Haefren Baum Business Analysis Essay
Last Four digits of student ID: 1491
Name of Business: Haefren Baum
Nature of Business: High-end furniture retailer
Haefren Baum is a furniture retailer, established in 1965 and was incorporated in 1970. Haefren Baum receives its merchandise from Wiegandt GmbH Cologne, a nearby manufacturer, whose business relationship equals over twenty-seven years. The company has one retail location in Cologne, Germany and three recently constructed outlet stores in nearby suburban areas. Demand and product sales are influenced by consumer discretionary income. In 1993, an economic bust in the German economy resulted in a major dip in GDP. Demand for the industry is cyclical and is influenced by the overall …show more content…
Haefren Baum’s strategy of selling product at lower prices seems to be ineffective in generating profits. The firm’s operating activities can be misleading, although it seems that it’s improving, the net figures are still negative. The increase in investing activities is explained by the recent construction of outlets, and is shown in the buildings and equipment account. The recent buyout from the other investors is shown in the payables from stockholders. Financing activities seem to be the source of funding for the firm.