Berghaus’ Case Study :: Business Management Studies

Berghaus’ Case Study 1) Berghaus is very successful business having an annual growth rate of 25%. This indicates that there is an increasing demand for their products. They also have an export ratio of 50% meaning that their distribution rates are very good. Last year alone their per-tax profits were  £750,000 and a large amount of this money can, most probably, will be reinvested into the company for further development. Also, its pre-tax profits in 1991 were  £750,000 which is obviously not a small amount, Berghaus clearly mean business. By the sound of it, that number is only expected to increase in the years to come. It has an export ratio of 1988-9 of more than 50%, which is the vast majority, within the whole of Europe, meaning that its export increased by a great deal during those years specifically, and we assume it still increases in other years too, although maybe not as much as between 1988-9. 2) In the context of Berghaus, market differences mean many things. Berghaus currently conduct sales through large number of countries, from Germany through the United Kingdom and Switzerland, and as a result Berghaus have found out that the world cannot be treated as though as one market. Each country has its own customer preferences and may have certain social attitudes to a certain type of clothing, and these are known as market differences. Due to this Berghaus has to develop a certain product for a specific country and then modify that product or completely reconstruct it for another country. This as a result means higher costs are involved in research and development and also different advertising methods would have to be implemented. This market difference has meant Berghaus have had to operate quickly and efficiently to design, produce and distribute the product across all the parts of the world, beating all opposition and this is obviously very difficult for Berghaus. 3) There are many different reasons for the success of Berghaus, and these can be mainly divided into four parts, Production, Finance, Marketing and Management. Production is simply the fundamental part of the company, without it no product would exist to sell. Designing new products is what makes people want a certain product and Berghaus have strategically produced a wide range of products meaning that they will be able to successfully cover the different fields in the market. This means that they have more areas for money coming; by having more units and product innovation is an essential key t their success. Production has also been economised by the introduction automated production with continual processes. This allows an easy and flexible method to