Beruflich Dokumente
Kultur Dokumente
=1.19 =
=1.26
Are these a priority at the moment?
5.0 Cash Flow
For the cash flow problem, South Yorkshire Newspaper should borrow loan from bank such
as short term loan. Short term loan can enjoy a lower interest rate, thus, will have lower
borrowing cost. Other than this, South Yorkshire Newspaper can also change supplier in
order to make a price comparison, get the lower price to save the cost. In addition, they may
also dispose the unused fixed asset; this may help to save the asset maintenance costs and etc.
Lastly, South Yorkshire Newspaper can rush the debtor payment. Get the shorter credit term
to pay the lower interest rate compare to longer credit term.
6.0Future direction
The future direction of the company will be focus on these few areas:
Implementation of new technology
As mention in the case, the machinery is old and may have a consequent high level of lost
production due to breakdown. From here, company could replace the machine which are
more technology advance and capitalized it. Capitalized the machine prevent company
from incurring high expenses on the year of purchasing the machine.
Level of advertising
So far, company faced with two problems which are advertisers are requesting the use of
multi-colour copy which at the present time is not available due to mixture of printing
technology, and new soft new mediums such as free newspaper.
Here are the recommendations for the two problems
1) As aforementioned, in future, company is going to replace the machinery which is
more technology advance. By having the new technology, company is capable to
fulfil the request from the advertiser.
2) Company focus more on the consumer preferences and try to differentiate themselves
with those free newspaper. For example, there are more content and information in
the newspaper compare to those which are free.
Change in consumer preferences
Based on the information, people demand on evening newspaper which contains major
national stories, major local stories, information on local events and local advertising.
Therefore, company has own teams of journalists which gathered local news and events,
this group people will retain and focus on the local news preparation and also the
information on local events. Company can also continue takes national news from several
national and international news agencies. For the local advertising, company can give
incentives to attract local advertiser to advertise in their newspaper, for example, discount
for advertiser who regularly advertise in their newspaper.
People who buy local papers dont want national news as they can get this more efficiently
using television... so these papers need to do something different... which i would suggest is
concentrate on local news and sports...giving them a niche market/ differentiation.