Finance Essay

364 words - 2 pages

Report on Diversification of Young Food's Main Business of Mayoneese with Frozen Food

2012-13 (Rs. In Million)

2013-14(Rs. In Million)

Percentage Increase/(Decrease)

Sales

180

245

+36%

The Company operates in the highly competitive food industry, competing with other companies that have varying abilities to withstand changing market conditions. Any significant change in the Company's ...view middle of the document...

Such changes may result because the Company's competitors may have substantial financial, marketing, and other resources that may change the competitive environment. Private label brands sold by retail customers, which are typically sold at lower prices, are a source of competition for certain of our product lines. Such competition could cause the Company to reduce prices and/or increase capital, marketing, and other expenditures, or could result in the loss of category share. Such changes could have a material adverse impact on the Company's sales and net income.This 36% sales increase is mainly due to the less competition in the market.But one of the competitor English Mayonese is competing with us and will be a future threat for this product category.To overcome this future competition, the management should diversify its business towards Frozen Foods Category.By implementing this project the company sales will be increased and the risk of depending on only mayonnaise sales will be minimized .The company uses initially the extra space available in the current office for this new product line.

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