Case 12-2 County Line Markets: Store Remodel and New Store Investment

1. Determine the investment options that CLM should consider for the Park Hills Area.

2. Perform a detailed financial analysis of the Park Hill Acres superstore option assuming the

Webster Street store remains open. In your analysis include your judgments and rationale for

dealing with the 'sales erosion' from the Webster Street store.

3. Prepare financial analysis of all of the feasible investment alternatives available to CLM in

the Park Hill area. Identify two options that warrant serious consideration based on this financial

analysis.

4. Recommend which option CLM should select for the Park Hill Acres area.

5. Recommend policies that CLM should adopt in evaluating other store remodel/expansion

investment situations.