Cima Ceecee Top

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  • Topic: Textile, Cotton, The Profit
  • Pages : 5 (646 words )
  • Download(s) : 180
  • Published : May 4, 2013
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Issues 1
Ignorance of marketing

For
• Would reinforce / strengthen CeeCee brand in an increasingly competitive industry and goodwill.

able to convince customers that you have the best product or service

• TV and fashion magazines could reach millions of potential new customers, especially if the same ads are repurposed in each country.

• The emarketing approach could inform customers of new lines and encourage them back

• Capital flows to where it will get the greatest return, expanding the total size of the economy to its maximum level.

Against
• Current system seems to be working very effectively so no need for the change in budget

In short term this could effect the profit earned as large amount needed for budget

• Viewed in isolation, increasing the budget to competitor levels would reduce profit by 6 × 14 = €84m. To cover this with an operating margin of 22.8% there would have to be an increase in sales of at least 84 /0.228 = €368m.

Recommendation:
Througth the profit would reduce to €84m which causing the company ceecees to increase the sales by €368m but by looking toward the sales in futhure will iincrease and also will create goodwill in public so bigger maketing budget is important

Example of the ads

Issue 2

Environmental issue regarding packaging

Plastic bags

For
* The durability,
* strength,
* low cost,
* water and chemicals resistance,
* welding properties,
* light weight are advantages of plastic bags.

against
* Plastic bags are made of petrochemicals, a nonrenewable resource.

* Plastic bags are flimsy and often do not stand up as well as paper or cloth.

* When disposed of improperly, they are unsightly and represent a hazard to wildlife.

* Conventional plastic bags are not readily biodegradable in a sanitary landfill.

* Plastic bags can cause unsupervised infants to suffocate.

calico bags
Calico is a usually a cotton fabric that's unbleached and not fully processed Advantages
* The lack of bleaching and processing makes it kinder to the environment as less chemicals are used * The fabric relatively cheap to produce
* Cotton is very strong and durable
Disadvantages
* Not water resistant unless chemically treated
* The growing of cotton is very water intensive
Recommendation :

Therefore the calico bag or cloth bag has more for advantage than disadvantage compair to the pastic bag so the company ceecees should stop producing plastic bags and start producing calico bag for shopping.

Example of the bag :

Issue 3

Using suppliers in Europe vs Asia

For

Europe

• Possibly higher quality
• Quicker lead times more able to deliver at short notice
• Lower distribution costs
• Less environmental impact freight from Asia is often airlifted

Asia

• Lower labour costs
• Lower fabric costs
• consideration in other field such as design n makeating •Increase profit
•Employment opportunity in asia
•Company may pay lower taxes

Against

europe

• cost of labour higher
• to much of labour union problem

Asia

• lack of direct supervision
• distribution n delivery cost high
•Political risk
•Do Not meet Quality standards
•Delay in production causing lack of avaliable product

Recommendation:
If the company like to increase the profit than it can go with asian supplier by doing this they would get bretter profit figure plus with direct supervision n stickt policy they can achieve better quality n faster production so quicker lead time

Issue 4
Dependence over the IT system.

For
Online shopping

•Online sales are potentially an important growth area

• convenience of being able to shop 24/7

It system

• Ability of shop managers to update orders using PDAs while walking around their stores supports and improves CeeCee's responsiveness to customer trends

• Integrated system allows production of weekly and daily control...
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