Name of the business: Haefren Baum
Nature in the business: Home furnishings retailer
Advertising analysis: Haefren Baum provides high quality home furniture, which is made by German company, Wiegandt GmbH Cologne. The demand for expensive furniture is cyclical and influenced by consumer assurance and the general economy. They've been incorporated as 1970, consequently they do have got a standing and brand image previously built. They've been a customer of Wiegandt as 1968 and still have maintained good relations to date. The A language like german economy a new bust in 1993, which will lead to a decline in furniture revenue. This is apparent in your sales dropping in 1993 to 1995 from $18, 647 to $14, 397. Much of the industry has to cut back prices to keep sales volume up. Haefren Baum, becoming a small store was really troubled by this value deduction since more competitors entered industry. They developed outlets in Rhineland suburban areas to try attaining consumers accompanied by intense competition with a larger selection and reduced rates. Regardless of their efforts in cutting prices and building outlets, the suffered from a (-1. 24%) sales growth in 95 but it was an improvement by (-21. 05%) sales growth in year 1994. Their market position can be deteriorating, because as quantity of furniture stores grew by simply five times, the industry revenue were continue to " softвЂќ even following the economy was recovering in 1995. In my opinion the product sales will remain at standstill because of the increased competition and inability to expand because of tight credit and money issues.
Businesses analysis: Haefren Baum is a retailer that obtains its products from Wiegandt GmbH Cologne. Being a full company, they may be not advantage intensive which is evident in their decrease in fixed property turnover from 6. 98 in 93 to 5. 39 in 1995. They have earnings issues increasing from their excessive inventory and accounts receivable needs and their account payable extensions. They may have generated bad operating funds flows, which is caused by net...