In-depth research and analysis needs to be conducted on other companies that have created similar successful programs. They need to determine what the breakeven point will be, and when these new products will start generating a profit and then make the decision on whether or not it’s worth the investment. Issue 5 Lack of planning CanGo is in rapid development, but at the same time lacks of any sort of planning. CanGo's management team cannot seem to reach a viable solution for the future development of the company. Recommendation 5 CanGo needs to make a comprehensive analysis and then decide on a long-term development plan.
Reactive change occurs due to outside pressures on the business these may include a perceived threat to the company or a new opportunity arises out of the blue. Proactive change is when the business actively seeks to modify its practises or work place environment. Proactive change is normally more controllably because the business has been able to plan it. Reactive change can be a bit more chaotic until the business has been able to adapt to the external force. Internal forces can be the business getting new equipment or a restructuring of personal and external forces are changes in one or more
If he relocates one of the stores he could also lose customers as well. The internal weakness include not wanting to hire outside of his family and the timing if he relocated one of his stores which he could lose current and potential customers due to the opening of West 9. He is not sure of his ability of running two stores either . External perspectives The characteristics of this industry are that with similar companies that are larger it greatly affects smaller companies with the cheaper prices that these companies can offer to customers. The firm’s strategy for differentiation is to be able to provide exceptional customer service by react quickly to competition
The ability to increase sales and stores in America relies on customers’ preference in buying JCP products hence; the strategy is subject to dealing with customers’ satisfaction first before addressing their expansion strategy. The ability to introduce more brands to the global market through the re-organization of the departments is seen to be a proper step to achieving the corporate strategy in globalizing the business. However, this would be hampered by stiff competition from the three major
A search firm generally cannot and will not approach executives it has recently placed, and the firm may have agreements with its own clients that limit its ability to provide the information about the employment opportunities at their companies. In order to find its strengths, a firm must evaluate its functional areas. By analyzing the successes or the failures in relation to the firm’s resources, management are allowed to discover why the firm was successfull or why it failed in the past. Some opportunities require the large amounts of capital just to get started. Money may be required for R&D, production facilities, marketing research, or advertising right before a firm is able to make it's first sale.
However, continuing the 60% dividend has already prevented Bessemer from turning down positive NPV projects, and will continue to stunt other growth opportunities. When only considering future growth, cutting the dividend to 20, 30, or 40 percent would be a wise decision for Bessemer. Retained earnings would increase, allowing for increased investment, the addition of assets, and subsequently higher income. While this decision makes sense on that front, it would do nothing more than lead current shareholders to sell their shares. At present, Bessemer’s shareholders are hoping for a higher dividend and cutting it would only upset these shareholders.
For instance, a downturn in the economy might not immediately cause the market for luxury goods to go flat. Increase in tax rates would also contribute to changes which affects both the business and its customers. Technology: How quickly a company can adapt to new technology can mean the life and death of a company’s future. Not adapting quickly enough could mean they could be left behind by their rivals. Section 2 – Understand the purpose of supporting change in a business environment 1.
I have made propositions to improve the situation with immediate impact before it has disastrous consequences on the future of the business. Part A. We would now examine keys factors in depth to put the status quo into a broader perspective in order to pinpoint where loopholes have been either overlooked or ignored, hence the application of a (S.W.O.T.) Analysis: Strengths: are the potentials that permits us to achieve the company’s objectives. Weaknesses: are obstacles that do not allow us to reach our targets and realise them to great heights.
The current situation is manual and difficult to maintain. As the business grows, Shipper will need to cut their delivery time down and better predict inventory needs. As part of Shipper’s new business strategy, they have emphasized that they will continue respond to individual customer design requirements. Shipper’s strong commitment to quality should give them a competitive advantage in the market as they maintain and build relationships with customers. As Shipper moves away from custom designed products, the flexibility for customers will decrease.
Do you think this poses a competitive threat that should worry Whole Foods? No, because Whole Food has carefully positioned itself by moving away from the industry giants and rather than pursuing mass-market sales volume and high profit margin it has targeted a selected group of high educated upscale customer (True Friends). Also, Wal-Mart is in business to sell volume not value. Whole Foods can offer its customers value that Wal-Mart can’t. 3) With respect to Whole Foods’ targeting and positioning strategies, what challenges will the company face in the future as it continues to grow and expand?