Proposal on Business - Essay Example

?Running Head: Proposal on Business Proposal on Business [Institute’s Table of Contents Table of Contents 2 Introduction 3 Background Information of the Organization 4 Significance of the Problem 5 Aims and Objectives of Research 6 Research Methodology 8 Timeline 10 Cost Breakdown 11 Questionnaire 12 Critical Evaluation 13 References 14 Introduction The recession episode has affected the whole world with its drastic effects and UK is one of the constituencies of the world that has come under the experience of unprecedented period of economic recessions. The business cycle dating committee of the National Bureau of Economic Research (NBER) defines recession as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators” (Blakeman, pp. 33, 2011). According to one of the survey reports, it has come under conclusion that service firms that incorporate restaurants, fast moving consumer goods, retail companies, tourism, and several others have been hit hard by the recession. Numerous businesses in the UK have come under significant impact due to existing economic recession. This is principally because the economic decline leads to the reduction of the income of the business sector, thus it results in lower growth that further leads to several issues that organizations come across. As a consequence of recession, scores of companies are experiencing stagnated or fall down in their sales, declining profits, employees lay-offs, pruning back the product ranges and competition is getting fierce (Jolly, pp. 45-48, 2009). Even though, this is the time that businesses cut their costs by not spending on promotional activities that include advertising or market research; yet this is the time when keeping close to customers, understanding who they are, their buying patterns, their attitudes towards a particular product and their opinions about the competitor products is predominantly crucial and imperative. Therefore, by having a proposal on how to continue the research is relatively important in order to know the market situation and customer needs and wants (Jolly, pp. 45-48, 2009). Woolworths is one of the UK firms that collapsed into the administration as they distorted or deviated under immense pressure of soaring costs and declining of consumer spending. Background Information of the Organization Woolworths is the organization under research, is medium-sized organization situated in the region of UK that appears to experience problems in the current recession period. Furthermore, this online retail company believes in providing the customers with a broad range of quality products with greater choices that include children's clothing, stationery, and toys at a very economical price. Woolworths is one of the UK's oldest store groups with more than thousand employees working at different stores all throughout UK. The statistical records provide with evidence that Woolworths has had a presence on the High Street of UK for several decades (Thompson & Martin & Thompson, pp. 615-618, 2010). The history of Woolworths reveals the fact that it was in the early nineteen hundreds that covered the local newspapers with its opening in UK. It gained recognition and popularity and the company expanded rapidly within couple of decades with more than five hundred stores in UK. However, in the middle years of the twentieth century, the growth of the company stagnated because competitors invaded the market. Contenders and competitors soon began to take over its market share as they rolled out the new concept on a faster pace (Thompson & Martin & Thompson, pp. 615-618, 2010). The financial performance of Woolworths has been abating and falling in the past few years. The episodes of the shutting down of several stores of this retail company harmonize with the recession and the financial crisis that took place in the recent times. However, latter in the period of recession, Woolworths reopened its store with in excess of half a million products on offer for the customers. This would also become a threat and risk for thousands of people employed at various stores of Woolworths (Surhone & Tennoe & Henssonow, pp. 1-15, 2010). According to some schools of thoughts, intense competition was also one of the vital reasons that made Woolworths enter the phase of losing market share. Coupled to the debt issue, Woolworth’s problems compounded when they came under compulsion to pay the amount in cash against buying goods from suppliers. In addition, the UK's Woolworths do not have any connection with several retail chains around the world that carry the same name (Surhone & Tennoe & Henssonow, pp. 1-15, 2010). Significance of the Problem The relevancy and significance of the research is one of the questions that can come under discussion, which needs to be answered, however, there are multiple reasons that justify the undergoing of the research in an extensive manner. Firstly, the role of economic recession in closure of business of Woolworths is one of the leading reasons that need to come under discussion of the study that can lead to the exact problems of the company. Moreover, the additional factors also need to come under classification and credentials that can be a source of downfall of the company. Therefore, a widespread research becomes a fundamental component that can identify and distinguish the factors that influences the economic recession that leads to the downfall of the organization (HM Treasury, pp. 71-75, 2009). Secondly, the economic recession plays a considerable role in the administration of the company. Moreover, the administration of any organization is prevalent for its success or failure, hence, the elements that lead to the malfunctioning of the administration need to come under focus that can determine further the reasons of collapse of the organization (HM Treasury, pp. 71-75, 2009). The facets of competitors and market competition are another widespread reason that can make the organization grow, prosper, or have a breakdown in its operations and store outlets. The definite and concrete rationales must come under the comprehensive research that can provide with the solutions of the collapse of Woolworths. Due to these far-reaching and broad aspects, the research needs to come under study that would lead to the accurate results of subside of Woolworths (HM Treasury, pp. 71-75, 2009). Aims and Objectives of Research While having a glance at the business industry, it can come up with the perception that economic recessions leave an ineffaceable indentation on to the businesses, amongst which Woolworths is one of it that would come under consideration from the assessment in the research. The key and chief aims and queries that emerge from such a matter of concern would provide the researcher a foundation for auxiliary studies and investigations that would assist to determine the actual cause and reasons behind it. From the understanding of the process of economic recession, the researcher categorizes several aims and objectives that enable a critical, obvious, evident, and pervasive understanding of the economic impact on Woolworths. In scrupulous, the principal aims and objectives of this research consist: To identify the impact of economic recession on the business community To determine the effect of economic recession on Woolworths business To discover the other crucial motives of failure of Woolworths business Literature Review The customers are one of the prime aspects for the success of any business. Another leading explanation for the accomplishment of business is the economic conditions domestically and internationally. According to various researches, an unfortunate truth has appeared that Woolworths is one of the most high-profile failures of the outcome of recession. In addition to the factor of recession, few competitors have snapped and walkover Woolworths position in the recent years. Furthermore, the studies also put up the verity that the UK market has come across a vast change in the recent years with the arrival of discount shops that sold all types of broad raging products. This enlightens the piece of fact that Woolworths was not able to cope up the growing fierce competition in the marketplace (Robinson, 2008). The economic recession cuts down the spending and buying behavior of the customers and they even hunt for retail products that can save them money, therefore, it was easy for the pound shops to take over Woolworths. Moreover, studies also expose the fact that one of the reasons of customer’s dissatisfaction was the shortage of stocks. Moreover, the old-fashioned and out-of-date stores decor failed to persuade the new generations’ people shopping to such stores, thus, lead to profit warnings for Woolworths (Robinson, 2008). Experts also present the viewpoints that the eagerness and keenness with which arrival of Woolworths came into UK came under replacement by lack of interest and concern from consumers. This is because according to the viewpoints of the customers, Woolworths falls short to elucidate and shed light on what the store is actually selling. In addition, quite a lot of products are available elsewhere in much cheap prices due to which the customers do not prefer to purchase retail products from them (Robinson, 2008). Research Methodology The research methodology that researcher would employ for this study as a systematic approach is the quantitative piece of research as it would facilitate in acquiring an precise data from the specified region and the target audience. In order to have worthwhile information out of the collected raw data that can come up to conclusions with respect to the aims and objectives of the study, the research methodology comes under focus. The selection of the data collection method is one of the prime components to gather the appropriate information (Cooper & Hedges & Valentine, pp. 4-6, 2009). The quantitative research helps realize, determine, and evaluate the occurrence of the perceptions and assumptions of the selected sample population. In addition, the quantitative research facilitates in learning and interpreting the correlation between two variables: the independent variable and the dependent or the resulting variable (Balnaves & Caputi, pp. 45-48, 2001). The statistical data is the key emphasis of this study that assembles the data from survey analysis primarily from the questionnaires that depicts and exposes a structured set of questions with precise and exact answers that comes under presentation in a more objective from. Besides, the collected data from the quantitative investigation provides the researcher with a wide-ranging view as it is not in the form the experiences and perceptions. Furthermore, the researchers are more obvious and definite about the facts previously as they are aware with what they are accumulating through this research (Balnaves & Caputi, pp. 62-68, 2001). Figuring out the sample population is the subsequent step that comes under illustration after designing the aims and objectives (as defined earlier). However, in this case, the focus is to find out the problems and challenges that Woolworths encountered due to economic recession and other prominent elements, therefore, the sample population or the respondents would be the consumers who were loyal customers of Woolworths. Sample size is the following action that would come under determination in quantitative research approach. Large sample size would portray more productive outcomes as the data that comes under analysis in this study is in the quantifiable form has its foundation on numbers and statistics (Bryman & Emma, pp. 192-195, 2007). The technique of collecting data from the survey would include the questionnaire assessment that would include home interview, street interview, telephone interview, postal questionnaires, and online questionnaires. With all these extensive sorts of questionnaire, the researcher would be in a much better position to draw conclusion accurately and precisely (Balnaves & Caputi, pp. 83-90, 2001). The project timeline provides a table elucidating the breakdown of the costs and details of the activities and tasks for completion for the research. Therefore, the primary method used in this research to develop the timeline would be in the form of Gantt chart. In addition, the key responsible people can also come under attachment to meticulous activities in the display of the Gantt chart along with the details of the costs of each activity (Balnaves & Caputi, pp. 83-88, 2001). The research would then come under performance according to the mentioned timeline where the researcher would collect the empirical data by filling out the questionnaires from the sample population (Bryman & Bell, pp. 80-85, 2007). Assessment of the gathered data is the following step that would lead to the conclusions of the study. The data would come under illustration in the tabular form providing the details in the forms of numbers and proportions that would explicit the association between the two variables (Balnaves & Caputi, pp. 45-48, 2001). Likert scale is one of the methods used for the measurement of the key variables that is frequently involved in the research that makes the use of questionnaires as a survey technique. It measures both the positive and negative response to a statement that commonly uses five ordered response levels that take account of strongly disagree, disagree, neither agree nor disagree, agree and strongly agree. The results then come under conversion into a form of bar charts (Bryman & Bell, pp. 248-250, 2007). Timeline # Phases Date Date Date Date Date Date Date Date Date 1 Theoretical Framework 1st week 2 Research Proposal 2nd week 3 Identification of Available Literature 3-4th week 4 Market Research (Secondary) 5-6th week 5 Primary Research 7-10th week 6 Questionnaires & Interviews 11-13th week 7 Analysis 14-15th week 8 Rough Draft of Recommendations 16th week 9 Final Submission 17th week Cost Breakdown Questionnaire The questionnaire would include a range of questions in order to identify all the areas of difficulties that Woolworths have come across due to economic recession. Following questions may prove to be an essential portion of the investigation that a researcher would need to ask from the sample population in order to evaluate the outcomes from it. For all the questions, the respondents would come under provision with five options that are (1) strongly disagree, (2) disagree; (3) neither agree nor disagree, (4) agree and (5) strongly agree: I have been a regular customer of Woolworths since a long time. The Woolworths is not the same as it used to be previously. The stock items are mostly not available on the shelves and aisles and stocks fall short at Woolworths’ stores. Woolworths store are now increasingly unfashionable and out-of-date. Many of the products such as tea towels and china plates are available at a much less price at other stores in comparison to Woolworths. The range of products has changed over the period of instance. Initially Woolworths provided with a wide variety of products except food items. Now all they have are sweets and toys. The factor of customer service has eradicated from the concept of Woolworths stores The other pound stores and supermarkets provide with better range of economical products and customer services The stores of Woolworths are well-located and available at every corner that a customer can reach easily (without any problem) The overall quality and experience of Woolworths has declined and diminished as it was previously. Critical Evaluation From the above discussion, it can come to conclusion that economic recession has played a considerable impact on to the sales of Woolworths coupled to several other components that they fall shot to influence the customers. Additionally the rapidly deteriorating economic picture over the recent times exhibited that a number of best-known retailers of UK that embrace Woolworths have gone into administration and collapsed. This is because of the two major reasons that take in the economic recession decreased the availability of providing credits to the retailers and reduction in consumer spending. As an outcome of it, the company went into administration that further led to the closure of almost all of the stores and creating unemployment due to stores closure (Taylor, pp. 370-380, 1997). However, the questionnaire that has come under employment as a quantitative approach would lead to the accurate opinions and facts about what customers think and perceive about Woolworths. Through this analysis, the organization would be in a better position to develop new strategies that can assist them in influencing the customers and gain the same recognition and popularity as it gained previously. Even though Woolworths encountered problems, they have been one of the longest standing stores in UK. Moreover, with respect to the gradual increase in the retail sales, Woolworths took advantage of it and re-launched the store in UK with some of its private label products while keeping in mind the consumers who value quality regardless of high prices. This has led Woolworths a positive impact on its value sales through its re-launching of store (Taylor, pp. 370-380, 1997). References Balnaves, Mark & Caputi, Peter. 2001. Introduction to quantitative research methods: an investigative approach. SAGE. Bryman, Alan & Bell, Emma. 2007. Business research methods. Oxford University Press. Blakeman, R. 2011. Strategic Uses of Alternative Media: Just the Essentials. M.E. Sharpe. Cooper, H. M. & Hedges, L. V. & Valentine, J. C. 2009. The handbook of research synthesis and meta-analysis. Russell Sage Foundation. HM Treasury. 2009. Financial Statement and Budget Report: Budget 2009: Building Britain's Future. The Stationery Office. Jolly, A. 2009. The Growing Business Handbook: Inspiration and Advice from Successful Entrepreneurs and Fast Growing UK Companies. Kogan Page Publishers. Surhone, L. M., & Tennoe, M. T., & Henssonow, S. F. 2010. Woolworths.Co.UK. VDM Verlag Dr. Mueller AG & Co. Kg. Thompson, J., & Martin, F. Thompson. 2010. Strategic Management 6th. Cengage Learning EMEA. Robinson, J. 2008. “Woolworths: the rise and fall of the department store empire.” The Guardian. Retrieved on November 09, 2011: http://www.guardian.co.uk/business/2008/nov/19/woolworths-retail-department-stores Taylor, D. H. 1997. Global cases in logistics and supply chain management. Cengage Learning EMEA. Read More