Dahlia Furniture Private Limited
I. Issue: What means of acquiring stocks should Dahlia employ to increase profit and improve the company's position?
A. Transfer all products and continue the high quality and fairly high-priced image with middle and upper profits family's clients. B. Increase its production unit and contend with competitors through cutting down of prices to get to a larger market, the mass. C. To formulate a proportionate inventory acquisition with a few products imported and some produced, to drive aside competition and at the same time, maintain its present image, also to reach all brackets of prospective clientele.
III. Benefits and drawbacks
* Advantages of Alternative A
* Dahlia would be clear of hiring more labor.
2. Will maintain steadily its present graphic for top quality and charges. * Simply no overhead costs.
* Smaller models of products are needed to be sold because of its value * Complications about filling up their showrooms are swiftly solved.
Down sides for Alternate A
5. Would prove costly in the event that not offered two months or more.
* Dahlia would be pushed away by competition because of inconsistent pricing. * It could not really cater to the mass industry.
* Will probably be pinpointed simply by government pertaining to using foreign labor and may affect the credibility.
5. Advantages for Option B
2. Will not get large price, even products on hand remain idle for quite some time. 2. The company can now afford to cater the mass marketplace.
* Can now drive the competition.
* Will not likely violate government's policy in foreign labor.
Disadvantages pertaining to Alternative N
* Will incur huge overhead price.
* Business current photo might be at risk.
* Must hire even more labor that could boost costs.
* May possibly incur losses if driven away by inconsistent pricing.
2. Advantages for Option C
2. Lower risk pertaining to the company.
* Will reduce the effects of all costs.
* Could have a larger marketplace....