reasons for loss last year (2015)...
-prices were reduced e.g. in 2010-2011 thier wardrobes cost £600 and in 2014-2015 the avrege prie forthat wardrobes being produced in the uk are making a huge loss ( - 12000).
thier prices may have fallen because they want to make more sales and people are more likely to buy cheaper products. also due to falling prices of timber.
-gain more profit, the uk factory is currenly generating a loss
downfall- curency issue ' stengthing against the pound' may cause them loss.
breakeven point- 1200/180-120=200 bedside table/cabinets.
limitations of a breakeven gragh...
the forcast figures may turn out to be different. the figures also usually only realste to one product. also assumes that all output is sold.
fiixed costs- 12000
varible costs- 120
total costs- 1212
eurozone-countries that use the euro. swenden are in it and so are the uk, meaning no more additial import costs.
globalisation- increading intergration of trade between 1 or more countries
international trade- firms located in one country produce/sell goods and services to another country.
out soucing- firms pay another business in a difernt country to produce goods/ services on theier behalf.
multinational cooperation- firms that have factories/ offces in differnt countries around the world.
global branding- products become known and sold around the world.
staffing- firms move staff between location in differnt countries.
benifits of globalisation- increased consumer choice and avalibility of products that cannot be produced locally.
job title-founder and marketing director
ltd- private limited company. cs only sell shares to family and friends not on stock market. sercutiy but has to publish accounts anyually.
started the business 1980 at craft fairs made in a garage then it grew so he moved to…