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The liberal strategies adapted to this segment of customers finally bounced back as a major threat to the existence of the company.
As a production director, I should approach the above issue seriously. Drastic changes in the business strategy are necessary in Arrowhead. No organization can survive in the current extremely competitive world, either with a particular product alone or with a particular segment only as the customer base. Greg Kitson (2009) has argued that every market experiences some seasonality diversification of the customer base is the only option to stay busy throughout the year (Kitson 2009). It is suicidal to depend heavily on a particular customer base for ever to sustain a business. Avoiding customers who are volatile to market fluctuations is necessary to sustain the business prospects of Arrowhead. Arrowhead should concentrate more on building a customer base that are capable of withstanding any type of pressure exerted from the market.
The recent financial crisis has affected Arrowhead worse since most of their customer base was from the mostly affected community, the lower and middle class. The current financial crisis has not affected the upper class much because of their immense financial strengths to overcome such crisis situations. On the other hand, the rest of the community were seriously affected by the financial crisis.
Arrowhead should build high quality products in order to canvass the upper class people. The current customers of Arrowhead are not much worried about the quality of the furniture produced by arrowhead. It is quiet natural since they are getting furniture at an affordable price and that also in instalment payment basis. They cannot bargain much to reduce the price or to improve the quality of the Arrowhead products because of their obligations to the company. On the other hand, upper class people are not like that. They normally look for the quality of the product rather than the price of
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Cannell Ltd definitely cannot increase its prices in order to lower its percentage of labour costs; in fact, Cannell Ltd has to decrease its prices due to the competition of larger rivals. Profit is what keeps Cannell Ltd going, and profitability fell the previous year by 14.5 percent.
A leader can be stated to be effective if he/she is capable of making use of the adequate leadership skills in each context. It can be mentioned that the leader might either make use of one particular leadership skill or he/she might as well make use of the combination of the leadership skills in order to enhance the effectiveness of the organization.
These raise both contractual and tortious liabilities on such vendors, builders and lessors.
In this sense it can be say that a vendor will be liable to the purchaser if there is any defect in the goods, buildings or any other dwelling places. And it infers that the purchaser can claim damages for these defective constructions from the vendor under the above said rule.
To survive, it is vital that a firm can do something better than its competitors. Globalisation has not only altered the nature and the intensity of competition but has had to dictate and shape organisations in terms of what consumers wants, how and when they want it and what they are prepared to pay for it.
er hand gives the revenues and expenses which are not directly related to the major business activities and they include advertising, commissions, salaries, delivery and depreciation. Income from discontinued activities should be within the non-operating section. Other
s considering launching a new product, which will require initial investment of £2 million to buy machinery outright and other alterations to the manufacturing process. This decision is evaluated on the basis of net present value and payback period that the company can expect