How Does Mr. Landau Increase The Cost Of Expansion?

Situational Analysis:
Winston and Holmes, a fine tobacco and men’s accessories shop started by Mr. Abraham (Bob) Landau in 1981. The store was located on the Cumberland Street, Yorkville. Bob has started his career as salesman of Lee jeans throughout 70s and early 80s and later on from 1981 to 94 he was positioned as head of Southern Ontario sales at Lee. Bob was visionary and has good entrepreneurship skill; he was also good in to understand the requirement of men care. With the increase in the reputation of the store Mr. Landau has introduced men’s accessories, fine pens and broader range of tobacco products, lighters, fragrance, writing instruments and papers etc. With overwhelming response of the customer, Landau has opened two more stores at Queens Quay West in 1987 and at 130 King Street West in 1990 and to manage customer demand from other area mail order division was started in 1993.

Mr. Landau was believed in “Customer First” philosophy and also thinks

Now Mr. Landau is in dilemma to expand the business? And how the manager has compare benefits to the cost of expansion? And would customer appreciate the expansion?

Problem Statement:
Increase the customer’s experience at store by introducing newer merchandising and increase in retail space.

Objectives:
1) To increase the customer base in next one year.
2) Enter into a newer merchandising by expanding product line.
3) Increase the sales of the store by 50 percent in next year.
4) Positioned W&H’s Yorkville store as high end men grooming and care store.

Options:
1) Accept the proposal suggested by Landau’s manager.
2) Acquire the local store of similar product line.
3) Expand the business via franchisee model
4) Make available W&H’s tobacco product on all tobacco stores in