Haafren

In: Business and Management

Submitted By JPutmon
Words 901
Pages 4
Business Analysis: Haefren Baum
“Show Me The Money”
Christy Lopez
Johnathan Putmon
Harikrishna Patel
Nikhil Dargani
Darrell Springer
Rayhaan Malik

Financial Analysis and Introduction to Loan Structuring
Professor Hadiye Aslan
February 16, 2016
Name of the Business
Haefren Baun
Nature of the Business
Haefren Baun is a retailer of furniture located in Germany. They have been purchasing furniture from the furniture manufacturing company, Wiegandt, which manufactures high-quality furniture. The retailer was once a partnership that was established in 1965, but later became incorporated in 1970. They have been purchasing furniture from Wiegandt since 1968. The company began operations in downtown Cologne but later expanded to three additional outlets in Rhineland.
Marketing Analysis
Haefren Baun’s product is high-quality furniture, where the company is focused on the German market. Business was booming until 1993, which then turned to a bust due to consumer confidence slipping. This leads to a decrease in demand for furniture, causing the demand cycle to experience a downward trend. The decrease in demand can be derived from the fact that the economy had declined by 1.2%. By the end of 1993, the sales figures were DM 18,647. The sales had decreased by approximately 19% from 1993 to 1994. Sales were on a steep decline and to entice customers, Haefren Baun had to lower their prices on the furniture. The reasoning behind this was also to maintain the sales volume. In 1995, the economy was in its early stages of recovery. Aside from the economic bust, other European furniture retailers began to enter the German market. Haefren Baun’s competition now included Backhaus and the other European furniture retailers that entered the German market. This intensified matters from bad to worse. The company felt pressured and needed to expand from their operations in…...

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