Discuss about the Employee Compensation in Small Business.
The success of a business venture largely depends on its strategic location and provision of services to the consumers based on their needs and preferences. While one business venture may thrive in a particular area, others may fail to hit their marks due to number of related challenges (Chesbrough, 2010). Apart from strategic positioning, there is the other crucial need to consider the available resources, good network of roads and communication lines, the size of the target market and perhaps the presence of other competitors in the segment. Above all, it is vital that the business idea ought to be one which fully addresses a particular situation or problem in an area (Edmiston, 2010). When a particular product or service adequately addresses a given consumer need, it is highly likely that they will embrace the idea and hence come for more. A stable market is a pivotal function of organizational success which makes it an important fact to consider when coining the business model.
Many at times, individuals with their busy working schedules tend to go for long hours without having their meals. This occurs especially when the deadline is so tight that the employees remain glued to their computers without even making time for refreshment (Fox & Murray, 2014). This business idea is an intended relief to most employees especially within the CBD. The Swift Refreshers is a business entity whose main objective will involve reaching out to the consumers at their very door steps or working desks (Hope, 2009). The company shall be dealing in fast foods and soft drinks well packed and refrigerated and delivered to the clients on order. This idea is intended to cover the wide market within the city center especially in cases where workers are unable to break for meals due to tight schedules. Despite the current presence of numerous fast food joints within the city center, most people may never be in a good position to access these places due to time constraints and the general lack of space for speedy in busy urban areas. Taking advantage of this situation, The Swift Refreshers intends to take the game a notch higher by reaching out to the clients instead of waiting for them to come for the products. This idea is likely to reduce the delivery period hence increasing convenience and satisfaction levels among the users.
The business idea shall be beneficial on many fronts as the company consumer distance shall have been reduced remarkably. There is a high level of convenience especially on the clients since they are able to get their deliveries in good time. The company also intends to use flexible prices while considering the target market in order to attract more sales and hence business success. Additionally, the orders shall be made online which implies the availability of online platforms like the company website and the social media. On these avenues, the client feedbacks based on the company products and services can be deduced. The responses can then be used to make management adjustments to better the quality of products and services. With the right resources and personnel, the idea is practical and is likely to attract good sales which ensure the business feasibility (Johnson, Christensen & Kagermann, 2008).
The chosen type of business model is called bricks and clicks since the company will conduct both offline and online transactions. The model is flexible as it gives the company an opportunity to reach more consumers hence covering a bigger market.
The proposed name of the company is The Swift Refreshers which is coined from the nature of the products to be supplied by the company and the mode of delivery which shall be immediate and on order. The main products of the company shall comprise soft drinks and beverages made in different flavor as well as fast foods like Pizza and Cakes. For a start, goods will be delivered to the clients on order at a fee. Once the loyalty is established, the sales shall be made to the clientele at a discount. The business scope intends to cover offices, learning institutions and residential in the busy CBD
The proposal of the venture was based on a prior and thorough market analysis. From the study of the market, it was deduced that most individuals take light meals and fast foods during mid mornings, lunch breaks and late evenings. The analysis also showed that many individuals braved long lines in the restaurants while waiting to be served which is both inconveniencing and time consuming. Some of the restaurants do not offer a variety of products hence the clients may fail to obtain their favorites (Mesly, 2017). The venture intends to demystify these challenges by offering a variety of products, at different prices, to the clients at their work places.
The organization, at its initial stages shall be guided by a lean team comprising the overall manager assisted by a team of four individuals overseeing the financial, marketing, human resource and production departments. Each department shall have a team of workers based on qualifications and work requirements.
The main sales strategies shall be linked to online orders made on the company’s website. The products are then delivered to the described location which ought to be within a specific radius.
Through the implementation of effective sales strategies, the venture is expected to fetch considerable return on investment to the company. The projected annual turnover is $50000 which might improve with more stable market and improved sales in coming years.
To begin with, there is the availability of technological innovations which have since been incorporated into much business. The venture intends to take full advantage of this by applying the use of computers and the internet to conduct the sales and marketing strategies. This is because this approach is likely to help the company obtain a wide consumer base since most of them have the gadgets and internet access. The second factor is the good level of infrastructural development especially in Melbourne which is the target business location (O'Brien & Marakas, 2011). This implies the movement of company workers during deliveries will be easy and quicker. Secondly, the good communication networks shall ensure efficient interactions between the management and its clients hence improving the quality of services.
The third success factors are the idea of a ready market. The venture intends to identify the employees with overly busy schedules through surveys and direct interviews. These individuals are then integrated into the venture program to serve as its initial customers. Based on the services offered and satisfaction levels, they can suggest more clients hence increasing the network. Lastly, the return on investment shall be used to improve the venture by establishing other subsidiaries and introducing new products in a bid to capture a better portion of the market and keep the clients loyal to the business.
Due to the availability of the necessary resources, the computers, workers and qualified personnel, the venture is technically feasible. The estimated project cost is $800000 which has been divided to serve a number of aspects equitably. The amount shall be used in the buying and establishment of initial production machines and the accompanying raw materials and facilities. The subsequent expenditure is shall be linked to the outcome on sales as the venture progresses. This makes it feasible in terms of cost. With a stable market, loyal customers and consistent sales, the business idea is likely to end up in profits. The strategy to deliver goods to consumers would be effective in warding off competition and enhancing market strength.
The group activity was productive and as a member, I found it enjoyable giving ideas to the team and suggesting the core business elements. It is because of this input that the group finally agreed on my idea to implement the Swift Refreshers business venture.
The group discussion involved a number of proposed ideas. In such cases, I employed the necessary decision making skills in a bid to arrive at the best option. This was done by comparing the available options and the related cost implications and practicability before finally settling on the best. Additionally, the necessary portfolio was completed hence giving an overview of the materials for the business pitch. My ideas were welcome and largely used in coming up with the project.
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Fox, W. & Murray, M.N. (2014). "Do Economic Effects Justify the Use of Fiscal Incentives?". Southern Economic Journal. 1(1), 23.
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O'Brien, J. A., & Marakas, G. M. (2011). Developing Business/IT Solutions. In Management Information Systems. New York, NY: McGraw-Hill/Irwin.
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