Microsoft Word peachtree case study
ANALYSIS OF SUBJECT COMPANY
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- Shareholder of Shares Percent
- Total 55,000 100%
| 4.0 ANALYSIS OF SUBJECT COMPANY 4.1 Brief History Peachtree Plumbing, Inc. has been in operations for over 17 years. The business was Incorporated in January of 1989 as C‐Corporation in the state of Georgia. The company was founded by Reginald Jones who operated the company until his death in 2000, when day today management was taken over by his son Mike and his wife Shirley. The company has been capitalized with 55,000 shares of common stock. Ownership is as follows Shareholder # of Shares Percent Mike Jones 30,000 54.5% Shirley Jones 20,000 36.4% Mark Jones 3,000 5.5% Jill Jones 2,000 3.6% Total 55,000 100% Peachtree Plumbing, Inc. has no subsidiaries, but does have an affiliated company. The Jones Family Limited Partnership owns the company’s facilities and leases the facilities to Peachtree Plumbing, Inc. The Company has occupied the same premises since the opening of the business at 5529 Red Bluff Blvd. in Atlanta, Georgia. The Company’s primary focus is providing plumbing service and fixtures to the Atlanta metropolitan area as well as parts of northern Florida. Under the leadership of the company’s founder, Reginald Jones, Peachtree was strictly a service company. Residential work comprised 95% of the company’s business. Commercial business arrived exclusively through referral. Upon Reginald’s death in 2000, the company’s revenues held steady due to the reputation Reginald had developed over the years. To grow the business, Mike and Shirley recognized that the company would have to open new distribution channels. The decision was made into Increase their marketing efforts Page 54 of 141 towards the General Contracting sector and expand into the northern part of the state of Florida. Commercial new construction jobs are bigger ticket items that small independent plumbing contractors cannot bid on due to bonding requirements. To that end, the company led by Mike’s efforts increased their involvement in trade association meetings. This networking has led to larger jobs in the commercial arena. The company has been a consistent performer in terms of revenue over the past five years. For the fiscal year ended June 30, 2002 (two years after the death of founder Reginald, sales were $3,529,000. The company has not seen a decrease in sales since. The 2006 year closed with the company having its best sales year ever with $7,295,000. Mike and Shirley attribute this jump to the increased marketing efforts taking root and commercial business picking. A more complete financial analysis of the Company will be considered and discussed in Section 4.8 Company Financial Analysis. The Company continues to operate as it has over the past few years and there are no plans to change its focus on the consumer retail business. Download 0.84 Mb. Share with your friends:
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