Main Components Of Marketing Management Marketing Essay

Main Components Of Marketing Management Marketing Essay The industrial world has come a long was from the early days of industrial revolution. As the industrial world has grown tremendously, it has become more complicated and a subject of academic study. Business concepts have evolved and new findings and ideas have been recorded continuously. Different organizations have different business strategies and plans. Marketing management has become an essential part of a business strategy. Marketing management is the proper use of marketing techniques, resources and activities by a company or organization to promote its products (Kotler et al, 2006). This report aims at explaining the main components of strategic marketing management. For better understanding the report then concentrates on the newspaper industry in particular. It explains how internet has become a key challenge for the newspaper industry. Also the author demonstrates the ability to apply marketing theory by doing a SWOT analysis of the newspaper industry. Main Components of Marketing Management Marketing is one of the main aspects of business management. It is also one of the most powerful in that it has the potential to significantly impact the entire business management process that few of the other aspects of business management can match. Marketing and its management is almost as diverse a field as business management itself. The main components of marketing consist of analysis, planning, implementation and control (Czinkota Ronkainen, 2007). These are the components no matter what the kind of industry or service the target of marketing might be. Situational/Strategic Analysis Strategic analysis is mainly about analyzing the strengths of organization and the external factors that can influence the business position. It is necessary to understand the current environment before defining specific marketing activities (Lamb et al, 2008). It involves in assessing what a particular organizations position is with respect to its customers, how the business is functioning within and its competition outside. Various qualitative and quantitative methods of data collection are used for marketing research to be carried out. Sources of data will consist of primary and secondary, with the secondary ones being those that are already available i.e. reports, journals, articles, etc and the primary sources being surveys, questionnaires to the target audience, etc that will reveal product specific or service specific information at the desired time period. Analysis is also required of the external conditions to take account of the changes in technology, changes in governmenta l policies that could impact the industry, etc. Customer analysis is equally important which includes customer buying trends, continual assessment of the target customers to increase the base of potential customers. Various tools that can be used to carry out the analysis are: PEST analysis, scenario planning, SWOT analysis, market segmentation, etc. Strategy Planning The situation following in depth analysis and data gathering leads to one that requires intense planning and simulation. Due to knowledge of the opportunities and risks gathered from the analysis stage the company must now plan its actions based on its objectives that will involve long term strategic decisions, tactical decisions that affect mid term goals and operational decisions that affect daily operations of a company (Czinkota Ronkainen, 2007). By rigorous cost and profit estimates on various models of action, the company will be best able to judge which model to choose. The model chosen might require that necessary changes be made in the existing organizational structure or a complete revamp in some cases to help achieve the goals and objectives set. It is also imperative that at this point in time, the company comes out with alternative plans in order to meet its goals and objectives in case the primary plan does not work out. Strategy Implementation and Control These are probably the most important phases in the marketing plan since no matter how much effort is put into the analysis and planning phases, the implementation needs to be carried out according to plan with appropriate control. The implementation should be carefully carried out since often times it is found that plans are hardly adhered to. The implementation and control must also allow for adequate flexibility for tackling with unexpected and undesired situations. Strategy implementation directly affects everybody associated in an organization (David, 2006). By frequent monitoring and control of the implemented plans, the company can gauge the effectiveness of a particular plan or change it accordingly based on the effects it is having. Marketing Management and other Aspects of Business Management As mentioned above marketing is an important part of the overall business management and plays an important role in the organizations success. An organizations success depends on how it can satisfy its customers through its products and services. This is where marketing plays an important role. It is the marketing plan of an organization that decides how an organization goes by in making its products and services available to its customers. Also marketing plan is what decides in which market the organization is going to compete and what are the steps to be taken to meet and satisfy the customers needs. Hence, the success of all other aspects of business management is directly or indirectly dependent on the success of the marketing strategy. For example staffing and production or a part of the business management. So these factors are directly dependent how an organizations products and services fares in the market. As mentioned marketing strategy plays an important role in the market success of a product or a service. Hence, all the other aspects of business management are closely related and dependent on the marketing strategy. Key Challenges Affecting Marketing Strategy of the Newspaper Industry Newspaper industry has been one of oldest and dynamic industry that has enjoyed great success for a very long time. Newspaper industry has played a dominant role in public communication in the past century. It has seen tremendous growth and financial success in the second half of the 20th century. Even though the main purpose of the newspaper industry is to make news available to public, its main source of income has been advertising, especially, retail and classified advertising (Picard, 2008). 75 to 85 percent of income of an average newspaper in the Unites States and European countries is accounted by advertising. Newspaper advertising has witnessed a strong and consistent growth in the 20th century and also a relationship was observed between advertising spending and GDP (Gross Domestic Product). All this was possible as there was literally very little competition in the advertising sector (Picard, 2008). The impeccable success of the newspaper industry is now on a decline. The debate over the end of the newspaper industry has been doing rounds since the last decade of the 20th century and early 21st century. But now there have been observable effects of this decline around the world. In the US alone, The Rocky Mountain News and the Ann Arbor have completely shut down wherein Seattle Post Intelligencer has stopped printing and has completely adopted web only model. The Detroit Free Press and The Detroit News have cut down their publishing to 3 days a week (Barbara, 2009). In the UK, all national newspapers have recorded a year on year fall. Pearsons financial daily and Independent News Medias the Independent have both recorded a 3.17% and 14.02% year on year drop respectively (Busfield, 2009). There also has been a drop in the number of people employed by the newspaper industry. The number of people employed by the newspaper industry has gone down by 18% over a 14 year period from 19 90 to 2004 (Barbara, 2009). As per Pew Project findings, 14,000 reporting jobs have been lost during 2001 to 2009 (Entman, 2010). All this is a strong indicator of the demise of the newspaper industry. One of the key challenges or reasons for the decline of the news paper industry has been the internet. The situation is best summed up by Will Manley (2008), when he states Thanks to the Internet, the entire newspaper industry is fighting for its life. The internet has hit the core of the industry. It has diverted both the advertisers and the readers away from the newspaper industry. The development of internet and its advertising abilities are now substituting the traditional newspaper classified advertising (Picard, 2008). Internet advertising model has taken away a major chunk of the newspapers primary source of income which is the classified and display advertising and also it has led to a decrease in the readership as well (Gardner, 2009). The newspaper share in the total advertising expenditure has decreased by one third. Clearly the newspaper industry is losing its dominance over the advertising world. First, lets consider the effect of the internet on the readership. Internet has achieved great penetrability today on a global stage and has connected the world like no other communication means in the past. The internet, growing mobility and dropping costs have lead the access of global multimedia networks which link individuals, groups and news organizations (Entman, 2010). This has given the readers access to world news at absolutely no cost. It gives them an opportunity to refine the news topics as per their individual interests and also to search news articles from previous issues if required. These advantages have started diverting readers from the traditional print newspapers to digital news websites on the internet. There is a drastic increase in the number of prole going online or using wireless devices to get news and information (Gardner, 2009). According to research news sites and digital newspapers are among the most widely demanded and visited web sites among the Intern et community worldwide (Flavian Gurrea, 2008). News portals like Google News and Yahoo! News have contributed immensely to this drastic diversion in readership. They dont just offer aggregated news content but also are available 24/7 to anyone who has access to internet from anywhere in the world (Barbara, 2009). Internet news portals and websites have an added advantage. They allow an interaction between the readers and also with the journalist who reports and edits the stories which is not possible in the traditional news papers (Entman, 2010). This is in sync with the trend that a great number of investigative stories about the government wrong doing have appeared on various news and opinion bloggers than in the newspapers (Manley, 2008). This indicates the trend that readers are looking for online resources for news and information. Internet is now being accessed by mobile phones and wireless devices which are not helping the newspaper industrys cause. All these reasons combine d, have lead to a decrease in the readership of newspapers. Lets now consider the threat posed by internet on the newspaper advertising which is the financial back bone of the newspaper industry. Internet has come out with a dynamic advertising model which has proved to be more effective for classified advertising than in the newspapers. This has made a damaging impact on the newspaper industry as classified advertising has been the primary category of advertising sales and growth (Picard, 2008). The decline in readership and the advantages that internet advertising offers has made advertisers reconsider their overall advertising spending patterns. Concerns over the effectiveness of advertising took more momentum due to the economic downturn and recessions. This made advertisers explore new media for advertising and internet was a great substitute (Picard, 2008). Internet had great advertising models which attracted traffic and also advertisers could target their customers which were not possible through newspapers. Models like Google AdSense are a great example of this business model where people were paid for displaying ads on their personal websites and for increasing the traffic. Also there are agencies that pay people for viewing ads which means the advertisements have maximum reach. Huge revenues generated by Google, Yahoo, MSN are an indicator where the advertisers are channeling their dollars (Barbara, 2009). The newspaper industry is no more interesting to the advertisers as it was a couple of decades ago. Newspaper publishers seem to have taken the hardest hit from the technological and economic challenges of publishing (Barbara, 2009). The decline in readership and newspaper advertising has made the newspaper industry less financially interesting for investors as they are looking for profits and assets growth (Picard, 2008). Strategic Analysis of the Newspaper Industry As mentioned above, strategic analysis is the main and foremost component of marketing management. A strategic analysis must analyze all the factors that influence the marketing strategy of an organization. Below is the SWOT analysis of the newspaper industry. SWOT Analysis SWOT (Strength, Weakness. Opportunities, Threats) analysis helps an organization to determine where it is doing well and where it needs improvement. SWOT analysis must be made relative to the market needs and competition (Ferrell Hartline, 2007). Following is the SWOT analysis of the newspaper industry: Strengths: The strength of the newspaper industry is that it targets a wide range of customers across the globe. Newspaper industry has penetration remote parts of the globe where there are no other sources of world news. This is great strength as this gives the newspaper industry a large customer base. Weakness: The cutting of trees for paper has become a global issue under the global warming context. The dependence of newspaper industry on paper has become its biggest weakness as there is huge support from world wide for e-books and papers. The newspaper industry must come up with an alternative to paper. Opportunities: There is a huge opportunity for the newspaper industry to venture into other markets and use advanced technologies to reach the customers or readers. Newspaper industry can join hands with electronic media to come up new business strategies and plans. But this is an opportunity which has to be used. Threats: As mentioned above electronic media is an opportunity if used but right now it is a threat to the newspaper industry especially in developed countries. Electronic media have gained popularity in the last couple of decades and have become a serious threat to the newspaper industry. Conclusion Strategic marketing management is very important for the success of any organization. The marketers must understand the importance of this and use the various tools and ideas at their disposal to come up with ideas and strategies that will help the organization to beat the competition and succeed. Being innovative in formulating strategies is the need of the hour for every organization in order to survive in todays highly competitive industrial world. In particular, newspaper industry has to adopt new ways and methods to overcome the challenges posed by the technological advancements, particularly ineternet. The importance of marketing management can not be stressed any further and its high time that the organizations world wide realizes and implements marketing management in their business model.

Overview on ZEN Works

Zero Effort Networks (Z.E.N. works) is a great new tool in NetWare 5, that makes the network administrator†s job a lot easier by allowing him to spend less time at each user workstation. To be able to use the Z.E.N. works these are the minimum hardware requirements: Processor: 486/33 or higher Memory: 16 MB (for Windows 95); 24 MB (for Windows NT) Hard disk space: 4 MB (workstation; 24 MB (full station) Z.E.N. works needs to be installed on the server and the client on the workstation needs to be updated. During the installation process Dynamic Link Libraries (DLLs) are copied to the workstation. DLLs contain subprograms that are called by an application to perform certain operations. Another utility that is included in Z.E.N. works to help the distribution and management of applications is the Application Launcher, which consists of four major components: Application objects in the NDS tree Application Launcher Window and Application object The snAppShot utility allows you take a â€Å"snapshot† of the Windows workstation before installing the application. The snapshot includes Registry settings along with the names of system and application files on the workstation. After the application has been installed, the snAppShot utility takes another picture of the workstation†s configuration and then uses the two snapshots to create an Application Object Template (AOT) file. The Application Launcher uses the AOT file to determine what Registry settings and system files need to be copied to the workstation to run the application from the network. In addition to including configuration settings and system file names, the AOT file also contains the name of the Application object and the path where you want to store the AOT and installation files. Consequently, before running the snAppShot utility, you need to define the name you want to use for the Application object and decide where the application and AOT files will be stored. The Application Launcher software consists of two components: the wrapper program and the launcher. The wrapper program determines which launcher program (NALW31.EXE, NALWIN32.EXE, or NAL.EXE) to run based on the client computer†s operating system. The launcher program then determines the Application objects to which the user has access and displays a window showing all applications the user has been authorized to run. When the user selects an application, the launcher determines whether the application is installed on the workstation. If this is the first time the user has run the application from this workstation, the application will automatically be installed using the AOT file created by the snAppShot utility. If Application Launcher senses that the application configuration has been damaged, or files are missing or corrupt, it will automatically correct the application configuration and copy and damaged or missing files.

Ecco’s global value chain management Essay

1. Describe the competitive environment of ECCO and determine how well ECCO is positioned (vis-à  -vis the competitors) to take advantage of changes in the industry. http://wulibraries.typepad.com/files/footwear.pdf 2. Analyze ECCO’s global value chain. How well does this configuration match the drivers in the industry? Analyze ECCO’s global value chain. High demand for quality and reduced lead times led the company to a self-sufficiency approach on streamlining its entire value chain from raw hides to finished shoes unlike its major competitors who only designed and marketed their products without in house manufacturing. In having a global network of tanneries, production facilities, research centers and distribution centers, ECCO is able to meet customer demands in specific geographic locations in terms of response times which lead to customer satisfaction. Additionally the firm accrues from benefits of lower labor and production costs and different expertise levels in different locations which can be in turn transferred down to the customers. http://www.pwc.com/en_GX/gx/operations-consulting-services/pdf/pwc-supply-chain-and-risk-management.pdf According to Porter’s value chain framework, ECCO utilized various strategies to achieve a balance of responsiveness and efficiency in their efforts to improve its global value chain . http://www.strategicmanagementinsight.com/tools/value-chain-analysis.html Specifically, the firm utilized: 1) Firm infrastructure In having a factory based in Slovakia, uncertainty and risk of political instability in Thailand could be mitigated by helping to drive up volume between plants and ensuring quicker delivery speeds to markets in Russia & Poland. 2) Human Resources Management ECCO ensured knowledge remained in the company through promoting workers from within and improving worker skills through trainings. 3) Technological Development R&D activities were relocated to the production sites where they could adequately support production processes and optimization of materials. The key competencies of the firm were in product development and production technology to ensure customer comfort in the shoe designs. 4) Procurement ECCO maintained high demands for quality and lead times for the vendors and worked only with experienced firms in building their factories. 5) Inbound Logistics and Outbound Logistics Streamlining of logistics was performed through location of tanneries adjacent to shoe production facilities in Indonesia & Thailand Distribution centers in United States and Denmark were strategically located to serve the market demand in order to match market needs. Appropriate modes of transport such as by sea, vans, freight planes and lorries were utilized depending on the nature and urgency of deliveries. 6) Operations The firm also accrued benefits of sustainability by having control over the entire value chain as it could directly tailor its R & D efforts into production and closely monitoring operations. The distribution centers adapted to changing business environments by expansion to meet capacity demands and closure of some warehouses when sales to the Danish market reduced. 7) Marketing & Sales Utilization of specialty outlets and multi-brand stores ensured ECCO’s shoes would be accessible to the target market of consumers focused on high quality rather than fashion and elegance. Establishment of sales subsidiaries and production units spread all over the world enable the firm to save in terms of labor costs and spread risk. ECCO’s marketing team screened samples and made forecast volumes and production styles before the set shoes were scheduled to be in demand. 8) Service The firm concentrated on utilizing special expertise to its advantage in the case of the Thailand firm producing complicated shoes due to the ability of the Thais to deliver first class workmanship. In addition to shoe manufacture, ECCO supplied leather to auto & furniture industries which offered an alternative market for the tanneries and generated more revenue for the firm. How well does this configuration match the drivers in the industry? Ownership of tanneries, factories and leather research centers  maintained the firm’s brand of commitment to quality and boosted the company’s ambition and confidence in delivering products that met customer expectations In reducing the number of vendors, the company was able to maintain high quality levels through close quality control measures and maintain its brand image of working to create the perfect shoe. The firm also made compromises to its approach in some cases by outsourcing its production for shoes that could not be nefit from its in-house technology. Most firms in the shoe industry outsourced production as a way to cut production and vendor logistic costs. 3. ECCO has a fully integrated vertical value chain. What are the pros and cons of this strategy? What economic and strategic factors should be analyzed to answer this question? Pros: Higher demands of quality can be achieved (e.g. through better quality control) supports the company’s vision of high quality products Core Technology stays within the company You have more price control (=> less exposed to price fluctuation) Eliminate the intermediaries (and obtain the margin of supplier / intermediaries) Higher economies of scale Ability to access leading expert knowledge about tanning Implement shoe and company specific Research & Development (for example less pollution => can be used for marketing) Potential for growth Access new markets  attaining market power => eventually monopolize the market Get into new markets (auto and furniture industries) => diversification => risk spreading Shorter lead times achievable Shows a high level of ambition and confidence Less transaction cost Easier coordination of all stages to reach the objective of customer’s satisfaction More control: You can have more influence on how the product is presented to the people and you can block competitors from getting access to scarce resources Reduce transportation costs if common ownership results in closer geographic proximity ECCO example: factory and tannery in China Increase entry barriers to potential competitors, for example, if the firm  can gain sole access to a scarce resource Cons: Difficulty of integrating the different stages into one entity It requires different skills It may decrease the focus on core competencies High organizational requirements => eventually costs too high It deepens the position in the same field => less flexibility for different variants => not responsive to changing wants of the customer e.g. ECCO is attached to leather shoes Maybe less quality because of lack of competition Strategic and economic factors that should be analyzed: How technology intensive is the market? What skills are needed? Do we fulfill these needs? Can we compete with other companies? Is there a market entry barrier? How much do we have to invest? How many distributors / suppliers are available? How competitive is their market? How big is their margin and market power? Will an integration result in less price fluctuation? Do we have enough resources to realize the organization of the whole supply chain? Do we really want to reinforce our position as a leather shoe fabricant? Or do we want to achieve higher flexibility to open chances to enter new markets? Do we generate a higher supply chain surplus with a vertical strategy? Are there laws or political issues to be considered? Are current suppliers unreliable, expensive or cannot supply the required inputs? References: http://www.strategicmanagementinsight.com/topics/vertical-integration.html http://smallbusiness.chron.com/advantages-vertical-integration-strategy-20987.html http://www.quickmba.com/strategy/vertical-integration/ 4. Is ECCO following the inside-out or outside-in strategic perspective? What are the implications of this choice and how can ECCO increase their sales/marketing efforts? ECCO is following the inside-out strategic perspective. Inside-out strategic perspective definition: â€Å"You pick your own brand direction. You take a stand, confidently go out to the world and declare, â€Å"This is what we stand for and the way we are going.† A combination of gut instincts and sheer courage is enough to create the conviction that your brand strategy will resonate with your target audience. You believe with all your heart that by sticking to your guns, you’ll win a loyal following.† http://thefinancialbrand.com/1162/inside-out-vs-outside-in/ Evidence supporting this perspective in the paper: â€Å"most wanted brand within innovation and comfort footwear – a position that can only be attained by constantly and courageously researching new paths†¦Ã¢â‚¬  – Company Vision Statement â€Å"Evidently, trends in the market it terms of fashion and elegance were important, but usability was ECCO’s highest design priority.† This indicates that ECCO has chosen their brand direction, and even though they do follow market trends, they are maintaining their current course. â€Å"ECCO is not a fashion brand and it never will be. We do not sell shoes where the brand name is the most important and quality is a secondary consideration. Primarily, we sell high-quality shoes and that is where we seek recognition.† – Soren Steffensen (Executive Vice-President, ECCO) A â€Å"fashion brand† would be a good example of a company utilizing an outside-in strategic perspective. Steffensen also addresses ECCO’s brand direction in this quote. Implications of following the inside-out strategic perspective: Often not enough market research is done by companies following this strategic perspective because they are supremely (over) confident in their vision. Inside-out strategic perspective leads to undifferentiated brand strategies like â€Å"excellent usability†, â€Å"high quality†, or â€Å"great value†. An inside-out brand strategy really doesn’t take into account wants/needs of customers. Instead, ECCO attempts to dictate what these wants and needs should be. Ways to increase sales/marketing efforts: ECCO can increase sales by shifting more from â€Å"inside-out† to â€Å"outside-in† in their strategic perspectives. This means instead of simply saying â€Å"X is our priority and Y and Z are our goals†, the company should take customer wants/needs and market trends more into account and tailor their brand direction around this target market. Even though Soren Steffensen states that ECCO is essentially a shoe company focused on utility, perhaps sales would increase with a greater focus on fashion. A company with a greater  emphasis on fashion would probably be a company utilizing an outside-in strategy. Companies based on an inside-out strategic perspective usually require more extensive marketing efforts than companies founded on an outside-in perspective. This is due to the fact that inside-out companies are creating products that the customer has less input in. With this less input, the customer needs to be convinced to purchase the product. 5. How is family ownership affecting ECCO? Comment on the corporate ownership structure and its implications for strategy-making and implementation. What alternatives exist?

Rice brokerage firm - Free Essay Example

Sample details Pages: 13 Words: 3813 Downloads: 7 Date added: 2017/06/26 Category Marketing Essay Type Research paper Did you like this example? Introduction and historical background Brief description of proposed entrepreneurial venture The venture into consideration is a rice brokerage firm which is a service providing firm regarding selling and purchasing of rice to and from different traders and rice mill owners. This firm will serve as a middleman and do not require investment in purchasing rice but this firm will charge 0.5% commission from each buyer and seller for a single transaction. The above said commission will be charged on account of providing services to rice traders and rice mill owners. Context of the organization The business of rice brokerage firm lies in the service industry. The nature of rice brokerage firm is to facilitate people related to rice business to search for buyers and sellers of rice. This firm is aimed at providing best level of services to the clients while providing them value in every service they are seeking for. There is a huge demand of rice in Pakistan and all around the world, and Pakistan produces enough rice to meet domestic rice needs and is able to export as well. Rice is an essential part of Pakistani meals, thats why consumer preferences is still there and they are ready to buy rice at prices that were never before. It is obvious that rice business and its industry will not end-up easily despite high rate of inflation. If domestic people eliminate rice from their lunch or dinner menu or switch to another commodity, the global demand will still be there because people around world like Basmati which is a product of Pakistan. This means that business of rice within Pakistan seems to be a still growing business with profitable opportunities for entrepreneurs. To have a start-up in the rice business, becoming a rice broker is a good option because trade facilitator are always at the safest edge of any business with a minimum investment of PKR: 10,000/- (in this case). Don’t waste time! Our writers will create an original "Rice brokerage firm" essay for you Create order Brief history of the industry Service industry is always there since the very start of every business in any industry. My firm is also in the service industry because this firm facilitates the clients trading in same commodity, which is rice, to get information and availability of rice in the market. When rice mill owners process the rice obtained from landlords in raw form to the finished product, it is then required to be supplied to wholesaler and other traders. To lessen the gap of communication and to ease the supply of rice to different ends of the chain brokerage firms are required. And, such services are demanded by many such like businesses to minimize overhead costs of different distribution channels. Information about economy and different trends Rice is vital cash crop and is one of the major export items of Pakistan. It accounted for 5.9 percent of value added sector and 1.3 percent of GDP in FY09. Pakistan grows ample quantity of rice to meet its domestic requirements and also export the high quality rice around the world. The production soared by a commendable 25 percent that helped Pakistan earn sizeable foreign exchange revenue. Rice exports accounted for nearly 11.21 percent of total export receipts FY09 and growers have achieved a bumper production of rice (6.4 million tons) so far in this crop year. Rice harvest was significantly higher than estimated domestic consumption of 2.5 million tons as growers were encouraged by higher rice price in international market following imposition of ban on rice exports by competing countries. Current status of the rice brokerage firms Every year Pakistan produces a decent quantity of rice and it contributes to major part of our country exports. Taking into consideration this fact, there are more and more people entering into this business because this business can be started with an investment of less than PKR 10,000/- and it is within the reach of common man nowadays. Another reason for the still growing business of rice brokerage is that there are wonderful growth opportunities and diversification of business in the field of exporting commodities to different parts of the world and there are examples of such successful people too in the present market have started from a commission agent to a successful rice exporter and rice mill owners, and hence successful entrepreneurs. So, people found this business very much profitable and most of people are still entering into this business. Aim of the service It is reasonable to say here that everybody in rice business wants to purchase and sell rice at his/her doorstep and there is a need to provide the service of brokerage firm to fulfill that need. Most of the times, it is difficult for rice mill owners to go into the market to search for buyers and it incurs a cost to that mill owners, so they prefer to contact brokers like us to search for buyers because those brokers have already contacts of buyers and their requirement in the market accordingly. This approach saves time and cost of every person involved in this business from rice mill owners to buyers to exporters. In order to provide up-to-date information about market prices of rice to traders and mill owners and to ease the process of searching for buyers and sellers is surmised by me as a good opportunity to start a business with a much lesser investment and greater growth opportunities. List of services to be provided Up-to-date information about prices of rice to clients Quality check-up of rice being bought and sold by client by randomly checking samples from the lot Making rice available to clients at best prices SWOT analysis of rice brokerage business Strengths Low investment Easy to operate ROI is high Weaknesses Ease of entry High competition Low sustainability No consistency Opportunities Diversification International trade opportunities Threats Forward and backward integration by major players in the industry Ease of entry into the business and competitor analysis There is a lot of competition in rice trade business because there is no barriers to entry this business. There is tough competition among all players in this business who provide brokerage services to rice traders as this can be done by anyone who can just coordinate between his/her clients. The only thing that matters in this area is trust and relationship building. This can only be made stronger by providing credible services and delivering on promises you have made to your clients because this will be the only differentiating factor that will set you apart from the competitors. However, there is a lack of value added services in the offerings of current brokers in the market of rice business which creates a gap in the area of this business which can be filled by smart entrepreneurs by putting creative destruction into work. This could be a challenging as well as risky task to stand out in competition in such business where most of the major players run their organization in typical seth-way, but when there is a risk there is an opportunity and if it is seen as an opportunity then an entrepreneur has done almost half of its work. Mission To serve rice buyers and sellers through continuing efforts in bringing clients the very best which is available today and ease their process of prospecting. Providing them value in our services by satisfying their requirements of rice, meeting deadline of lead time, consulting them about changing business environment and placing emphasis on trading properly and making money for clients. Vision To become a leader in commodity brokerage firm business and earn loyalty of our clientele base by assisting them in becoming more successful in their commodity trading through continuous improvement in our services by innovation, professionalism and integration. Management considerations Personal expertise Strengths Problem seeker/ proactive Experience Believe in black and white Leadership skills Communication skills Negotiator Ability to make fun oriented environment Straight forward Multi linguistic Weaknesses Cant wait Taking too much time in evaluating alternatives Do not socialize Straight forward Organizational design The proposed design for the venture is organic because of the smaller size and continuously changing outside environment. This is so because the success of the business depends upon the person who is at front end with the client and that person should be given freedom to customize services according to clients needs coping up with the challenges of uncertain external environment. Organizational culture Innovation and risk taking is very high and it will enable us to outperform others in the present market situation There will be a high degree of emphasis on attention to detail to get work perfectly done because a little mistake can lose out our credibility High degree of outcome orientation is entailed within organizations culture to achieve objectives, milestones and vision People orientation will be optimal because founder of this organization will be at front face from the very start of this business to build and maintain the customer base Team orientation is highly appreciated to carry out operations smoothly A blend of cooperative and competitive strategies will be used to sustain and survive into the industry while embedding a bit of higher level of aggressiveness within organizations culture Stability within the organization will be optimal will be taking into account innovation and progress in order to imply a proactive approach Staffing requirements A lawyer will be hired on annual basis for filing sales tax and income tax returns at the end of each fiscal year. Apart from this, a quality control checker will be employed at a monthly salary of PKR: 10,000/- whose responsibility will be to check quality of rice being bought and sold by our clients and to assure them for timely delivery of that quality of rice as demanded by the clients. Operational management issues The quality of services offered to the clients should be maintained to avoid any disappointment and shrinkage of customer base. Following dimensions of service quality are taken into consideration to maintain the consistency in our services: Timeliness: meeting deadlines of all clients Courtesy: giving clients a â€Å"wow† experience Consistency: same and even better quality of service every time Convenience: providing all services at clients doorstep Completeness: taking feedback after successful completion of each job Accuracy: never making client unhappy by doing and providing non professional services Inventory management methods There is no inventory management in the proposed venture because this venture provides no-goods services and do not invest in purchasing commodities, hence there is no inventory. Equipments required Basic equipments required for this venture are personal computer, printer, fax machine and telephone set. Marketing considerations Marketing plan In the commodity brokerage business, there is a high need of marketing to let people know that a new venture is established in this industry providing value added services other than the core activity of assisting and facilitating clients in buying and selling process of rice. The marketing of this firm focuses more on relationship building, communicating value and delivering on trustworthy promises to clients. Segmentation approaches Demographic Industry type There are no barriers to entry in the rice industry because it is a commodity market which comes into the market every year with no limitations on purchasing and selling this commodity. It is a still growing industry and people are still coming into this industry to settle their business. There are very least government restrictions on this industry because rice contribute to major part of our country exports. Company size Due to fewer barriers to entry, everybody regardless of what capital s/he has in the pocket can enter in this industry and can trade rice. Based on this fact, there are too many variations in company size. There are firms which supply rice to small scale retailers and there are firms which are rice mill owners and large scale exporters. The company size may vary from PKR: 100,000/- to PKR: 100 million worth of firm. Location Almost all rice traders do their business in the area of New Chaali (behind I.I Chundrigarh road) and some of them are in Jodia Bazaar. Rice mills are situated throughout the province of Sind but they fulfill the requirements of nearby areas. The rice mills in the area of Gharo and Hyderabad are major supplier of rice to Karachi. Most of the mill owners have offices in Karachi at the above said areas. Operating variables Technology There is no such technology employed as standard in the rice industry but different firms in this industry are using computer software to maintain their books of records, accounting, billing and other related activities. For a private limited company it is necessary to employ software to maintain operational and non-operational activities. For the rice mill owners, new mills are being set up with latest improved technology equipments/machinery to do rice processing in a more efficient and cost effective manner. Customer capabilities Customer capabilities vary from customer to customer. The trade volume varies from 0.5 metric tons to tens of metric tons of rice. Purchasing approaches Purchasing department Some large scale rice trading firms have separate purchasing department which have a huge annual turnover as compared to others, while small scale traders do not have separate purchase department. Most of the firms in rice industry are seth owned and they run their business in a typical seth way. They are responsible for all buying and selling activities. However, accounting activities are assigned to other employees but activities such as purchasing, negotiation, making payments and collecting payments are done by seth himself. Purchasing policies Almost all buyers purchase rice on credit, there are very few who purchase on cash. In Pakistan rice industry, rice buyers make payments to the suppliers/sellers within 30 days but on an average the credit period may extend to 45 days. Purchasing criteria There is no specific purchasing criterion for buying rice. Rice is being bought and sold in the market in a much simpler way, just make a phone call to a broker, s/he will note down buyers requirements, the broker will arrange rice for the client and negotiate on payment terms and conditions with the buyer, receives advance amount of money to conform the deal, finalize the deal and supply the rice to buyers warehouse. Situational factors Urgency For rice exporters, the concerned bank personnel, through which international letter of credit (ILOC) is opened and maintained by importer sitting abroad, checks the quality of rice being exported to assure whether the quality of rice meets the requirements of the importer. If those quality controllers reject the rice for not meeting the required quality, then in order to avoid disappointed customers and delayed shipments exporters rush to the rice market and rice brokers to fulfill the order of the importer. At this instance, targeting such exporters who make mistakes in performing quality control check of rice may be profitable for rice brokerage venture. Size of order If rice market falls short of rice then every trader will buy rice to stock it and then sell at higher rates to make more profits. This is very critical moment in the market and most of the traders want to take advantage of such opportunity, but such decision are based upon environmental scanning and quantity of rice exported versus domestic consumption and availability. In such scenario the size of order increases from normal orders that rice traders used to place for purchasing rice in normal situations. Personal characteristic Buyer-seller similarity There are a lot of similar characteristics among the traders in the rice industry. A buyer wants to buy and a seller wants to sell and the business goes on. The basic similarity among them is that everybody has to agree upon a specific on going market rate. Attitude towards risk There is no higher level of risk involved in the rice trade business because this is a commodity business. The rates of rice do fluctuate on daily basis but not at a higher level. The major increase in rates of rice occurs due to higher exports local/domestic market fall short of rice. Risk is involved when rice is sold at credit and buyer becomes defaulter in making payments to the supplier/seller. All rice traders are aware of risks involved in this business but they believe that trust is the key driving factor of this business and they trust each other despite of having knowledge of all risks involved. Loyalty There is no brand involved in the rice business to which loyalty can be associated. Business people in this industry are loyal to traders who are providing best services to their clients rather than just selling rice which can be done by providing value in their services. Target market selection strategy The rice brokerage venture will adapt full market coverage strategy to meet the needs of all traders of rice because no such customer group is identified in the market that do not want or need to buy or sell rice to run their business. Marketing mix strategies Service description The service to be provided by the proposed venture is to facilitate buyer and seller to look for each other, to fulfill their business needs of rice and making rice available for them at best prices so that they may run their business profitably. The service charges are 0.5% of the overall amount of the rice being bought and sold, which will be charged from each client for a single deal transaction. This venture also caters to the rice mill owners by helping them to look for potential buyers of their processed rice. The said venture will also provide its services to rice growers and so that farmers and landlords may sell rice to rice mill owners at best rates and after processing the rice will be passed on to different channels for furthering its supply into the market. According to product lifecycle, the rice brokerage business is at growth stage. Pricing The cost of service to be charged from clients is based on going-rate pricing strategy. This pricing strategy is chosen for this venture because all competitors in the rice brokerage service industry are charging same rate of commission from buyers and sellers, therefore premium pricing and other pricing strategies will not be feasible for this type of venture. The value that client will get after using our services will help us to build and maintain our clientele base through word of mouth marketing. At the initial stage, the most feasible pricing strategy will be going-rate pricing in order to survive and maximizing sales growth. Promotion All the promotional strategies for this venture focus on partnering with clients, value added selling, consultative selling and building long term sustainable relationship with the clients. All advertising will be done by personal visits to buyers and sellers premises so that interpersonal relationships can be strengthened by personal selling. To make promotional activities strategies more effective, efficient and result oriented we will try to concentrate on customers, preparing ourselves for gathering information about competition, convince the clients about our services by providing guarantee and by delivering on the promises, offering benefits to the clients and handle objections of the clients by listening to them about our offered services which will help us to mould our services according to each client needs. Place Overall marketing strategy Nowadays, business persons have become smart enough to opt for forward and backward integration. Traders buying and selling at large scale do not necessarily engage a rice broker for their trading operations. In such scenario, creating a place in the industry and market place can be a challenging and trivial task. To gain success, following strategies will be implemented for the business of rice brokerage business. Strategy 1 Continuous visits to large and small scale rice traders for prospecting and give them information about advantages associated with services offered by a rice brokerage firm while providing them value in each service, cutting down costs in warehousing and storage of rice, making process of looking for buyers and sellers easy and enabling them to meet each business entity annual revenue targets and turnover goals. Strategy 2 Creating a database of all existing and potential clients to keep individuals up-to-date record of all previous transactions, their feedback about services they have received which will enable us to take corrective measures to further improve on strategy and level of service. Tactics Regularly monitoring and evaluating of current market activities and to take actions accordingly in order to survive in the challenging business environment. Legal considerations and business structure Type of firm The legal form of entrepreneural venture into consideration is sole propreitorship because there are no complex legal requirements of establishing a rice brokerage venture. At the very start of establishing such service providing venture, we need a high level of direct control over operations and processes of business to convince and satisfy our clients about our services. Terms and conditions Goods are delivered at owners risk Seller of rice isnot responsible for any kind of unpleasant event regarding delivery of rice to buyers destination 50% of service charges, which is commission in this case, will be charged at the rate of 0.5% of trade amount from each party, and the rest will be paid by the parties after successful execution and completion of the deal. Transportation charges are to be borne by the buyer Payment agreement will be carried out according to mutual understanding of both parties The broker itself is not responsible for quality of rice not meeting buyers quality needs and requirements. However, we will try our level best to assure our clients about delivery of rice of reqired quality as decided at the time of finalizing the deal Buyout A successful entrepreneur is the person who plans for a good profitable future and not forgetting to plan for coping up with challenges due to changing external environment. Therefore, in the worst case scenario if the propreitor end up doing business with heavy losses then it is easy to exit from this business by shutting down the firm. Despite increased effective tax rate, unlimited liability and difficulties in raising funds, sole propreitorship form of organization still seems to be feasible for this venture. Legal documents The basic legal documents for a sole propreitor venture are; National Tax Number (NTN) Sales Tax Registration Number (STRN) Tax considerations Financial considerations Startup costs SOURCES OF CAPITAL Owners Investment (name and percent ownership) PKR Raj Kumar 100% ownership 1,635,000 Total Investment 1,635,000 STARTUP EXPENSES Capital Equipment List PKR Furniture (tables and chairs) 15,000 Equipment (computer, printer, fax telephone) 18,650 Fixtures (fans and lighting) 7,000 Total Capital Equipment 40,650 Location and Admin Expenses PKR Rental 15,000 Advance deposit 180,000 Telephone connection charges 600 Mobile phone 1,200 Stationary 2,580 Total Location and Admin Expenses 199,380 Advertising and Promotional Expenses PKR Advertising 10,000 Travel/entertainment 10,000 Total Advertising/Promotional Expenses 20,000 Reserve for Contingencies 20,000 Working Capital SUMMARY STATEMENT Sources of Capital PKR Owners investments 1,635,000 Total Source of Funds 1,635,000 Startup Expenses PKR Capital equipment 40,650 Location/administration expenses 199,380 Advertising/promotional expenses 20,000 Contingency fund 20,000 Working capital Total Startup Expenses 280,030