Merton Industries Case

Merton Industries Bill Locke July 28, 2008 Situation Audit Merton Industries is a small producer of bounteousness spread oering. During the summer of 2000, Merton began to evaluate the idea of opening its have got dispersal center. During times of sparing proceeds, gross revenue grow more(prenominal)(prenominal) quickly. This whitethorn be repayable to more homes being purchased, and home testifyers having more expendable income to spend on their homes. The price of raw materials is positively correlative with the cost of storey coverings; when the price of materials increases, so does the cost. Advances in technology have allowed outgrowth in new types of synthetic materials utilize in products to jut outmly consumer needs. As styles and tastes change at bottom the industry, contrastive types of plunge covering will see a growth or decline in sales. A legal secrete that legion(predicate) manufacturers need to be informed of is that the synthetic materials should be flame-retardant, preventing a fire from quickly counterpane over the floor. The carpet and carpet sales industry, which consists of approximately nose candy manufacturers, had sales of to the highest degree $12 one thousand thousand and $18 billion at manufacturers and retailers prices, on an individual basis in 1999. gross sales increased 7% over the past year, which was segmented amidst contractors and retailers.

Retailers presently account for 74% of sales. The top ten companies within the industry produce 91% of sales, piece the top tierce dominated the industry, amassing 85% in sales. The largest companies are Shaw Industries, Mohawk Industries and Beaulieu of the States; Shaw is currently the worldwide leader in sales. Shaw consumes 22% of the securities industry alone, while Mohawk lags slightly hind end at 17%. nigh competitors have an advantage by failing their products nowadays to retailers to tighten costs, while former(a)s sell by dint of floorcovering wholesalers. Several manufacturers sell other floor coverings other than carpeting, allowing them to falsify some of their costs. During the 1990s, Shaw began operate its own retailer...If you want to get a full essay, stage it on our website: Orderessay

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