The paper "Company Growth and Performance in the Industry" is a great example of an assignment on management. There is an economic upturn, according to partner Jo Wadley; cloud 9 is under pressure from its parent company in the U. S to increase its current revenue by 3 %. During economic upturn, companies are under pressure to increase their revenue to better or more than their competitors. A further look at their income statement indicates that their revenue had increased from $32,114,278 in 2009 to $ 34,300,042 in 2010. His is an indicator that the customer’ s disposable income has increased. Is the business by developments in other countries Cloud 9 imports its shoes from China.
This means that developments in china including fluctuations in the exchange rate and the interest rates will have an overall effect on the prices of their shoes. Is the industry labour intensive The shoe industry is labour intensive meaning that it requires a lot of labour to produce its goods and services. Like any other industry, it faces some issues relating to labour especially because the industry employs a lot of unskilled workers.
One of the major issues has been strike and go-slows due to low pay for the workers. Company growth and performance in the industry In relation to revenues, cloud 9 performed much better as compared to the rest of the industry in 2011. The company’ s revenues were $27 895 728 which much as compared to other major competitors such as Nike who’ s revenue was $24, 000, 000. However, in terms of profitability, the company is doing below its competitors in the global market. Volume and type of transaction Cloud 9 has a high volume of transaction considering that they import from a production plant in china and then sell them to major wholesalers in department stores.
The type of transactions in cloud 9 is a wholesaler to retailer transaction. It imports shoes from china and then distributes them to major stores. Are clients operations centralized or decentralized The operations in cloud 9 are centralized meaning that decision making is concentrated on the top tier of management. Jo is concerned about the recent decision by the top management of Cloud 9 to increase the revenue of the company by 3%.
This is a major decision which has been made by the top management on behalf of the other stores. Is the client business cyclical Cloud 9 business is not cyclical since it deals with shoes which are bought all seasons. What is the susceptibility to fraud This is the likelihood that fraud risk will happen. Cloud 9 has a high volume of transaction a characteristic that can make it susceptible to fraud. Moreover, the company is under pressure to increase its sales by 3% by its parent company. Competitive environment Client’ s products and changes in selling strategies Cloud 9’ s major product is shoes which it imports from China and distributes them to major stores.
There may be changes in selling strategies due to the advancements in information technology. Moreover, there have been significant changes in sales since their revenue had increased from $32,114,278 in 2009 to $ 34,300,042 in 2010 Client’ s major competitors The client’ s major competitors of cloud 9 are Nike and Addidas. Nike and Addidas have been in the shoe business long enough and their brands are known all over the world.
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