Rapid Cash Store's revenue loss and competitive strategy solutions

Leadership in Criminal Justice

Key issue

The key issue in this case study is loss of revenue by the Rapid Cash Store which can lead to the company going out of business.

Root causes

There are several causes for the loss of revenue within the company which include; criticism by people towards the company about their high rates of interest alongside claims that company exploits the poor. Another reason is that new retailers like the Cash Centers at Wal-Mart cash stores which charge lower fees entering into the business.

Possible Solutions

A solution to this problem is trying to come up with new avenues for getting resources for the company through expansion of their brand and items. Another solution would be a reduction of charges on borrowers to retain them and not loose them to the new comers in the business. They can also take advantage of their high standing in the market as compared to the new entrants to subsidize some of the goods on their shelves with the aim of retaining their brand community.

Advantages and disadvantages

An advantage to this solution is that the company can get access to more revenue that they can use to lend out to borrowers at lower rates. A disadvantage of this solution is that yes the organization can get access to revenue but borrowers would not be willing to borrow money from them so the company will have the revenue but no one to lend to since they would have all run to the cheaper option at hand .

Final recommendation

I recommend that the company ensures that they set low rates of interest once they get new sources of revenues so that they can attract more customers to the business hence not loose them to the new entrants.

Question 2

Greg as the CFO gave the suggestion that they have to ask deeper questions on where they can find new sources of revenue, they need to ask where to look and whom to ask about new lines of business. In respect to this there are various avenues where the management team can look for creative ideas for enlarging the revenues of The Rapid Cash store. One of these avenues is undertaking surveys on the most viable revenue source for The Rapid Cash store can get into. This survey aims to find out the avenue that is easy to reach and one that will provide revenue for the stores in the readily (Board of Trade of Metropolitan Montreal, 2014). These surveys can be conducted through internet searches, organizing fairs where different stakeholders are invited and their potential of injecting their finances into the organization looked into. Another avenue is trying to establish any other business that the organization can engage in order to raise revenues for the organization. This can be done through carrying out research on the potential business openings that the organization can venture into; those that have a potential of generating revenue to the organization without a lot of money used in its establishment (Entrepreneur Media, Inc.,2014)

Question 3

From an ethical standpoint I don't think The Rapid Cash Store should stay in business. This is because according to the case study it is evident that the store charges a lot of interest on its lenders. Even though the CEO defends the organization there is still a basis to the company's critics. Another unethical fact is that of critics who claim that the organization exploits the poor.it is quite unethical for any organization to take advantage of the poor through exploitation. Business should make money but not at the expense of the poor therefore The Rapid Cash store should not make money at the expense of the poor who borrow money. The entry of other retailers into the same businesses who are offering large discounts clearly indicates that the organization is exploiting the poor. If their business was not out there to exploit the poor then they would not have any worry with the entry of other retailers in the business .clearly it shows that they are charging way higher fees as compared to their counterparts in the same business. Therefore it would be unethical if The Rapid Cash store continues in their business operation since they are out there to exploit the poor and not help them as they claim.