Small Business Ent. 1. Investigate Performance of a Selected Small Business Enterprise.
1. Investigate performance of a selected small business enterprise.
1.1
J&S furniture is a furniture manufacturing company owned by two brothers John and Smith. J&S started operations in 2006 and there is a satisfactory growth in this business since then. However there are fall in turnover in some months as well. J&S import wood from Asian countries and manufacture furniture. Company had been able to get massive discounts from its suppliers because of bulk buying so this had helped them to keep their cost under control.
However government policies such as taxes on imports, interest rates and exchange rates have had negative impact on this business.
Taxes on imports
Since UK government is taxing heavily on imports from non EU countries this had affected J&S a lot therefore now J&S is looking whether they can find out a cheaper supplier from UK or EU.
Interest rates
Recent increase in interest rates affected J&S's profit margins. So J&S is thinking of increasing the price but if they increase the price the demand may fall.
Exchange rate
J&S is purchasing raw materials overseas and recent depreciation in pound had a negative impact on its cost of production.
J&S currently have eight branches in London and their short term goal is to become a leading furniture manufacturer in UK by the end of 2009 and become a leading furniture manufacturer in EU by the year 2012.
1.2
J&S had been performing well from the start even though there is a fall in profits in some months. It is company's view that this is due to well trained staff and good customer service given and also company is enjoying purchasing economies of scale due to bulk buying.
Competitor bench marking helped J&S to identify its minuses as well as competitor's therefore company took all possible measures to correct minuses. This is one reason why company sales rose up suddenly in last two months.
J&S carried out a training program about two months ago and there seem to be a massive increase in
1.1
J&S furniture is a furniture manufacturing company owned by two brothers John and Smith. J&S started operations in 2006 and there is a satisfactory growth in this business since then. However there are fall in turnover in some months as well. J&S import wood from Asian countries and manufacture furniture. Company had been able to get massive discounts from its suppliers because of bulk buying so this had helped them to keep their cost under control.
However government policies such as taxes on imports, interest rates and exchange rates have had negative impact on this business.
Taxes on imports
Since UK government is taxing heavily on imports from non EU countries this had affected J&S a lot therefore now J&S is looking whether they can find out a cheaper supplier from UK or EU.
Interest rates
Recent increase in interest rates affected J&S's profit margins. So J&S is thinking of increasing the price but if they increase the price the demand may fall.
Exchange rate
J&S is purchasing raw materials overseas and recent depreciation in pound had a negative impact on its cost of production.
J&S currently have eight branches in London and their short term goal is to become a leading furniture manufacturer in UK by the end of 2009 and become a leading furniture manufacturer in EU by the year 2012.
1.2
J&S had been performing well from the start even though there is a fall in profits in some months. It is company's view that this is due to well trained staff and good customer service given and also company is enjoying purchasing economies of scale due to bulk buying.
Competitor bench marking helped J&S to identify its minuses as well as competitor's therefore company took all possible measures to correct minuses. This is one reason why company sales rose up suddenly in last two months.
J&S carried out a training program about two months ago and there seem to be a massive increase in