Sunflower Company Case
Sunflower Company : Adapting to Changing Market Conditions
Problem :
Looking ahead, there are 4 challanges for Sunflower Company ;
Splitting the company up and / or selling a part of the company
Retaining people
Applying Information Technology
Managing counrty or regional economic factors
Timeline
1992-1994 : Start of the firm Firm started with 3 employees; founder, accountant, sales agent. There was high demand and low competition.In early 1990s it was diffucult to gt a loan from a bank, by 1994 banks started to give short term loans to new firms. The firm sold metal and many other products, even some sandwitches & snacks in first years.
Employee number . 3-11
Revenue : $15.000 – $185.000
1995-1998 : Expansion of the firm By the growth, finding qualified employees became a problem. In 1997-1998 the goverment raises the salaries of government workers. Sunflower Company made some favours fort he wokrers and incresed the loyalty. Western suppliers began to sell the products with credit line due to the success of the company. Product line changed siginificantly. The firm shifted attention to tire repair & store display systems.
Employee number . 17-28
Revenue : $366.000 – $1.576.250
1999-2000 : Crisis period In 1998 Russia devaltuated its currency and this affected Lithuania. Retail sales fell 15%, capial investments fell 50%. These changes affected Sunflower company significantly. I became more diffucult to finance investments & purchases for the companies.
For tire reparining, one solution initiated by Sunflower’s director was to make agreements with Shell, Mobil and BP for exclusive distributorship for motor oil throuh Lithuanian service stations. Besides, Sunflower Company was involved to the leasing process by learning the documentation for the tire material that it supplies.
For store display, the company was being pushed away and the management decided to enter furniture market. Although the crises grew worse, Sunflower Company had an agreement with
Problem :
Looking ahead, there are 4 challanges for Sunflower Company ;
Splitting the company up and / or selling a part of the company
Retaining people
Applying Information Technology
Managing counrty or regional economic factors
Timeline
1992-1994 : Start of the firm Firm started with 3 employees; founder, accountant, sales agent. There was high demand and low competition.In early 1990s it was diffucult to gt a loan from a bank, by 1994 banks started to give short term loans to new firms. The firm sold metal and many other products, even some sandwitches & snacks in first years.
Employee number . 3-11
Revenue : $15.000 – $185.000
1995-1998 : Expansion of the firm By the growth, finding qualified employees became a problem. In 1997-1998 the goverment raises the salaries of government workers. Sunflower Company made some favours fort he wokrers and incresed the loyalty. Western suppliers began to sell the products with credit line due to the success of the company. Product line changed siginificantly. The firm shifted attention to tire repair & store display systems.
Employee number . 17-28
Revenue : $366.000 – $1.576.250
1999-2000 : Crisis period In 1998 Russia devaltuated its currency and this affected Lithuania. Retail sales fell 15%, capial investments fell 50%. These changes affected Sunflower company significantly. I became more diffucult to finance investments & purchases for the companies.
For tire reparining, one solution initiated by Sunflower’s director was to make agreements with Shell, Mobil and BP for exclusive distributorship for motor oil throuh Lithuanian service stations. Besides, Sunflower Company was involved to the leasing process by learning the documentation for the tire material that it supplies.
For store display, the company was being pushed away and the management decided to enter furniture market. Although the crises grew worse, Sunflower Company had an agreement with