H & Dh : Failing For Achieving Financial Success

1202 WordsNov 12, 20155 Pages
Relevant Facts: Money Management: H & DH is failing to achieve financial success. Our sales have decreased 6.3% since this time last year. Wal-Mart and Target now offer gift-food items at less cost and increasing our competition. There is also a weak demand for a products even through the holiday season which is the busiest time of the year and accounts for 60% of our annual sales. Caused by the poor economy, consumers are spending less and corporations are cutting back on their H & DH gifts they have traditionally purchased for their employees and customers. Also, in an effort to decrease our financial deficit, H & DH has recently begun closing poorly performing stores. Business Operations: We are also struggling with logistics and general business operations. One issue is that the quantity of inventory we have in stock is 20-30% greater than our competitors’ inventory resulting in fruit and other food items often rotting in storage and needing to be thrown out. H & DH has also experienced numerous recalls including: 6,000 tubs of chocolate due product labeling not listing the correct ingredients, 2,220 packages of cashews because they were packed with other types of nuts, and 66,500 bags of our Expresso Coffee Beans because of labels displaying an inaccurate listing of ingredients. In all cases, the concern is that consumers could suffer serious or life-threatening allergic reactions. Lastly, we are only focus on selling products through our stores rather than using the

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