Change at Merton Industries Business Plan by Nicky

Change at Merton Industries
An analysis of whether Merton Industries should establish a personal distribution line.
# 148868 | 1,284 words | 1 source | MLA | 2011 | US
Published on Nov 10, 2011 in Business (Companies) , Business (Business Plans)

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The paper addresses the possibility of Merton Industries establishing a personal distribution line. The paper outlines Merton Industries' four available courses of action and provides a SWOT analysis of the company. The paper includes an evaluation of the appropriate alternatives and concludes that the most suitable solution does not revolve around the implementation of a direct distribution system. Finally, the paper outlines a possible change strategy for the company. This paper contains a table.

Situation Review
Evaluation of Appropriate Alternatives

From the Paper:

"At this stage, Merton Industries is confronted with four available courses of action. First they could choose to entirely eliminate distributors (both wholesale as well as retailers) and open their own distribution centers and retail facilities in which they would directly sell their products to the final customers. Secondly, they could eliminate the wholesalers and become the ones that distribute the rugs and carpets to an estimated 4,000 retailers, who would sell the products to the end consumers. Third, they could reassess the efficiency of their wholesale distributors and work together to improve utility and marginal profitability - this alternative was brought about by the fact that 80 percent of overall sales are generated by 50 percent of retail accounts. Finally, the fourth alternative is that of implementing no change and continuing operations as they are.
"With annual sales of an estimated $50 billion, the U.S. rug and carpet industry is continually growing in terms of sales revenues, but mostly due to increasing prices as the marginal profitability remains low. Products are designed for both organizations (26 percent) as well as individual consumers, 74 percent. Competition is however intensifying and the American products register reduced percentages at an international level. Manufacturers spent reduced amounts of money of marketing operations and strive to reduce costs through the creation of scale economies. There are three companies in the U.S. which account for 85 percent of industry sales - Shaw Industries, Mohawk Industries and Beaulieu of America."

Sample of Sources Used:

  • Kerin, R.A., Merton Industries - The Wholesale Distribution Decision, Edwin L. Cox School of Business, Southern Methodist University

Cite this Business Plan:

APA Format

Change at Merton Industries (2011, November 10) Retrieved May 23, 2022, from

MLA Format

"Change at Merton Industries" 10 November 2011. Web. 23 May. 2022. <>