● pack of experience/ inexperienced.
Newer businesses like Desmond’s business have a
higher chance of failure since he might not have the experience running a gardening
business and is likely going to make mistakes.
● No brand image yet. Since Desmond’s business is still new not a lot of people are
familiar with his brand therefore potential customers aren’t that confident in his business
or not a lot of customers trust his business.
Starting a new business requires funding, and one of the sources of this funding is from the
owners personal savings. If startup businesses like Desmond's use the owner’s savings they
could keep expenses or cash outflows low as the funds don’t need to be repaid or require any
interest payments. However, sometimes owners don’t have enough money to fund a business
startup so it could delay their plans or lead them to find funding elsewhere, such as bank loans
or borrowing from family and friends. But overall, i think that funding a business startup from the
owners savings is mostly suitable as it can act like a personal investment.
● lower variable cost. by purchasing cheaper raw materials and using raw materials more
efficiently LCT can lower its variable costs for its cooking pots which will lower the total
costs overall.
● Increase price. LCT can increase their price above $10 which would increase their
revenue.
Social media is a very advantageous tool for advertising for a business. It is a very low cost
method which can be beneficial for small businesses like LCT since it doesn’t add anymore
expenses ro their costs. Since social media is a digital platform, it is able to reach a wider
audience and introduce LCT’s cooking pot to more potential customers and earn more revenue.
However using social media can have its downsides too. Not everyone has access to the
internet and not everyone uses social media. People on social media also often have the habit
of ignoring and skipping advertisements. Overall Social media is a very good way for
businesses to advertise their products to their potential customers.
● a possible reason why ACP imports their raw materials can be because of the quality.
Raw materials from other countries could have better qualities that meet ACP’s
standards.
● The raw materials needed might be limited in ACP’s own country so that is why ACP
needed to import 65% of their raw materials.
● Good brand image. ACP being an ethical brand can create a brand image or reputation
that customers trust and are willing to pay higher prices for their computers.
● Higher cost. Using ethical and high quality raw materials can make the production cost
for ACPs computers overall increasing their total cost and higher prices
Two of the many important things having a business should have is being able to manage cash
flow and being able to earn a profit. Earning profit is a reward for the risk taking and skills put
into the business. It is a source of funds for the business which leads it to have an opportunity
for growth and expansion by reinvesting into the business. Profits also help fund the lives of the
people who put their work into the business like the owners or employees. Cash flow is needed
to pay day to day costs to make sure sufficient inventory to continue production and
operations.Overall, managing cash flow is more important since a business can run for a while
without having any profits cut without a well managed cash flow production and operations will
not go well.
● organizing. to make sure everything is running smoothly and everyone is working
effectively in all the 490 shops.
● commanding. to help guide and assist the 70000 employees.
● The level of demand. MRN should consider the amount of demand a shop is getting and
the number of sales of food it is making as some might have lower revenue than others.
● Rent. MRN should consider the rent they are paying for the 80 locations and higher rent
can increase their expenses.
When a retail business, like MRN, has started to have increased competition, there are some
ways that could help them maintain their sales. First, is lowering their price or introducing new
pricing strategies. As price is one of the aspects customers consider when purchasing from a
business, having a satisfactory price can help businesses like MRN to attract more sales and
overall earn more revenue. Second, improving the quality of service. When the customer service
in a business is good and satisfies customers it can help build customer relationships and
customer loyalty which can mean that customers trust your business and will purchase their
wants and needs form your business instead of competitors.
