Sample Essay

Electro-Light is a new company that will manufacture and sell Light Emitting Diodes to a wide range of customers including retailers, wholesalers and companies manufacturing products based on Light Emitting Diodes. The founders of the company are currently in the business of manufacturing electrical appliances for use in offices and homes. The earning portfolio of the current electronic appliances company is quite impressive with a stable trend of growth. The parent company has been in the business for 15 years and has displayed a steady growth rate in terms of sales and net profit.

The company has strived to decrease the cost of raw material to ensure higher levels of gross profit and eventually higher levels of net profit. A component which is used in almost all electrical appliances is the Light Emitting Diode which the company currently purchases from outside vendors. The high growth and earnings potential in the Light Emitting Diode industry has motivated the management of the company to establish an organization to produce and sell Light Emitting Diodes. In order to diversify and increase the scope of business the founders have decided to apply their knowledge and expertise in electrical appliances to the newly formed Light Emitting Diode Company.

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