Merton Industries Case

Merton Industries Bill Locke July 28, 2008 Situation Audit Merton Industries is a small manufacturer of amplitude spread overing. During the summer of 2000, Merton began to evaluate the idea of scuttle its own dispersal center. During times of economic proceeds, sales formulate more rapidly. This whitethorn be due to more homes be purchased, and homeowners having more expendable income to spend on their homes. The price of barren materials is positively correlative with the cost of floor coverings; when the price of materials increases, so does the cost. Advances in technology have allowed development in advanced types of synthetic materials utilize in products to meet consumer needs. As styles and tastes careen at bottom the industry, contrastive types of floor covering will see a growth or decline in sales. A legal secrete that many manufacturers need to be aware of is that the synthetic materials should be flame-retardant, preventing a fire from quickly spreading over the floor. The carpet and rug sales industry, which consists of just about 100 manufacturers, had sales of to the highest degree $12 billion and $18 billion at manufacturers and retailers prices, respectively in 1999. gross sales increased 7% over the past year, which was segmented betwixt contractors and retailers. Retailers currently eyeshade for 74% of sales. The top ten companies within the industry acquire 91% of sales, while the top ternion dominated the industry, amassing 85% in sales. The largest companies are Shaw Industries, Mohawk Industries and Beaulieu of the States; Shaw is currently the worldwide attractor in sales. Shaw consumes 22% of the securities industry alone, while Mohawk lags slimly behind at 17%. Some competitors have an return by failing their products nowadays to retailers to cut costs, while otherwises apportion through floorcovering wholesalers. Several manufacturers sell other floor coverings other than carpeting, allowing them to hedg! e some of their costs. During the 1990s, Shaw began operate its own retailer...If you want to ticktack a full essay, stage it on our website: BestEssayCheap.com

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