Abc Kitchens

1991 Words Apr 8th, 2011 8 Pages
Abstract

ABC Complete Kitchens, Inc. has a plan to develop framework and strategy of building a new plant in six months within a Midwestern U.S community. The previous presentation has shown the whole activities for this establishment. However, due to the world economic crisis, we must carefully consider the effect of the economic factors to the operations of our new factory. Therefore, due to limited time and resources, only some major macro and micro economic factors that could directly impact on our plant operations such as inflation, unemployment and financial issues, will be discussed in this paper. Besides, legal considerations including crime, torts, liability and foreign legal system which possibly cause bad effect to the
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2. Adverse effect

The world economy as well as the US economy is facing a lot of difficulties such as financial issues, high inflation and unemployment rate, and bankruptcy. Not only big customers but also individual ones have to cut down spending. Potential customers such as restaurants, hotels and conventional centers are the subjects which were strictly affected by the economic crisis. They also loose a significant number of customers which causes a bad effect to their spending and profit. Besides big customers, our individual ones are also affected by the unemployment, income reduction, and high cost of living. They need to spend less money for unnecessary household commodities like kitchen implements. The recession also causes difficulty for real estate market. A lot of construction projects are pending while they are considered to be a big customer for kitchen equipments.

The sales of high-grade products will go down first because these products are mostly made for high-income customers. It is difficult for us to get profit from such products as kitchen cupboard and equipment with sophisticated design. The demand of our products is liable to be decreased, especially the luxury or customized products. Obviously, it can be seen that it is a challenge to keep our sales stable.

3. Solutions for the new plant during the recession

- Promote marketing activities, advertizing,
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