Eb3S81 The Market Competition Answers Assessment Answers

Further to the small retail business referred to in assignment 1, i.e. your new retail shop selling women and men’s clothing in the town of Pontypridd*, you have recently inherited £100,00 and are looking to invest this money into expanding your clothing shop and turn it into something resembling more of a department store. Construct a detailed analysis of the issues you might face in your efforts to grow the business over a 5-year period and offer some potential solutions to address these likely problems. Note that this is not a plan but an analysis. You should also be aware that issues that might emerge through business growth may not be the same as that of a start up. Clearly outline the potential benefits and difficulties. Make sure you undertake some market and academic research and engage with appropriate theory. 

The assignment is to be done individually and should be written in a formal report format in 3^rd person (3000 words +/- 10%). 

*partner colleges will use the local area of their institution.

Assessment Criteria Marking Scheme 

The assignment relates to Learning Outcome 2:

Upon completion of the module the students should be able to critically assess the key issues in growing a business.

Submitting your work

Students from ALL institutions must submit the work electronically using the ‘Turnitin’ facility in Blackboard You are reminded that you should adhere to University Rules on Plagiarism of the rules regarding plagiarism.  Plagiarism is defined as presenting the work of someone else as your own.   This includes statistical data, graphs, charts, and any other graphically represented material.  It also includes copying of other students work for submission as your own. 

Turnitin

You should ensure you understand how to submit any assessments and clarify this with the module tutor if necessary.  This assessment requires you to submit via Turnitin. Although in this assignment multiple submissions are permitted on Turnitin, be aware that there is a 24hr delay before the previous submission is overwritten. A guide to turnitin can be found at 

The recommended word count excludes the reference list, Topsheet, Table of contents, Appendices and any direct quotations.

Correctly referenced paraphrased statements are likely to attain more marks than direct quotations.

Fit to sit Policy

All elements of the assessment are individual pieces of work and you are reminded of the ‘fit to sit’ policy described in the module on Unilearn.

Extenuating Circumstances

If you are experiencing difficulties or  whether these are personal or academic, and these are affecting your ability to study, please make the  your first port of call.

Answer:

In case of retail business management, the market competition and market analysis are important for the sustainable development in the market. The place of marketing is important along with the environmental and socio-economic background for the particular business, important for the possible upgradation of the process. There are some permutations and combinations of strategies are also important and that suggests more opportunity in business. The barriers are not always depending on the start-up business process; rather it depends on the demographic and complex business understanding that the business proceeds on (Engelken et al. 2016). The engagement of other complex factors and awareness in understanding the business is the crucial factor in this situation. 

In case of this paper, the retail organisation of Pontypridd is the key matter of business is the expansion of business along with the market standard evolvement and gains some potential benefit that business can gain in this competitive market for the long-term sustainable business procedure. 

Background of the organisation

The particular retail company of Pontypridd has tried to enhance its market. The market expansion needs some factors like monetary involvement and the new place to penetrate the existing product. This is the kind of situation when the same products are penetrating another market, however, in this process, the business will develop and it will become a departmental store altogether. The reason behind the departmental store is the development of monetary inclusion that company has recently inherited from the market. The amount was £100, 00 and they want to invest the amount in the development of their store. This is not the level of a startup as they are not starting the business in a completely new form, rather they will change the more innovation and product variety in their departmental store and the products will engage more people with the organization and that will help in market penetration.

The new target audience is the crucial aspect in this case and they have to define more customers for the proposed new venture (Pedersen and Netter 2015). The benefits of this venture are over-impressive and far-fetched, but there are businesses essentials that the retail organization needs to maintain for the sustainable business condition. New strategies will be promoted in that case and so that management embraces the planning stage in a proper way.

The content quality is needed to be good for the long-term business process. This is the appropriate tend to ensure having a better business market and having control over the target market. Planning for next five years and having better impression over target market is the most essential need for organization (Azmat and Zutshi 2012). Advertisement, identity and market impression creation is the key matter that enhances the situation. The business identity and basic some features are same as the earlier and it cannot be fully changed business rather the development of the business is concerning on the same products.

Issues faced by the organisation for the new departmental store

The present market of Pontypridd was built in 1870 and the process is the incorporation of other business companies. There was a savage of decline in the city in 1920’s and 1930’s, the most difficult thing was the survival and the entire market survives in its original format. The market had resisted then for wholesale development and the market had formed in the outdoor and indoor market in traditional style (Cunningham and Fröschl 2013). The site of present market framed since 1805. The considerable change in the market has come in 1985 and there are new features introduced in this market at that time. The refurbished of the market hall in 1988 and the outdoor open market that was extended at that time was the crucial matter for the level of business enhancement.

            There are lots of challenges faced by the retail companies as the clothes are easily compatible with any of the innovations and companies can come with the new product an time and then business will get a huge threat. The barriers for the general small organisations are:

• Proper cash flow management is the key matter that comes at the planning stage of the business. The struggle in case of entrepreneurship or to extend the market of the competitive business, the basic change in planning and make expense associated with that and that covers all the payment related issue are not noticed by the organisation and that create the challenge for the business set up.
• The employees hiring process is the next challenge that organisation may face after the situation as they are the operation outcomes for the organisation (Mount et al. 2013). The inclusion of them in an effective way enhances the productivity of an organization. The approach of employee hunt must be proper in that case as retail industry deals in the customer-centric market thus, effective communication, approach and body language are important for the better sustainability. The selection of suitable employees is the key issue for the organisation.
• This kind of organisation has to take care of their competitive organisation also. There are some in-depth competition allowed in the market and the new business has to understand the situations (Chkanikova and Mont 2015). Take care in sense of knowing about the rival organisation and understand their strategies so that better strategies can be formulated by this organisation to sustain their position in the market.
• Availability and Privacy is another challenge as legal permission from the government is the key need in that case. In case of privacy, the use of CCTV camera in the departmental store is the key issue that needs to be permitted by the government (Schneider and Spieth 2013). This level of security is needed for the organisation and for customers safety as well, so the planning is completely relevant for the organisation. However, the issue of time and granting government to allow the process is the most time taking barrier for the business.
• The next barrier is the product innovation. As the same product persists in the departmental store thus, people will find the same product again (Faloye 2014). The may be available in other retail shops too. So customers may feel disheartened in that case, hence the need for innovation and change in product deliverance is the key manner that changes the possible approach of the customers.
• Poor customer service facility is a barrier in the business acceleration. For the development in the business and having a good market in this competitive business world, proactive customer service facility is the key concern of business and they need to have the knowledge the guide in the proper way to customers for the development of business and having trust over customers that the organisation cares for their customers.
• The communication gap between managers and employees, employees and customers create the huge problem in business (Richter 2013). The gap needs to be mitigated for the better business formulation and to make the clear statement over a matter.
• Cross-channel shopping experience and having use of different brand products, those are not made in the native country, rather an international touch of classic selling is the key barrier that most of the retail organisation has done, but the ethnicity of own culture is not there. In case of Pontypridd, the culture needs to be sustained (Fayos Gardó, Calderón García and Mollá Descals 2015).
• The last barrier is the use of technology. The change in using the product and departmental technologies are implemented by most of the organisations. The procedure and use of new technologies need to implement by the organisation in Pontypridd so that better customer attachment persist with the departmental store.

The Possible outcome of the barriers

The possible outcome is not satisfactory for the organisation, as the barrier constrains the development process and that will initiated by the socio-cultural and economic situation of the nation or city. The retail organisations always have some problems and that enhances in this case as the departmental showroom will consist all the similar products and they try to enter the new target market or to segment new customer back up. Employee maintaining is the key issue that needs to maintain in that case and the worst outcome has come in case of this situation when the employee is not working as a unite or they are not aware of the ethics and objective of the organisation, these are the crucial situation that matters (Bates and Robb 2014).

In case of analysis about the outcomes, logistical challenges are there and unfeasible approach of the management is the key manner of them. There are some situations that were unexpected from the retail organisation like the use of poor technology and stagnant customer service facility, are the common barrier of the organisation and implementation of good policies and better ideas will encourage the retail organisations for the better development (Dos Santos et al. 2013). The outcome will be more drastic in a sense if procurement or the level of activity for the mitigation is not taken and that will be implemented soon. The use of technology needs to be improved for the betterment of the business.

The appropriate theory for the new business process

This is the situation where theoretical implementation is important and Ansoff Matrix is important in that case as the retail market develop departmental store with the existing product so there are two major aspects of Ansoff is related (Hussain et al. 2013). The two major sections in this sequence are market penetration and market development. In some cases, the organisation may alter some of their product and that may consider as the product development as well. However, the entire focus is on the market development and market penetration. The concept of the new market comes here. The same product is available on the new market where the customer may be new and they may have different perceptions and that will encourage the market development. The innovation in products help in the development of product and that will be considered as the new product and existing product market.

As most of the products are not new or innovative thus existing product market is the key matter of this theory and as per the theory, penetrating the market and something that is quite new in the market need strategies and way outs (Hussain et al. 2013).  On the other hand, market development with the existing products has the maximum amount of risk and the risk comes because of the similarity of the products. The last segment of diversification and the segment is quite irrelevant in this case as the new product is not is not developed in that case so the process of diversification in the new place is not justified. But the other three sections are quite promising for the business. The entire market is changing in a different way and that will be expressing the organisation standard and marketing posting for the new business acceleration.

Recommended process

            Some of the recommended process the retail organisation of Pontypridd needs to take for the sustainable and progressive development of the market. The segmentation in the market of targeting people is there and that somehow affects buyer relation with the organisation. So the strategies need to effective enough that maintained by both the sectors.

• The adjustment in price at the initial level is important and that will attract people to engage more with the products. The process of increasing sale and provide best quality product will be the prime factor of the organisation that they following up for their future if the range price will increase in any case.
• Augmented promotion is another way that organisation needs to do, and for that advertisement procedure and campaign for the product is important. The promotion of products is important and that is the reason the promotional campaign is an essential matter for the product development and where people about the product and its quality (Kinuthia and Akinnusi 2014).
• The distribution channel needs to be strong so that involvements with the telemarketing, e-marketing or online marketing facility will incorporate with this process. The process of the new distribution channel and better profitability will come in that matter.
• The organisation has to identify the risk and growth in the market. They have to identify their competitors and also have to know about the market opportunity or the special characteristic that only belongs to them. This is the key process to sharpen the strong point and have grown in the market.
• The uniqueness in technology, infrastructure and product development must be there as these are the general criteria that an organisation wants from the management for all these. The use of Ansoff Matrix and the product segmentation, market penetration process is important in that case.
• Strategic alliances with other franchise or any other small counters are important for the development of the organisation (Jere, Jere and Aspeling 2015). The same situation persists with then retail organisation of Pontypridd, in that case, more people will get to know about the product and business will enhance a bit and the products are not confined in one particular market and that is the key process of strategic alliances.

Conclusion

            Therefore it can be concluded that in case of new ventures and development of new business some basic confrontation will come and that will showcase organisation strategic management or the sustainable process of establishment in the market. If they confront all the possible hurdles, then strategic management is the key process that provides better workforce development of the organisation. In case of Pontypridd, as the place is good for the wholesale market, so making the departmental store and marinating competing nature of the business will sustain if some new innovation will persist in the organisation. Market penetration is also, occasionally used as an extent to identify whether a product is doing sound in the market or not, as the penetration in the market in that case and segmentation of new target people is important for the new ventures.

References

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Bates, T. and Robb, A., 2014. Small-business viability in America’s urban minority communities. Urban Studies, 51(13), pp.2844-2862.

Chkanikova, O. and Mont, O., 2015. Corporate supply chain responsibility: drivers and barriers for sustainable food retailing. Corporate Social Responsibility and Environmental Management, 22(2), pp.65-82.

Cunningham, P. and Fröschl, F., 2013. Electronic business revolution: opportunities and challenges in the 21st century. Springer Science & Business Media.

Dos Santos, M.A., Svensson, G. and Padin, C., 2013. Indicators of sustainable business practices: Woolworths in South Africa. Supply Chain Management: An International Journal, 18(1), pp.104-108.

Engelken, M., Römer, B., Drescher, M., Welpe, I.M. and Picot, A., 2016. Comparing drivers, barriers, and opportunities of business models for renewable energies: A review. Renewable and Sustainable Energy Reviews, 60, pp.795-809.

Faloye, D.O., 2014. The adoption of e-commerce in small businesses: an empirical evidence from retail sector in Nigeria. Journal of Business and Retail Management Research, 8(2).

Fayos Gardó, T., Calderón García, H. and Mollá Descals, A., 2015. Internationalization of SME retailer: barriers and the role of public support organizations. International Journal of Retail & Distribution Management, 43(2), pp.183-200.

Hussain, S., Khattak, J., Rizwan, A. and Latif, M.A., 2013. ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), pp.196-206.

Jere, M., Jere, A. and Aspeling, J., 2015. A study of small, medium, and microsized enterprise (smme) business owner and stakeholder perceptions of barriers and enablers in the South African retail sector. Journal of Governance and Regulation, 4(4), pp.620-630.

Kinuthia, J.N. and Akinnusi, D.M., 2014. The magnitude of barriers facing e-commerce businesses in Kenya. Journal of Internet and Information Systems, 4(1), pp.12-27.

Mount, P., Hazen, S., Holmes, S., Fraser, E., Winson, A., Knezevic, I., Nelson, E., Ohberg, L., Andrée, P. and Landman, K., 2013. Barriers to the local food movement: Ontario's community food projects and the capacity for convergence. Local Environment, 18(5), pp.592-605.

Pedersen, E.R.G. and Netter, S., 2015. Collaborative consumption: business model opportunities and barriers for fashion libraries. Journal of Fashion Marketing and Management, 19(3), pp.258-273.

Richter, M., 2013. German utilities and distributed PV: How to overcome barriers to business model innovation. Renewable Energy, 55, pp.456-466.

Schneider, S. and Spieth, P., 2013. Business model innovation: Towards an integrated future research agenda. International Journal of Innovation Management, 17(01), p.1340001.