Fine Home Furnishings of Kazakhstan

What are the principal, and secondary problems faced by Mr. Voinov?

One of the principal problems is quality control in the production of home furnishings for export. In addition another problem was quality standard of domestic demand. Last one depended on psychological reasons: to switch on and off higher quality standards only required for export. However, both sides of one problem could come true due to taking into consideration of technological environment through a realization of new automated technology. New technologies create new markets and opportunities. Companies that do not keep up with technological change soon will find its products outdated. And they will miss new product and market opportunities.

Naturally, using new machinery is not solution of all quality control problems (QCP). As technical specialist, I want to say that main idea of this QCP is right labour management. Machinery can’t operate without people. You should try in organizing this people. At the same time they have to be good at their work. Mr. Voinov hires workers for up to six months as “trainer”. It is good decision for solving staff question. Certainly, it touch demographic environment.

The secondary problem of FHF Company is focused on natural environment. Marketers should be aware of several trends in the natural environment. It involves growing shortages of raw materials. So FHC Company has to find solution in new progressive artificial materials. On the other hand it could provide to increasing pollution. Industry will almost always damage the quality of the natural environment.

And one more problem is seasonality of export demand.

Why is the business of home furnishings a cyclical and a seasonal business? How can Mr.Voinov solve the “cause” of the problem?

Seasonal demand in the Northern markets was during fall only which had cyclical nature. The seasonality is explained by demographic environment, i.e. by geographic shifts in population. Americans, for example, are a mobile people with about 14 percent of all US residents moving each year.

During spring-summer period there takes place holiday season. It makes changing consumer spending patterns. People spend more money on entertainment than on purchasing of home furnishings. Changers in major economic variables such as income, cost of living, interest rate, and savings and borrowing patterns have a large impact on the marketplace. Mr.Voinov has to invest more time on careful study of economic environment in the Northern countries.

Is cash-flow problem in the home furnishing business and would the lack of it affect the company’s ability to pay higher salaries and wages?

Due to instability on export market company had cash-flow problem. Especially because FHF Company is going to shift for the export business. Company should to involve domestic market to decline dependants on export or search new foreign customers. On the other hand the home furnishing business just views the marketing environment as an uncontrollable element to which it must react and adapt. It passively accepts the marketing environment and does not try to change it. FHF Company has to take a proactive stance toward the marketing environment. Rather than simply watching and reacting, it could have to take aggressive actions to affect the publics and forces in its marketing environment. Company should hire lobbyists to influence legislation affecting its industries and stage media events to gain favorable press coverage.

By the reason cash-flow problem, company is not able to pay higher salaries and wages. Increasing in salaries will affect the cost. Demand on product will suffer and it will involve as a whole decreasing production volume. It will be collapse for company.

Consider