Business Proposal

Bowland rugings Ltd Bowland rugs Ltd is a major producer of carpets inside the UK. The keep company was interpret oer by its present parent company, Universal rug Inc., in 1993. Universal Carpet is a giant, goodly co-ordinated carpet manufacturing and selling business, based within the USA and with interests all over the world. Bowland Carpets operates within the UK in various grocery store segments, including the high-pitched value slue and industrial carpeting reach hotels and top executive blocks etc. and in the domestic (household) market. Within the last mentioned the natural selection is reasonably wide, ranging from luxury carpets down to the cheaper products. Industrial and contract carpets contri exactlye 25% of Bowland Carpets total yearbook swage which is soon £80 million. During the late 1980s the turnover was growing at 8% per annum, but since 1992 sales suffer dropped by 5% per annum in real terms. Bowland Carpets has traditionally be en cognise as a producer of high quality carpets, but at militant prices. It has a powerful bell ringer name, and it has been competent to protect this by producing the cheaper, lower quality products under a secondary brand name. It has also maintained a unassailable relationship with the many an(prenominal) carpet distributors throughout the UK, particularly the mainstream retail organisations.

The recent descend in carpet sales, partly ecological niche induced, has disturbed the US parent company. It has recognized that the increasing tightfistedness within the European carpet manufacturing sector has led to wa r-ridden contention within a low growth indu! stry. It does non believe that oversea sales growth by Bowland Carpets is an charismatic proposition as this would compete with other Universal Carpet companies. It does, however, consider that vertical integration into retailing (as already in force(p) within the USA) is a serious option. This would give the UK company increase control over its sales and reduce its exposure to competition. The chairman of the parent company has...If you want to get a wide-eyed essay, order it on our website: OrderCustomPaper.com

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