Preview

West Lake Home Furnishings Ltd.

Good Essays
Open Document
Open Document
1834 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
West Lake Home Furnishings Ltd.
West Lake Home Furnishings Ltd.

Written Analysis and Communication - II

Instructor

Submitted by

Section- D
2/08/2008

Date: May 30, 2007

To:
Charles Bowman,
CEO, West Lake Home Furnishings Ltd., Ontario, Toronto.

From

Subject: Advice on whether to accept the offer of reducing the price of signature product to $29.99 for a year.
This report is a summary and analysis of current situation on West Lake Home Furnishings Ltd. (WLHFL) The analysis is based upon the basic objective of economics that is profit maximization. Based upon the present trend of consumer income and preference it is recommended that WLHFL should accept the offer to reduce the unit retail price to $29.99.

As a student of WIMWI, I thank you for providing opportunity to learn about the situation at WLHFL. This has taught me a lot.

EXECUTIVE SUMMARY
Whether to accept the proposal of one of the retailers, to reduce the price to $29.99 by WLHFL, thereby boosting the sales, has to be evaluated on the basic objective of economics of a firm. The main objective of the firm is to maximize the profit. In order to attain this at retail price of $29.99, quantity of sales should increase to a substantial level. The present situation at Canada, higher disposable income with Boomer population and reduced price leads to higher demand of quantity are in favour of higher quantity of sales. The proposal ensures the required quantity of sales. Hence, accepting the proposal is recommended.

Word Count: 107

Table of content
SITUATION ANALYSIS.........................................................................................1
THE PROBLEM STATEMENT…...................................................................2
OPTIONS..................................................................................................................2
CRITERIA FOR EVALUATION...........................................................................3
EVALUATION OF
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    New Wood Inc
    • 328 Words
    • 2 Pages

    New Wood Inc

    To assume role of Chris Mell, CMA, and prepare a report for the President and CEO Andrew Mayd. This report will advise him on how to address issues facing organization and items discussed at the management meeting.…

    • 328 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Haefren Baum
    • 837 Words
    • 4 Pages

    Haefren Baum

    Marketing analysis: Haefren Baum sells high quality home furniture, which is manufactured by German company, Wiegandt GmbH Cologne. The demand for high-end furniture is cyclical and influenced by consumer confidence and the overall economy. They have been incorporated since 1970, therefore they do have a reputation and brand image already built. They have been a customer of Wiegandt since 1968 and have maintained good relations so far. The German economy had a bust in 1993, which lead to a decline in furniture sales. This is evident in the sales dropping in 1993 to 1995 from $18,647 to $14,397. Much of the industry has to cut back prices to keep sales volume up. Haefren Baum, being a small retailer was really affected by this price deduction as more competitors entered the market. They built outlets in Rhineland suburban areas to try reaching consumers in the midst of intense competition with a wider selection and reduced prices. Regardless of their efforts in cutting prices and building outlets, the suffered from a (-1.24%) sales growth in 1995 but it was an improvement from (-21.05%) sales growth in 1994. Their market position is deteriorating, because as number of furniture outlets grew by five times, the industry sales were still “soft” even after the economy was recovering in 1995. I believe the sales will remain stagnant because of the increased competition and inability to expand due to tight credit and cash issues.…

    • 837 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Haefren Baum
    • 1198 Words
    • 4 Pages

    Haefren Baum

    Located in downtown Cologne Haefren Baum is a high quality retailer, which recently expanded its operations by opening three retail outlet stores in nearby Rhineland suburban areas. The company carries Wiegandt’s high quality furniture whose furniture is heavily advertised. Since the economic condition has not been steady and new competitors are entering the market Haefren Baum had to decrease its prices in order to maintain sales volume, these challenges (competition, economy) caused a decrease in sales by (-21%) between 93,94, a decrease of( -1.24% )between 94,95. Haefren Baum’s products reflect cyclical demand because others seasons did not cause a decline in sales, but instead the economy and competition. The German recession has slowly been improving, but it has not helped the furniture market, and the future does not look very promising for Haefren since they will need to adapt to the growing competition also. Overall, Haefren market position seems to be improving, sales growth will get better but I cannot say that the company will be successful in the future.…

    • 1198 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Kirklands vs Pier One
    • 4845 Words
    • 20 Pages

    Kirklands vs Pier One

    Kirkland’s Inc. and Pier 1 Imports are among the major players represented in the retail home décor industry, where there is a constant demand to provide the right merchandising mix and marketing program for consumer attraction. However, in recent years there has been a decline in the retail home décor industry. Consumers have cut spending in anticipation of the continuing rise in gas prices, unemployment rates, interest rates, consumer debt and taxation. In the midst of a sluggish, unstable economy, both companies struggle to be profitable. In addition, the increased consumer spending in the fourth quarter for both companies does not sustain their revenues annually. Unfortunately, the success of both companies is dependent upon factors that are uncontrollable. Both companies can gain profitability if drastic improvement occurs in the current economy. The following is a financial analysis of both companies that will assist in determining which company would be worthy of purchase.…

    • 4845 Words
    • 20 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Westmills Carpets Limited
    • 451 Words
    • 2 Pages

    Westmills Carpets Limited

    Derek Mather should act as the turnaround manager and get everybody involved in his solution under his direct command. The most urgent thing is to get rid of non-profitable products and cut cost. On the other hand, he should improve cooperation between departments and fully develop the control and financial system in order to achieve on-time delivery and reliable product quality.…

    • 451 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Ikea (Canada) Ltd. 1986 (Condensed)
    • 560 Words
    • 3 Pages

    Ikea (Canada) Ltd. 1986 (Condensed)

    IKEA (Canada) Ltd. is a furniture operations company that offers “quick assembly” furniture with 15% lower price than its competitors. IKEA’s success brought imitators, such as Sears. In order to analyze IKEA’s competitive position in the Canadian Furniture Industry as well as Sears competitive threat, a model of competitive rivalry was used.…

    • 560 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Davy Crockett Biography
    • 1479 Words
    • 6 Pages

    Davy Crockett Biography

    Davy Crockett is a famous hunter and known for all of his hardships throughout his life. He was born on August 17, 1786, in eastern Tennessee. He then died in the battle of the Alamo on March 6, 1836. Davy Crockett was a very influential person because he is a great frontiersman, patriotic politician who worked for the Tennessee legislature, and soldier.…

    • 1479 Words
    • 6 Pages
    Good Essays
    Read More
  • Powerful Essays

    Target Corporation: Globalization And Its Impact On International Marketing
    • 3287 Words
    • 14 Pages

    Target Corporation: Globalization And Its Impact On International Marketing

    The target corporation needs to work out on the pricing strategy. Pricing policy is an act of the company by which they determines the wholesale and retail prices for its product or services. A good pricing strategy is the one which aims at optimise prices for the products typically including overall marketing objectives, consumer demand, product attributes, competitors pricing and market and economic trends. The Target Corporation needs to look on all these issues as the foremost reason of failure of target was higher prices of products in Canada than America. In order to capture market of Canada, the company can make use of strategic analysis tool i.e. PESTEL. Its meaning is analysing the political, economic, social, technological, environmental and legal environmental factors which affect the growth and establishment of the…

    • 3287 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Good Essays

    Electoral College
    • 533 Words
    • 3 Pages

    Electoral College

    The founding fathers established it in the Constitution as a compromise between election of the President by a vote in Congress and election of the President by a popular vote of qualified citizens. The Electoral College process consists of the selection of the electors, the meeting of the electors where they vote for President and Vice President, and the counting of the electoral votes by Congress. The Electoral College consists of 538 electors. A majority of 270 electoral votes is required to elect the President. Your state’s entitled allotment of electors equals the number of members in its Congressional delegation: one for each member in the House of Representatives plus two for your Senators. There have been four presidents to win the presidency without actually winning the popular vote of the nation. The most recent incident of this was the 2000 election of President George W. Bush, and this sparked a new interest in changing the system. There are two states, Nebraska and Maine that currently use their electoral votes a little differently than the other 48 states. They allot two electoral votes to the statewide winner and the rest according to the winner in each congressional district. This is one change to the system that is currently being presented by legislators in Pennsylvania and Wisconsin. Another possible change is the “Agreement Among the States to Elect the President by National Popular Vote”, or the NPV compact. It would require electors to vote for the candidate who wins the most votes nationwide. An issue with this change is that the president would most likely be elected from votes of more populated areas like big cities that have similar beliefs and the smaller states and rural areas voices’ would be lost due to them being so spread out. One major concern for the NPV compact is that it could lead to corruption of the voting process by candidates being blackmailed with the threat of losing votes if the blackmailer’s demands weren’t met. Also…

    • 533 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    An Investigation Into Pricing Strategies of Wal-Mart in China
    • 6360 Words
    • 26 Pages

    An Investigation Into Pricing Strategies of Wal-Mart in China

    The part 1 includes five points relevant information. To begin with, it will have an introduction for this investigation to assess the brief of Wal-Mart and its pricing strategies in China. The next is setting up one main aim of investigation Wal-Mart’s pricing strategies in China, followed by identifying three objectives of this study. The next is literature review about pricing strategies. The final is methods using in this investigation, namely secondary data. The part 2 is discussion—carrying out the investigation. This involves addressing three objectives in the part 1. This stage is divided to three sections. Section 1 is identity pricing strategies of Wal-Mart in China, including Everyday low price, Rollback and Special offers, and then finding on the Wal-Mart’s pricing strategies in China. In section 2 it will highlight competition of Wal-Mart and others, such as Carrefour, RT-Mart, Brilliance, China Resources Vanguard and Dashang. Then according to comparison, it will discover Wal-Mart’s currently development situation in China. Section 3 is to recommend how Wal-Mart’s pricing strategies improve in future. The part 3 is conclusion including summary and evaluation to identify main findings and achieves.…

    • 6360 Words
    • 26 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Strategic Management Analysis Of IKEA Hong Kong
    • 3028 Words
    • 10 Pages

    Strategic Management Analysis Of IKEA Hong Kong

    To tide over the economic crisis, most of the HK home furniture business tends to “low price strategy” so as to gain market share, such as Pricerite, DSC.…

    • 3028 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Shoppers Stop
    • 1687 Words
    • 7 Pages

    Shoppers Stop

    This report is the second part of “Shopper’s Stop and the New Media”. The earlier report looked at Shopper’s Stop’s online interaction with its clients and audience.…

    • 1687 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Project Management and Internal Function
    • 2544 Words
    • 11 Pages

    Project Management and Internal Function

    HRIS Project Charter Template 6.9.12 Table of Contents Project Title ........................................................................................................................................................................ 3 Purpose .............................................................................................................................................................................. 3 Description ......................................................................................................................................................................... 3 Objective ............................................................................................................................................................................ 3 Success Criteria or Expected Benefits ................................................................................................................................ 3…

    • 2544 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Employeesatisfaction
    • 6238 Words
    • 48 Pages

    Employeesatisfaction

    UNIVERSITY CHUKA COLLEGE Telephones: 020 2310512/18 P. O.BOX 109 Fax Line: 020 2310302 Chuka REPORT ON EMPLOYEES SATISFACTION AND WORK ENVIRONMENT EXIT SURVEY Submitted by Peak Network Consultants Ltd P.O. Box 7309- 00100 Tel. No: +254 20 2123964/9 E-mail: info@pnclimited.com…

    • 6238 Words
    • 48 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Slow Food
    • 4005 Words
    • 17 Pages

    Slow Food

    1. INTRODUCTION ............................................................................................ page 2 a. SITUATION ANALYSIS ........................................................................ page 2 b. EXAMPLES ........................................................................................ page 3 c. PROBLEM STATEMENT ...................................................................... page 5…

    • 4005 Words
    • 17 Pages
    Powerful Essays
    Read More

Related Topics