Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Marketing strategy chapter 1
Strategic marketing 1st chapter
Assignment 3: marketing strategy
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Marketing strategy chapter 1
Assessment Task 1
Review and familiarize yourself with Australian Hardware general business information:
Australian Hardware's business has had a pretty good record of growth for years, reflected by its successful stores. For the last three months the business has been performing really bad. That’s why the owner of the company assess the business performance in order to identify the areas that need improvement.
Review and evaluate business performance data and information:
The business performance has been really bad for the past 6 months across all sales categories and stores as well as the hardware product sales are down. In total they are down up to 19%. This happens by the vast expansion that the team had over the past years. The total expenses going up, too. The overall profit is declining.
Review and analyze
…show more content…
That’s why their customers are spending more money in their products. But it is not increasing the volume of sales. Customers feedbacks are very positive and up to date, even though the number of member of the loyalty club declined. The customer survey shows that customers enjoy their shopping at Australian Hardware.
Review and analyze management and staff meeting summaries:
During the past five years the total number of delivery bookings was outstanding. The reason was the fact that customers tend to look for cheaper price from competitors during the past year. The team has adjusted the operational budget to match with the operations --> push sales.
Test the validity and reliability of data and information you have used to identify and analyze the potential business problem/s or issue/s in the step before. Check sources of information provided and their credibility and reliability:
Based on the research on Australian Hardware's business information which I gathered form the team. The information is valid enough to be used as the base of this research.
Choose one of the business problem/s or
By lowering selling prices across the board, Opossumtown, Inc. reduced its inventory turnover ratio, cutting the number of days to sell inventory from 174 days to 104 days; that is a 40% improvement. Opossumtown, Inc. also cut the number of days it takes to collect its credit accounts from 68 to 44 days, again that is 35% better than the previous year. The company is able to do this while cutting its debt ratio by 10% and increasing its current ratio by 25%, making it appear more favorable in terms of liquidity. As promising as this may look, this is not the whole picture. Opossumtown, Inc. shows an 11% decline in gross profit as well as operating income ratios, and a 3% decrease on the profit margin ratio. The decline of these ratios is a result of the company’s new strategy of decreasing the selling price and increasing its marketing and selling expenses. Opossumtown, Inc. made some noteworthy advancements with the implementation of its new plan for 2014. However, based on the assessment of the balance sheet, income statement and the ratios, the corporation did not achieve its goal to increase operating income by 6% and net income by 4%. Opossumtown, Inc. was only able to grow its operating income by a little more than half of one percent and net income by
To improve the business you should consider changing to a democratic leadership. This way staff members have a say in the changes made and can give their input on the decision. This will also help them gain their trust for the company back. Gaining trust is the best way to help the business at this point and all problems link with it. (toolbox, Leadership Styles: Democratic Leadership
The major issues facing the company comprises of there being multiple businesses with different demands. There are separate levels of performance and success as well as growth chances for each of the sector and the firm needs to tackle with issues in each of these divisions (Dube, J.P., 2004).
There are many responses that a company can have to troubling economic times. They can first weather the storm and survive. They can back up and get driven out of business, or they can grow. The economy has been in recession for many months. It is the job of our company to identify things that can help businesses to make it through these times and hopefully prosper.
In medical equipment industry, firms mainly compete on differentiation. Product quality and safety, product variety, customer service, and R&D are the main factors to achieve differentiation. Hill-Rom provides wide variety of high quality and safe products and services to its customers. Unlike its competitors, Hill-Rom mainly competes in the health information technology solutions, and medical equipment management services. (Duncan, Hebert, Rose, & Zoch, n.d.) In addition, it is needless to say that Hill-Rom has huge R&D investments, as well.
After going through the appendix 1 briefly it shows that Australian Hardware’s business has been successful from years and having growth in business every year. According to the appendix business is underperforming from last 3 months which makes the owner of the company to assess the problems. Cause of this underperformance company owners wants to identify the areas need to be improved so that the
Albertson’s also has also taken steps to boost it average sales. Albertson’s goal is to fill every shopping cart to as full capacity as possible, as well as getting to know their customers a lot better. They have installed have installed a $50 million NCR Teradata where house in order to analyze customer data, and what type of products certain customers primarily purchase. They then plan to use their customer loyalty cards, so that they can match individual buying preferences against store inventories. Also through technology this data is available for analysis minutes after customers leave the store. This is a very valuable resource, because now Albertson’s may be able to reach its goal of having the right products, on the right shelves, at the right time.
The Hefty Hardware case study presents multiple critical issues that will impact both short-term and long-term growth and development of the company. The first issue is the communication gap and lack of integration between stakeholders in business and the Information Technology division. The second critical issue is the lack of shared knowledge and each department working on projects in essentially silos. The third critical issue is internal company politics driving the executive-level decision making process. Solutions to the above issues will need to be addressed with utmost urgency to ensure Hefty Hardware’s foothold in the marketplace.
b) The difference between budgeted and actual costs and sales was when we kept our bubble teas in the dining hall, one of the dining hall’s staff dropped one of our bubble teas (pure green tea of medium size and it cost $6.00) down to the floor and it was broken because all the bubbles and the water were pouring out on the floor. “I went to her and asked her if she could pay for it, but she said nothing” I was so upset because I really did not expect something like this to happen to our business. Another terrible problem that happened was one of our members bought our bubble teas, but he only paid $5.00. the reason was because he did not bring enough at the time.
...ant improvement. The decline in property, plant, and equipment may be hurting Rondo and contributing to overall inefficiencies. Sales are growing but profits are not. Rondo's costs are too high and need to be reduced. In addition, inventory turns are degrading and inventory reduction strategies need to be investigated. A major problem for Rondo is the number of days it takes to collect accounts receivable. Significant focus is required in this area to free up cash, which can then be used to invest in property, plant, and equipment. These problems areas contribute significantly to an inefficient operation. This inefficiency inhibits profitability at Rondo and has led to a loss of investor confidence. Rondo's sales and net income have grown year over year and if the company can improve its efficiency in the areas noted above, investor confidence can be recaptured.
Business has been doing good with an emphasis of selling new cars as the principal business of the dealership
Beginning with our unfavorable sales volume variance, the company sold less quantities of salsa than forecasted. This could be due to a lack of or poor advertising, which did not garner the attention of more customers. Another aspect that we must acknowledge was that the salsa was priced higher than budgeted. That reason could have made customers not purchase more of the salsa or purchase a competitor’s salsa that was
The organizational chart of Australian Hardware involves store managers, technicians, hardware products service attendants and other managers. In this regard, the store manager is said to be the owner of the store who is also responsible to accomplish the role of the operations manager at the store. 3. Analyze information provided about each of the decision options facing Australian Hardware in Appendix 2.
• Too aggressive business expansion. • Stagnant stocks. • Lady Fuller and her people are inexperienced when it comes to the retail business. • The stores have limited sizes available. • The profit margin is horrible.
I like to begin with how simple mistakes in operations could lead to financial impacts within the businesses. From my perspective, there are several problems within the organization that are in need of restructuring. For example, departments not working as whole, which leads to discrepancies and repetitive work, resulting in loss of revenue. The following