On the contrary, the supply chain for Hafren Baum seems to be effective, as distribution is controlled through Wiegandt GmbH Cologne. Wiegandt kept themselves consistent in the market with competition. Furthermore, on the promotion side, Hafren Baum had been paying their invoices on time, but only taking discounts rarely, even though they could receive 2% 10, net 30 terms and reduce their cost of goods sold.
Operations analysis: Operating successfully is the key factor to sustain competitive advantage in industry, as the efficiency can alter the profitability. Ratio analysis of Hafren Baum are the evidence for the lack of efficiency in 1994 and 1995. First, the total asset turnover implies that the firm is investing high as compared to its sales growth. However, in 1994 Hafren Baum constructed 3 addition outlets in s...
... middle of paper ...
...negative as the company had losses in 1994 and 1995.
Summary: Question that arises by looking at the Hafren Baum analysis is that with fallen sales, two original owners leaving, and construction of new outlets; from where the company is obtaining funds. By constructing cash-flow from financing we can see that Hafren Baum mortgage rose to 607 in 1995 and another funding of 184 came from shareholders. In addition, in 1994 due from shareholders was -344 and in 1995 it was reduced to -119 which provided Hafren Baum with additional funding for their survival. Presently, the company is not in a good position. For the last two years, Hafren Baum is generating losses. The key factors that could have brought Hafren Baum in this situation are the construction of new outlets, leaving of two original owners, competition from European retailers and German economic conditions.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- As indicated in the chart above, it is a huge market because of the population, more consumers as well as great opportunities for expansion; they are interested in purchasing American style furniture, middle class is growing about 3 to 4 percent of the total population with an outstanding buying power for western style furniture centered on Shanghai (NBSC, 2006). International furniture companies have stepped up their pace of entering into China market to take advantage of the opportunities, company like Air land based in Hong Kong now manufactures foreign brands beddings and mattress for the market, Ashley furniture a major American brand has expanded into China at a major scale, a global f... [tags: Marketing, Strategic management, Marketing plan]
1003 words (2.9 pages)
- For most ambitious companies in today's complex business environment, gaining competitive advantage and achieving expansion in capacity often requires internationalising operations and entering new markets with the goal of building a broader and more diversified customer base. However, internationalisation typically presents the problem of how to establish the company’s business or brand in a foreign market, considering the cultural and contextual differences in global markets (De Mooij, 1998). Due to the spread of globalisation and the convergence of markets and economies, it has been increasingly acknowledged that a broad range of products and services can potentially have a global appeal... [tags: Global Marketing and Advertising]
3004 words (8.6 pages)
- Our furniture store has enjoyed tremendous success as a cash and carry business, but in order for us to expand our market share and increase our revenue; we have decided to create an outside sales force to capture the local business market for office furniture. This sales force will focus on meeting the need of our business community for all-inclusive office furniture packages from lay-out design to product delivery. After researching the market condition in Ocala, we have determined that although there are many companies selling furniture, there are very few local businesses that are offering complete office furniture packages that include design consultation and delivery.... [tags: Sales, Marketing, Selling]
1431 words (4.1 pages)
- Situational Analysis The rivalry between existing companies is intense in the global furniture market and key industry players in Europe include Designs Inc, Galiform plc, Wal-Mart Stores Inc., Argos and others. However, Ikea today is the undisputed market leader in the furniture industry discount on the global scale. The threat of new entrants in the industry is low, and the chances of entrance of new competition Ikea is scarce because the current market is saturated and the significant amount of financial investments and experience are necessary to become a shop furniture discount on a global scale.... [tags: Marketing, Strategic management, SWOT analysis]
1015 words (2.9 pages)
- Furniture says than any room in the home. Furniture is an issue of self indulgence, choosing furniture solutions to your bedroom which used and will be valued by you, instead of your family or guests. Throughout your house you be aware of your furniture and interior decoration appears from the viewpoint of visitors or guests. However, your bedroom is your sanctuary that is personal, and as your selection of bedroom furniture will say more about you than you may realise. What does your bedroom furniture say about you.... [tags: Bedroom, Chest of drawers, Rooms, Room, Furniture]
738 words (2.1 pages)
- Marketing Principles and Business Practice Table of Contents 1 Introduction: 1 2 Definition of different terms and their relation to customers’ need and customer focus: 1 2.1 Brand: 1 2.2 Business Strategy: 1 2.3 Price Sensitivity: 1 2.4 Franchises: 2 2.5 Retail sector: 2 3 Average customer per store and cost per customer and their use in business planning: 2 3.1 Average customer per store and cost per customer: 2 3.2 Mission Statement: 3 3.3 New Mission statement: 3 4 SWOT Analysis: 4 4.1 SWOT analysis and contribution to IKEA’s business growth: 4 4.2 SWOT analysis for “IKEA”: 6 5 Marketing Objectives: 7 5.1 SMART Approach 7 5.2 Two Marketing objectives of IKEA: 8 5.3 Marketing Mix: 9... [tags: assemble it yourself furniture]
2239 words (6.4 pages)
- Case Study 6.1 Kishan solanki University of the Potomac BUS510 Strategic Management 07/17/2016 Professor Petya Nikolova Abstract This case study is the analysis of IKEA, It is a multinational group of companies that designs and sells ready-to-assemble furniture (such as beds, chairs and desks), appliances and home accessories. As of January 2008, it is the world 's largest furniture retailer. Founded in Sweden in 1943 by then-17-year-old Ingvar Kamprad, who was listed as one of the world 's richest people in 2013, Since its 1943 founding in Sweden, IKEA has offered home furnishings and accessories of good design and function at low prices... [tags: Marketing, IKEA, Ingvar Kamprad]
1099 words (3.1 pages)
- Retail marketing is unique due to the fact that its primary focus is to target individual consumers. Retail marketing, therefore, requires much more variety than a business to business (B2B) model, for example, in order to satisfy customers. This poses interesting challenges when management decides the types of items to stock, how to price those items, where to get those items from, and how to promote the those items to consumers. The purpose of this paper will be to analyze how distribution, price, product, and promotion strategies relate to each other and the retail mix.... [tags: Marketing, Pricing, Price, Retailing]
1170 words (3.3 pages)
- Furniture in Greenbelt A Sign of the Tough Times A view of the front of a typical housing project in the planned community of Greenbelt. The Greenbelt community was built beginning in 1937 as low income housing for people who were making between $1,200 and $2,000 dollars a year. The houses were built at minimum cost and this means that the rooms are small. Thus special furniture was designed in order to fit into these small houses and to provide sturdy, economical, and good looking furnishings for the new residents.... [tags: Interior Design Furniture Essays]
1104 words (3.2 pages)
- Markering Introduction Steve Case founded America Online (AOL) in pre-Internet days when the networking of various computer systems was rather informal and difficult for all but the highly computer-literate to accomplish. His goal was to make accessing these networks easy enough for anyone to manage. Though AOL has changed dramatically since those days, ease of use has remained a primary consideration in all changes visible to the user. Much maligned by the more "serious" services (and their subscribers) in the past, AOL has risen to be the industry leader despite challenges and the image of being the J.R.... [tags: GCSE Business Marketing BTEC Coursework]
576 words (1.6 pages)