BUS 361
October 17, 2011
With this opportunity, Heather would be making the best use of the changing trends in the clothing style of professional women who are looking for new stylish, yet professional looks for the workplace. This is a great opportunity for Heather because of the large potential for growth in this fragmented industry and because of the large market segment with almost $5 billion in sales. The short selling cycles (5 cycles per year) make sales and profits very volatile, and the firm could obtain high yields within shorter periods of time, but if the products are not to the customers’ liking, the company could be left with a large sum of unsold inventory. Although Heather set a professional project schedule, she did not follow her projected path, which …show more content…
Evans also quickly proceeded with the rental of a business space to more accurately assess future risks while formulating a business plan, and although she wanted to lead the design technicalities, she did not have the best design proficiency. Her recruitment policy also has some associated risks because her assistants are completing most of the work without a higher level of commitment to the company. Positive relations with important providers in the industry such as distribution channels, suppliers, and showrooms, represent a very important factor for success, but she failed to present her strengths and weaknesses on this matter. While projected licensing revenues were emphasized, Heather did not analyze the effects of indiscriminately name licensing during the 1970s. A competitive advantage for this business concept and protection from copy cats was not mentioned in the plan either and cash flow assumptions were unclear. We know that the margins are high for Heather’s company and that sales are volatile, but she could have included a sensitivity analysis to demonstrate the difference between the best case scenario and what is most likely to