The SUNNYSIDE company operates various stores throughout Canada. The company also operates a premium store, which stocks

[answerhappygod]

The SUNNYSIDE company operates various stores throughout Canada.
The company also operates a premium store, which stocks top of the
line products. The products at the premium store are high quality
products selling at a premium price. The premium store was created
when Jody realized the need to have a premium brand in the
SUNNYSIDE company brands portfolio. SUNNYSIDE company has a mix of
different products, ranging from low quality cheap products to high
quality premium products. Back in the days the company correctly
forecasted the increase in demand for premium products. The company
tried to dedicate a separate store for that, which was simply a
typical SUNNYSIDE store, but with premium products only. The idea
did not work well, the stores revenues, and profits declined
substantially, so at that point the company started following a
different approach, it fully redesigned one of its stores to become
the premium store. A large amount of money was spent on interior
décor, and a PR campaign for this store. Now the situation is
changing, the economy is approaching the “Peak” in the business
cycle, and it’s is expected that premium products demand will cool
off. Some analysts expect the demand to decline in the coming
years. Jody is concerned about this recent development, since he
expects the premium store to experience declining profits and
sales. He knows the SUNNYSIDE corporation won’t be affected by this
trend since it has all types of products, and some of these
products will experience an increase in sales, when the business
cycle phase changes. Jody is willing to gradually change the
product mix of the premium store. He is not sure what type of
products does the store stock right now (Luxury, Inferior, or
Normal)? And he is not sure what products to stock.
1. analyze the company’s current situation and state the
best course of action.