Business
more ideal marketable person for the business would be a person in their mid thirties on onwards who is employed and paid well, and has his/her own family. This person would want fine furniture combined with an old fashioned, appealing design, and the common bond between the business and the customer would be the appreciation of quality and lack of price constraints of the product.
The total numbers of the actual market is unknown, though an average of 30 customers a day can be estimated.
Purchases
Purchases would vary as each customer looks for different types of furniture/doors, different designs, sizes, shapes etc. and thus the place, time and reason for their purchase are unnoticed to the business.
Customer trends – What are the customers looking for in the product?
Customers usually know what they want from pictures and or purchased products by friends that have been seen whilst over, what is aesthetic or wherever. They then come to the warehouse to browse specific furniture, e.g.- Bedside table, Grand chair, a study table etc. A whole range of these is presented to the customer. Customers expect a high standard price, but still in the reasonable range. Products are regularly on sale at all times in the business year. The customers also expect a sense of uniqueness and style that is clearly presented through inspection. This is then topped off with a standard warranty of 2 years and easy money payments to suit the needs of the customer.
Technology Analysis:
Projected expenditure on research and development
The business does not spend a great deal with research and development as the methods of working and operations now are quite efficient and effective. A comment was made that r & d will be performed once business reaches a post maturity time and/or when business seems to be decreasing in sales and profits.
Forecast - future sales, objectives and strategies to achieve them
Sales objectives of the business include to clear stock bought, and also to broaden stock imported by achieving the make them ‘popular’ to buy here. More detailed objectives would infer examples such as clearing 5 year old stock a. This can be conducted through implying sales onto unwanted products and or even by making a package deal for customers who are eager.
Financial Analysis:
Plant and equipment, suppliers, costings
Name of item Supplier’s Name Estimated Cost ($)
Warehouse leaseForklift (2)Company truck Kennard’sW.R ReliablesToyota 40,000 yearly20,000 X 2[1990’s]25,000
Raw materials and suppliers
The furniture is all imported and thus no raw materials are really needed. The actual
products are supplied by ‘Piti in Butani’, which is an Indonesian company.
Staffing:
Employee details
There are six total staff members, with four working full-time. The number of Production staff is 26 and many of the staff works in several of the business’s functions, which further develop their skills and experience, and thus are more valuable. There are also advantages to this, as if a staff is absent, another staff member would be able to continue to [next page]