After that discuss the payment terms with the

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they are able to offer some discounts if we purchase more goods from them. After that, discuss the payment terms with the suppliers to check if they could extent payment terms before making an order. Therefore, Padini can determine the priority of debt to check the amount should be paid to creditors first. Strong sales will not come out with high income, so we recommend Padini to reduce cost without reduce quality and raise the price of products in order to increase sales income. Nowadays, a lot of companies are concentrate in deducting cost overly thus result in neglecting the quality of product due to reputation of company decrease. In my opinion, Padini should compare the price carefully with every supplier and double check the quality of product before making an order. On the other hand, Padini can organize some seasonal promotion event if the products are low in demand or outdated due to those outdated garments. It will lead to excess inventory and occupy space, end up will affect resources wastage indirectly. In addition, Padini should put more effort in maximizing shareholders' wealth through paying dividends or leading the market value to increase. Shareholders wealth is a process of increasing business current value and bringing higher return as more as the company could towards shareholders. It is a capitalist society that emphasis in the long term goal objective which will make Padini to become a sustainable business. When the market 20
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value is increased, it will attract more investor to purchase Padini shares , so the price of shares of Padini will increase as well. This is a valuable long term investment as Padini will raise more funds to turnover while the share price raise during the peak period. Lastly, it will increase goodwill of Padini. There is not consist of any perfect company in this world, every company is still continue learning and keep finding ways to improve themselves in order to provide the best service and product to their consumers. Therefore, Padini should try their best to improve the overall performance to give the best service to their customers. Bonia From the analysis, we shall understand that Bonia Corporation Berhad is facing the difficulty in managing its inventories and having a high selling and distribution cost in 2015 compare to 2014. The problem is Bonia was over-focused in expanding its business oversea by spending a huge amount of funds on advertising in order to improve the brand perception to worldwide and neglected the current sales problems. (Tang Wei Lynn, 2014) Moreover, the perception of the investors has turned bad due to the lower profit of Bonia. However, they did not lower their expectation for the future earnings growth towards Bonia. Therefore, Bonia should make some improvements in order to gain back the confidence level of the investors.
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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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