Auditing of Havelock Company Research Paper Example | Topics and Well Written Essays - 2000 words

Auditing of Havelock Company - Research Paper Example The company might be interested in recording such expenses in administrative costs of the company rather than inventory. This will help Havelock achieve the increase in loss and thus claiming tax refunds. Havelock might not be interested in paying taxes to improve its cash flows. Havelock operates in a dynamic industry, which comprises of retail customers as well (Havelock Europa, 2012d). The choices and demands from the customers change very often which may lead to a decline in NRV of the inventory. There is a risk that Havelock may ignore to lower down its inventory valuation to NRV. Though the current ratio of Havelock is 1.4, it is facing liquidity pressures. Payments to the suppliers have also been delayed. The average period of payment to the vendor is 52 days as compared to 36 in 2011 (Havelock Europa, 2012b). The company is under pressure to meet the tough deadlines of the financers on a quarterly basis. In case, it does not pay the interest and principal due, the bank would be entitled to the whole of the principal repayment on an immediate basis (Havelock Europa, 2012e). Due to such pressures, the company has not announced any dividend payments. Amounts on charities have also decreased from  £ 900,000 in 2012 as compared to  £2,443,000 in 2011 (Havelock Europa, 2012b). The company has resorted to additional overdraft facilities in order to meet its liquidity requirements. More credit facilities have been opted for by Havelock (Havelock Europa, 2012d). The fact that the company will increase its production is still remote. It has just entered into an agreement with HP financers to purchase a new plant, which will increase its production by 50% (Havelock Europa, 2012a).  

See attachment Essay Example | Topics and Well Written Essays - 1500 words

See attachment - Essay Example Despite the numerous benefits derived from market segmentation, there tends to be various challenges, as well as barriers, which the use of market segmentation may pose. In the case of innovations, there tends to be several ways in which the organisation can overcome the problem of segmentation and customer focus (Dibb, 2005, p. 13). One of the problems that segmentation poses includes the identification of the market segments, which can be regarded as the most significant. The organisation is also faced with the challenge of identifying the strategies that can help in marketing the product, the desire to fulfil all the customer needs for customers who may not be within the market segment, as well as realizing changes that may take place within the market segment. In order to overcome this problem, the organisation should ensure that the market segment that it chooses can be reachable, easy to identify, as well as unique. This will ensure that Innovations categorises its customers ea sily, and it will know the markets that it should target (Cherneko 2011, p. 3). For Innovations, segmentation would also pose the problem of knowing how the organisation can reach the market segment, which it has chosen to target. Innovations may find segmentation a challenge with regard to this problem, especially if the organisation uses categories that deal with lifestyle patterns in choosing the market segments. ... ations should also come to the realisation of the dynamic nature of their markets, and ensure that come up with new strategies, which will be in line with the changes (Hunt & Arnett 2004, p. 8). Another way in which Innovations can overcome the problem of market segmentation and customer focus is through coming up with few market segments. The organisation should introduce few segments that can be easily managed and understood. This will ensure that there is no confusion in the market since the organisation will know its segments better. Innovations can also overcome the problem of market segmentation and customer focus by conducting thorough research (Hunt & Arnett 2004, p. 9). Research is essential as it would allow the organisation to know which market segments it should target. Market research will ensure that there is no misallocation of resources and staff needed to market the products. Market research also equips the organisation with the necessary information regarding the ma rket segments where the products would make high sales, as well as the segments that need certain products (Dibb, 2005, p. 17). The other strategy that Innovations can use in order to overcome the problem of segmentation and customer focus is through introducing regular changes to the market segments. Innovations should aim at defining the segments regularly in order to ensure consistency, as well as relevance of the segmentation strategies. The products should be tailored and developed to coincide with the needs of customers in the market segments (Weinstein 2006, p. 115). Innovations should also be aware of the emerging trends in the market and ensure that the market segments remain relevant to the new trends. Market segments have to be updated to avoid challenges that may result from