A Study in the Operations of a Rent to Own Business
Olindo, Ford Bongo
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A little over one year ago I entered into employment with Renters Choice, a rent to own retail establishment. I was initially given an entry level position, but was soon promoted to management. In the position of assistant store manager I have the opportunity to face the challenges of running a small business. Since my major is Economics and Business Administration I decided that it would be a good idea to study the business I am helping run. This paper will begin with a general description of the rent to own industry. I will then give a definition of rent to own and some of the common terms used in the industry. I will follow this with a discussion of how rent to own operates. I will discuss how disclosure laws might affect the future operations of the rent to own industry and I will close with an examination of the benefits and drawbacks of the industry. The next part of my paper will cover Renters Choice Inc. This section will begin by presenting the corporate culture of Renters Choice as described in the employee training manual and provide detailed information about the operation of a rent to own firm using Renters Choice as the example. I will begin by presenting the company philosophy which is basically to be the best company in the industry. I will follow this with a thorough examination of some of the management tools provided for store managers. Among the tools ts a computer system that provides a wide range of statistics that track the performance of the store. I will interpret some of the reports and show how they are used in day to day management. Among the things covered in the statistics are inventory analysis tables, income analysis spread sheets and a route performance update. I will close by showing how adhering to the company philosophy and effectively using the tools available, a manager can maneuver his store past the competition. The next part of the paper will focus on the reasons for moving the Kalamazoo store to a new location. I will examine the use of customer analysis maps provided by our advertising company to find the ideal location for the store. I will follow this with an examination of the competition we face in the area and how we compete with them on service rather than price. I will conclude this section of the paper by showing how this move will make Renters Choice the predominant rent to own establishment in the city.