Your Are An Enterpreneur Assignment Example | Topics and Well Written Essays - 2000 words

Your Are An Enterpreneur - Assignment Example Although the beverage industry has remained considerably competitive due to a range of retailers offering beverages brands and products, still there is a market capacity to entertain new retailers in the industry. Additionally, the business would provide a physical space where customers can sit and enjoy drinking different beverages. Although the main objective would be to work as a retailer, however it would also be a way to increase sale by offering congenial environment to the customers. As a result, the ultimate objective would be to enhance the sale of products. Business Product and Staffing Plan The entrepreneur intends to make contractual agreements with the big names in the industry. The companies such as Coca-Cola, Pepsi and other leading companies would be reached. In the agreements, retailer margin, transport of products, loss in transit, bulk purchase discounts and other important factors shall be included. However, before going to finalize agreements, the entrepreneur in tends to research the existing policies and interaction between these companies with the existing retailers. For this purpose, both online and offline resources would be used to gather the relevant information. The entrepreneur intends to hire three full time assistants serving to customers. These assistants would be required to guide customers, provide information and assist them with any other requirements needed by the customers. The reason behind hiring three assistants is to facilitate customers. This facilitation enhances a possibility of customer loyalty. One assistant would work as Account Assistant, maintaining chart of accounts on daily, weekly, monthly, semi-annually and yearly basis. Subsequently, this would generate an un-interrupted flow of customers and revenue would be keep coming. Additionally, the business plan would be modified based on certain achievements. For example, within six months, if the budgeted sale is achieved, the initial outlay would experience addit ional investment of $ 50,000. With this plan, two additional employees would be hired; one would be required to work as store assistant maintaining inventory records and allowing and receiving the subsequent shipments. The other employee would be hired to work along with the retail staff in assisting and entertaining customers. Business benefits Preserved Profit Margin In the retail business, profit margin is always preserved. The producers in association with the relevant regulatory authorities determine and implement pricing strategy from the point of producer to the point of retailer. In this price determination and implementation strategy, profit margin of retailers is always taken into account and is enforced before going to commence receiving orders and delivering shipments to retailers. Minimized Storage Loss Generally, retailers do not experience a substantial storage loss of beverages. As the retailers do not produce beverages and the producers mostly produce and store thei r beverages, the retailers remain in a position to protect themselves from facing any substantial storage loss, which may be caused by manufacturing date expiry, loss caused by insufficient storage facilities and other unknown related factors. Generally, the retailers do not order bulk supplies of beverages in order to avoid facing any loss may be caused by storage conditions. By doing so, the retailers minimize the chances of facing storage losses. Reduced Cost of Production Loss caused by pilferage, date expiry and transportation cost increases cost of production. However, the retailers decrease their cost of production by reducing