Subanti Mortuza
MK 4900
MW 4:45- 7:15
Crafton Industries, Inc.
1. Situational Analysis
-The U.S. Flooring Industry · In 2009 businesses spent near $17 billion for floorcoverings. · The largest floor covering product is carpet and rugs followed by ceramic tile, vinyl, hardwood, stone, laminate and rubber floorings. · Residential sales accounted about 11.33 billion sales (2/ 3 of the sales) in the flooring industry and commercial accounted 5.67 billion sales. · The dollar sales of U.S. floorcoverings went down from $23,227 million in 2007 to $17,122 million in 2009 leaving a difference of $6,105 million. · In 2007 the industry sales tumbled 29% at the current prices and 27% after adjusting for inflation.
-The
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· Carpet One and Abbey Carpets, two main buying groups asked their members not to do business with Shaw. · After all these, in 1998 Shaw industries announced it would sell of its retail stores to Maxim Group for $93 million. And later Home Depot started stocking Shaw carpet once again.
-Crafton Industries, Inc.
· Sells premium priced carpeting to rich residential segment of the industry.
· The company had sales of $75 million in the year of 2010 and 72% of the sales were attributed toward residential market.
· The company’s net profit before taxes were $3 million while they only accounted 0.4% of the market.
· Crafton distributes the product to seven floor covering wholesalers, who supply to 4000 retail accounts.
· The wholesalers are located all over West, East and Midwest Coasts.
· Half of the company’s retail accounts provide for about 80% of the overall sales.
· The company has wholesalers who represented the company for about more than 20 years.
· The company employees 10 salespeople who mains extensive sales organization.
· The wholesalers for the company received a 20% margin on sales billed at the price to retailers and wholesalers typically applied a markup on cost of 125% for carpeting sold to retailers.
2. Problem
While the retailers are becoming more conscientious about the price Crafton industries has
dropped to 7.2% in year 13 and year 14 since sales dropped during that period of time.
Actual sales = 1686 (in million €) and Break even sales = 1126.61(in million €)
→ about 65% of revenues from sale of individual products; customized products represent 35% of sales
cent of the total returns. This is obviously more of a problem for brick and mortar retailers than it is for
StreetEasy there seems to be an upward trend in pricing. Although a select number of floorplans
- Domestic sales contribute 74% of the total gross revenues- $37.2 million compared to $13.1 billion from the international segment.
Wholesale and retail distribution in the U.S. carpet and rug industry has gone through a lot of instabilities since the 1980’s. There have been three major competitive trends that occurred within the industry. The first trend to occur happened in the mid 1980’s when the
Todd (2012) has interviewed employer association representatives and examined their public statements and submissions. From her research, she questions whether the changes to the industrial relations system that employer associations advocate would enhance productivity. With regard to issues such as penalty rates and job security, there is evidence that these relate to cost cutting and enhanced managerial prerogative rather than productivity. Discuss
I would recommend that ServiSoft use the independent representatives’ distribution channel and sell to retailers, first and foremost. In looking at distributing the product through the wholesalers, margin would definitely decrease and retailer price may have to increase to make up for this. But more importantly is how ServiSoft wants to penetrate the market and how fast. Using the wholesale distribution channel provides an established path of delivering this product to a network of retailers and mass merchants, but at a price. They have a very liberal return policy that can cut into sales drastically.
downturn in the economy resulted in a drop in confidence that spread rapidly around the globe.
1. Assume ParaWorld was eventually ordered to cease and desist due to IP infringement. What category of IP has ParaWorld most likely infringed? Explain the actions that constitute such an infringement. (5 Marks)
When you have old, yucky linen vinyl floors, did you know that you can color them? Make use of a top quality sweeper to sweep your wood floors frequently, and work in a vacuum to remove grime that falls between the cracks. We assist both commercial and domestic clients helping them to identify the very best laminate flooring options for the rooms they need. With wood and natural stone ( marble for instance ), the stuff is where all the price is, with costs up to $1-2 per square foot. This sort of vinyl can also be known as roto plastic, in the name of the producing procedure.
Current funds allocated to advertising and sales promotion is 3% of net sales ($80,000,000) = $360,000
 Good distribution concepts with no one store more than 6 hrs. away from warehouse.
The Textile industry in India has generated huge employment for both skilled and unskilled labor in textiles . It continues to be the second largest employment generating sector in India. It offers direct employment to over 35 million in the country. The share of textiles in total exports was 11.04% during April–July 2010, as per the Ministry of Textiles. Textile industry is one of the oldest industry of India.