Director - Corporate Finance

Date: 2015-10-07; view: 423.

Director - Public Relations

You feel strongly that Benson must go down-market and compete directly with Levinson Brothers. Young people are pouring into the South, so Benson must aim its marketing at the 15-25-year-old consumer. After all, these days, young people have plenty of money to spend. Therefore, you want Benson to:

1. redecorate the stores in bright colors, blue and yellow perhaps

2. change its sales approach by gradually offering more goods appealing to young people

3. introduce new types of racks and counters which allow self-service

4. have eye-catching window displays to attract teenagers and young adults.

You will, of course, have other suggestions for attracting young people.

You have no doubt that the company must cut costs and increase its cash flow as quickly as possible. Benson needs cash to reduce its loan capital – this is much too high - and to finance its future development. To cut costs, the company must reduce its work-force by 20%. The Group must also have a new distribution system, with one or two large centers supplying goods to all the stores. This will reduce stock levels. You have plenty of ideas for improving the cash flow. For example, the stores could increase the profit margins on goods which were selling well. In addition, they should be ready to buy up cheap, good-quality merchandise. This could be sold in a special part of the stores, known as The Market Place.