WPCg 2 BVP Z #|x10cpisUxxx,e x6X@@Workbook Printer PlusWORKBOOK.PRSx  @0>KX@23<YXJCourier 10cpiHelvetica 6pt"^(44P(@@P(8(0PPPPPPPPPP,,Pdpttd t^^[^^t( Eɟt E-E^X落^^A^^^*s2e  The First Fifty Years ׃ A wise man once said that "Friends come and go, but enemies  sUX accumulate."}Xt4 sU ԍHoward Keele, No Good Deed Goes Unpunished, (London: Harper and Sons, 1975), p. 39.} The same can be said of the relationships that develop between a company Company  and its customersCustomers. The year 1989 marks the 50th anniversary of the founding of HALVA International. While many other import/export businesses have started in glory and ended in defeat, the HALVA International corporation continues to thrive. While there are many theories surrounding the success of HALVA International, the truth lies in the careful cultivation of customer relationshipsCustomer relationships and continued efforts to provide quality merchandise at affordable prices. In this report, the past, present, and future status of HALVA International are reviewed, with an emphasis on these characteristics as being vital to the continued survival of the company. The European Connection The year was 1939, and the rumors of warWorld War II had become a nightmare of reality. With the transportation of goods between many countries blocked, and the lines of economic communicationEconomiccommunication virtually severed, intercontinental business was at a standstill. "Suddenly, the entire face of economics changed to a survival industry. Manufacturing resources were transformed overnight into a war machineWar machine. Sacrifice of conveniences became the test of civil loyalty." It was an awkward, if not impossible, time for the birth of an import/export business. But, then, Bryan Metcalf was no ordinary individual. The Roots of Mail Order Realizing that crisis times called for an extraordinary effort,  sU@ Metcalf knew that his trade in oriental rugsMerchandiseoriental rugst4 One of the most lucrative businesses in Europe is the trade in oriental rugs. In fact, many a fortune has been accumulated in a relatively brief span of time by such noted individuals as Heinrich Salsberg, Giovanna Chiave, and Helen Manchester. was doomed unless he could find a way to secure transportation of the rugs to his customers. Concerning this bleak period, Metcalf comments, "It seemed as though there was absolutely no chance for economic survival. However, even in the darkest hour I received renewed strength and hope when recalling the sacrifices widowed mother was called on to make while raising 5 boys." % 0*0*  A Time For Reflection ă While the past provides understanding, the present provides reality. In this part of the report, we hope to give an overview of HALVA International that provides a moment of insight into the current direction of the companyCompany direction. Direction vs. Management The nature of an organization is often determined by the personality of its founder. In focusing on the nature of HALVA International, one immediately recognizes the influence of Bryan Metcalf, the man. Despite advice to the contrary, Metcalf has always maintained  sU that employeesEmployees should be given direction instead of management.X t4 sU ԍBryan Metcalf, "Nothing is Impossible for the Man Who Doesn't Have To Do It," Export Retailer, September 1989, pp. 5560. To that end, he has worked to give employeesEmployees a voice in both  sUH their job description and the goals of the company.*t4 Bryan often takes employees with him on business trips throughout Europe and America. Scoffing at the adage "An ounce of image is worth a pound of performance," Bryan maintains a low profile, giving the spotlight to deserving employees, while dismissing his involvement as negligible.* Maximizing the Organization However, in all the attention to employeesEmployees, the goal to provide quality merchandise at discount prices continues to give purpose and direction to the company. As indicated in the Operating Expenses table, that goal contributes to the recent venture into retail outlets. After the opening of several retail stores in 1989, sales increased by 50% during the last quarter. However, as demonstrated by the table figures, operating expenses were often more than twice those of the third quarter. X` hp x (#%'0*,.8135@8:14.04% TaxesB 35,500.00B/12,075.00B=194.00% RentB 29,600.00B/29,600.00B?0.00% PhoneBx!6,200.00B02,173.50B=185.25% MailBx!4,980.00B08,780.00B=-43.28% UtilitiesBx!9,060.00B02,500.00B=262.40% Office SuppliesBx!6,037.50B04,350.00B>38.79%   Totals/Average B421,862.50B.349,278.50B>20.78% %0*0*Ԍ31X` hp x (#While some expenses increased significantly, the overall average was well below the 50 percent increase in sales. This remarkable achievement is due, in part, to careful planning and the reliability of the estimates provided by Harmon/Weatherby Consultants, Inc. Not to be forgotten, however, is the solid base of mail order business that continues to provide capital for the retail venture. A comparison of revenues from both mail order and retail sales indicates that there is still a solid market of mail order customers, despite recent reports of fraud among some mail order houses.  0*0* <  The Next Fifty Years ׃ While the recent upswing in the growth of HALVA International is a welcome indicator, there are also potential problems that need to be addressed. However, if these needs are met, the company can look forward to a bright and exciting future through the decade of the 1990's and beyond. Expanding Markets From oriental rugsMerchandiseoriental rugs to imported jewelry Merchandiseimported jewelry , HALVA International has always provided a variety of merchandise to its customers. However, the variety of products has often been limited to those items that are a known quantity. Recent trends indicate, however, that there is profit to be made in areas such as oriental furniture"Merchandiseoriental furniture" and music boxesMerchandisemusic boxes. In fact, our research indicates that music boxes may become a longterm, profitable investment. Expanding Resources Whenever a company grows too rapidly, there is always the possibility that the needs of the customer may become secondary to the needs of the company. To make sure that each customer still feels important, HALVA International has developed a plan that reserves 10% of the net income each year for customer services such as telephone support, product safety brochures, and free babysitting for customers in our retail outlets. In addition, a special committee has been appointed to monitor the growth of the company to make sure that all the needs of company employees and customers are being met. It is felt that by appointing the committee, the good faith of HALVA International in its customers will be seen by the public as one more proof that when it comes to customer service, the customer is always right.