SUMMARY CHAPTER 8

4.1 RECOMMENDATION

The company should go to the crisp market because Barker Ltd is not in a good financial position,because the low return on capital employed is considerably small and from Acid test ratio(0.3:1)shows the poor liquidity which may brings cash flow problems.Long run loans occupied 50% of the total capital employed,it exists risks.If business entries the market,they may cover the drawbacks,also the high level of possibility of success may bring more profit even though it is romaily`s market plan which can not be representative and over optimistic.Because the company`s USP gives the good information to consumers and may bring a lots of consumers as it is a niche market leads to the demand is inelastic and company can have more revenue.Cost on market research and product design are both important to analyse the market,innovate the products and extent the products range.However,the barriers of entry is high as 83% of the total market shares have constituted by 3 large firms,it can be a difficulty for moving into the crisp market.High loans should prepare to pay the interest.