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BGC Ltd is looking to the future and is keen to move the company forward. However there is some disagreement within the directors of the
BGC Ltd is looking to the future and is keen to move the company forward. However there is some disagreement within the directors of the company. An extract of the minutes from a meeting highlight some of the conversation which took place. Gio:We need to recruit more cleaning staff and sales people. Then we can take on more contracts and drive the business to be the market leader. Bev:But our competitors are undercutting us. In order to compete we have to continually reduce our prices. I think we should be leaving the retail sector - the High Street is really suffering and out of town malls are not as successful as they were. We should really consider moving into the domestic market. People hate cleaning and love coming home to a clean house. We could use our award winning cleaning products in domestic settings and keeping the office contracts as well. Cam:We need to do some analysis to find out which areas of our business are more profitable. Gio:If we moved to domestic cleaning we could continue to use the vans and cleaning equipment we already have, and our customers would pay us there and them. Cam:We need to do some analysis to find out which areas of our business we want to focus on. Following this meeting the following information has been made available. This consists of an analysis of the sales and gross profit for the years 2018 to 2021 showing the sales and gross profit split between the retail sector and the office sector. Report Requirements Using calculations to support your reasoning, critically discuss the companys plans for the future. Provide recommendations based onwhether BCG Ltd should i. Carry on in the retail and office sectors ii. Shut down the retail element and move into the domestic market. provide a critical discussion of the company's plans making justified recommendations for the directors
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