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This report is about Florence Manufacturing Limited, giving a brief overview of analyses and making recommendation to Florence Manufacturing Limited on how the company should proceed on the problems they are experiencing.

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Introduction

TO: SHAREHOLDERS FROM: ELIZABETH, ANKUR, LEE AND MEHOLI. DATE: 24TH NOVEMBER 2003 REFRENCE: HOW CAN FLORENCE MANUFACTURING LIMITED SOLVES THE PROBLEMS THEY ARE EXPERENCING 1.0. EXCUTIVE SUMMARY This report is about Florence Manufacturing Limited, giving a brief overview of analyses and making recommendation to Florence Manufacturing Limited on how the company should proceed on the problems they are experiencing. The purpose of this report concern about Florence Manufacturing Limited based in West Kent slow sales in their canned soft drinks. 2.0. INTRODUCTION Increase in competition in the supply of canned soft drinks has led to a decline in the market share of Florence Manufacturing Limited although they are still the market leader in the supply of canned soft drinks. The organisation has loyal clients consequently it has taken its position as the market leader for granted. The unique selling point of the organisation is its excellent relationship with supplier (stock is fully supplied) and the only major problem the organisation is experiencing is meeting its deadlines. Recently, Florence Manufacturing Limited has signed a contract with a French hypermarket, called 'Bon Marche'; the French hypermarket has given Florence Manufacturing Limited a chance to target a wider market and has appointed a new Managing Director, known as Tom Jenkins. Mr Jenkins graduated from Harvard Business School and has been headhunted by Glaxo Plc. Mr Jenkins has a marketing orientated style because this1eads to long-term profit rather than short term profit. He believes that the company was too product orientated, which only meets the company needs rather than those of their customer. ...read more.

Middle

In other words to increase productivity and the quality of the goods, in addition keep the cost of raw material wastage at a minimum level. 3. Mr Jenkins believes that Florence Manufacturing Ltd should be market orientated rather that production orientated. The reason behind this is simple. If Florence Manufacturing Ltd is market orientated it will lead to long-term profitability and less storage of stock, this minimises out of date stock. The production orientated policy meant pushing the goods in the market while there was no demand and also selling at a cheaper price consumer. 3.1.4. THREATS 1. The UK is a member of the EU consequently they will face competition from other EU organisation which manufacturing can products, for example since Florence Manufacturing Limited has created competition in France, they should also expect competition from other EU countries in UK, since there are no barriers to trade between EU countries. 2. Because of expected competition the company need to realise their market share will decrease and other EU companies pose serious threats. 3.2. PEST ANALYSIS PEST analysis stands for Political, Economical, Social, and Technological The Pest analysis is part of Florence Manufacturing Limited analysis and can be applied to the company's case study. 3.2.1. POLITICAL FACTORS 1. The Political factors, which will benefit the company is the no trade barriers to trade within the EU countries. Which mean there are no duties charged on goods within the EU. 2. The Political factor, which affects the company, is the different rate of VAT taxation between different EU States. ...read more.

Conclusion

Disadvantages 1. It will cost the company a fortune to recruit new personnel, because money is needed to recruit and train new staff. 2. A fresh start means reorganising the organisational plan and company profile. 3. To recruit externally will affect staff performance because internal staff will be unhappy about these issues, which could lead to de-motivation, lack of communication and lack of interest in the company overall performance. OPTION 4: To attempt to change the present situation by achieving the objectives set using the present personnel Advantages 1. Less costly because using the present staff means the company do not have to recruit externally. 2. Using the present personnel means they could still retain their market share and also be the market leader. Disadvantages 1. Communication using present personnel might not improve. 5.0. RECOMMENDATIONS It is different to come to a firm conclusion because not only do the advantages and disadvantages cancel each other out but also added that Florence Manufacturing Limited might sees this options to stand to benefit or might see this as an opportunity as well to the above options available to the company. Based on the findings, the business consultant will recommend option 4, which is 'to attempts to change the present situation by achieving, the objectives, set using the present personnel'. Since Mr Jenkins has set new objectives by providing training, teamwork, to improve both internal and external communication at the company and also to improve the co-ordination of the company resources Mr Jenkins also believes that all these will be achieved without any radical change in personnel or by merging with another company. 1 ...read more.

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