Select a small firm of your choice (any country) in the business to business or business to consumer sectors’ that has been trading for no more than 10 years and present it as a business case study (a social entrepreneurial enterprise will also be acceptable). Cover the history of the business, the nature of the business, the main target markets served by the business, the objectives set for the next five years, the original vision and mission set for the new venture by the entrepreneur. Use analytical frameworks in your work. (Recommended word length 500 words – time allowed 5 minutes)
Using the case study you have constructed from the above task as a vehicle for discussion and analysis and using appropriate evaluative frameworks critically appraise and discuss the organisation’s approach to opportunity recognition and product and/ or service innovation. Suggest how a more entrepreneurial approach to product and/ or service innovation might be used by management to reduce the risk associated with new product and service development and the general performance of the firm. Present your suggestions and recommendations in the form of 12 months business plan for product and/ or service innovation strategy objectives, targets, planning, budgets, implementation and control. Use analytical frameworks in your work. (Recommended word length 1,000 words time allowed 10 minutes)
Case Study Analysis
Using the case study for the start-up company developed and discussed in assignment 1 for analysis and as a vehicle for further discussion, critically evaluate how the firm uses ‘internal marketing’ to achieve an entrepreneurial culture, staff motivation, improved performance and staff retention. You are to pay particular attention to how owner/management uses internal marketing in achieving an entrepreneurial orientated culture within the firm and how this impacts on performance at the individual and corporate level. Having appraised the firm’s approach in this area put forward entrepreneurial suggestions as to how management might be able to improve the internal marketing function. Put your suggestions in the form of a management report to be discussed by senior staff. Use examples of good internal marketing practice by small entrepreneurial firms’ available in the academic and business literature in your work and use the case study developed in assignment 1 as a vehicle for discussion.
The study will shed immense light on the clothing and accessory chain that has been founded in 2006 and is popularly known as the “Dash (boutique)”. The firm deals in the clothing and accessories section and is regulated and owned by “Kardashian sisters”. The study will cover all the divisions of the company, which includes the history and mature of the business. Moreover, the chief targets that are served by the business have been analyzed within the study, along with the objectives of Dash (boutique) in the next five years.
History of the business
The business of Dash (boutique) does not have any long history as the firm has been established in 2006, and is operating in the market only for 9 years. However, the firm has built a huge reputation within the market in this small span of time. The company chain has been spread in four locations in the United States.
Nature of the business
The business is retail in nature, which sells various types of garments and accessories in the market. The store has also introduced a new section of jewelries that have attracted various customers in the recent time. Moreover, the firm recently has also planned to expand in the section of selling various designer items.
Major targets served by the business
The major targets that are served by the business during the last 5 years are regarding the increasing of the sales revenue. Dash (boutique) has also served the target of expanding into various clothing and garments section. The firm within this small span of time has succeeded to a huge extent as it can be seen from the financial statements of the firm.
Objectives of the business in the next five years
The business has a huge scope to expand in the recent time and hence, the management of the firm should be able to build on this massive opportunity. The objectives of the business in the next five years are stated below:
- To list its name in the various professional magazine
- To increase the sales of the firm by 12.75 % per year
- To expand into other section of products
- To expand into various other locations
Vision of the new venture
The firm in the recent time has launched the Miami Dash Boutique, which have a huge display in the official website of the company. Dash (boutique) has launched this new section in order to gain access with the consumers that like purchasing online.
Mission of the new venture
The most pivotal mission of the new venture is to increase the sales revenue of the firm and to acquire new consumers as well. Moreover, the firm will also be able get access to the horizon of consumers who have a huge tendency to avail the section of online shopping.
Critical analysis of the future entrepreneurial approach
The launching of new ventures is of utmost important for any growing firm and Dash (boutique) is not an exception to the same. The screening of the entrepreneurs with various tools of strategy will launch a successful new place for the business of Dash (boutique) in the global market. However, detailed study regarding the company also showed that the new venture planning of Dash (boutique) is not having a huge amount of positivity within it. One of the major reasons to that is the approach and the strategies that are adopted by the management of the firm is not well constructed.
Rationale of the study
What is the issue?
The issue is regarding the expansion and marketing procedure of the new products. The new division of products that the firm has introduced in the market has experienced a low amount of demand, which have also decreased the sales of Dash (boutique).
Why is the issue?
The issue is because Dash (boutique) is a company that has been marketing for almost 9 years and do not have any huge amount of brand value in the market. Hence, any sort of vital issues such as decrease of sales and unsatisfied consumer can make put the company into real trouble waters.
Why is the issue now?
The issue has aroused now, as the firm have not established massively in the market and hence, Dash (boutique) needs to develop quality strategies. Hence, the firm cannot afford to drop down its product value in the market as that can bring huge negative impact in the future growth of the organization.
Imaginative entrepreneurially based suggestion
Corporations can be so constrained by their hierarchy and mindset that they are unable to adapt to the rapidly changing commercial landscape. This is the same in the case of Dash (boutique) and hence, the management of the firm needs to implement certain strategies that will best fit the firm. However, it is time for Dash (boutique) to rediscover their entrepreneurial spirit, which can be done by various methods. The entrepreneur of the firm should analyze the market before investing and should consider all the possible risks before investing or expanding. Moreover, the entrepreneur of Dash (boutique) should also evaluate the remedies to these various risks before investing.
Imaginative entrepreneurially based recommendations
The entrepreneur of the firm should extract the exact demand of the market and then accordingly should produce goods and services. Moreover, the entrepreneur of Dash (boutique) should also realize that the market is getting competitive with each passing days and hence the strategies of the firm should be changed in order to compete with the rivals. Meanwhile, it can also be recommended that the entrepreneur of Dash (boutique) should analyze the market and its condition before expanding any further. This will make the firm understand the exact demand, taste and preferences of the consumer in that exact market place. The list of recommendation is stated below:
- Scrutiny of the market before expanding
- Taking up realistic projects
- Modification of the backdated strategies of Dash (boutique)
The conceptual model that Dash (boutique) can follow in order to boost up the sales revenue of the firm has been highlighted below in the form of a diagram.
Figure 1: Conceptual Model
(Source: Drucker, 2011, p. 34)
Sales strategy framework
Individual selling skills
Motivation and compensation
Coaching and super vision
The sales strategy will play a massive role of significance regarding the profit making section of Dash (boutique). The framework of the sales strategy can make the firm ease up the process of profit making. The management of Dash (boutique) should follow the framework of the sales strategy that will lead the firm to establish a well - constructed and effective system of selling products. The framework is represented below in the form of a diagram that will let the reader understand the exact process with ease.
Figure 2: Sales strategy framework
(Source: Lasater, 2014, p. 51)
The above stated strategies and frameworks will provide the firm with huge potential regarding the generation of sales revenue as the framework has various sections that can extract the loophole of the firm. After, the loopholes are extracted the management of the firm also needs to build up on the loopholes, which can be done by following the guidelines of the framework. Hence, it can be said that the framework as well as the conceptual model will help the management of Dash (boutique) to get rid of all the various problems that have aroused in the recent time. Moreover, implementing the conceptual model will also enable the firm to enjoy increased amount of sales revenue, which will be a major boost in order to carry on with its expansion plans.
The study of the assignment highlights the fact that Dash (boutique), which is quiet renowned clothing and accessory chain needs to implement modified strategies into its business systems. Moreover, the firm needs to stay updated with the change in the taste and preferences of consumers. The sales have gone down in the recent time and hence, the management of the Dash (boutique) needs to delay their expansion plans for the moment and start working on the sales generation division.
Review of Dash (boutique) as a whole
The firm as already discussed is a retail business, which deals in the clothing and accessories section and is regulated and owned by “Kardashian sisters”. The firm has got itself established official in the year 2006, which means that the firm have been operating in the business sector for 9 long years. The evaluation of the financial statements of the firm highlights that the company have faced quiet a crisis in the sales department in the last few years. This can be stated as the sales ratio of the firm has dropped from 77.68 % to 59.33% in the last two years. This huge downfall of 18.35 % in the sales ratio has made the firm suffer from various financial problems. Another gigantic problem that Dash (boutique) has faced regarding this downfall is in the expansion plans, which needs huge involvement of funds. Meanwhile, the sections in which the firm has expanded in the recent time have also been quiet successful (Carsrud and BraÌˆnnback, 2011, p. 57). Dash (boutique) is growing massively and hence, the management has planned to expand into more geographical areas in the near future. This will make the firm need massive amount of funds, which can be generated by increasing the sales of the firm (Perry et al. 2011, p. 838).
Achievements of Dash (boutique)
The achievements of the company can be well - judged by evaluating the various milestones that Dash (boutique) has achieved within the last few years. Moreover, the newest Dash boutique that they have opened in NYC is a huge success. As per the report, the store sold over $ 100,000 in inventory on Black Friday, and that too within a matter of hours. The boutique receives about four boxes of merchandise in a day, which Dash (boutique) usually sells within the same day. A survey stated that the sales team of the boutique rang up over $ 1,500 within an hour, which is an amazing percentage for the whole day sales revenue. The lowest price of shirts and t – shirts in the store starts at $100, which certainly means that the firm do not need to sale huge amount of goods and accessories in order to meet up their target sales target of $ 100,000. Dash (boutique) within this few years have become a brand and have scheduled its name in the list of the most growing firms (Drucker, 2011, p. 33).
Future prospective of Dash (boutique)
The future prospective of Dash (boutique) is massive, as the firm has generated huge sales revenue in the last few years. The problem statement aroused as the firm was criticized for the section of their women clothing, which as usual was high priced product but the quality was not up to the mark (Hall, 2009, p. 97). This have also decreased the sales of the Dash (boutique) in the last three quarters, which in the recent time have turn out to be the biggest problem for the firm. Dash (boutique) is having a massive future growth if they can hold on to its sales target objectives, as they need huge funds in order to succeed in their expansion plans (Ingram et al. 2009, p. 303).
Current problems of Dash (boutique)
As, already discussed, one of the most hyped problem of the firm is regarding the lowering of the sales revenue in the recent time. Dash (boutique) has also not been able to market its new launched products in a successful manner as the demand for these new products has gone down within a small span of time (Lasater, 2014, p. 52). The expansion plans have also faced a negative impact due to the lowering of the sales revenue in the recent time. The firm has huge scope to expand and hence, any sort of disturbance in this field can affect the future growth of Dash (boutique).
Overcoming procedure of the problems of Dash (boutique)
The problems faced by the firm will grow with time if neglected; hence, the firm should implement strategies that best defines the overcoming of the problem. Dash (boutique) should implement the capacity lag strategy in order to stabilize its future expansion plans (Finkin, 2010, p. 53). The working of the strategy and the diagrammatic view of the same is presented below:
Figure 1: Capacity lag strategy
(Source: Chendroyaperumal, 2014, p. 107)
Dash (boutique) needs to consider the above model as an ideal strategy and implement the same in order to modify the current lags of the firm (Kashani, 2011, p. 14). The implementation process needs to be done with intense care, as any sort of miscommunication within the process can affect the business process of Dash (boutique) in a negative manner.
Process of boosting up sales
The sales department of any firm is one of the major sources of finance, which is used further in the development and expansion process. Therefore, as already discussed, Dash (boutique) needs to boost up the sales process, which has faced enormous problems in the recent time. This can be done by implementing the sales strategy framework, which will help the management of the firm to stabilize the selling ratio in a systematic and well constructive manner (Gwinner and Smith, 2008, p. 88).
Case Study of Dash Boutique
The study of the previous papers has highlighted the fact that the business of Dash (boutique) does not have any long history as the firm has been established in 2006, and is operating in the market only for 9 years (shopdashonline.com, 2015). The firm has built an enormous status within the market in this small span of time. The company chain has been spread in four locations in the United States and has been operating quiet successfully in the recent market (Storesogyre.atspace.co.uk, 2015). The major target of the firm is to increase its sales revenue and expand with the growing time.
The business is retail in nature, which sells various types of garments and accessories in the market. The study will cover all the divisions of the company, which includes the history and mature of the business. Moreover, the chief targets that are served by the business have been analyzed within the study, along with the objectives of Dash (boutique) in the next five years.
The store has also introduced a new section of jewelries that have attracted various customers in the recent time. Moreover, the firm recently has also planned to expand in the section of selling various designer items. The study will shed immense light on the divisions of various HRM divisions such as staff motivation, retention of staff, internal marketing practice tec. Furthermore, the study will also educate the reader regarding the uses of internal marketing in order to achieve an entrepreneurial oriented cultural within the firm.
2.0. Literature review
The literature of the report is the section that will clear up all the views regarding the various division of the firm. This will include the study of the desired section that will make the reader understand the actual literature behind the use of elements like staff motivation, retention of staff, internal marketing practice, and the use of f internal marketing (Hisrich and Peters, 2012, p. 79).
2.1. Staff motivation
The staff motivation is one of the most precious elements that every firm needs to stay aware off, in order to run the business process of the firm in a successful manner. The staffs of a firm can get de - motivated due to various reasons, which becomes a real problem for the company at times. This mostly happens, as the firm needs their staffs to work at their fullest and produce quality output within a small span of time. The staffs disguisedly help all the firms within the industry to achieve a competitive advantage over their rivals within the market (Mybusiness.co.uk, 2015). The market is getting densely competitive, as all the firms within the industry have built a tendency to sale quality goods in a relatively low price to attract huge number of consumers. Various firms have adopted this practice as consumers get gigantically attracted to quality goods with low price. Therefore, this brings us to the fact that in order to make the firm successful in this cut – throat competitive market the staffs of the company needs to be highly skilled. The problem arises, as at times due to various problems the high skilled employees of the firm do not work at their best, which lowers the quality production of the firm. Hence, it is massively pivotal that the firm needs to keep these employees motivated by implementing various strategies. The motivating of the staff can be done by implementing the below stated steps:
Line up individual financial benefit with company performance – The firm needs to motivate the employees by implementing various financial benefits. This will make the staffs work with their best possible effort, as they will get massively motivated due to the extra payment that the company has announced (Williamson, 2012, p. 17). However, in the recent era organizations have termed this extra payment as the “incentive structure”. This structure is built in such a manner so that the employees need to stretch their working time in order to achieve the incentives. The majority of the organizations in the modern sector have applied this strategy, which motivates the employees and at the same time increases the production capability of the firm.
Future path of an employee’s career – The management of the company needs to scrutinize the productivity and the performance of all the employees and depending on that should make the employees promote in a higher designation. Moreover, the firm also can make the employees motivated by promising increased designation and salary as per the productivity of the employees (Wales et al. 2011, p. 383). The employees has a tendency to get highly motivated regarding all these promises made by the management of the company and hence, outs in extra efforts to achieve the same. Another most common and updated practice that various firms in the modern sector has adopted is coaching, mentoring and suggesting additional training to the employees to make them highly capable.
Work – life – balance – The small gestures at times makes huge difference to the staffs of the organization. These should be kept in mind by the mangers and the management of the company and accordingly should understand the various priorities of the employees. This certainly means that the managers should offer the possible flexibility regarding the understanding of their family needs, doctor’s appointment, commitments etc (Vermeulen, 2014, p. 07). This will increase the work – life – balance of the staffs and they will automatically get massively motivated in their commitment towards work. This is one of the most common ways to motivate the staffs of the firm, as the employees of any firm gets a high sigh of relief if the mangers provide them with flexibility in the work life.
Listening – The management of the firm needs to listen to their employees regarding the various problems they are facing in either their personal or professional life. The company cannot solve the personal life problems of the employees and hence, rather should provide them with flexibility. This flexibility will help the employees deal with their personal problems and at the same time will also enable them to resolve the issue. This sort of flexibilities makes the staffs highly committed and motivated towards the company (Perry et al. 2011, p. 837). On the other hand, the management of the firm should deal with the problems that the stafss are facing in their professional life. This can be done by discussing the exact problem with that particular staff and take necessary actions regarding the same. These types of flexibilities raise the morals of the staffs to a high level, which automatically increases the productivity and quality in their work.
Maintaining and developing the internal environment of the firm – The internal environment of the firm refers to the atmosphere within the firm. This includes various divisions such as the friendliness of the colleagues, behavior of the managers, flexibility provided by the management etc. The firm needs to keep all these elements in a well- maintained manner so that the employees get a positive vibe form all these factors (Rauch et al. 2009, p. 787). This increases the morale of the employees to a huge level, which ultimately results in the quality output by them and that too within a small span of time.
Figure 1: Staff motivation
(Source: Piercy and Rich, 2009, p. 237)
2.2. Improved performance
Performance improvement is the measuring of the output of any particular business procedure or process. The modification of the process or increasing the efficiency of the business is also referred to improved performance at times. Improved performance starts with effective planning, but putting that pan into action is another pivotal element that needs to be worked out in a proper manner. This planning has various sections and the most pivotal among them is the mechanism and other benefits. The mechanism can help to improve the performance by setting goals and objectives, which are stated below:
- Peoplegets direction and focus on their thoughts and actions by setting up of goals and objectives
- The goals and objectives also enable people to stress on their working capability and take on high - level challenges in order to meet the objective criteria.
- Employees’ persistence is increased by the achievement of the hard goals and objectives.
Apart from all the above stated factors there are also various other benefits that is derived from the goals and objectives. These include the most pivotal element of clarifying the expectations, which enables the employees to understand what the management of the firm exactly wants form them. The time when people receive feedback, it can be said that their goals has been reached and hence, they started to feel an extra liking for their job (Johnson and Lynch, 2012, p. 19). This also makes them satisfied with their performance, which ultimately increases their commitment towards work and provides them with huge confidence as well.
2.3. Retention of staff
The retention of the staff is another pivotal section for any firm within the industry and hence, should be taken well care off by the management of the organization. The experienced staffs who are serving the company for many years should be treated in a special manner and should be provided with some flexibility (Keister, 2010, p. 69). Moreover, not only retaining the old employees but at the same time the firm should concentrate on retaining the new employees who have just joined the firm. This is identically important for the firm as the mew employees are the future of the firm and needs to be taken care of, in order to keep them motivated. The implementing of the people management strategy is one of the best procedures to regulate the whole process of the staff retention, which is stated below:
Attract – The process of people management starts with the division of attracting the people to work in the firm and make a better position for themselves. The attraction process starts with the remuneration that the firm pays, which should be attractive enough (Zif, 2011, p. 88). The handsome package of payment will attract the suitable people to join the company and give their best.
Retain – The next step is to retain the new joiners and the experienced employees of the firm. This can be done by developing a flexible work life balance within the firm, which will make the employees boosted up their working intentions. Moreover, in order to retain quality and high skilled work force the firm can announce various incentive schemes. This will encourage the employees to stretch on their working timing and capabilities that will ultimately increase the productivity of the employees and will make the employees happy (Rackham, 2009, p. 19). These will help the company retain the employees, which is a huge task to perform for the management and the HRM division of the firm.
Develop – The firm may have some employees who have a less productivity and are not highly skilled. Rather than firing, these employees the management of the firm needs to develop them by providing special training to these employees in order to modify their professional capabilities.
Review / change – The next step for the management is to review the works of the employees and rate them accordingly. The employees whose work gets high rating should be kept in notice by the management and should be rewarded in the near future (Ronen, 2013, p. 64). On the other hand, the employees whose works are not efficient and productive should not be penalized. Instead, the company should take required steps in increasing their capabilities by implementing various strategies that will retain the employees as well.
Figure 2: People management strategy
(Source: Lantz, 2010, p. 61)
2.4. Internal marketing practice
The inward facing marketing is known to be the internal marketing. Internal marketing is the involving of the staffs at all levels in effective marketing, which can be done by enabling them to understand their exact role in the firm. The characteristics of a highly effective internal marketing have been highlighted below:
Senior management participation – The CEO of the firm should also participate in the process, which will show the company has a high value towards its workforce and ensures that the employees are provided with secure and stimulating work environment (Carter and Chitturi, 2008, p. 81).
Integrated organizational structure – The internal communication with the organization enables the firm to build up a teamwork, which gives the best possible results.
Strategic marketing approach – The firm needs to market the internal constituents in such a manner, which parallels how it reaches out to retain and acquire consumers.
Human resource partnership – In order to make the internal marketing flourishing, the human resource staff must constantly seek to integrate pioneering methodology to commune and train (Schmidt, 2010, p. 17).
Focus on employee engagement – The two - way communication, reward, and incentives are the most pivotal elements of employee engagement.
Figure 3: Internal marketing practice
(Source: Business.vic.gov.au, 2015)
3.0. Critical analysis
3.1. Critically evaluation of the internal marketing of Dash (boutique)
Dash (boutique) had an effective internal marketing, which have enabled the firm to achieve a huge success within a small span of time. Moreover, the employees of the firm also worked at their best, which enabled Dash (boutique) to acquire a place of itself in the highly competitive market (Harvard Business Review, 2013).
Meanwhile, the internal marketing of Dash (boutique) has shown various downfalls in the recent time, which have let down the sales ratio of the firm. The internal marketing of the firm has dropped down in the recent time, which has made the firm suffer in the external market. The division of the human resource has failed to perform, which have lessened the moral of various employees and have lowered their productivity (Schriefer and Sales, 2013, p. 33). This has ultimately hit the sales ratio of the firm in a negative manner. Furthermore, it can also be argued that the management of Dash (boutique) also has neglected the employee engagement division, which has make things worse.
3.2. Evaluating how Dash (boutique) uses internal marketing in achieving an entrepreneurial orientated culture within the firm and how this influences performance at the individual and corporate level
The internal marketing of Dash (boutique) as already discussed was quiet successful as the firm took care of the various pivotal elements of internal marketing. The high management participated, which was a huge boost for the employees, the human resource worked in a great manner, the management was focused on the employee engagement etc (Strelsin and Mlot, 2012, p. 43). Moreover, the elements like integrated organizational structure and strategic marketing approach was used by Dash (boutique) to achieve an entrepreneurial oriented culture within the firm.
This achievement of the firm influenced the performance of all the employees of the firm in a positive manner, which made them work in an energetic manner (Cash and Crissy, 2012, p. 88). The firm also succeeded in various ways in the corporate level due to the massive support from the workforce.
3.3. Putting forward of suggestion regarding developing the internal marketing function of Dash (boutique)
Dash (boutique) has established itself within the market in a small span of time, which proves the high capability of the management (Lambing and Kuehl, 2009, p. 117). However, the recent drawback of the firm is due to the negligence within the internal departments of Dash (boutique), which should be immediately resolved. Therefore, the only suggestion for Dash (boutique) is to find out the exact loopholes, which have built this damage process (Parkyn, 2008, p. 227). After the loopholes, get highlighted the management of the firm needs to modify the loopholes by implementing the desired strategy.
The study brings us to the conclusion that motivation the employees is one of the most precious elements that every firm needs to stay aware off, in order to run the business process in a successful manner. Dash (boutique) was enormously successful in motivating the employees of the firm in the previous years, but due to certain reasons, the firm has failed to do the same in the recent time. This failure has cost Dash (boutique) a lot of sales revenue in the recent time and hence, the management should repair the process at its earliest. However, it is time for Dash (boutique) to rediscover their entrepreneurial spirit, which can be done by various methods. The entrepreneur of the firm should analyze the market before investing and should consider all the possible risks before investing or expanding. Moreover, the entrepreneur of Dash (boutique) should also evaluate the remedies to these various risks before investing.
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