Small Business Enterprise
Small Business Enterprise
Providing new product line (cosmetics), customers have more choices for their needs. Previous period times, most of customers are living within Hanoi, often have high and maintain income. But now, Intershop’s target extends to people whose have average income. Beside clothing, they can choose cosmetics such as perfumes, skin cares, conditioner and so on.
The new business plan will decide the growth of business in future and create more challenges that need improving. By this way, managers and staffs can identify strengths and weaknesses in marketing, operation, management and financial. From that, they are able to produce solutions, policies in order to solve problems, overcome weaknesses and maintain its strengths.
Using new strategies in performances, Intershop will become more and more professional in running its business activities. These changes will make Intershop from small-sized to mid-sized business. After expanding product line, employees – especially the sale managers and account should prepare more for the growth of business. The changes in marketing and operation, Intershop could attract more customers. Moreover, forecast financial statement would be better than before.
Intershop needs to adapt with new condition in market. Since the price of clothing, cosmetics or even renting, electricity, etc. are increasing, shop should cut some unnecessary needs out or change their main focus on business. For example, shop still sells clothes but now concentrate on cosmetics because it has lower inputs than clothing and easier to sell than clothing.
New strategies might also raise competitive rivalry among shops. Intershop would face with strong defenses, aggressive acts from its competitors in market such as expansion of product lines, more services, lower price and so on.
4a.2. On management team
Regularly, employees are scared of change. Maybe some conflicts will rise between employer and employees. Therefore, the owner has to watch out of for the developing resistance to changed responsibility, changed hierarchies of responsibility and changed chemistry for developing teams.
The changes in management will help Intershop increase its effectiveness in market. The departments are divided clearly helps management becomes easier for the owner. She does not have to take a lot of time to manage shop activities. The leader of each department controls their own works then they will report to the owner.
If the plan is issued, the resistance to change might happen because employees already get used to working style. Since that working style is popular and the same in most shop, asking them to change immediately is impossible.
4a.3. On employees
Since the owner’s ambition, employees would feel the challenges so they should prepare to face with difficulties. However, it can encourage them to achieve a hard, specific goal. Increasing skill, knowledge, experience and the responsibility of employees are necessary. Moreover, when they are working in right their areas, employees will work harder and try to show their abilities by the results of their jobs. Therefore, effectiveness of jobs, revenues will increase.
However, sudden changes can make employees feel a little uncomfortable. For example, changes of working time maybe cause troubles for employees especially those are students in university. Some of them maybe leave because it could affect to their study.
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 28 September 2016
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