ter, which were at 107% of total revenue (56071).
             „X The industry average for total expenses over revenue in the furniture industry was about 27%
             „X Unit cost of SDI bird feeder was high. The company was unable to sell its products to retailers at a lower price. Bird feeders from other rivals were much more cheaper compared with SDI. The high cost of SDI products was mainly due to its low production volume. Proportion of fixed cost shared by each unit of its product was high.
             2. Lack business knowledge in business and financial management
             „X SDI was unable to produce a marketing plan and a business plan for potential investor. This shows that the management team does not have good business knowledge.
             „X The management team was in fire fighting mode most of the time. This can be seen when SDI has to sub-contract the production to ease the demand without prior planning.
             „X Put in more money to keep the business going without carefully analyzing the finance report to identify the problem.
             3. Inefficient production execution and distribution
             „X SDI could not meet customer demand and had to intentionally slowed sales to allow production to catch up with demand.
             „X Production involves a lot of manual work at the back-end assembly to correct parts that are not within the tolerance. This shows that the solar feeder is not well design ¡V it is not designed for manufacturability. This results in low production output, difficult in maintaining the product quality and delayed in shipment.
             „X SDI does not have a good purchasing and quality control procedure to control quality of incoming raw materials.
             „X Ambiguous maker positioning - The solar feeder was positioned as a high end/upscale product, however SDI would like to position it lower to compete with competitor product to generate more sales. There was no clear market positioning in SDI for the solar feeder.
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