Edit this essay
only $12.90/page

Principles of Business Sba Essay Sample

Principles of Business Sba Pages
Pages: Word count: Rewriting Possibility: % ()

Introduction
Eclipse will be a sole proprietorship established in 2017 on the twin island state of Antigua and Barbuda. The business will provide a vast variety of shoes targeting young adults. Products from designers such as Jessica Simpson, Christian Louboutin and Steve Madden will be offered together with brands such as Converse, Vans, and Nike.

Mission
In order to obtain leadership in this industry, Eclipse will pursue the mission “To be the premier supplier of contemporary shoes in Antigua and Barbuda, providing superior customer experience and exceptional quality.” As a result the following objectives will assist management in accomplishing the mission of the business: * To provide products durable in quality

* To provide trendsetting styles that will appeal to fashion savvy customers * To provide competitive and affordable prices without compromising quality Justification of Location

Eclipse will be located in Redcliffe Quay, St. John’s, Antigua. This location is ideal because it is located in the heart of the city in close proximity to the Heritage Quay Duty free shopping area. This will allow passengers disembarking Cruise Ships visiting Antigua to have easy access to the business as well local customers shopping in St. John’s.

Organizational Structure – Marketing Department
An organizational chart is one that depicts the well-planned relationship between the individuals in the organization and the functions that they perform in relation to the stated goals of the firm. Eclipse will pursue a Line Organizational structure that will enable management to make decisions easily, Control it easier, and enhancing flexibility making it very easy to adapt as circumstances change.

Sales Manager: Responsibilities include:
* Recruiting and training sales staff
* Supervising, motivating and monitoring the sales team’s performance.
* Managing all advertising of the business.

Sales Clerk: Responsibilities include:
* Maintaining the store’s display of merchandise
* Recommending items to the customers depending on their needs
*Managing the storeroom

Cashier: Responsibilities include:
* Processing all cash receipts
* Preparing an end-of-day cash report

Market Research

Market Research is based on gaining intelligence on the marketing factors or activities that affect a product and its sale. It also involves studying the behavior patterns of consumers who buy the product and identifying their likes and dislikes. The advantages of market research are: It provides an insight into what the consumers want and helps the business to decide on the best method that could be used to target consumers.

Target Population
Eclipse has chosen to target teenagers and young adults in the age range of (15-20) and (21-35). Current market trend for the age range 15-20 includes consumers who are looking for the latest styles as seen on various teen shows, music videos and teen magazines. This demographic of consumers are seeking to satisfy their need to be the best dressed in their social circles.

The current trend for the age range 21-35 includes consumers who are a little more mature and may be looking for products to satisfy a wider range of uses for example: Work, Church, and Partying.

In both cases Eclipse will seek to target those consumers who are fashion savvy and are looking for products that are high in quality, unique in design and affordable.

Price
The price of a product is based on some of the following factors:
* The cost to produce the product
* The demand for the product
* The pricing objective the business chooses for itself
* The product characteristics
Pricing is competitive as there are three other similar businesses operating in the market locally. Eclipse has chosen a Cost-based pricing strategy and a Market leadership objective. The aim is to increase their market share.

Competitors

There are three major competitors that sell products that would appeal to the same demographic of customers targeted by Eclipse.

Both Inizio and IT competitors sell products that appeal to the price conscious and fashion savvy consumer. However the products sold by these businesses are not high-end brands. Although fashionable in appearance the level of comfort offered by these brands is very low. Mademoiselle offers high-end brands but they are limited in the variety of styles and brands offered. In addition, all three competitors only offer female shoes whereas Eclipse will be a unisex store.

Eclipse intends to maintain a price range between ($150- $350). This price range will allow Eclipse to offer high quality and comfortable shoes to its customers.

Product/ Service

In Eclipse, the store will depict a separation of the Sun and the Moon. The area depicting the sun will represent brightly coloured styles separated into a Men’s and Women’s Section. This section will be painted with a brightly coloured yellow and bedaubed with decorations which will accent this colour. The moon section will offer more gothic type designs and will also be separated into a Men’s and Women’s section, It will be painted and decorated utilizing the colours of Black and Purple which will symbolize darkness. The types of seating used will also be representative of the theme in each section. The business will also have a logo depicting the union of the sun and moon. The uniform for the sales clerks will be T shirts with the Eclipse logo on it worn with Jeans. The management team will dress professionally with no set uniform.

Pricing Strategy

Eclipse will utilize a Cost-Based pricing strategy. This pricing strategy is based on the cost of producing a product and in the case of Eclipse it will be based on the cost of bringing the products to market. This pricing strategy takes in to account the variable cost i.e. cost of purchasing, shipping, taxes, broker fees, and sales staff salaries and fixed cost i.e. rent, electricity and interest on bank loans. Fixed Cost (FC) + Variable Cost (VC) = Total Cost (TC)

Eclipse price is based on cost plus markup.

The business will surpass the competition by offering a unique line of products not currently available on the local market. Eclipse will also stay abreast of changes in fashion trends and position itself to quickly respond to new offerings in order to ensure that its customers are in line with the current trends at all times.

Place and Distribution

Eclipse will utilize the chain Producer, Retailer, Consumer in receiving and distributing it products. The products will be purchased from select suppliers overseas and shipped to the store using sea freight. On arrival at the port, the products will be cleared from customs and transported to the store, will they will be made available to the consumer. The Consumers will receive the shoes by visiting the store, selecting their design of choice and size and purchasing them. The advantages that Eclipse will encounter due to the usage of this form of distribution chain are receiving discounts when purchasing products in bulk from the producer. An alternative method of distribution will be Online Selling. Disadvantages that Eclipse will encounter are the cost of maintenance of a physical store presence and the fact that it will be limited to customers who are able to visit the local store. An alternate channel that could be utilized is:

Promotion Mix
A promotion mix is a combination of methods used to promote ones products The promotional strategies used by the business are:
* Advertising – Eclipse will place ads in local newspapers, on select radio stations, face book and twitter. A functional website will also be used to inform customers of new and available merchandise. * Public Relations – Eclipse will use media relations by supplying information to the press and broadcast media to make them aware of the products available for sale. Eclipse will also identify a local celebrity to endorse its products.

Government Regulations
The business will need to apply for a license to use the Trade name Eclipse. This regulation is in place so as to exercise control over the names being used by businesses and to ensure that no two businesses trade with the same name. Once the name of the business is approved, then the business will be required to register with the Inland Revenue Department to obtain a Tax Identification Number (TIN) which will allow the business to be able to import its merchandise. The TIN also allows the business to pay its relevant business tax and employee payroll related tax as required.

Use of Technology
Eclipse will use Point of Sale cash registers to record its sales and update its inventory. This will improve the efficiency of the business as management will have real time information with regards to the inventory level of the products and assist in identifying when products need to be ordered. The business will also utilize security cameras to assist in monitoring the activity of customers in the store. This will improve the efficiency of the business as it will reduce the number of security personnel required and will help to reduce losses incurred by the business due to theft.

Customer Complaints
Eclipse will handle all customer complaints at the store. The policy is to address all customer complaints immediately or within a twenty-four hour period. The Sales Manager will resolve customer complaints. If a customer has a complaint for example, regarding a flaw in the merchandise, the sales manager will review the complaint and make a decision whether it is a reasonable complaint. If it is considered reasonable, an exchange can be made for another item of equivalent value. Eclipse has a set store policy where items can be exchanged with original receipt within five days of purchase. Cash refunds are made with original receipt within two days of purchase.

Ethical Issues
Quality of products should be consistent with representations made to the consumer. This will improve the image of the business and establish a trusting relationship between the business and its customers. This will encourage repeat sales. Sales should be accurately reported to tax authorities and the relevant taxes paid. This will assist in fulfilling the social responsibility of the business as taxes paid to the government will assist in funding various social programs. Supplier invoices should also accurately reflect the cost of the merchandise to allow for the payment of the correct import taxes.

Bibliography

* Principles of Business for Caribbean Examinations 4th Edition by Ivan L. Waterman and Dave Ramsingh * Principles of Business for CXC 5th Edition by BMC Abiraj

Search For The related topics

  • costs