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APTE 7207 Professional Business Management
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APTE 7207 Professional Business Management
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Course Code: APTE 7207
University: Unitec Institute Of Technology
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: New Zealand
Question:
This assignment requires you to take the role of a person developing a new business which they will own
You are expected to develop a realistic scenario based on the realities of the current market, investigate your perceived business opportunity and formulate a complete plan for your new ventur.
Answer:
Introduction
Sustainability of the products which are available in the market is a big concern for the customers in the markets as customers search for sustainable products which will be effective in meeting their daily needs and requirements but also will be sustainable and environment friendly in nature. As a result of increase awareness among the customers regarding sustainability and environment conservation, the customers had adopted variety of alternative products instated of electrical products in order to focus on saving electricity. In the recent times, customers have again started to show interest towards different electrical products and solutions as a result of their innovation in order to facilitate different types of electricity services for their residential as well as commercial purposes. The growth and development of domestic electrical products and appliances industry is dependent on the level of innovation and sustainability adopted by the sector towards its products. This report focuses on the development of a realistic scenario regarding the opening of an electrical shop in Auckland City Centre named In-Demand electric shop based on the realities of the current market and its implications.
Business Description
Vision
The vision of In-Demand electrical shop is to enhance the quality of living of their customers by providing unique and innovative products which enhances their lifestyle.
Values
The values which are at the core of In-Demand electrical shop are as follows:
Innovation- As opined by Godart, Maddux, Shipilov & Galinsky (2015) In-Demand electric shop focuses on manufacturing and marketing of products which will meet the current and future requirements of the customers of the company.
Diversity- As stated by L. Stone & E. Tetrick (2013)In-Demand electric provides employment to individuals belonging to different cultures and background in New-Zealand.
Sustainability-As opined by Novak (2014) In-Demand electric shop focuses on promoting sustainability by doing business in the market in a sustainable manner and also to develop and market sustainable products and services.
Honesty and Integrity- In-Demand electric shop focuses on doing business in an honest and integrated manner following all types of ethical and legal requirements and legislation.
Industry Sector or niche
The industry sector in which In-Demand electric shop operates is the domestic electrical product and appliances industry which focuses on providing domestic and household electrical products and services to the customers The domestic electrical product and appliances industry is a very vast industry considering the vast number of products the industry offered to the customers and owing to the increase in service requirements from the customers of the domestic electrical product and appliances industry.
Products and Services
The products which are offered by In-Demand electric shop are different types of lighting solutions, cooling solutions, electrical tools, wiring solutions, switches, sensors, buttons, relay instruments, cables, framing systems, audible signalling devices, visual signalling devices, electrical motors, wiring tools and connectors. The USP of the products of the company are lower cost than other retail shops, wide variety of products and services and innovative nature of the products and services.
The services which are offered by In-Demand electric shop are configuration services, start up services, device configuration, training of individuals, part kits, firmware upgrades, evaluation service and extended warranty.
Reason for choosing the sector
The reason for choosing the domestic electrical products and appliance sector is that though the sector is facing tough challenges in the recent times but it has huge growth prospect considering the change in consumer preferences regarding designing their homes and regarding their demand for more user friendly and environment friendly products in order to design their homes and other residential and commercial spaces.
Intended source of competitive advantage
As opined by Amoah-Mensah (2016) the intended source of competitive advantage for In-Demand electric shop is wide variety of products and services which are offered by the shop to their existing customers and potential customers. Another intended source of competitive advantage for In-Demand electric shop is the top quality and highly efficient customer services which are offered by the staffs of the shop to their customers while providing installation services or after sales service. As stated by Davcik & Sharma (2016) another intended source of competitive advantage for In-Demand electric shop is the low cost of the products and services offered by In-Demand Business shop compared to other similar retail electric shops such as Ideal Electrical, Scott Electrical Ltd., Active Electrical Suppliers, Corys Electrical without compromising the quality of the products and services. The above mentioned competing shop offers greater variety of similar products to the customers at the same price.
Competitive Advantage
Factors
1
Wide variety of product portfolio
2
High quality standard of product and exceptional customer service provided through support employees
3
Strong support of staff during installation and after sales service
4
Low cost of product/service in contrast to other like Ideal Electrical, Scott Electrical Ltd., Active Electrical Suppliers, Corys Electrical
5
No compromise in quality of product/services
Table 1: Competitive advantage of for In-Demand electric shop
Source: Author
Market Analysis
Economic and business environment
As stated by Hong, Oxley, Mccann & Le (2018) the economic environment of New-Zealand is suitable for the growth and development of In-Demand electric shop as the economy of New-Zealand favours the growth of the In-Demand electric shop. The purchasing power of the customers belonging to the New-Zealand economy is high which facilitates high demand for the products and services of the company as the GDP growth rate of New-Zealand is expected to be 2.92% greater than that of 2017. Moreover the employment rate of New-Zealand is also high which also facilitates high disposable income for the individuals as the un-employment rate of New-Zealand is currently 4.5% in the second quarter which is although little higher than that of 4.4% in the first quarter of 2018. The business environment of New-Zealand provides confidence among businesses to develop and implement innovative ideas as it supports innovation as the government provides the necessary support and assistance to various small businesses in the form of various loans and lower interest rates.
Major trends
The major trends which are observed both globally and in New-Zealand in the domestic electrical products and appliance sector is that the customers seeks environment friendly products which helps in satisfying the environment-conscious requirement of the customers. The reason for seeking environment friendly products is that because the products are eco-friendly in nature and do not presents threats to the environment after disposal. As opined by Rasmussen & Hannam (2013) the other major trend which is observed in the domestic electrical products and appliance sector in New-Zealand is that the customers of New-Zealand are not overly price sensitive in nature as they perceive safety more important than cost regarding choosing domestic electrical products and appliances for their domestic and commercial purposes. As opined by Balls (2013)the other major trend which is observed in the domestic electrical products and appliance sector in New-Zealand is that the customers seeks more advanced and modern products which are automated and smart in nature which addresses their daily comfort and requirements.
The size of the sector
According to PR Newswire (2013) though the domestic products and appliances retailing industry has struggled to grow in the last five years owing to the development of various alternative products and solutions by various other sectors, but the domestic products and appliances retailing industry is expected to grow by 2.2% in the coming 5 years. According to Asia News Monitor (2014) the annual growth which was observed in the domestic products and appliances retailing industry in New-Zealand was 0.9 % during the period of 2014-2019. The estimated revenue of the domestic products and appliances retailing industry is currently over $2 billion and currently the domestic products and appliances retailing industry provides employment to over 6200 employees across New-Zealand. The domestic products and appliances retailing industry in New-Zealand is likely to face various kinds of challenges for the higher interest rate of the products which could also result in reduction in the demand for the products of the industry and also reduction in revenue. The only way to overcome the challenge is to increase the variety of products and to demonstrate higher innovation in the existing and future products of the sector.
Customer Analysis
The customers of the In-Demand electric shop include domestic customers as well as business organizations who seek electrical products and solutions for residential and commercial purposes. As opined by Jin, Ji &Gu (2016) the customers of the company belong from all classes of the society from various income groups as every individual require electrical products and appliances in their home and business spaces to facilitate the use of various electricity related services. The customers of the company seek for sleek design, modern and innovative products at affordable prices. As opined by Novak, Sparl & Azman (2015) the customers of the company also seek high quality services from the various individuals who are in charge of installing and servicing the various electrical services and appliances in their home or offices.
Competitor Analysis
As opined by Yu & Cannella (2013) the competitors of the In-Demand electric shop includes various other local electrical shops and retailers based in Auckland such as Ideal Electrical, Scott Electrical Ltd., Active Electrical Suppliers, Corys Electricalwho provide the same range of products and services to the customers which meets the requirements of the customers. Another competitor of the In-Demand electric shop are the online retailers such as Electrical Direct Ltd. and Amazon who provide the same products to the customers from various online shopping platforms mostly at lower costs. The unique selling propositions of the retail competitors are greater variety of products and greater portfolio of products as their size are larger than In-Demand electric shop. The unique selling proposition of the online retailers is cost leadership as they offer similar products at lower costs.
Sales and Marketing
Market Position Strategy
As opined by Macdonnell (2013) the products and services of the In-Demand electric shop will be available to the potential customers of the shop both physically and also through online platform as In-Demand electric shop has entered with an agreement with various mobile application platforms which provides necessary products and services to the nearby customers with no additional costs. A customer can order the various products and services offered by In-Demand electric shop throughmobile based service provider applications, which will be delivered to the customers at the same cost with high quality and high service experience.
Unique Selling Proposition and key sales message
The unique selling propositions of In-Demand electric shop are as follows:
Lower costs of the products and services offered by the shop compared to other similar competitors without compromising on the quality of the products and services.
As opined by Niu & Wang (2016)availability of wider variety of products and services in the In-Demand electric shop which provides multiple options to the customers at the time of their purchase according to their requirements, purpose and budget.
Innovative nature of the products and services offered by the In-Demand electric shop.
The key sales messages for the In-Demand electric shop are as follows:
We, at In-Demand electric shop respect customer’s stance regarding sustainability and therefore offer environment friendly products and services at affordable prices.
We, at In-Demand electric shop understand needs and requirements and remain committed to provide with the best solutions and services to cater to the needs of the customer.
We, at In-Demand electric shop value demand for innovative products and services and therefore are committed to provide with high level innovative products and services.
Branding
In-Demand electric shop will focus on providing high quality training services and in a consistent manner which will help in providing various interested individuals the required knowledge regarding electrical products and various electrical frameworks which will help them build the skill expected in a top quality electrician. According to Nisar, Prabhakar & Strakova (2018) the In-Demand electric shop will also enable various types of convenient payment options and payment plans for their customers so that they can pay as per their convenience such as cash payment, card payment, easy EMI options etc. Social media will be used for the purpose of branding in order to build a brand name for the products and services among the customers. The official page Facebook page of In-Demand electrical shop will post various types of advertisement of the products along with its specification. The official Twitter handle of In-Demand Electrical shop will post various types of customer reviews and customer testimonials which will help in effective branding of In-Demand Electrical shop.
Packaging
According to Zhao, Libaers & Song (2015) the packaging of the products of the In-Demand electric shop will be carried out based on the packaging norms and standards which are set and ideal for each products of the company. The packaging of the products of the company will be done in such a way that they remain safe and do not break during course of transportation such as by providing a safety case or by double case packaging. The packaging of the company will follow all sets of norms and regulations which are laid down by various regulators in the country such as providing detailed information and safety information regarding the product in its packaging.
Sales Strategy
The sales strategy that will be followed by In-Demand electric shop to become market leader will be approach for staff skills development where the staffs of the shop will be trained adequately to provide expert knowledge and insights to the customers in a successful and effective way without any interruption. This would help in answering every query regarding the product and its characteristics to the customers which would facilitate the purchase decision and make it easier for the customers.
Promotional Tactics
As opined by Rogers (2014) the promotional tactics which will be used to market and promote the products and services of the In-Demand electric shop is personal selling and advertisement through online platforms as it involves comparatively lower costs which would fit in to the promotional budget of the shop.
Business Operations
People and their skills
The In-Demand electric shop focuses on employing effective staffs in the shop in order to help in selling its products to its customers and to provide high quality service to the customers. The shop desires various skills from their employees in order to fulfil the objectives of the shop such as top quality communication and inter-personal skill, highly effective negotiation and customer interaction skills, basic IT skills and sound knowledge of the products and services offered by the shop.
Sub-contractors and allies
There are various sub-contractors and allies with whom the In-Demand electric shop will enter in to agreement such as various global and local manufacturers and whole-sellers of electrical products and solutions who will be responsible for supplying products to the shop. A mobile based service provider application will be hired and would be responsible for generating online bookings of the services offered by the shop.
Premises
The In-Demand electric shop will be situated at 21 Queen Street in Auckland City Centre which would provide a central access to the existing and potential customers of the company. The reason behind choosing the Auckland City Centre as the potential location of the shop is that it is easily accessible from all other locations of Auckland and also because it is a commercial hub. The easy accessibility and business of the location will help in attracting customers towards the shop.
Computing and communication system and tools-
The In-Demand electric shop will be well equipped with up to date computing system and communication tool and will be operated by highly skilled IT individuals. As stated by Rezapour, Farahani & Pourakbar (2017) the computing system and the communication tool will help in linking all the departments of the shops such as accounts department, sales and marketing department with the various allies and sub-contractors who would be in agreement with the company in order to facilitate quick ordering and disposal of various product and service related orders.
Production Equipment
The production equipment which will be used by In-Demand electric shop are various computer and product manufacturing tools required by the shop in order to manufacture own in house products of the company such as electrical board cutting machine and drilling machines.
Knowledge Management
The knowledge which is required by In-Demand electric shop in order to deliver value propositions to the customers of the company is knowledge regarding the products of the shop and its characteristics and knowledge regarding the effective installation of the various products and appliances of the shop in residential and commercial projects.
As stated by Powell & Ambrosini (2017) the In-Demand electric shop will use both explicit and tactic knowledge in order to effectively share knowledge and content among the employees of the shop for the benefit of the customers. The In-Demand electric shop will manage explicit knowledge by developing technical manuals which would contain technical guideline or information which will help the employees gain knowledge regarding the products and its characteristics. This tactical knowledge will be managed by In-Demand electric shop by providing internal training to the employees of the company regarding the effective installation of the various electrical devices and appliances.
Summary and Reflection
The need for innovative and environment friendly electrical products and appliances is expected to grow owing to the change in preferences among the customers and due to growing consciousness regarding the environment among the customers. Though the domestic electrical products and appliance industry in New-Zealand did not experience expected growth in the last five year period but still it is estimated to move towards a development stage where the sector is expected to witness growth as a result of change in customer demands. The customers of New Zealand seeks for innovative electrical products and solutions which will help in increasing their comfort level and help in reflecting their smart way of life but at the same time the customers desire for products which are environment-friendly in nature so that they remain successful in reducing the carbon foot print.
In-Demand electric shop is expected to witness various kinds of challenges and problems while proceeding with their business in Auckland. In order to sustain those challenges the shop needs to increase the product and service offerings to the customers.By increasing the product and service offerings the shop will be able to provide multiple options to the customers to satisfy their needs and requirements.In order to sustain the above mentioned challenge the shop also needs to provide high quality customer services to their customers.
References
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Balls, A. (2013). The kiwi SME in 2013: New Zealand is the easiest place in the world in which to start a business–perhaps a little too easy? Ashley balls reviews our business environment.(Issues with Balls). NZ Business, 27(1). Retrieved from- https://web.b.ebscohost.com.ezproxy.scu.edu.au/ehost/pdfviewer/pdfviewer?vid=1&sid=381fdebd-5b4b-4fba-8893-66aff850294f%40pdc-v-sessmgr03 Accessed as on 1/10/2018
Davcik, N., & Sharma, P. (2016). Marketing resources, performance, and competitive advantage: A review and future research directions. Journal of Business Research, 69(12), 5547–5552. Retrieved from doi:10.1016/j.jbusres.2016.04.169 Accessed as on 1/10/2018
PR Newswire (2013). Global CFD market in electrical and electronics industry 2012-2016. Retrieved from https://search.proquest.com/docview/1448407515?accountid=30552 Accessed as on 1/10/2018
Godart, F., Maddux, W., Shipilov, A., & Galinsky, A. (2015). Fashion with a foreign flair: professional experiences abroad facilitate the creative innovations of organizations. (Report), 58(1), 195–220. Retrieved from- doi:10.5465/amj.2012.0575 Accessed as on 1/10/2018
Hong, S., Oxley, L., Mccann, P., & Le, T. (2018). Why firm size matters: investigating the drivers of innovation and economic performance in New Zealand using the Business Operations Survey. Applied Economics, 48(55), 5379–5395. Retrieved from- doi:10.1080/00036846.2016.1178843 Accessed as on 1/10/2018
Jin, J., Ji, P., &Gu, R. (2016). Identifying comparative customer requirements from product online reviews for competitor analysis. Engineering Applications of Artificial Intelligence, 49, 61–73. Retrieved from- doi:10.1016/j.engappai.2015.12.005 Accessed as on 1/10/2018
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Macdonnell, R. (2013). But I Deserve It! the Impact of Product Positioning on Consumer Intentions Toward Fair Trade Products. Advances in Consumer Research, 41. Retrieved from https://search.proquest.com/docview/1812423758/ Accessed as on 1/10/2018
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Niu, Y., & Wang, C. (2016). Revised Unique Selling Proposition: Scale Development, Validation, and Application. Journal of Promotion Management, 22(6), 874–896. Retrieved from- doi:10.1080/10496491.2016.1214209 Accessed as on 1/10/2018
Novak, A., Sparl, P., & Azman, S. (2015). IMPACT OF CUSTOMER SATISFACTION ON FINANCIAL RESULTS OF CAR SERVICING COMPANIES: FINDINGS FROM SLOVENIA. E+M Ekonomie a Management, 18(3), 113–128 Retrieved from- doi: 10.15240/tul/001/2015-3-011 Accessed as on 1/10/2018
Novak, V. (2014). Design management of sustainability values: a learning organization perspective. Architectural Engineering and Design Management, 10(3-4), 1–15. Retrieved from- doi: 10.1080/17452007.2014.896782 Accessed as on 1/10/2018
Powell, T., & Ambrosini, V. (2017).Espoused versus realized knowledge management tool usage in knowledge intensive organizations. The International Journal of Human Resource Management, 28(2), 356–378. Retrieved from doi:10.1080/09585192.2016.1244911 Accessed as on 1/10/2018
Rasmussen, E., & Hannam, B. (2013). Before and beyond the great financial crisis: men and education, labour market and well-being trends and issues in New Zealand.(Author abstract), 38(3), 25–34. Retrieved from- https://search-proquest-com.ezproxy.scu.edu.au/docview/1551850746?OpenUrlRefId=info:xri/sid:primo&accountid=16926 Accessed as on 1/10/2018
Rezapour, S., Farahani, R., &Pourakbar, M. (2017). Resilient supply chain network design under competition: A case study. European Journal of Operational Research, 259(3), 1017–1035. Retrieved from- doi:10.1016/j.ejor.2016.11.041 Accessed as on 1/10/2018
Rogers, A. (2014). Is your advertising on an ego trip? Digital marketing strategies to boost your organization’s brand relevance. Marketing health services, 34(3), 12–3.Retrieved from- https://web.a.ebscohost.com.ezproxy.scu.edu.au/ehost/pdfviewer/pdfviewer?vid=1&sid=67a58b6e-6a93-4c20-805e-3c7799394389%40sessionmgr4008 Accessed as on 1/10/2018
Yu, T., & Cannella, A. (2013).A Comprehensive Review of Multimarket Competition Research. Journal of Management, 39(1), 76–109. Retrieved from- doi:10.1177/0149206312462456 Accessed as on 1/10/2018
Zhao, Y., Libaers, D., & Song, M. (2015). First Product Success: A Mediated Moderating Model of Resources, Founding Team Startup Experience, and Product?Positioning Strategy. Journal of Product Innovation Management, 32(3), 441–458. Retrieved from- doi: 10.1111/jpim.12236 Accessed as on 1/10/2018
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