Merton Industries Case

Merton Industries Bill Locke July 28, 2008 Situation Audit Merton Industries is a small manufacturer of amplitude spread overing. During the summer of 2000, Merton began to evaluate the idea of opening its own dispersal center. During times of economic proceeds, sales go up more right away. This whitethorn be due to more homes world purchased, and homeowners having more expendable income to spend on their homes. The price of rude(a) materials is positively correlative with the cost of floor coverings; when the price of materials increases, so does the cost. Advances in technology have allowed development in new-fashioned types of synthetic materials utilize in products to meet consumer needs. As styles and tastes replace at bottom the industry, contrastive types of floor covering go forth see a growth or decline in sales. A legal secrete that many manufacturers need to be aware of is that the synthetic materials should be flame-retardant , preventing a fire from quickly spreading over the floor. The carpet and rug sales industry, which consists of somewhat 100 manufacturers, had sales of to the highest degree $12 billion and $18 billion at manufacturers and retailers prices, respectively in 1999. gross sales increased 7% over the past year, which was segmented betwixt contractors and retailers.

Retailers currently write up for 74% of sales. The top ten companies within the industry experience 91% of sales, while the top ternion dominated the industry, amassing 85% in sales. The largest companies are Shaw Industries, Mohawk Industries and Beaulieu of the States; Shaw is currently t! he worldwide drawing card in sales. Shaw consumes 22% of the securities industry alone, while Mohawk lags roughly behind at 17%. Some competitors have an service by failing their products nowadays to retailers to cut costs, while others conduct through floorcovering wholesalers. Several manufacturers sell other floor coverings other than carpeting, allowing them to hedge some of their costs. During the 1990s, Shaw began operate its own retailer...If you want to push back a full essay, stage it on our website: BestEssayCheap.com

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