Business Development Plan for Media Markt and Funding Strategies for Expansion

Instructions

• Bachelor Students are to write an individual essay of minimum 1500 and maximum 2000 Before embarking on the assignment, you should read Part 5a (Academic Writing handbook) and 5b (Plagiarism Policy) of the Education and Examination Guide (EEG).
• Students must submit their essay before the deadline through Turnitin submission online
• All submitted files should be in a digital editable format preferably MS Word.
• Students will be randomly selected for Presentations. Therefore, all students should be Details will be communicated to the selected students.
• You have to answer 4 questions in total from both parts. Part A is compulsory, choose any 3 questions from Part B.

Part A. (40 marks)

Question 1. Compulsory question

You are hired as the head of Business Development at Media Market (consumer electronic store), in the Netherlands, and tasked to launch a new product/service that will target the older age (over 40) market segment in the post Covid-19 pandemic era. You have been asked to develop a comprehensive summary of what you plan to do. As part of this plan, you are to use Michael Porter's Five Forces Model to describe your approach. The contents of your plan should articulate specific scenarios you propose to submit to senior management and explain how this may help increase the company's profitability and raise its market share. (700-1000 words)

Part B. (60 marks in total, 20 per question in Part B)

Choose 3 questions out of the 5 following questions.

Question 2.

As the Head of Business Development at Media Markt (consumer electronic store), in the Netherlands, you are tasked to inform your customers about the arrival of the new PlayStation 5 gaming console that will start selling at Media Markt outlets next month. Future customers may pay for their purchase in cash or on credit payable by instalments. Describe three different marketing methods you would use to inform your prospective customers from relevant market segments about the new arrival. (500-600 words) 20 marks

Question 3.

It has been five years since Barrie opened his furniture shop as a sole owner/trader. His business provides furniture to other businesses, e.g. local offices, hotels, and restaurants. The business has been trading successfully recording regular annual turnovers of around $80,000 per year. Barrie is ambitious and wishes to expand his business. His expansion plans include: (a) selling to the general public and (b) opening a new outlet store in the neighbouring city, Amersfoort.

Barrie's expansion plans will require a capital injection of $170,000 to enable the implementation of the new business plan. He will spend $40,000 to buy additional merchandise for the existing shop. This will help expand his customer base using existing infrastructure. He will also use some of this money to set up a new website with an e-commerce facility including an online payment system. He will spend the remaining $130,000 to set up the second shop and buy additional merchandise for the new shop. Propose sources/methods of funding to Barrie for each investment scenario he has in mind, including a rational argument as to why an alternative plan might not be suitable. Consider financial planning methods and discussions during lectures. (500­600 words) 20 marks

Question 4.

Thomas wants to open his new furniture business in Nijmegen, Post Covid-19, with some experience at hand from similar business in Germany (he has run a similar business before). What are the challenges including barriers to market entry he is likely to encounter post Covid-19 and what solutions should he have in place to ensure the impact of those entry barriers on business strategy and growth is minimized? (500-600 words) 20 marks

Question 5.

To open a second shop in Amersfoort, and possibly more shops elsewhere in the future, Barrie was advised by a friend to legally change his trading status as sole owner/trader to that of a limited liability company. Do you agree with this suggestion? Provide examples to support your arguments. (500-600 words) 20 marks

Question 6.

Your friend works as a Banker in a major city and earns around $45000 per year in salary. In a recent conversation over dinner your Banker friend informed you that he had decided to quit his banking job to start up his own Micro retail business using Amazon as his e-commerce channel to future customers.

You are aware that several lockdowns during the Covid-19 Pandemic led to retail sector consumers taking up online shopping in a significant way. You are also aware there is a proliferation, to near saturation levels, of sellers using Amazon as their outlet channel and the situation on other equivalent e-commerce platforms is not any better. You have decided to advise your friend on the potential risks associated with his business idea, and to provide an opportunity cost of his business start-up. Please provide your advice and analysis explaining your rationale and assumptions. (500-600 words) 20 marks