San Feranado Valley Case Study

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Words: 1313

Pages: 6

Category: Business and Industry

Date Submitted: 09/30/2013 07:55 PM

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What I have learnt?

San Fernando Valley Inc. is an establish business as such, it produces a product to satisfy its customers’ needs in order to gain revenue and generate a profit for its shareholders. The establish product being light bulbs; however the company has grown over the twenty year of which it has been is operation and now produces more than one variety of light bulbs. The company as it is displays a background and history of growth and development that can be seen by looking at the current status of the company and the amount of revenue to which it generates on a yearly basis even so the location of the facility which is in Scarborough can be seen as an prodigious asset due to the close proximity of Scarborough to Toronto and due to the many benefits that may arise from having a manufacturing facility of that magnitude so close to the largest municipality in Ontario. Even so by continuing and reviewing the steps in the company history one will also find that the firm has establish a mission that speaks for itself “Economic growth, profitability for shareholders, and strong support for the environment” thus covering the questions why do we exist? What do we provide society? Where we are going? However some answers will need to be provided to the questions of the company’s strategies and tactics on why there not working for the company since the growth of the company has entered a downward spiral.

The problems confronting San Fernando Valley are numerous. Among these are “high turnover of staff, poor quality of finished goods, high raw material prices, and late deliveries to strategic customers that are eroding the business, plus, COGS seemed fixed at 50% of revenues”. In addition to these, SFV has to pay 25% taxes, and the tax rate is constantly at that rate. San Fernando also uses harmful chemicals, which is not in accordance to environmental sustainability trends. In line with its unsustainable practices, the company has no recycling policies, and it...