Presented below is a sample response to a question #B for the company American Entertainment, Inc. This is for guidance only. As stressed in class, each company and their situation is different and the answers to the final question will vary considerably.

B. What does this theory recommend for this company? Explain.

Our analysis of the mission indicated that the product was high-end home entertainment systems and related services, the geographic area was Miami-Dade County, Florida, the level in the chain was retailer, and the customer was families with high incomes.

The proposed strategy of direct mail advertising to households with incomes over $125,000 per year (possibly later as low as $110,000) to sell our existing line of custom installed home entertainment systems is consistent with and stays within each of the four above items.

Additionally, our mission philosophy included maintaining a close relationship and good reputation with customers and close family atmosphere with employees. Since we are continuing with the same operational strategy and retaining the single location, our proposed strategy is also consistent with the mission’s philosophical element.