Florist A&J Harvard Case Solution & Analysis

Business Details

Florist A&J is a two year old business in the market. It sells diverse range of cut flowers. The business is located at Park Towers, Karachi. The products offered include Daisies, Lilies, and Mixes Bouquets, orchids, roses and sunflowers. It also has special flowers for events such as birthdays. It also offers made to order bouquets having flowers. The details about product category is given below:

Daisies

The name comes from English translation day’s eye. These flowers are an excellent symbol of love, family and friendship. These flowers can be sent to say Happy Wednesday.

Lilies

This category includes stargazer lilies, Peruvian lilies, calsla lilies, Oriental lilies and other varieties with a diverse range of colors. The flowers in this category shows happiness and sophistication. It also displays stylishness.

Mixed Flower Bouquets

There are standard mixed flower bouquet to decorate one’s home. These bouquets are available in variety of themes and colors to suit one’s loved ones. These bouquets can be used to make one’s home beautiful in special occasions and parties.

Orchids          

These flowers can add to the elegance at one’s place.

Roses

This category includes variety of rose’s flowers that can help to convey one’s feeling. The category includes sorbet roses, assorted roses, purple roses and other varieties.

Sunflowers

The uniqueness of our farm grown flowers can bring life to one’s life. The variety includes warm sunset bouquet, floral devotion, and floral embrace and so on.

Mission and Goals

Florist Ltd aims to provide variety of flowers arrangements for customers. They aim to decorate their homes, parties and occasions with an excellent combination of flowers that the business has. It also wants to make customers enjoy the personal experience when they interact with our representatives. As far as financial targets are concerned, it aims to increase its market share by 25% and achieve 12% or more of the net profit margin over three years period.(Blossing Buds, 2015)

Structure of Florist Ltd

The florist A&J is a partnership between Ali Saleem and Jahanzeb Haroon. Both of them are first cousins to each other. The store where Florist Ltd operates has three rooms with monthly rent of Rs 95,000 being paid. It has three employees.  Two of them are women and are customer representatives. They have been paid Rs 25,000/ month and an accountant is also employed at the monthly salary of Rs 40,000.  The accounts of the business are sent monthly to Ali and Jahanzeb and they divide the profits according to the ratio of Capital contributed that is 50%:50%.

Business Model

Florist A&J source its flowers from many areas throughout the country. The main cities where flowers are bought are Karachi, Hyderabad, Lahore, Rawalpindi and Islamabad. It mainly depends on Pattokimandi for most of its flowers and varieties. These flowers are put together by Florist A&J. Some of these combinations are made on the orders of the customer. Presently, people who comes for shopping to Park Towers buy our products and the word of mouth of the quality of flowers have been very good. People are not delivered the flowers if they demand. Instead, they are given a specified time to collect their orders from the shop.

The shop is located in the high profile area where quality matters more than the price. Therefore, the quality, variety and the great combinations are at the heart of Florist A&J. Standard combinations of flowers are developed by Ghazal, a representative at Florist A&J. She has a vast experience of 8 years in the market. She is also the first cousin of Jahanzeb and Ali Saleem.Florist A&J Case solution

Industry Analysis

The industry of the floral industry in Pakistan is conducted through PEST analysis. PEST analysis shows the political, economic, social, and technological factors affecting the industry. In Pakistan, there are many intermediaries before the flowers reach to their final customers. These intermediaries include Producers, Auctioneers-cum-commission agents, Retailers and then consumers.

Political factor
Political situation of the country is deteriorating every day. The law and order situation is not very encouraging. High interest rates and frequent power and gas shortages is also causing problems for businesses to operate. In Pakistan, it is also difficult to obtain loan because loans are only guaranteed to individuals which are wealthy persons and smaller businesses do not get funds to flourish(ashokrana, 2011).........................

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