Tatmax Business Plan



Tatmax Business Plan (Due Diligence)

Company overview: background and introduction

Background of the organization

Tatmax is retail warehouses club that is currently offering a wide range of product and services. Tatmax target the small business owners whose personal income is $100,000 or more. It typically targets women households with income of $50,000 or more. The Company targets almost every brand, merchandise and quality at low price to satisfy its consumers. Since it operates in retail business, the company has a very good growth rate. Tatmax is a US based company whose headquarter is in Issaquah, Washington. Its first warehouse was opened on September 15, 1983 in Seattle, Washington. It is owned by Tod Silvers and Jed Maxwels (Burnes, 2000).

The current status of the company can be described as achieving profits but required to put in more efforts to earn more profits. In 2006, the company faced fiscal problems the last quarter of its trading period. In the last five years (2006-2010), the company registered net sales of about $76,255, $69,889, $70,977, $63,088 and $58,963. The profits recorded within the five consecutive approximated to $1,303, $1,086, $1,283, $1,083 and $1,103 concurrently. The Company has about 107,200 employees in the US and 161,000 (worldwide).

The key issues that the company have faced and can face in the future are, firstly, a huge target market. Tatmax needs to narrow down its target market to focus only on specific customers which can make the company earn revenues. Provision of goods and services at lower prices is a good aim by Tatmax but targeting almost everyone is not feasible (Baum et al, 1998).

Rationale for selecting the organization

Tatmax Corporation is chosen mainly because of two reasons. Firstly, the company is related to the retail industry which has wide number of opportunities even in the recession period. Second, though Tatmax is well-established company, still it is lacking a good strategy to earn more profits and become more sustainable. The rationale can be supported by the financial status of the company. The company has good number of sales and but lacks positive and growing number of profits. The choice is aligned with the author's expertise because the subject is leading people and through this paper, the author will be describing the due diligence of a company. The recommendations and suggestions about the company will enable the company to have an insight into its weaknesses and opportunities (DuBrin, 2007).

Legal status of the existing business

The legal status of the Tatmax business is corporation. It is a profit-earning organization. The support for this legal status is that the company is operating in more than one country, apart from US. It has about 107,200 employees in US only and 161,000 in other countries.

Legal/regular/ethical soundness

The aim of Tatmax is to provide its customers with quality products and services in low cost as much as possible. Therefore, the work and operations of Tatmax is ethical and according to the legal requirements. The company follows the low pricing strategy ...