Wednesday, 4 November 2009


Overall the farm seems to be in a weak state. Tow main options: to sell and moving into the crisp market. There are many factors that success depends such as their finance, percentage of risks which they will face, demand of crisp and barrier to entry the market which is high because it is oligopoly market (80-83% share control by 3 largest firms).

My recommendation is that any business always face with many risks to have high profit. All of their shareholders are proud of their family business, they should move into the crisp market. However they should research about their new market clearly again because some of their information is not clear and sure. Crisp market is a oligopoly market, therefore there is a high barrier to entry. They must to have enough finance if they don’t want to have problems with their cash-flow and their loans. They will have two more workers if they want to move to crisp market. Therefore they should teach them and train another 4 workers as well. They are new in crisp market so they have to follow another competitors’ s price in first time. After customers know their brand name, they should change their price to compete with them.

Thursday, 24 September 2009

Finally we got first internet from the time we came back. It is better for our education. We can start doing daily blog form now. Cheers every body ^^

Monday, 21 September 2009

How can EF make more profit?

Nowadays education is the most important of life. Billions dollars is invested in education every year. People know if they don’t have good education, they won’t have good job and good life. Many investors know it is a great investment in this credit- crunch , so they try to use that profitable.
EF is one of them, but they are the oldest and longest group opened about 40 years ago. They have a lots experiences and agencies around the world. Each year, there are thousand students apply into EF ‘s courses. They have many kinds of courses, so students can choice them easily. For example, short-time they have English , exchange student, academy, foundation,…. Long-time is A-level, IB, university,… Their schools are in around the world: Oxford, Torquay, Cambridge, New York, Boston,… and hundred agencies in places which have high demand for education.
EF was opened a long time, but on the first time they only a group help students go to UK for studying and teaches English. Nowadays, their business is going up, so they have more trades. In those trades, they just a new member. They have to do a lot things to improve and competition.
They are doing many things to people know their reputation. There are advertising, discount, scholarship, hiring good teachers, building new school and residences, having good relationship with political power where they want to invest and where they are investing. I think the most important thing they can easy make more customers is have good image with their old students. They are from around the world and they tried EF ’s teaching, so they can introduce and invite their relatives and their friends to join EF program. That is free and very good way to have more customers.
Also they can have suggestion boxes which they can know their students complaints and know what bad things are happening. However, they need to solve that problem as quick as they can or non student will believe them any more.
They also invest in internet. Most of students want to have good internet to play game or search information/ new. There are many complaint EF’s wifi is slow. They can have separate wifi which students must pay and it is strong. I think many students want to have that and 5 or 10 pounds is no problem for them.
With long time courses like IB or A-level , they should help student find a suit universities and make them believe those have future. They shouldn’t think about themselves , for example only think how to increase their income as fast as they can, they should think about their students’ future. They should have close relationship with universities to help their students who want to apply to those universities. They also eliminate bad teachers to have better education environment.
My essay maybe not enough, but it is my opinion. I hope another students can comment to help it better. Thanks

Tuesday, 15 September 2009

Hurbank plc

Celton has a population of 7000 and an unemployment rate of 11 %. It isn't a high rate ,but when hurbank plc moved to China, that rate would be gone up so much because they have 3 factories in there.Nowadays, there are many companies want to move their factories to China or another developed countries because they have cheap worker price and cheap materials.That is making a difficult problem to developing countries. There are a lots workers lost their jobs and reduce those countries's GDP.
80% of all emplyees is a good rate because it made them control easily.They had high pay of factory floor staff :18000£ pa.3% of labour turnover pa is a low rate. The money which they paid for worker when they closed their factories is too low. There was only 35000£ total. It was almost 2 people pa.
The rate of unemployment in the region of the new factory in china is 14%.It is a low rate in a country has over 1 billion people. The money which they pay for new labour is lower than Cellton's labours 9 times.The costs to relocate and set up is £22 million and net present value of investment is £ 5.7 million, that is a big money.They had to prepare if they wouldn't want to have a problem with their cashflow.
Their sales revenue and net profit was increased with a big number. I think they shouldn't change their factories's location.If they want to have more profit, they can cut some group of products which have low profit and increase produce their strong products.For example they can can cut theit shirt production because It have low sales revenue and high fixed costs: £15000000.
We can see when they moved to China their variable cost is decreased and fixed costs is decreased as well.It makes break -even lower .The negative thing is they must pay more costs in delivery....haiz....