Finance For Managers Assignment Example | Topics and Well Written Essays - 5000 words - 1

Finance For Managers - Assignment ExampleThe management of every firm is faced with the task of dealing not only with the short term challenges faced by the business, but they must withal have a long term vision for the community. Each company has its own cozy advantages called Strengths that enable it to do better than some others in the industriousness. Likewise, each company also has its own internal deficiencies called Weaknesses that prevent it from making full use of its resources and abilities. Like it or not, all firms in operation(p) within a particular industry are similarly faced with uniform challenges from the external environment like the legal, social, economic and technological changes that may emerge as Opportunities for the industry if they give it an advantage, or Threats for an industry if they challenge its well being and continuity in the business environment. Jools article of article of furniture Industries Ltd. likewise has its own gear up of strengths a nd weaknesses, and is also faced with opportunities and threats from the external environment. It is clear that it must take some action to offset these internal and external challenges if it is to survive and prosper as a continuing business enterprise. This paper is divided into deuce-ace parts. ... In Part III, we shall assess the proposal for an ?1.8 million loan to be taken by the Kitchens atom of the business, based on the current gearing and ROI criteria as traditionally maintained by the company, and also advise two other alternatives in this regard. PART I Brief Analysis of the Present Position of the Furniture Business Looking at the industry scenario given in the case, it appears that the furniture industry in the UK is extremely specialized and moving towards maturity. In this stage of the product life cycle, there are a full-length lot of producers and manufacturers of a product and the competition is intense, hence every firm is looking at shipway to enlarge its business and increase its capacity in varied areas. Jools Furniture Industries Ltd. has also done the homogeneous over the years and has managed to create four different divisions, each dealing in a different type of product or delivering to a different market. We have the Kitchens Division, the Quality Division, the Bedrooms Division and the Office Division. The mart can also be classified into the Domestic, the Office and the Contract market. The domestic market is geared towards service the public, mainly through retail outlets and making products for household use. The domestic market constitutes 58 percent or the major chunk of the market demand. On the other hand, the billet market deals mainly with products concerning desking, seating, tables, cabinets and other items for the office environment. The office market consists of 13 percent of the total market demand. The contract market caters to the needs of furniture for public areas such as hotels, schools, residential acc ommodation and airports. The contract market constitutes 29 percent or little less