Business and Management Concepts: Planning For Growth

Business and Management Concepts: Planning For Growth

Introduction

This case study refers to the planning and management of a new small business. Kelly is running a sandwich refreshment stand in the city, and she supplies sandwiches and other food items to employees and clients of large organizations. She has also arranged a bicycle-towed concession for selling the food items to customers who work beyond walking distance of Kelly's Sandwich Stop. All in all, she has managed to gain a booming success in favor of his little enterprise. Now, she wants to grow her business from lunch specific to a potentially more lucrative enterprise, implementing a greater variety of food products and services, and increasing her competitive edge in the region. She wants to run her new business by developing creativity, and hygienic cooking skills and services much better than the current stop. Now, she has the opportunity to make her dream true as she has leased a restaurant space near a mall.

Kelly is mainly sensitive to her relationship to her customers, employees and the community. That is why, she is striving hard to tackle each and every relevant issue's possibility. She must also consider the short- and long-term financial, HR, and management needs of such an expansion.

Discussion

Growth Strategy

Kelly should follow a perfect growth strategy in order to organize and prioritize her business. As she is getting good response to her food quality from all the customers, so she needs to implement the strategy in single-minded approach. She should work on the intensive growth strategy which involves increasing the share of market, sales revenue, and the profit of products. With this approach, she will be getting slow progress initially, thus heading towards the long-term success plan. As she is not having market shares currently; therefore, she needs to work on the strategy of Market penetration (Boone & Kurtz, 2011).

She should increase her current sales to a large portion of products to be able to penetrate deeper into the market. She can add more food items besides her sandwiches in order to occupy the food-based market. She can promote her restaurant by adding the ideas of seasonal food items, like the idea of cold coffee in extreme hot season, or instant coffee. This growth strategy will help Kelly if she runs her restaurant from the perspective of least risks factors but with great efforts. It is a sort of ladder leading a new business gradually upwards as needed (Sabharwal, 2006).

Business Form

Kelly wants to expand her business to a large extent to facilitate her customers to a greater level. For this purpose, she must follow the business form of sole proprietorship. It is the most easy-to-go structure for starting a business. This form of business will keep her the sole owner. She will be responsible for all the decisions and the profits earned, and all other concerns of debts, liabilities or losses will also be dealt by her only. After planning the strategies, she needs ...