Contents 1
Introduction 2
Terms of reference 2
The main issues Merbatty is facing 2-3
Discussion of the main issues Merbatty is facing 4-9
Ethical considerations 10
Recommendations 10-12
Conclusion 12
Reverences 13
Appendices
1. Introduction
Merbatty is a boat company with an estimated 8% market share. This company has been in the boat building business for 33 years. Merbatty has wealthy and successful customers that focus more on the quality of the boats than the price. Thus it is important that they get more affordable but high quality material from the right suppliers. The company has put aside a lot of capital to expand over the next 5 years; this 5 year plan will help reach their profitability targets. They are mostly situated in and around the USA and Europe. It has come to their attention that the market has become more competitive and they find it difficult to reduce their cost. The sales made for the company are mostly made by sales agents around the world
2. Terms of reference
I am a management consultant for Merbatty appointed by the Board to prioritise, analyse and evaluate the issues facing the company. The report will focus on Financial and strategic analysis as well as ethical issues facing Merbatty. Appropriate recommendations will be made to help Merbatty with its 5 year plan and also its share in the market and shareholder value.
3. The Main issues Merbatty is facing. (Prioritising issues of Merbatty.)
a. Late delivery of hull from Topcrest.
The 2 month delay in delivery from topcrest which grew out of a new contract which meant Topcrest had to re-organize the queue of shipment to clients like Merbatty. Topcrest is situat...
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... sure the client needs are taken care of. That leaves the remaining sales agents to be mainly concerned with the selling of the Merbatty’s products.
e) JKL
Merbatty has been involved in charitable work for some time now. Employees are spending their time on chartable they are less productive in their work. Merbatty should continue with charity work but should set up a plan for charity work and reduce the amount of time spent on charitable work.
Conclusion
Merbatty is a boat company with an estimated market share of 8%. Merbatty has a few problems to address and a few strategies to implement in order to get a bigger market share and ultimately gain the controlling market share. The report summarises a few problems and makes a few recommendations to help Merbatty improve their market share and improve their business operations.
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8,000 that is associated with a joint venture in four regions through dealer channels. Annual fixed costs are Rs. 7,000. Contingency funds usually range from 5-7% and since entering a joint venture in another country is a large project to take on, a contingency fund on the higher end should be included. A contingency fund of 7% of the total Rs. 15,000 investment would result in a Rs. 1,050 fund. A total of Rs. 16,050 would be needed for this joint venture. Other non-financial resources that would be needed include additional facilities, labor, training, equipment, office supplies, and a marketing plan. Many of the resources, including distribution channels and some facilities, may already be available to Mercan Systems through their joint
tasks, they start to develop a rapport with their client. Establishing relationships with customers is
Joe operates a successful commercial landscaping and tree trimming business, and client's keeps his operation extremely busy. Although Joe employees at least 50 workers, with landscaping being seasonal, he experiences a high turnover. In addition to landscaping and tree trimming, equipment rental is also available to the clients, which adds an additional division to the business. With $250,000 of capital, and past year's revenues of $500,000, Joe is looking for guidance to take his business to the next level.
This summary report will provide an overview of the decisions we made as a team, the strategies we used and an evaluation of the final results. This report will also reflect on the learnings on how to successfully manage an organization.
All Sales representatives should use company’s funds responsibly and good business judgment when incurring a business expense.
Happy Chips, Inc. is faced with a serious problem, with only having one mass merchandise customer called “Buy 4 Less” being unhappy with the company’s operating performance. Buy 4 Less had several problems cited including frequent stock outs, poor customer service responsiveness, and high prices for the products being supplied. Buy 4 Less came up with solutions they think seem fit to fix the problems they found with Happy Chips, Inc. and if Happy Chips, Inc. wishes to remain a supplier to their company they will have to incorporate these changes. The problem however with this scenario, is that employees of Happy Chip, Inc. are not happy with the demands Buy 4 Less has bestowed upon them which include providing direct store delivery four times a week instead of three, installing an automated order inquiry system to increase customer service responsiveness, and decreasing product prices by 5%. Even though the easiest thing for Happy Chips, Inc. to do is to agree to the changes Buy 4 Less wants them to do, Wendell Worthmann, the manager of logistics cost analysis doesn’t agree to the changes right away. The main problem with this case is that Buy 4 Less is Happy Chips, Inc. one and only mass merchandise customer that accounts for 400,000 annual unit sales and 12% of annual revenue. With the mass merchandise segment having such a high profit potential, Happy Chips, Inc.
The business will be financed with 5,000 dollars of owner's money and investor's money that will cover the demand quantity and agreed with the investors. Starting costs will be $22,500. Sales are estimated at 120,000 per year by the first year. A positive cash flow will be produced at the end of the first year. Our business will also give our clients a profit margin opportunity of 100% per unit and up, because of the low price and the luxury of these products, which will be a big motivation for our clients.
While analyzing the data for The Body Shop International case, I noticed some trends and have compiled my assumptions for the next three years. I have compiled pro-forma statements for the fiscal years 2002, 2003 & 2004. These figures are based on the percentage of sales method for pro-forma financial modeling. Simply put, I used the sales figures from the past three years 1999, 2000 & 2001 and applied a growth rate of 13% increase to sales. Below are some additional assumptions that I have created to illustrate how the firm can become profitable while increasing market share and maintaining stockholder interest within the firm over the next three years.
The major issues facing the company comprises of there being multiple businesses with different demands. There are separate levels of performance and success as well as growth chances for each of the sector and the firm needs to tackle with issues in each of these divisions (Dube, J.P., 2004).
The management in the company is not structured. The cash position and contribution of various businesses into profit is also worrisome. We are in serious need of cash for the technological advancement in our tool business. The only way we can compete in the market is on the basis of technology. The inefficient production techniques lead to much higher cost of production.
The company is now facing the demand of more products without the capability of producing, and the threat of new entrants into the market is becoming significant. Mr. James M. Elliot, the CEO and Chairman of the Board at Bytes Products, Inc, noticed that the company was facing numerous problems. The existing three plants run on 3 shifts schedule of 24hours a day and 7 days a week using up all possible production. It has now become evident to Mr. Elliot that if the three existing plans were to be running at maximum capacity at all times, the demand of production would still not be met. If the company’s overall supply is unable to meet the demands of its customers it would cause a negative impact on the company by not being able to maintain its current market share.
Different cruise companies spend a lot of money on the modification of the products in order to enhance the number of customers. The underlying industry plays an important role in reducing the unemployment because it provides millions of jobs to the individuals. So that the underlying industry also helps in enhancing the economy of the country. In each and every year, the cruise industry has ordered different ships in order to serve the large number of passengers. The new ships have more value and are expensive more than the 20 billion dollars. New and innovative ships help to increase the number of customers of the underlying industry and help to enhance the profitability of the underlying industry (Giachetti et.al, 2013 p.500). The cruise industry is also one of the best examples of globalization. The new cruise ships help the passengers in providing the best services. The cruise company has increased its ships rapidly in order to serve large number of passengers. Research indicates that from the last 20 years, the annual growth of the cruise industry reaches to 8.5 percent and the cruise industry has total 90 million passengers which have increased in every year due to the innovation and creative designs of the cruise ships. The cruise industry provides the enjoyable experience to the passengers. After the year 2005, the cruise company replaces the old ships from the new one having the new design and structure of the ships. The main purpose for the exchange of new ships is to enhance the number of passengers (Terry 2014
...ther or mechanical or even customs delay. Customers were upset of these issues when they were expected to have on-time delivery of their shipments.
what you can help them achieve. You will also encounter those clients that are there
As compensation they charge a fee for this agreement. Agent and Brokers also differ from a merchant wholesaler because they do not own goods and services that they buy and sell. Agents works closely with buyers and sellers with more lasting businesses (Kotler & Keller, 2012). An example of an agent with this representation is a real estate agent who enters into a contract to sell a house or business to a consumer. The relationship exists until the need is met and at this point the agent collects a pre-determined