task 3AND4 ANS
Task 3 & 4 bILL company is a textile manufacturing company, established in 1978 in UK. Company is owned by a 3 friends, RIz, Wiz &Aaz. They started the company in their college life and faced a huge success in a very short period. bILL company have good reputation but from last few years their turnover has been reduced dramatically due to some new international competitors came in the market and captured more than 35% of domestic market.
This intense problem called the board meeting where Wiz purposed to start a new factory in YinLand (a neighbor country). Where economic conditions are good and cost of living is low but standard of living is high. Factory will cost around $10 million and will take 2 year time to commence.
Currently, the company turnover is on average $800,000. Last year profits were $80,000. Capital is $8 million and liabilities are $4 million. Interest rate in bILL country is currently at 12%. Company has employed 500 employees locally and averagely paying them minimum wage, mentioned in the local law, among them 20% are skilled 20% among which are on supervisor level. Rest of the employees is working on operational level. bILL long term assets are $14 million.
You are manager accounts requested to make a report on:
Analyze possible alternative strategies relating to substantive growth, limited growth or retrenchment (L.O. 3.1)
Select an appropriate future strategy for bILL Company
Ansoff’s matrix is method that BILL can identify opportunities to develop and improve product range. There are three types of strategies that BILL Company can follow. “They are substantive growth through product development, market development, vertical integration and diversification, limited growth strategy through market penetration or market development and retrenchment”.
BILL company should use Ansoff’s matrix because it is very useful for considering different options for growth, and suggests whether it is better to find new customers for existing
This intense problem called the board meeting where Wiz purposed to start a new factory in YinLand (a neighbor country). Where economic conditions are good and cost of living is low but standard of living is high. Factory will cost around $10 million and will take 2 year time to commence.
Currently, the company turnover is on average $800,000. Last year profits were $80,000. Capital is $8 million and liabilities are $4 million. Interest rate in bILL country is currently at 12%. Company has employed 500 employees locally and averagely paying them minimum wage, mentioned in the local law, among them 20% are skilled 20% among which are on supervisor level. Rest of the employees is working on operational level. bILL long term assets are $14 million.
You are manager accounts requested to make a report on:
Analyze possible alternative strategies relating to substantive growth, limited growth or retrenchment (L.O. 3.1)
Select an appropriate future strategy for bILL Company
Ansoff’s matrix is method that BILL can identify opportunities to develop and improve product range. There are three types of strategies that BILL Company can follow. “They are substantive growth through product development, market development, vertical integration and diversification, limited growth strategy through market penetration or market development and retrenchment”.
BILL company should use Ansoff’s matrix because it is very useful for considering different options for growth, and suggests whether it is better to find new customers for existing