Holden PLC

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  • Holden PLC
    • Holden are thinking of re-locating back to Bowton
      • Thinking of using a mortgage to purchase a factory or renting an existing one.
        • If you rent the factory and the business is bad in the area then it is easier to relocate than if you had a mortgage on the factory.
      • Jobs will be provided to the town of Bowton which will reduce un-employment
        • Reducing un-employment to provide the whole area with more money because of multiplier effect.
          • Relocating from abroad is called inward investment. This can benefit society by providing jobs and improving infrastructure.
            • Holden are thinking of re-locating back to Bowton
              • Thinking of using a mortgage to purchase a factory or renting an existing one.
                • If you rent the factory and the business is bad in the area then it is easier to relocate than if you had a mortgage on the factory.
              • Jobs will be provided to the town of Bowton which will reduce un-employment
                • Reducing un-employment to provide the whole area with more money because of multiplier effect.
                  • Relocating from abroad is called inward investment. This can benefit society by providing jobs and improving infrastructure.
                    • Buildings, roads etc.
                  • - People have more money to spend in the local area. - Workers pay taxes to the government.
              • Bowton council are thinking of giving grants to businesses who set up in Bowton.
                • This would encourage more businesses to relocate there.
                  • It also increases jobs to reduce un-employment.
            • Buildings, roads etc.
          • - People have more money to spend in the local area. - Workers pay taxes to the government.
      • Bowton council are thinking of giving grants to businesses who set up in Bowton.
        • This would encourage more businesses to relocate there.
          • It also increases jobs to reduce un-employment.
    • Holden are thinking of relocating back to Bowton.
      • Holden need to provide dividens to share holders
        • A part of the business
          • The shares
        • The profit that is given to the shareholders.
        • It depends on...
          • If they are specialised or if they're just employed for family
            • If they are employed because they are family so they aren't specialised...
              • They won't know what is the best to do for the business and they might make decisions which will prevent the company from earning any further profit.
                • They are not trained in that specific area therefore are not specialised.
          • If they are specialised family workers...
            • They will be more experienced in that job so they will know how to run the business in that sector - giving the business more profit
      • Specialist directors can make better decisions that will lower costs.
    • Holden use specialist workers that arce highly skilled, so difficult to replace.
      • Good that they're trained so that they're good for the job.
      • Bad that they may have to retrain people and spend more money.
    • Holden sell cushions between £15 and £88 by adding value.
      • Holden are considering changing their filling to Fair Trade.
        • Only a little bit more expensive but can add lots of value.
          • USP
            • Unique selling point - something that makes Holden PLC different from other brands. (Fair trade filling)
        • Good news for people who want to buy fair trade products. They would therefore spend more on getting the product they want - adding value for the company.
      • Quality/ value ranges
      • Limited editions
      • A Holden Brand
      • They make money from making the product for a cheaper price and selling it for more.
    • One of Holden's customer's is Bromley furnishings.
      • Sales have been poor for Bromley furnishings. Their cash flow forecast predict liquidity problems as soon as a March 2015
        • Liquid cash - where they have sell everything until they have got enough money to pay back the bank. eg. car etc...
    • Some of Holden's competitors want to increase an import tax on cushions made outside the EU
      • The money you pay to get a product from one country to another.
      • Other countries might retaliate by putting a tariff on products. This might affect UK companies who export, causing a loss of jobs.
        • Other countries may not be able to accept products from different countries and so it loses profit for Holden and may lose jobs.
      • This will make imports more expensive and cost Holden more because they would be taxed because they manufacture in China.
        • It depends on...
          • The cost of manufacturing in China as it may be worth it.
        • Reduced Profit
    • Holden PLC use batch production to manufacture their cushions - allowing for greater flexibility
      • ADVANTAGE
        • More Flexible - easy to change the product made.
      • DIS-ADVANTAGE
        • If you want to change the design, you have too change the machinary which is expensive
      • BATCH   PRODUCTION is making batches of similar products eg. all one type of cushion (£88) then changing it to make a different type (£15)

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