COMMUNICATIONS

Managing Communications, Knowledge and Information

Managing Communications, Knowledge and Information

Assignment Number: 1. Report

Starting a business is crucial as every business is unique and comes with its own set of problems and opportunities. Initiating a business in retail sector is tough since it will not only have to compete with similar retailers but with a wide variety of different shops that offer consumers with a great shopping experience. The report will include details on different aspects that are to be highlighted in the process of setting up a retail business.

Range of Decisions to be taken

The ranges of decisions to be taken in the process of setting a new business are given below:

Decision regarding which business to start whether it is B2B or B2C.

Decision regarding whether to setup business online or in form of a physical retail store.

Decision regarding the retail products that business will provide to customers.

Decision regarding who will buy our product?

Decision regarding why the customers will buy from us?

Decision regarding when the customers will buy our products?

Decisions regarding how the customer will know about our product?

Decision regarding how much the customer will pay for our product?

Examination of the Information and Knowledge for Decision Making

For starting up a new business in the retail sector the examination of information and knowledge regarding the market, customers and start-up costs is necessary for effective decision making. The examination of knowledge and information regarding market is vital since for starting a new business, one need to completely immerse in the market. The information regarding how many competing retail outlets the business will be facing will also be critical in the decision making process for starting a new retail business.

The information and knowledge about customers is imperative for figuring out what actual market segment will be targeted for selling of retail products. To get information regarding customers to cater is vital for making appropriate business strategies and to craft ways through which the buying experience of customers could be enhanced.

Information and knowledge about the start-up costs is also vital for making decisions regarding starting a new business. It will help in planning budgeting and capital structuring of new business start-ups. Moreover, creative ways to increase revenue are also considered while examining the information and knowledge for decision making.

Internal Sources of Information

The internal sources of information in relation to starting up a new business include:

Availability of capital.

Projected balance sheet.

Projected cash flow statement.

The internal sources of information regarding starting a new business requires a great consideration since, it provides insights on forecasted financial statements that new business will going to generate.

External Sources of Information

The external sources of information in relation to starting up a new business include:

PESTLE analysis.

Competitor's analysis.

Customers credit ratings.

Mystery Shopping.

The external sources of information are most critical since the new started business has its most interactions in the external market. It provides information about the external forces and environment that can impact a newly started business in a great way. Information from external sources can be used to devise different business strategies for new starting ...