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Malincho Case Study Analysis Essay

Kalin is a Bulgarian entrepreneur. He tried to establish a business from a scratch. This case is about a start up business and challenges arising out of a new business.Kalin were an inexperience entrepreneur but his determination led him to success, starting with scares resources. Kalin a Bulgarian national, started a new business as a fresh graduate he don’t have any savings. He started his business by obtaining loan from friends and family. He was able to get interest free loan .his target market was the Bulgarian community living in the newjersy. Initially he started by importing feta cheese. And then he later expanded his business by distributing to other cities and after one year he started to expand his product line on which he was able to make good profit. The Malincho case deals with Kalin who started a business of importing cheese from his home country of Bulgaria, and selling it his fellow countrymen in the east coast of America.

Kalin identified early on that there was a need for this kind of product in America. So he contacted a vendor in Bulgaria and decided to ship over cheese. He quickly raised funds to pay for this through the help of friends. There it was repackaged and sold at reduced rates. Soon Kalin had established Malincho.com where customers could place orders online through credit card transactions. Since many people of Bulgarian background were not comfortable with online transactions, Kalin delivered goods first and asked for payment upon delivery. He also introduced more products on Malincho.com. This made his business expand and grow.

The Problem/Opportunity:
The main issue in the case is to finance the company and repay its debt.
He has seen an opportunity to satisfy the demand of Bulgarian community in the U.S. Organization’s mission, goals and strategies
Mission statement:
As stated on their website “Specializing in imported European foods, where “We Bring You a Taste of Home!” with a focus on traditional Bulgarian food products”
to be profitable in business
To provide quality products at low price
To develop trust based relationship with its customers.
Expansion of the company by expanding its product line.
Corporate strategy:
As this is a new start up business the growth strategy will be applied. Expansion of the business by increasing its product line by Importing Bulgarian food products and increasing its target customers

Business strategy:
Business strategy used in this case is focus because the business has target only one market segment Bulgarian community.

SWOT analysis
Strength: this company has gain trust and confidence of its customer over a period and has established a reputation in the community. Weakness: the financial position of the company that is liabilities in the form of debt or inventory. Opportunity: there may be many products available in the Bulgarian market which is needed in the Bulgarian community, which should be explore and added to the product line. Threat: If they do not expand
properly there are many investors looking for the opportunity, and this case they can find a competitor.

He should expand his business.
He should look for investors or get into partnership that can make investment and he can get interest free financing.
He should expand his product line and look for the opportunities he has not explored yet.

Selected Recommendation:
Since it is important to keep your business growing and ahead of any competitors, Malincho must explore new products to be placed on their list of items. They must find new opportunities to expand and look into new ventures in order to stay ahead of any new competitors. Malincho needs to recognize a demand for new products and acquire them to meet customer’s needs. They must seek out new products to expand their stock and provide consumers with alternative items.

Action Plan:
Malincho need to expand their product line, and in order to do this, they have to first find out what they are. Once they have identified the products, they have to allocate a budget for these new products. Then they have to find a vendor who supplies these products. The products have to be of good quality and can be bought at a reasonable price. Prices need to be compared from different vendors in order to insure the best cost. If the cost of purchase is low then that product can be sold at a lower price.

As new products are introduced, it is important to implement them into the current system. This system can be an ERP system or a manual system. New products have to be put on the list so that management can keep track of the products sold. Storage space need to be allocated for the new products so that they can be retrieved from that location once an order has been placed.

Kalin has established a good business that is not only providing consumers with the products they want but also at a reasonable price. Since the project started, Kalin showed initiative by offering the product to customers based on trust. The products were delivered first to customers first and then the payment was made. This got the business more publicity as more people from Bulgarian background started talking about the cheese products from Malincho.com. Soon new products were being added to the list. This offered a variety of products to the consumers. This helped the business grow. As the business grows, the debt owed by Kalin will also be paid. As Kalin saw an opportunity in the Bulgarian Community, he also understood the demand people had form cheese from their home country.

This exposed an emotional attachment people began to have with the product. This will not only provide people with affordable products but also help expand the company. As Malincho does more business it will increase its profit margin. However there are some areas where the company needs to work on. As the market segment targets Bulgarian community, more items need to be introduced to insure customer loyalty. Malincho also need to deal with their debt as it should not get out of hand. Also Malincho need to stay one step ahead in this business or investors may invest in a competitor. This can be done through a expansion venture, where we look into areas of this Bulgarian market that have not been explored yet. This will help grow the company and extend the reach to other customers. Malincho has developed a good working model, however the market that this business depends on needs constant supervision. By constantly growing and expanding Malincho can continue to do business and make profit on its investments.

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