to call it a day in his business is that he thinks he is knocking himself out for very little money ,whereas he is putting in a lot more hours, has a great deal of responsibility and even faces the risk of financial loss and perhaps even bankruptcy. He compares himself with his cousin who works as a packer at a local manufacturing company; he realizes that he is making far less money than his cousin.
3. The advice I would offer Juddi is that he should seriously consider getting a partner for his business. This is because with the partner’s help, he will be able to inject in the much needed capital to boost the business and also it will enable Judd to concentrate more on the repair work which will help them make more money. With a partner it means Judd will also benefit from some free hours and this will enable him to rest and be able to think on ways for improving this business.
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