Is Al Satter Furnishings Decision to Expand the Company a Sound Financial Decision that Can Increase Its Profitability - Case Study Example

KEA is the most powerful firm – in terms of its market position – in the Home Furnishings & Housewares Retail industry (Hoovers 2010).... IKEA has become popular for ‘the design and layout of its stores' (Griffin 2006, p.... 44); at the same time, the low prices of its products – compared to similar products of competitors – has been a key reason for the firm's high level of sales – as of the particular industry – within the global market....

The paper studies the careful analysis of the global turndown, its effect on the market and the industry of luxury goods in particular.... This study is being carried out to identify and describe the luxury fashion goods sector; to evaluate the impacts of global financial crisis on the luxury fashion goods market; to track how the fashion goods companies are opening up new measures like online selling with a purpose of forwarding their business....

Retail compatibility refers to the maximum advantages that a retailer is able to enjoy by locating its business near to other shoppers (Zimmerer, Scarborough and Wilson, 2008, p.... Mareno, Castillo and Masere emphasized that the location decision for a retail business largely depends on technology factors such as communication and network facilities too....

When relationship marketing is effectively implemented, clients, workers, processes, and technology work in tandem to increase profitability and reduce operational costs (Kotler et al, 1999).... This chapter presents background information to the area of study and its significance as well as outlining the research problem and questions that abide in this exploration.... BackgroundLike customer relationship management (CRM), relationship marketing is well recognized and widely accepted in managing and nurturing an organization's interactions with its clients and surrounding environment as well as in increasing sales prospects....

According to Tesco's estimation for the year 2008, by taking the full ownership of the TPF, Tesco would be able to increase its annual profits to £1 billion from £240 million (News Release, 2008).... Tesco's Expansion to Full Service Consumer BankingOn the acquisition of RBS stake and TPF's expansion into full-fledged retail banking in the coming years, Sir Ted Leahy, the COE of Tesco plc reflected, 'As consumers look to make every pound work harder it is a good time for Tesco to expand its presence' (BBC, 2008)....

However, after a decade, the joint venture came to its termination with the Tesco gaining the full ownership of Tesco Personal Finance.... n July 28, 2008, Tesco, the supermarket retail giant announced that it had come to an agreement with the Royal Bank of Scotland (RBS) to buy its 50% stake in the Tesco Personal Finance for a sum of £950 million (News Release, 2008).... he acquisition will help Tesco to make its expansion from financial services that revolved around an assortment of popular financial services and products to full-fledged retail banking...

t has become an important way for firms to expand their product portfolios and gaining new markets.... its headquarter is in Cheshunt, Hertfordshire United Kingdom.... The ladder of success for any firm is 'growth' which can be achieved either by expanding existing resources or introducing new products and services.... The ladder of success for any firm is 'growth' which can be achieved either by expanding existing resources or introducing new products and services....

he cash budget of the company is as shown in Table A belowT.... surplus means the cash inflows, based on the prepared cash budget, are greater than the cash outflows of the company for a particular period.... On the other hand, a deficit means the cash inflows are less than the cash outflows of the company for the same period.... Further excess could also be used for long-term investments of the company like buying a new property, plant, or equipment....