Case Study 9: Happy Textile: Is Store Atmosphere Still A Priority?

Abstract

Michael, a recent graduate from a prominent university in Malaysia, decides to move back to his home town of Ciamis in Indonesia to take over his family business that sells textile. He is eager to put into practice all of the business knowledge he acquired during his MBA program. In the first month managing the store he has identified several aspects of the business that could be improved and he thinks that one of the most important aspects, in need of immediate attention, is the store atmosphere. The store looks dull with limited space for customers to move around. Further, the products are not well-organized making it difficult for customers to browse and select the products that they are interested in purchasing. Based on the marketing concepts he learned in his MBA program, and his pleasant experience shopping in many stores in Kuala Lumpur, Michael contemplates redesigning the store to improve its atmosphere. He believes that he needs more space to display the products properly and allow his customers to have a pleasant shopping experience. He considers buying the adjacent store, which has been struggling lately, in order to expand the existing store. However, he realizes that due to its strategic location, purchasing the adjacent store might create potential cash flow problems in the near future, particularly if the forecasted future sales are not as expected.

All the facts and figures shown in this case are with prior consent from Happy Textile with detailed information undisclosed to protect confidentiality. Some information is gathered directly from the company. Some assumptions are used to illustrate some points, without affecting crucial data. The case study does not intend to show either effective or ineffective company business activities.