Company - Profits from 20% of turnover to 1%. - Gross Margin 60%. - Central warehouse in Madrid.

- 2 product lines: Classic products: high priced fashion outsorced to exclusice supplier intensive work required Designer: Luis cousin 70% company sales Danish products: Medium-high price Exclusive rights 70% company sales

Competition - Several similar companies but with a lower quality image. - Largest competitor: Producer in Menorca. Clients - 750 points of sale - Multiply the price they pay to Bijoux up to 2,5 to arrive at their retail price. Sales Network - 17 non exclusive representatives (Madrid repr. is also sales manager) - Experts - 50 years old average - 10% commission on sales - Responsible of bill collection (but pay just with the commission) - Complain about incomplete orders Supplier (Danish) - Threat of being replaced. Supplier has done it before in UK, US and France. - Together with El Corte Ingls (has contacted our Danish supplier directly) are adding pressure in order to start selling on department stores. Risks of selling to department stores: A/R will increase Larger financial resources needed Adapt distribution to a new type of client Rental fees

 Excessive sales concentration in a single customer Brand at risk Action Plan If Danish supplier keeps pushing in order to enter stores departments and Luis does not accept, it is possible that the Danish manufacturer will replace us or establish their own branch. Must evaluate the impact on sales and focus on the other product line. Sales Nework: o Evaluate performance of each of the 17 representatives. o Try to make our representatives exclusive and reduce the number employed. Our representatives are selling 4-5 other brands or product lines and are more incentivized (higher commission?) to sell them than the Bijoux products.