Royal Printing and Packaging company

Royal Printing and Packaging Company

Problem: How will the new management increase the company‘s sales, that will generate larger net income?

SWOT

Strengths

- The new manager “Jose” being a fresh graduate knew new trends, ideas and tactics beneficial to the company. He has lots of ideas and plans for the future which makes the company adaptive and globally competitive to the business world.
-The company has no substantial liabilities. Thus the company has enough financial capability to run business. Having no liabilities means that all sales they have generate goes directly to their net income.
-Equipments being a high quality and first hand use, will last long. With its equipments being branded and first hand use, the life span of these will sure last long, which means that the company doesn’t need to purchase new machineries rather spend for maintenance that cost less rather than purchasing a new one.
-The value of the machine increases as time passes by. As time goes by the equipments residual value increases, it doesn’t mean that there is a need to sell these to generate income rather, if time came that the machine was already obsolete, sales that would be coming from these will give a gain for the company’s future benefit.
-The company is a sole proprietorship. Being with this type of business, the owner doesn’t need to consult with its other partners with regards to the decision-making for the company. Wherein there will only be a one- man decision for the entity.
-Jose, being the son of the owner, knows the nature of their business. Who else can be suitable to manage the business? Having their business running for almost two decade, he already knew how he can manage it, nonetheless, can seek help and advices from his father.

Weakness
-Company depends solely with the drugs company. Generally, the company is only dependent from the income they generate from its clients which happens to be the Drug Company only. How can