Case study: Intel Capital-The Berkeley Networks Investment.
I. What is the case about?
II. A briefing of the company's background.
III. The company City Furniture and Mattress was created by Rajeev and Baskar Singh in 2003, so that they had a place to store and try to sell their unsold inventory from their wholesale company. On January 2006 the father son team decided that the next move for their career was to explore the world of import and wholesale goods.
IV. What is the most critical issue facing the company?
City Furniture and mattress is concerned with profitability and competition from various local stores and big box chains. It is confronted with several decisions including closing the manufacturing facility and returning back to being a retailer, closing its Pickering location, continuing with the wholesale business or even closing the furniture stores and stepping away from the business.
Critical Issues:
• CFM’s Pickering location is low on sales which is thus reducing the company’s overall profitability. Also, the rent of the Pickering location has increased.
• The manufacturing facility has faced quality control issues and is not able to manufacture quality replica designs for complicated models. Hence, the manufacturing facility is losing money and draining cash from the retail side of the business.
Gfm is also facing a problem in hiring full time skiled lavor for the facility due to which companu canno supply products to its retail stores in a timely manner and forced to purachse thouse prodcuts from other manufacturers, thus affecting profitability.
Although the Toronto location is producing acceptable resuts there is a threat of marging srosioin due to declines in the industry pricing.
Increasing compeptitive pressures in the market place are making it difficult to thrive in the log term. ??? what are they
Singh and his father Baskar.
External:
1. problem of profitability and the competition the company faced...