Berghaus’ Case Study :: Business Management Studies

Berghaus Case Study1) Berghaus is very successful business having an annual growth rateof 25%. This indicates that there is an increasing accept for theirproducts. They also have an export ratio of 50% meaning that theirdistribution rates are very good. Last year alone their per-taxprofits were 750,000 and a turgid amount of this money can, mostprobably, will be reinvested into the company for further development.Also, its pre-tax profits in 1991 were 750,000 which is obviously nota small amount, Berghaus distinctly mean business. By the sound of it,that number is only expected to increase in the years to come. It hasan export ratio of 1988-9 of more than 50%, which is the vastmajority, within the whole of Europe, meaning that its exportincreased by a great deal during those years specifically, and weassume it still increases in other years too, although mayhap not asmuch as between 1988-9.2) In the context of Berghaus, market differences mean many things.Berghaus currently condu ct sales through large number of countries,from Germany through the United Kingdom and Switzerland, and as aresult Berghaus have found out that the world cannot be treated asthough as one market. Each country has its own customer preferencesand may have accredited social attitudes to a certain type of clothing,and these are cognize as market differences. Due to this Berghaus has todevelop a certain product for a specific country and then modify thatproduct or wholly reconstruct it for another country. This as aresult means higher costs are involved in research and development andalso contrastive advertising methods would have to be implemented. Thismarket difference has meant Berghaus have had to operate quickly andefficiently to design, produce and distribute the product across allthe part of the world, beating all opposition and this is obviouslyvery difficult for Berghaus.3) There are many different reasons for the success of Berghaus, andthese can be mainly change integrit y into four parts, Production, Finance,Marketing and Management.Production is simply the fundamental part of the company, without itno product would exist to sell. Designing new products is what makespeople want a certain product and Berghaus have strategically produceda wide range of products meaning that they will be able tosuccessfully cover the different fields in the market. This means thatthey have more areas for money coming by having more units andproduct innovation is an essential key t their success. Production hasalso been economised by the introduction automated production withcontinual processes. This allows an easy and flexible method to