Sunflower Company Case

Looking ahead, there are 4 challanges for Sunflower Company ; ?Splitting the company up and / or selling a part of the company ?Retaining people ?Applying Information Technology ?Managing counrty or regional economic factors Timeline 1992-1994 : Start of the firm Firmstartedwith3employees;founder, accountant, salesagent. There washigh demand and low competition. In early 1990s it was diffucult to gt a loan from a bank, by 1994 banks started to give short term loans to new firms. The firm sold metal and many other products, even some sandwitches & snacks in first years.

Employee number . 3-11 Revenue : $15. 000 – $185. 000 1995-1998 : Expansion of the firm Bythegrowth,findingqualifiedemployeesbecameaproblem. In1997-1998thegoverment raises the salaries of government workers. Sunflower Company made some favours fort he wokrers and incresed the loyalty. Western suppliers began to sell the products with credit line due to the success of the company. Product line changed siginificantly. The firm shifted attention to tire repair & store display systems. Employee number . 17-28 Revenue : $366. 000 – $1. 576. 250 1999-2000 : Crisis period.

In 1998 Russia devaltuated its currency and this affected Lithuania. Retail sales fell 15%, capial investments fell 50%. These changes affected Sunflower company significantly. I became more diffucult to finance investments & purchases for the companies. For tire reparining, one solution initiated by Sunflower’s director was to make agreements with Shell, Mobil and BP for exclusive distributorship for motor oil throuh Lithuanian service stations. Besides, Sunflower Company was involved to the leasing process by learning the documentation for the tire material that it supplies.

For store display, the company was being pushed away and the management decided to enter furniture market. Although the crises grew worse, Sunflower Company had an agreement with a new store in Uzbekistan. Kitchen furniture market was was competititve. The company purchased multitask equipment with short set-up times. So, they got special orders with low prices. Besides, they have employed some experienced workers & managers from the bankrupt companies during crises. In 2000, the company won top awards in Lithuaia’s largest annual furniture exhibition for it’s kitchen furniture. Employee number .

36-48 Revenue : $1. 375. 000 – $1. 650. 000 2001-2004 : Recovery As economuy recovers, the deman increased and Sunflower standardized production process, improved quality & delivery times, invested $150. 000. For tire business, competition increased. After Lithuania became a member of EU, Sunflower revenue in furniture business increased 20% with the export. The orders increased but based on low labour costs. Employee number . 45-69 Revenue : $2. 100. 000 – $3. 700. 000 2005 – … :

EU membership Mid 2005, the director sold the furniture company due to the sompetition with Chinese manufacturers and the increasing labour cost in Lithuania. This was a right decision. Because new technology investment was necessary and labour costs increased faster than expected. The company then was allowed to improve repair support business, it provided all agents hand held billing/printing devices. In early 2007, the company installed GPS devices on all technicians automobiles, that improved the performances. The company entered Latvian market. And for future the focus is Poland and Estonia. Employee number . 58-38 (2008) Revenue : $3. 228. 000 – $7. 850. 000 (2008) Data (Facts) Recommendations Opinion.