Decorative Interiors Inc.

INDIAN INSTITUTE OF MANAGEMENT, AHMEDABAD

DECORATIVE INTERIORS INC.

A report submitted to

Instructor: Prof. Asha Kaul

Academic Associate: Tushar Meshram

In partial fulfilment of the requirements of the course

Written Analysis and Communication – I (2015-16)

By

Aditya Mehrotra (16028)

Mohammad Akram (16194)

Section: A

On

July 30, 2016

LETTER OF TRANSMITTAL

To,

Rocco Rapini,

Decorative Interiors Inc.

July 30, 2006

Subject: Recommendation and future course of action for operations of Decorative Interiors

Sir,

With reference to your request regarding the operations of Decorative Interiors Inc., I am enclosing a

detailed analysis of the current situation, possible options available and my recommendation along with

an action plan to be followed.

My recommendation would be to hire professional help to run the business at DI.

Sincerely

EXECUTIVE SUMMARY

Decorative Interiors Inc. (DI), an interior decorating business run by Rocco Rapini and his family, has not

been doing well for some time, and this has resulted in a lot of stress for him. Owing to this, he suffered

a heart attack and was advised by doctors to change his current lifestyle. Rocco Rapini has to decide the

future course of action for DI so that his time spent on the operations can be substantially reduced.

To achieve this, Rocco Rapini can either sell the business, convert back to home-based operations, move

the business to cottage country or hire professional help to run the business. The course of action can be

decided based on time spent by Rocco Rapini, the effect on sales and revenue and the prospects of

business.

It is recommended that the DI should hire professional help to run its future operations.

(Number of words: 145)

TABLE OF CONTENTS

1. Situation Analysis........................................................................................................................... 1

2. The Problem Statement................................................................................................................... 3

3. The Options..................................................................................................................................... 3

4. Criteria for Evaluation .................................................................................................................... 3

5. Evaluation of Options..................................................................................................................... 4

6. Recommendation ............................................................................................................................ 5

7. Action Plan...................................................................................................................................... 5

8. Exhibits........................................................................................................................................... 6

Page | 1

SITUATION ANALYSIS

Started in 1988 by Rocco Rapini, Decorative Interiors Inc. (DI) had grown from a small home-based

operation that sold window coverings to a large full-grown profitable interior decoration business selling

bedding, upholstery, wallpaper, carpet and other decorative items over the last 18 years. The business had

prospered due to Rocco Rapini’s salesmanship, industry knowledge and communication skills coupled

with Conchetta Rapini’s administrative and selling skills.

The interior design industry had been extremely competitive with 55 other companies operating in

Vaughan from either a store or home. DI prospered by word of mouth advertising as it provided a free inhouse

consultation to clients where colour, design and other prospective features were discussed.

DI grew moderately till 2006 with clients unevenly distributed over various months. DI successfully hired

Mary Morris, a professional decorator, in 2003 which lead to a boom in the business of DI because of her

experience and ties with wealthy people. As business grew, Rapini invested $300,000 in a new showroom

for DI with a two street exposure. Rapini found out that Morris had betrayed his trust by poaching DI’s

client for her venture. So, Rapini had to fire Morris, and this resulted in the fall of sales as Morris took

away some of DI’s clients along with her. The business had not been doing well ever since. This caused a

great deal of stress for Rapini resulting in a heart attack. Rapini has to decide the future course of action

for Decorative Interiors Inc. that would allow a change in lifestyle as advised by the doctors.

Analysis of the current situation reveals that Rocco Rapini can either sell the business of DI, convert to

home-based