Executive Summary
Spade A league Shop plans to close the present shop in the Hubin Road on September 15 and open a new one in Electronic Road on December 18 in 2004. The main reason is that the present shop is too small to meet the customers’ demands. Furthermore, the site of the present shop is not the most ideal for operation.The new shop will be located on the dense population area and occupies an area of 50 square meters.
The project will bring increases in revenue and profit by around 10% in the first year and will be even more successful in the years to come.
The new shop needs an investment of RMB80,000 in the first year for sush things as to rent premises, decorate the new shop, purchase the new equipment and furniture, stock the new material and offer new services.
Our investigation indicates that the new shop will meet customers’ needs, greatly increase the turnover and profit, as well as improve the financial statements.
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