(2 Questions) - Case Study Example

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From the company’s case study, ExpoArte generated a lot of revenues and sales from exports realized in North America and Europe. The potential clients for the company were Holland, Switzerland, and Germany. In the market, ExpoArte depends on transactions realized from…
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Case Study (2 Questions)
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CASE STUDY affiliation From the company’s case study, ExpoArte generated a lot of revenues and sales from exports realized in North America and Europe. The potential clients for the company were Holland, Switzerland, and Germany. In the market, ExpoArte depends on transactions realized from Alternative Trade Organization especially in terms of production financing. In the market, Alternative Trade Organization were the most active and lucrative company to deal with. Despite their large purchase the market industry do not have the ability to maintain their production capacity. Companies that survive under this market depended on maintaining their commercial buyers who specialized in handicrafts. Additionally, to survive in the market firms needs to carry out large exports. The market under which the ExpoArte operate has variety of distribution channels that occur within the US and the European market. The common wholesale and the retail importers being ATO. The department store regarded themselves as both the retailers and the importers selling their products at a considerable high price (NICARAGUA, n.d.). This departmental store serves the higher segment of the market. Firms that concentrated in importing their purchased products sold them to domestic and regional retailers who later sold them at a higher markup. The retail importers manage to sell their stores to the public. Based on the market analysis, ExpoArte need to focus on their generation of profits until they secure their bottom line. The company needs to embrace product differentiation and implementation of economics of scale to increase their sales. The company also needs to cut down on their operational cost and increase their profits. This will help the company to strategize on passing their production costs off to their artisans. The company also need to come up with a new management culture. The new management culture will incorporate setting up appropriate organizational structure that will safeguard every aspect of the company’s operation. This will entail setting up operation managers in each department within the company. The move will help the company improve and distribute their administrative power efficiently. The company also needs to focus on their website for market, the website will help the company to expand their advertising strategy. The strategy will help the company market itself beyond its stakeholders. Financial forecasting and encouraging their clients to pay a higher percentage for their upfront will be important. The strategy will help the company to plan well and ensure that they meet their short-term financial obligations. The short-term effect of the strategy will make the company to be rated as a going concern business.
2. The strategic plan for the company needs to be based on its inventory. The company needs to come up with an updates inventory system that will streamline the procedures and the firm to run its operations smoothly. To ensure that the new system works at its best, the company needs to train their employees on how to use the system. The company needs to come up with a short term plan that will update all their records. This is because, old and outdated data were still include in their current stock. This is dangerous for the company for it will not be able to keep track of their proceedings (NICARAGUA, n.d.). This tends to affect the decision making process for the company. The company also needs to organize their inventory items. From the case study, it is all evident that at times it happened that a single product code was used for a similar product with varied color. The company also needs to align some of its product. From the analysis, the ceramics were not easy to organize due to varied finish, form, color and design. Therefore, a plan will need to come to incorporate a varied technique that will cater for the finishes and processes for the ceramic. Some of the anticipated processes include the relief carving, molding, and spinning.
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