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Over a 10-year period, consumer prices rose 29 percent, while the price of clothing fell over 8 percent. Melissa Richardson, the owner of a trendy teen clothing shop in a major city, has benefited from this trend. But she knows this is about to change in 2016 as manufacturers deal with higher prices for cotton, transportation costs, and increased wages in China, where so much clothing is made. Melissa likes to plan ahead and has defined the problem she faces as a choice between decreased profits if she does not raise her prices, or decreased sales if she does.
Questions:
1. Review Melissa’s definition of her problem. Are there any issues she is missing?
2. Generate alternatives to solve her problem.
3. Select the alternative you believe to be most practical and effective.
4. Decide what action(s) Melissa should take to implement her solution.
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