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Dianne's Dog FoodIt was 8 : 0 0 pm on January 1 , 2 0 0 7 , and Dianne had just finished preparing her

Dianne's Dog FoodIt was 8:00 pm on January 1,2007, and Dianne had just finished preparing her income statement for the year. The day began with her annual count of inventory. For the first time since opening, Dianne's Store was faced with a net loss.Dianne's Dog Food opened in 2000, days after Dianne graduated from the University of Saskatchewan with an MBA. She began the company with personal equity of $50,000, most of which was spent on leasehold improvements (preparing the store). From 2000 to 2004, she experienced steady growth in sales as dog owners began to become aware of the quality of the several high quality brands of dog food that she offered. She sold dog food and only dog food in her 1000 square foot store.Before opening, Dianne secured the exclusive Saskatoon rights to sell Platz, a high quality brand of dog food produced in Montana. She recognized a need for this product in the Saskatoon area after speaking with several members of one of the local Agility Clubs. Dianne is a dog owner, herself and has been an active member of an Agility Club since 1988. Her Agility Club had approximately 500 members, many of whom were regular patrons in her store. Saskatoon has two other such clubs with similar membership numbers, yet she had few of those members as regular clientele. Dianne purchased all of her inventory directly from the manufacturer, four times per year.The average selling price of a 15kg bag of dog food was $30. An average dog owner would purchase six bags per year. There are approximately 92,000 households in Saskatoon with an average income of $51,000. Annually, Canadians spend about $340 on average for pet-related expenses (52% of this goes towards food, 12% is on pet-related items, 31% on vets). Dianne estimated that approximately 10% of the households in Saskatoon had at least one dog.1. Discounts refer to volume discounts given to Agility Club Members2. Dianne draws a salary of $25,000, the rest goes to part-time wages3. Benefits are 15% of wages4. $1000 per month in 2005, and $1050 in 20065. Quarter page advertisernent in local monthly newspaper, circulation 10,000similar-in-quality dog foods. The size of the store (10,000 sq. ft) alsoaccessories (toys, collars, etc.) which Dianne did not currently sell.In 2006, a mega pet food store (Petz) opened in Saskatoon. While it did not sell Platz, it carried a large variety of other, allowed for the sale of several dog Facing the first loss in the history of her store, Dianne wondered how to increase sales and continue to attract customers despite the presence of Petz.
Write a memorandum including the (a) main problem, (b) symptoms,
(c) recommendation (d) analysis/discussion. Write eveyrthing jn a 2a4 size sheet. ***the income statemnet is gicven in rhe oicture***
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