First and foremost bonia can try to have a bundle

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First and foremost, Bonia can try to have a bundle deal promotion as to provide a short-term boost for the company. For example, Bonia can bundle the several products together into a package with more value like “Bonia bag with matching wallet for RM500”. Somehow, we cannot look down for the benefit of sales promotion because it could produce the excess money which might useful for the future growth of company. If the company is doing well in financing the short term assets, it will be able to cope the uncertainty and reduce the burden toward paying the short term debt. In addition, bundle deal promotion likely to build a higher compelling value proposition compare to the individual product. In brief, this action assists Bonia to sell off their excess inventories and tend to improve the market liquidity. Besides that, Bonia should improve its innovation in order to create something new that haven’t exist in the market as to combat the rival. However, the introduction of new product is riskier but the motive can lead to a survival in competitive market. Otherwise, Bonia can consider to incorporate with other industry by producing a differential product 21
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with its own expertise . For example, the Bonia competitor, Coach has collaborated with Disney to introduce the new Mickey Mouse series leather collection. Hopefully, it can inspire Bonia to make something different to draw the attention from the customers. Apart from that, Bonia may be can rise the percentages of ocean freight in order to cope with the high distribution cost. Cost of ocean transportation of products is cheapest compare to others transportation and to find a space on cargo ship to store things is not really difficult, more significantly, the shipping cost is shared by a lot of other cargo that is on the same ship. ( Hariesh Manaardiar, 2013)Besides that, the implementation of this action is also considered a way to improve the CSR’s strategy because air freight will give a Carbon Footprint to the environment by emitting the greenhouse gases. With this, Bonia can gain a “FOC” promotion due to the good public image which created by this implementation and so the advertising cost can be saved. In a nutshell, Bonia Corporate Berhad should not only focus on the future growth, it also need to put attention on the current issue for achieving its mission and vision. E) Overall conclusion with justification on the company which is worth to invest. From the findings, we can conclude that Padini is the worth to invest because padini manage to control its inventory which results in its quick ratio to increase greater than Bonia. Besides, the debt ratio and debt to equity ratio for Padini is lower than Bonia, this indicates that Bonia has a relatively higher willingness of taking rish and relying on debt in generating profit. Overall, Bonia seems to have higher gross profit margin but lower net profit margin when compared to that of Padini. In conclusion, Padini will be better off than Bonia in terms of investment choices because it can provide higher dividend taking into account its net profit margin.
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  • Summer '17
  • ms lau
  • Financial Ratio, Generally Accepted Accounting Principles, Padini Holdings Berhad, Padini, Bonia Corporation Berhad

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