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1 Introduction This consultancy report is prepared for Holly Farm in order to improve its future business In the second part of this report Evaluation of Current Operations and Gillians Business Strategy and Conclusion Holly Farms operations will be critically evaluated in the aspect of current and future potential capacity constraints and any other operational problems Also I will discuss the feasibility of Gillian Giles strategy for the business there In the last part Recommendations and Action Plan I will show a recommended alternative strategy for the business and several solutions for alleviating its constraints 2 Evaluation of Current Operations and Gillians Business Strategy 21 Gillians Aims and Objectives 211 Sales Forecast According to Gillians forecasts while there will be an increase in farm shop sales by 50 there will be a decline in retail shops sales by 133 in 2004 Table 1 However these forecasts are unlikely to come true Firstly its retail shops sales has increased by 75 on average of each year and its farm shop sales has increased by 28 on average each year for the latest five years It may be unreasonable that she dramatically changes these recent growth trends on her forecast without any factors that could impact on both channels Secondly since the ice cream market in the UK is mature and stable Table 2 sudden changes of previous trend hardly happen excepting entering strong new players into the region spoiling the farms reputation hugely and investing tremendously on the marketing for its farm shop Moreover in terms of Holly Farms managing on its farm visitors this sudden change of the number of visitors could lead to collapses of its operations These reasons discussed above clearly show that Gillians demand forecast is not reliable Hence they have to forecast in the other way 212 Line Extension Gillian wishes to increase the number of ice cream flavours from four
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