Business Proposal

Bowland carpetings Ltd Bowland rugs Ltd is a major producer of carpets inside the UK. The club was understand oer by its present parent company, Universal spread everyplace Inc., in 1993. Universal Carpet is a giant, unslopedly co-ordinated carpet manufacturing and selling business, based within the USA and with interests all over the world. Bowland Carpets operates within the UK in various grocery store segments, including the eminent value slue and industrial carpeting reach hotels and business leader blocks etc. and in the domestic (household) market. Within the last mentioned the excerption is reasonably wide, ranging from luxury carpets down to the cheaper products. Industrial and contract carpets contri exactlye 25% of Bowland Carpets total yearbook swage which is shortly £80 million. During the late 1980s the turnover was growing at 8% per annum, but since 1992 sales suffer dropped by 5% per annum in real terms. Bowland Carpets has traditional ly been cognise as a producer of high quality carpets, but at hawkish prices. It has a powerful brandmark name, and it has been competent to protect this by producing the cheaper, lower quality products under a secondary brand name. It has also maintained a unassailable relationship with the numerous carpet distributors throughout the UK, particularly the mainstream retail organisations.

The recent resist in carpet sales, partly ecological niche induced, has worried the US parent company. It has recognized that the increasing tightfistedness within the European carpet manufacturing sector has led to war -ridden rivalry within a low growth industr! y. It does non believe that foreign sales growth by Bowland Carpets is an charismatic proposition as this would compete with other Universal Carpet companies. It does, however, consider that vertical integration into retailing (as already in force(p) within the USA) is a serious option. This would give the UK company increase control over its sales and reduce its exposure to competition. The chairman of the parent company has...If you want to get a wide-eyed essay, order it on our website: OrderCustomPaper.com

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