Business simulation Assignment Example | Topics and Well Written Essays - 1500 words

Business simulation - Assignment Example Computer Repair business averages ?8,900 in gross monthly profits. The owner/manager believes that it can achieve ?12,000 in gross monthly profits, through promotions and expansion of product lines. Currently, the business employs two part time sales staff and one full time book keeper/receptionist. Though the space currently available for formatting new machines is adequate, nearly one third of it is used to store inventory, which includes new product models for resale. With expansion of services and the need to utilise space more efficiently, the business must consider alternative supply chain processes, such as JIT systems. It must also consider the types of products to offer, such as business machines with networking capabilities. Aside from increase monthly gross sales, the business has identified objectives of greatly increasing its individual customer base and greatly increasing the number of business customers, so that dividing the products into separate business units is fea sible. A thorough analysis of the business environment will allow the computer sales business to make decisions about expansion that are most suitable and to develop a marketing and promotions programme that aligns with expansion of product lines. ... Political Business tax rate remains 21% at projected profit increase, according to Adam & Brown (1999, p.13). Employee vs. Self employment (2 National Insurance taxes for self-employed, affects pool of applicants. Relationship with nearby University critical for technician. Environmental concerns of policymakers and citizens. Consumers want ‘green business’ initiatives. Costs of ‘going green’? Economic Consumers tightening budgets, spending less on new products or choosing more affordable products. Costs for fossil fuels may influence supply costs. Social Social networking for younger users (teens and young adults) may offer an additional channel for promotion. Consumers want value and personal relationship in product sales. Technical Requirements for networking and customization rely on technical knowledge. Use of JIT inventory systems reduces inventory related costs. The SWOT analysis helps the computer sales business determine the type of growth strategy and promotions strategy to be developed, by conducting an honest assessment of the organizations physical and financial assets, its potential capabilities, current shortcomings and potential future challenges. The SWOT analysis table below provides management with greater insights, to develop a successful business strategy. The analysis considers the most important and influential factors in expanding Computer Sales. Strengths Located in business centre of city, exposure can be greatly increased. Relationships with suppliers already established (Dell and Hewlett Packard). Weaknesses Lack of promotions plan, currently relies on word of mouth. Too much physical inventory takes up space and increases costs. No technical expertise for customization. Opportunities Increase awareness through