Case Study Of Business Failures For AB WEAR LTD

(A) KEY BUSINESS RISKS FOR AB WEAR LTD:
1. Profit falling continuously:
The AB WEAR LTD is a very successful company. The company has successfully grown from small family business to a private limited company in last 10 years. The company’s turnover is approximately £50 million. The company is having staff of about 200 employees. The company is engaged in import of fabrics from India and the manufacture and wholesaling of clothing. From the financial statement of the firm it is clear that the company’s profit is declining steadily. This is because of the number of the small sized competitors are increasingly encroaching on its customer base.
It has also been noticed that if the company continuously decreases its profit and its customer’s
The system is not established properly due to this there are many errors in it. The production staff of the company is not able to maintain proper information for the inventory. They have also faced many issues relating wrong order sent or wrong quantities produced or sent to their customers. The system is worst in such way that it requires lot of manual work. It is very tedious and boring exercise for the staff. This problem is also occupying lot of space on the company’s server and it also affecting on the other system of the company. So this is IT relating risk for the company.

5. Issues relating to Inventory control:
The sales record of the company are maintained and reviewed weekly with the sales manager while the production and inventory figures are not reviewed perfectly. The stock taking is done periodically not at the year end. When the final account of the company is prepared the accounts department of the company is not able to record the true value of the stock. Due to this the financial statements of the company does not represent the true picture of the firm.
(B) Business Risks for AB WEAR LTD:
After careful analysis of the case study the following business risks has been identified for the AB WEAR LTD. From the following risks the company should plan accordingly to reduce the
The absolute most vital stock control is essentially securing the distribution center. This implies that you develop a wall around the stock, bolt the entryway, and just permit approved work force into the distribution center.
 Arrange the stock. It may not appear like a control to just sort out the stock in the stockroom, yet in the event that you can't discover it, you can't control it. Therefore, a basic premise for stock interior control is to number all areas, recognize every stock thing, and track these things by area.
 Count all approaching stock. Don't simply take the expression of the supplier that the amount expressed on the conveyance is the right one. Check the stock before recording it has gotten. This keeps mistakes from being brought into the stock records.
 Investigate approaching stock. Confirm that all approaching stock is of the right sort and is not harmed. All things that fall flat review ought to be returned immediately, and the records payable staff informed that the returned things ought not be paid for.
 Label all stock. Each scrap of stock in the stockroom ought to be related to a label, which expresses the part number, portrayal, unit of measure, and amount. Something else, stock things are sure to be