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Company City Furniture and Mattress Case

Essay by   •  November 30, 2013  •  Essay  •  653 Words (3 Pages)  •  1,730 Views

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The company City Furniture and Mattress was created by Rajeev and Baskar Singh in 2003, so that they had a place to store and try to sell their unsold inventory from their wholesale company. On January 2006 the father son team decided that the next move for their career was to explore the world of import and wholesale goods. Due to the fact that the father son team lacked experience in this field didn't help their venture and also the lack of key capabilities cause the business to become sort of a lost cause. It also didn't help that this venture started off on a bad note. Rajeev attpetmed to make a purchase of 90 solid-wood dinning room sets, but his lack of experience quickly showed. Apon arrival of the order the Singh noticed two things. One being that the chairs he say and the furniture show in china looked to be one piece chairs, but the ones Rajeev received where in piece and would require assembly before being shipped out. The second issued he faced was the fact that the he assumed that the tables would come with a removable piece called a Leaf. Instead Rajeev received solid tabletops measuring 90 inches witch would make the tables to long for most of his customers. So due to these unfortunate mistake and with nothing either Singh could do as neither area of concern was formally articulated in the purchase contract the father and son sold what they could and ended up buying a small location just outside the GTA in hopes of selling their left over stock.

Although that is a lot of hard ship to handle at opne time there was some good the came along. He spotted a locationg that was one block from the their previous location. The new location was 25,000 square foot but in order to obtain the space they would have to settle on a agree for a long term less. Due to the previous move Rajeev felt it was best to go into the furniture business full time and due to the good success of his new store he quickly opened two more 20,000 spuare foot stores in whitby and pickering Ontario. Although they quickly closed the whitby location in 2005 do to poor performance.

Rajeev decided top open up a manifauring plant so that the company could start to produce product for their own location and start to out source thief product to more store on a global scale. Unfornatly for Rajeev the plant didn't pan out the way he had planned. Quickly after opening how found him self-facing quality control issues and producing quality replicas of complicated furniture models seemed to be a more difficult task that they had hopped for. Due to these failures on the manufacturing side of things it was costing the company more money that they had hoped for and it started to take money away from the retail side of the business.

Due to the fact that the Toronto location was still producing a good profit was really the only reason that the company was still operational.

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