Submitted by: Submitted by emilrodriguezo
Views: 499
Words: 806
Pages: 4
Category: Business and Industry
Date Submitted: 02/19/2012 03:00 PM
1. What is your assessment of the business of Fenchel Lampshade Co.?What is the opportunity, people and context?
People
Steven Rogers (CEO)
* Business analysis
* Management
* Personnel management
* Purchasing
* Consulting
John Smith (Production Supervisor)
* 15 years on the job
Geri Wandall (Office Manager)
* 5 years on the job
Production Workers
* 67% of workforce is over 40 years old
* 55% of workforce has limited experience (1-2 years)
Oportunity
Competitive Advantage
* Industry leader in shadow-free lampshades
* Reputation for quality and service
Market Characteristics
* Market size is 20 million
* Growth is 5% per year
* 34 competitors (Low competition due to transport costs)
* Seasonal sales (Summers are slow / Holidays are good)
Product Characteristics
* Hand made
* Plenty of variety in shapes, materials, colors and trim
* Made to specifications
* Slow replacement interval
Manufacturing Characteristics
* Production is started with an order
* Made to specifications
Distribution Channel
* Department stores
* Independent retail stores
Importance of Scale Economies
* Only important for sourcing raw materials
Working Capital Profile
* Most of the sales are on credit
* Working capital as of 1987 was $139K
Plant & Equipment Requirements
* Machinery and furniture are currently $32K and are projected to increase to $50K
Potential Opportunities
* Increased cash flow due to lower owner salaries
* Selling lampshades to high quality lamp manufacturers
* Building retail outlets
* Taking advantage of minority incentive programs
Context
* Computers were on early adopters phase
* Bonds and T-bills are at above average rates
2.
a. What can go right?
* The company can transition smoothly into the hands of the Rogers
* Sales can skyrocket if a deal is landed with a lamp...