| Sindrella and Sisters Ltd. Sindrella and Sisters Ltd is a well-established Family Business with a turnover of around £8-10m annually. This is a children's toy business, specialising in teddy bears, but also produces other quality soft toys and equipment for playgroups and nurseries such as slides and sandpits. The main business is in specialist teddy bears for example for Rugby Club mascots (approx 80% of the custom is in this area). The playgroup and nursery based products sell well, and are proving to be a small but thriving sideline for the business.
There are over 200 different styles and types of teddy bears. These range from some which are quite simple, but others, which are elaborately dressed. There are 35 employees, of whom 19 are labourers, 4 are apprentices, together with 12 skilled and semi-skilled machinists. The normal business practice is to allow semi-skilled workers and apprentices (under supervision) to produce basic teddy bears using the sewing machines. It takes time to set up the machine, and so these are produced in batches of 10. Given the type of business, it is very difficult to predict demand, but a batch of 10 would normally be sufficient a year's sales for that particular bear; however some bears would require several ‘runs' over the course of 12 months.
Dressing of the bears is carried out by 4 skilled finishers, and is done ‘on demand', and would normally take about one-five hours depending upon the complexity of the task. This is done using already prepared teddy bears, drawn from stock. The work is labour-intensive, sometimes using machinery, sometimes by hand. All the skilled finishers are highly creative and fiercely proud of their work; Sindrellas has an excellent reputation for producing a quality product.
In addition, the business prides itself on being able to deliver the completed bear, however complex, within one week of ordering.
The play group and nursery business does not require skilled finishers to carry out the tasks, although currently one of the qualified finishers needs to be employed to supervise the other workers. There is the possibility of an increase in trade here, but the business is reluctant to cope with these extra demands, because it would reduce the time available for what it sees as its main line of business.
Last year, the company refurbished two of its machines at a cost of around a quarter of a million pounds. The company is currently considering purchasing new machinery to simplify the task of producing the basic teddy bears. This machine, stores a fewer range of designs, but the switching time between designs is minimal. The cost of the machine is £850,000. This new machine would run in addition to the current machines, most of which have a significant life span.
Kapok and fur fabric are bought in from eight specialist suppliers from around the country. Sindrellas takes delivery of them about twice per week; normally there is a delivery from each supplier every month. These are standing orders, some of which are recent, for example the more popular cheaper type of kapok was reviewed less than 6 months ago, but the orders for the other more expensive fur fabrics have been in place for several years. Sindrellas has a credit account with each of the suppliers, most of whom expect payment within three months of delivery (some will impose penalties if this does not occur.)
All teddy bears are sold to individual customers, normally on credit. This can be done via an intermediary (such as a retailer) or direct to the customer. Occasionally a customer will pay by cash or by cheque. As the purchase of a bear is a particularly personal event, Sindrellas does business by discussing the design of the bear with the customer, producing it, then ensuring that it is manufactured to the customer's satisfaction, and finally sending the invoice within two weeks. At the bottom of the invoice there is a request that the customer pay promptly, and some do so; however many can take some time to pay. In several cases customers gone out of business and have not therefore made the payment. Due to this each year Sindrellas has to make substantial provision for bad debts
The entire administration is run by Joan Sindrella herself, together with her son. They are the sales department, credit control, purchasing and production management team rolled into two. At busy times it is difficult to keep track of everything, and much of the production management tends to be delegated to the senior finisher, who is also a family member.
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