Commercial Fixtures Inc.

1
Commercial Fixtures Inc.

• By Kristi Bruner
• Elisha Simmons
• Andrew Windsor

2
Executive Summary

• Situation Analysis
• SWOT Analysis
• Business Resources
• Business Strategy
• How would you operate this business?
• Financial Projections and Budgets
• What is the Commercial Fixtures Inc. worth?
• Controls and Evaluation
• Recommendations about the investment
• What is the future potential of the business?

3
Purpose and Approach

• A general partnership among the three of us.
• Once the company is stabilized after the
  transition of owners, we hope to expand it
  considerably.
• We intend for the company to grow in employees
  and consequently profit.
• We dont wish to expand to more than 500
  employees so that we can maintain the title of a
  small business.
• This would help us be more competitive and
  effective while still reaping the benefits of our
  relatively small size.

4
Value of Commercial Fixtures Inc.

• Financially our company is excelling it is
  funding itself by continually making a profit, as
  well as the very expensive assets the company
  possesses which total to 1,958,524.
• These assets include cash on hand, inventory,
  property, the plant itself, equipment, and land.
• As the years go by there is an expected
  depreciation on the machines that will cause us
  to update and maintain them. This will be a
  considerable cost to our organization. As of 1997
  the cost of machines was 210,493 and has
  continued to rise so that machine costs this
  coming year are projected to be 248,030.

5
Net Sales
Years 1994-1997
6
Fixtures Shipped
Years 1994-1997
7
Total Employees
Years 1994-1997
8
Profit
Years 1994-1997
9
Number of Companies by Countries
10
Value of Commercial Fixtures Inc. Continued

• The human resource division is reputable, and we
  are hoping to maintain a majority of the same
  employees and to also send our mangers to a
  seminar to train them about our new ideas.
• Our employees years of experience and
  intelligence will assist with our rebuilding and
  maintaining the companys good reputation.
• Therefore, as we take in account every aspect of
  the business, we have come to the conclusion of
  2,073,733 for our bid.
• We determined this number by adding together the
  total assets (1,958,524) and the profit
  (115,209) made the last year documented.
• This bid covers all of the machinery, salaries,
  and also includes the potential profit of the
  company.

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Operation of the Business

• Once the company is stabilized, we wish to
  increase the number of employees.
• More employees could help produce the fixtures
  faster so that we could support more orders and
  ship them faster than before. This would be an
  increase in demand and it would help us to
  receive more profit and also expand our customer
  base of architects.
• Plan to create more flexibility for how we assist
  the architects and how much attention we can
  provide them.
• Now that we have addressed the increase in
  production, we can then focus on budgeting our
  time and resources available.
• We intend to keep the current shipping schedule
  and after observing its effectiveness, we will
  alter the process as needed.
• Through this, we need to determine what we want
  to focus on in order to maximize the amount of
  the market we will be able to serve.

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Future Potential

• We have researched a few ways to increase profit
  and enable the continued success of the business
  by utilizing marketing strategies more
  effectively to our customers.
• We also need to update the way we present
  ourselves as well as the products we create. We
  believe that we can expand on the types of
  fixtures that we produce.
• We see that we could display more design examples
  for architects to enable them to see what type of
  work we provide.
• The display could take place at an architect
  convention and be presented for a few weeks.
• This could assist us with acquiring more
  consumers and also help us to become better known
  for our work.
• Focus on conventions held in the cities where the
  Street of Dreams take place in order to better
  the chances of getting your work in one of the
  houses. Another possibility is to place an ad
  within a Street of Dreams magazine.
• This strategy could help us not only maintain our
  current success, but also become even more
  profitable.

13
Future Potential Continued

• Marketing Strategies
• Set up an interactive web site
• Model it like http//www.smartfixtures.com/shop/
• The architects could view previous designs,
  upload their blueprints and describe custom
  changes without having to meet with the company.
• This would enable us to market internationally
  more effectively.

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Recommendations about the Investment

• For improvement and performance, controls and
  evaluations are used.
• So that everything goes according to plan, staff
  should monitor production.
• Keep everyone on task and meeting deadlines.
• Give the owners accurate information on the
  execution of daily tasks
• Update the owners on where improvements are
  needed
• Make them aware of people doing an exceptional
  job and might deserve some recognition.
• To determine the companys success at any given
  time, performance analyses are required.
• One must evaluate the present state of a company
  when they take over for a previous owner. Through
  this analysis they can begin making plans for the
  future.
• Quarterly reports are essential
• Year-to-year correlations for comparison

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Conclusion

• After analyzing the financial aspects of the
  business, we found that it was in our best
  interest to invest and we determined that our bid
  would be 2,073,733.
• Once we take over for the company and are
  finished observing how it currently runs, we plan
  to install new marketing and expansion strategies
  to increase profit.
• As owners, we will become involved with the
  actions of the company and intend to decrease the
  problems that existed under previous management.
• Overall, we are optimistic about the future of
  this company!

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References

• Aktrin Furniture Information Center (2005).
  Retrieved November 8, 2005, from
  http//www.furnitureinfo.com/
• Retrieved November 10, 2005, from
  http//www.csmilan.com/
• Smart Furniture (2005). Retrieved November 8,
  2005, from http//www.smartfixtures.com/shop/
• Street of Dreams (2005). Retrieved November 8,
  2005, from http//www.streetofdreams.com/
• World Furniture Online (2005). Retrieved November
  9, 2005, form http//www.worldfurnitureonline.com
  /