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Operations Essay

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Marketing Management I
COMM 2036EL-02

Online Discussion Board #1
Dealership Assessment

   

Dealership Assessment
Kirkland Lake, Ontario
“The Right Environment”
Market Overview:
Kirkland Lake, situated in northern Ontario, is a small mining town surrounded by beautiful green forests and abundant wildlife.  Its four seasons make it ideal for all sorts of recreational sports including fishing, hunting and camping. In addition, Kirkland Lake offers a multitude of activities to the community, including "ATV mania weekend" during the summer.
Political and Legal Environment
  * By-law passed in March 2008 stating, “That all terrain vehicles shall be permitted on highways (streets) as defined in the Highway Traffic Act R.S.O. 1990, c. H.8 within the Town of Kirkland Lake and subject to the provisions of Ontario Regulation 316/03”.
  * Anyone under the age of 16 must have a permit to operate an all-terrain vehicle, while anyone with a driver’s license may operate an all-terrain vehicle without a permit.
  * Similar to any other vehicle, an ATV must be insured and have plates to be legal on any trails.

Economic Environment
  * Kirkland Lake is currently one of the larger communities in Northeastern Ontario. Mining and forestry play major roles in the town's economy. The town also focuses on tourism, since it is one the most popular snowmobiling attraction in the North. ATV trail riding is continuously becoming a big attraction for Kirkland every summer. Kirkland is a continuously growing community, in which the demand for ATVs or any other off road vehicle will only grow.
  *   One economical factor that could really affect the opening of a ATV dealership would be the increase in bank interest rates, since whoever opened the dealership probably would have to get a large line of credit from the bank to start up the business if interest rates go up it would mean more money towards the bank to pay off debt, which would mean lower net income if...

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