I. Facts Given
The case is about Dahlia Furniture Private Limited, owned by Mr. Peter Lim who is the major shareholder, and Mr. Chua Boon Kang and Mr. Leong Sim Lam the co-owners.
The company engaged in furniture business in 1972 when the domestic demand for furniture has risen. The business was successful in its operation especially during the time when Singapore conducted a massive public housing programs. In fact their sales increased from $4,800,000.00 to $5,500,000 in 1980 to 1981. However, during that year, the company’s sales declined especially in 1983 in which it reached only $289,000.00, and somehow recovered in 1984. Contributory factors to the decline in sales include mismanagement of Mr. Lim. Because of this, reorganizations were happening and most of the employees resigned. Also furniture industry was very competitive. In order to restore Dahlia’s position, the owners are planning to increase the role of imports.
Is the company need to increase the role of imports or expand its production unit?
To come up with a good result of financial net Income if the company will increase the role of imports or expands its production unit.
1.To make a comparative study if the role of imports would be increased or expand the production unit. 2.To make plans on how to improve sales and how to acquire more income with less expense.
V.Evaluation and Recommendations
To gain a good amount of profit in the furniture business industry, importing furniture is one of the best choices to choose since it is relevant to any business man whether it be first timers or professional people on the field. But this business is not an easy task to do, because as you do the functions and the operations of the importing concept, it is probable to experience dangerous risk that would affect the business itself. The management of Dahlia Furniture knows that these...