Business Start Up: Interior Design Bureau - Assignment Example

1. The Reasons of Being Self-Employed Weighing the advantages between being self-employed and having a regular office job, taking the income as a consideration, both are the same, being sel-employed is more practical. There lot of motivational factors that contribute to a person to choose self-employment and these are: flexibility, phasing of work freedom, higher opportunity to increase income, working at the comfort of home, hassle free working attire, no issues with co-workers and boss, no office politics, more time to spend with family and time not waste travelling to and from the office. Another advantage is that the income earned is non-taxable. Being self-employed gives a person an opportunity to work for himself, a chance to do what he enjoys to do. The person can also get to choose who he wants to work with such as customers or clients directly. The person can also choose when to work and not to work when he is not highly motivated. This will give the person t produce high quality output. Working alone and being self-employed means being in control of all the decisions that has to make. The person gets to decide on his own business plan, his own quality assurance activities, pricing and marketing methods. At the sae time, there is a 100% job security; the person will never get fired. People usually do what they want to do unless they are otherwise motivated. They must be motivated by themselves or by an external stimulus. Motivation is, in effect, inducing others in a specific way towards goals specifically stated by the motivator. In an organization these goals, as the motivation system, must conform to the corporate policy of the organization. The motivational system must be tailored to fit the needs of the organization. Joining the world of the self-employed is very risky. Considering the freedom to choose how much time and when to work, who to work with, low operating cost, no hassle in beating the office hours, if everything goes well, earning more money is very possible without working for someone else, it is worth the risk. 2. Skills Required Entrepreneurship is a term in business that is always mistaken as something synonymous with small business. Basically, a businessman cannot be considered as an entrepreneur just by initiating the business, but rather by having a behaviour pattern that concentrates on opportunity rather than resources (Drucker, 2002). This behaviour can be applied in either small or corporate businesses, by any manager or leader. It can be said that referring entrepreneur as an individual who creates a business literally is incomplete, as the term also signifies most importantly a pattern of behaviour and attitude, and not just the tangible sole proprietor of the organization or the business. Churchill (1992) defined it "as the process of uncovering and developing opportunity to create value through innovation and seizing the opportunity without regard to either resources (human or capital) or the location of the entrepreneur - in a new or existing company" (p.586). Hofstede (1997) stated the definition of entrepreneurship in other terms, referring it as "a process that takes place in different environments and settings which causes changes in the economic system through innovations brought about by individuals who generate or respond to economic opportunities that create value for both those individuals and society" (p.352). In other words, it is considered as individual or organizational level phenomena, or the experience of continuously searching for growth through improvement and innovation. The entrepreneur must possess typical characteristics such as: the ability to take risks; innovativeness; knowledge on how the market functions; manufacturing know-how; marketing skills; business management skills; interpersonal skills, organizational skills (that I already have ) and the ability to cooperate (Buheiry, 1989). Possessed with such characteristics, entrepreneurs have shaped literally the economic condition of the world as we see it. They are the ones who are responsible for the current economic revolution we experience, which affects the social conditions. Entrepreneurs create new wealth, new jobs, new opportunities, and new industries. An entrepreneur should adopt many managerial attributes to truly become an effective entrepreneur, or to fit for how the term is defined. Several attributes can be recognized, such as risk, innovation, leadership, motivation, being fearless to change, team work, culture and strategic marketing. The attributes mentioned are basically some of the topics that are well- researched in the field of management and marketing. They are the issues or factors that are basically crucial to the success of a business or a corporation. Among the attributes, it can be argued that leadership and change are among the most specific topics that can be discussed. They are the main drivers of an effective business management and marketing, and they help shape the culture of an organization. Furthermore, the effective utilization of the two attributes mentioned can effective backbones of organizational success. 3. Various Ways of Starting a Business An approach now gaining support explains entrepreneurship by combining personal, economic, and sociological variables. This emerging perspective holds that entrepreneurial activity results from the interaction of individual characteristics, turning points in individuals' lives, background and cultural factors, and exposure to examples of success. The product of entrepreneurship is an organization that uses resources and must supply goods or services that others want to consume and will pay for. Management decisions made by the entrepreneur or his team are critical to the organization's survival and growth. The challenge of increasing the efficiency with which society turns potential entrepreneurs into active entrepreneurs has to do with affecting individuals' perceptions of risk and feasibility of business ownership. The fact that the person is thinking about business ownership means that the issue of desirability is settled and the question is whether a viable business idea and organization can be developed. Promoting this stage of the process requires a focus on social networking, information about markets, consumer preferences, technological breakthroughs, and production or process improvement needs. Information flowing between people from diverse backgrounds increases the chances that someone with a different perspective will see a market gap, the possibility of applying a process or product in a new way, or improving an activity in a way not perceived by other people. Science and technology parks and university-business collaboration, the dissemination of patent information, and commercialization of government research are examples of this approach in practice. Improving the flow of information is an especially legitimate function of government policy and is unlikely to have critics. The Business Product Service Interior Design Bureau The continuous growth of interior design, both in market and sales, is one of the significant developments brought about by these strategies. The continuous increase of this industry as well as the plans for future expansion is another evidence of the strategies' efficacy. These imply that the integration of both cost leadership and differentiation had worked just like in other markets of interior design. By means of new product development, generation of ideas that are different and unique among competitors becomes possible. Thus, by means of new product development, industries are able to overcome cutthroat competition. Increasing the companies' market coverage is yet another effect of developing new products for the customers. Creating something that is unique to the market place increases the possibility of catching the interest of other potential consumers. This in turn increases the market coverage or diversifies the target market of the company. Soon it became fashionable to live in unconventional types of building and an interior-design industry grew to meet demand. Many large stores flourished, selling modern and traditional materials, accessories, furniture and fabrics at affordable prices together with all the notes and instructions. Market-segmentation, target segment, size of target, competitors market, promotion and advertising, sales policy, pricing policy Firms within the Cakes and Pastries industry fall into the category of a competitive market structure. According to Lipset (1991), the competitiveness of a market refers to the extent to which individual firms have the control or power to influence market prices or the terms on which their products are sold. It must be noted that "the less power an individual firm has to influence the market in which it sells its products, the more competitive the market is" (Lipste, 1991).In the recent years, the integration of strategic planning and functional marketing has been perhaps the most relevant development in the field of marketing management as marketing managers have all the more realized that tactical marketing decisions must be made within a wider strategic framework. Marketing Mix (4Ps) Product - Products/Services that Interior Design Bureau are offering can be improved and expanded. For example they can add more services that will satisfy the needs of their consumers. Interior Design Bureau should not limit their products and services according to the old time customers. Placement - Decisions involving the place/distribution are also crucial in meeting the needs of the target market. There are many factors to consider such as the choice of location where the product will be sold to the consumers, and the various channel distribution required to bring the product in the target market. Elements of distribution channel include the packaging, storage facilities, transportation, and the members of the channel itself. It is always relevant to choose a channel pattern that is suitable for the target market needs. Price Among other factors considered in pricing are the needs of the market, the costs involved, the effect on margins and the value offered at a minimum for the consumer without the price cut hitting the company image. It is not surprising therefore, that Interior Design Bureau entry price strategy became a model in starting business in the area. Promotions - Today, personal selling, sales promotions, in the forms of souvenirs, and point-of-purchase displays (POP), publicity through non-paid presentation of the product to the target market (feature articles and special news coverage), and public relations (established link with the stakeholders) were utilized by Interior Design Bureau Similarly, TV and radio advertising are important channels to promote Interior Design Bureau Usually, effective television and radio advertising involves a good opening punch line, presentation of the competitor's product (brand must not be mentioned) and its weakness, testimony of experts or renowned personalities/authorities, and in some cases, use of famous movie actors and actress also helps. Further, the existence of Internet and the continued revolution in the world of Information Technology are certainly positive signs for the blossoming of many new advertising opportunities. For instance, pop-up ads and email ads have started to invade the Internet. Most advertising firms have also started to exert efforts to make their advertisements appealing to the public (Chow and Holden, 1997). Segment, Target and Positioning of the Product Of all the components of a marketing plan, perhaps the most overlooked but most critical element is the definition of the target market. According to Lovelock and Young (2000), it is a homogenous group of people or organizations that a company wishes to appeal to. There are two basic targets for a product or service: the user and the non-user segments. Thus, there are also two business and marketing decisions that the company must decide upon in light of the basic targets. The first is to cultivate the present market alone while the second is to go after non-users. The former can inspire consumer loyalty which is an important factor in the survival of any business. In the case of Interior Design Bureau, they should categorize their target market into two market segments: (1) the Interior Design Bureau patrons or those who have already tried the product, and (2) the Interior Design Bureau non-consumers. The Interior Design Bureau consumers further classified into (a) males and (b) females in order to differentiate the market appeal and competitiveness of the offered products in terms of sex as well as the specific consumers for specific types of design in order to determine the competitiveness of each product per se. the Interior Design Bureau non- consumers, on the other hand, are further grouped into (a) those who do not use the service of interior design in general, and (b) those who use other interior design service. These market segmentation schemes according to product use will provide important information regarding the overall competitiveness of Interior Design Bureau products as well as viability and opportunities for encouraging interior design non-clients to not just try any other average company but to choose Interior Design Bureau products among others. Moreover, companies now face the challenge of making its target consumers respond accordingly to their marketing efforts and those who understand its consumers' responses will have a great competitive advantage (Kotler & Armstrong, 2001). In this light, the Interior Design Bureau should keep in mind the differences that are distinct between and among other bakeshops target market based on different cultural backgrounds which significantly affect the effectiveness of the campaign. The fact is, there may be ideas that will not be applicable across the diverse target market population. Studies on the relationship of consumer behavior and their personal values and cultural orientation as well as their beliefs on certain principles, the dispositions they hold and side they take on political, gender and social problems and issues will be likewise duly accounted. Operation of Business- Organization Structure, Personnel policy, equipment Having an effective system of human resource management will result in a content and cooperative workforce which will then result to a higher individual performance and to a greater contribution to the organizations success. The significance of employee relations in organizational success will be better appreciated by looking into the interplay of the organization, represented by the people who implement ways of managing their workers, and its individual workers. There are ways of understanding and justifying the importance of employee relations one of which is through motivating the empowerment of workers and another is through delegation, support and feedback. People empowerment refers to a state of being of workers in an organization when they are placed in a work environment where they participate in decision making in relation to their individual work, they work within a defined humane limit respected by the organization, they take it upon themselves to monitor their own performance, they are given credit for their work which makes them proud to be part of the organization. When organization heads create this kind of environment, individual output is increased and the success of the organization's endeavors is ensured. Financial data-cash flow Analysts use the statement of cash flows to determine how effectively a company generates and manages cash. Analysts look most closely at the cash from operating activities in evaluating a company's potential for long-term success because this figure shows how efficiently the company can produce and sell its primary product or service. Analysts also evaluate cash flows in relation to earnings figures (from the statement of earnings). For example, in some cases, a company can report positive earnings on the statement of earnings and still report a negative net cash flow on the statement of cash flows. This situation may occur when a company is unable to meet the current demand for its products and consequently invests its profits, or even borrows additional money, to expand its manufacturing capability (for example, by purchasing equipment or new facilities). When such a situation occurs, analysts look for the implications. They try to determine if the prospective demand for the company's product is great enough to justify the expenditures and new debt. Future development Time Scale The art of planning for the future has always been a human trait as humans are thinking individuals. In essence a project can simply be captured on paper with a few simple elements: a start date, an end date, the tasks that have to be carried out and when they should be finished, and some idea of the resources (people, machines etc) that will be needed during the course of the project. The implementation plan of the Website project below details the activities that Interior Design Bureau need to undertake in order to logically and systematically facilitate the electronic transformation of its marketing as well as advertising strategies to best serve the purpose of the business organization. Following is the six-month communications plan for the launching of the company. A. 1st Two Months. This is when initial collaboration with prospective advertising partners should be done. They should be selected by virtue of their reputation and performance in handling advertising tasks. The company will contact partners that will cater to its need to be publicized online and offline. Specifically, the company will employ extensive new media, TV, radio, and print campaign. Each would-be partner will be given the chance to present their marketing plans for the company. There will intensive negotiations between suppliers, assessment of artworks, and evaluation whether such marketing strategies are designed following the company's objective. The activities will include the following: Complete a detailed situation analysis to examine the context of the environment and to determine the need for the project. Involve the stakeholders of the project so as to consider their needs and preferences. Identify alternative options of the organization so as to exhaust the available alternatives. Set the assumptions and objectives of the project to distinguish the direction as well as the standards for project assessment. B. 3rd and 4th Months. Once the right mix and budget communications were decided, it is expected that at this time of the year, all the advertising outputs will be ready for their launching nationwide. The advertising efforts will be completed by criteria to measure its effectiveness. Intensive researches will be implemented to determine the success of each campaign tool. Advertising media could be in the form of brochure, newsletter, printed materials, the Internet, newspapers, radio, and television. The communications department of the company will be directly responsible on monitoring the content design, layout, dissemination, and communication training and development for employees and executives. Furthermore, the department is also expected to supervise all the market and attitudinal research. The activities will include the following: Determine project size in order to limit the concerns of the project, identify the necessary resources, and evaluate its feasibility. Examine the available resources whether material or human that should be acquired to meet the goals of the project. Analyze the risks, benefits, and costs of the project so as to ascertain the project's financial return that will assist to the long-term goals of the organization. Develop a master plan that details the focus and concerns of the project's goals. C. 5th and 6th Months. The last period of advertising campaign will focus on the maintenance and management of media relationships. Research findings must guide the company on appraising its marketing approaches. All the steps that will be taken must be geared towards the determination, development, and design of the organization image, presence, and reputation. The activities will include the following: Document all the development and changes of undertaking the project at all its stages. Coordinate planning and project efforts between all of the project participants. Effectively and efficiently manage information, technology and people. References Buheiry, Marwan (1989) The Formation and Perception of the Modern Arab World. Darwin Press. Chow, S., & Holden, R. (1997). Toward an understanding of loyalty: The moderating role of trust. Journal of Managerial Issues, 9, 275. Drucker, PF 2002, Management Challenges for the 21st Century, New York: HarperBusiness. Hofstede, G. (1997), Cultures and Organizations: Software of the Mind, McGraw-Hill, New York, NY. Kotler, P 2002 Marketing Management, Upper Saddle River: New Jersey Lipset, SM (1991), 'American exceptionalism reaffirmed', in BE Shafer (ed.), Is America Different A New Look at American Exceptionalism, Clarendon Press, Oxford. Lovelock, CH & Young, RF (2000) "Look to consumers to increase productivity", Harvard Business Review, vol. 57 (May-June), pp. 168-178. Read More