Kwalitet Flora in Expansion - Assignment Example

Kwalitet Flora in Expansion Executive Summary  The development that is created with businesses is based first on the ability to overcome problems which are a part of the entrepreneurial endeavors created. This is combined with the ability to work toward growth and expansion within a specific business. When looking at Kwalitet Flora, there is a noted amount of opportunity in expansion and development of the business while creating a different approach to specific needs within the corporation. The development is one which is based on changing the internal organization to meet a larger amount of the market and to expand the business. This report will examine ways in which Kwaliteit can begin to expand their opportunities while mainstreaming new levels of business throughout Europe with the plants and shrubs offered. Introduction The ability to grow within a company is one which offers more development and capacity for those working with an entrepreneurial endeavor. However, this also requires one examining the different ways in which they can grow to create a business which is well structured and which minimizes the risk that is a part of the company. Without the right strategic approach, there is not the ability to continue with the growth and development while implementing new components within the company. When looking at Kwaliteit Flora, it is noted that there is a large amount of potential which can be met and maintained, all which will provide more opportunities for the business and the specific needs associated with the corporation. Looking at different tasks and ways in which these can be met then allows for new developments and structure to be placed with the growth of the company. Project Outline and Solution This project will examine the different options available for Kwaliteit Flora in the growth which they desire to take. The examination will include information on the location and demographics, demand for plants that are throughout Europe, regional concepts which may apply to the business and potential areas for growth. There will also be an analysis of the risks that are a part of the development and strategies with theoretical suggestions of how these can be minimized while moving into a different direction with the needs of the corporation. To examine this, there will be the need to look at organizational management, direction with the costs required for the business and ways in which the internal environment may need to alter in order to create cost effective growth into other regions while continuing to move forward with the potential for the business. The main approach to take with the growth for Kwaliteit Flora is to look at areas in which potential growth can be achieved. However, for this to be achieved, there is the need to create a different approach to the staffing and way in which the operations are running. Without changing the amount of staff or approaches to outsourcing, the owners and management of the company will continue to run through two individuals. The development of more individuals within the internal organization will require more training, outsourcing to even more individuals and the ability to mainstream the processes for customers and loyal individuals that continue to buy the products of the company. This can be combined with automated processes used through technology and the Internet to keep the costs low with the production and distribution of the different products. The result will be an increase in the available options for outsourcing and customer service, concepts in terms of the operations and the ability to reach more locations with the outsourcing that is provided by the company and the accountability which is associated with this. Justification of Idea The ability to expand the internal organization for expansion of the company is one that offers even more options to assist with the growth of the company. The benefits are inclusive of being able to reach more customers, meet the needs of more individuals and to focus not only on loyal customers but also an expanding market. The concept is one which can be combined with the ability to mainstream more of the opportunities which are available, specifically with the use of the Internet and the automation of both the individuals and the others which are linking to this. The concept of working within the organization to create even more alternatives then allows for continuous expansion and the ability to cut back on time while heightening the amount of income which is received for both that are working with the specific company. The costs which are associated with the idea are inclusive of the following: Project Benefits Cost Hiring of manager cut back on time expand into other regions gain new customers 60,000 / year Hiring of 2 employees to care for outsourcing / stock cut back on time expand into other regions take care of outsourcing and stock gain new customers 80,000 / year for both employees Training program for managers and employees maintain reputation and brand increase customer service add in convenience of use mainstream reputation of loyal customers 1 time cost of 25,000 Growth into online website with automation program cut back on time expand internationally automated systems new customers convenience of use and customer service 30,000 for initial plan 20,000 maintenance / year The overhead cost increase is one which can easily be maintained with a total of 215,000 in liabilities per year. However, the capacity to extend into an international market while reaching new customers, instead of relying on old customers ensures that the company will be able to work into new opportunities for growth. By doing this, there is the ability to create a different approach to the growth of the corporation while moving into new areas of growth and development. Growing Demand of Plants and Fertilizers The demand for plants, shrubs and other agricultural products is continuing to increase throughout Europe. This allows Kwaliteit Flora to have a large advantage with expansion, if continuing to market and promote the products in the right manner. On an international level, there is a demand for plants, shrubs, agricultural supplies and food at an average of $167.5 billion from 2008 and the expectation to grow by 9.3% by the year 2013. The statistics combine with the Americas demanding products at $65.4 billion, taking 39% of the market, Europe at $65.8 billion holding 39.3% of the market and the Asia – Pacific at $36.3 billion with 21.7% of the market. The two main areas which are marketed are global gardening and outdoor living which holds 57.5% of the market and revenues of $96.7 billion. The second largest market consists of compost, fertilizer and soil conditioners, which is creating 30% of the market at $19.3 billion on a global level. The expected growth is one which is based specifically on the development of organic and high – quality plants and shrubs that are associated with quality providers in agriculture (Ecoland International, 2011). The changes in demands which are occurring with the growth in demand for agriculture are followed by the social structures that are continuing with these demands. There are a variety of changes which are occurring in the field of agriculture, specifically which are based on the health initiatives and needs within the community. This is first based on the global need to have enough food and resources available to individuals internationally. This is combined with the need to have multifunctional food, specifically which services different areas and helps with complete nutrition. The social demands are also leading to consciousness in terms of health, organic living and having a different understanding of plants and agriculture being a main way to create a healthy environment. Landscaping is continuing to rise in popularity, specifically because the right types of plants and shrubs cut back in water while creating a friendlier environment. The concept of environmental health, individual health and global welfare are the main areas which are causing many to re-examine the different types of plants which are available in the market (Carlos et al, 2008). The social demands and initiatives are combining with the political affiliations with plants, shrubs and overall agricultural concepts in Europe. The public policies which are being implemented are now moving into sustainable agriculture. This is created because of the understanding that the use of large scale agriculture also leads to abuse of the land and difficulties and problems on a deeper level with the environment. The political agenda also has created restrictions in terms of how land can be used and the different needs which are associated with how the products are grown. The result is a change in social demand, specifically with the association of sustainable agriculture. This particular concept is one that is based on the individual landscapes providing for homes and creating a space for small scale agriculture. Plants, shrubs and other formats for landscapes are being combined not only for beauty, but also to find an alternative to the different difficulties which are coming from restrictions and policies around Europe. The response taking place at a social level is to begin to develop alternative landscapes that continuously serve the needs of the community (Lopez et al, 2009). For Kwaliteit Flora, this presents a perfect opportunity to create what is needed within the community. Implementation Plan The opportunities available for growth of Kwaliteit Flora are inclusive of both social trends and the growth which is continuing to occur at an international level for plants and shrubs used for landscapes. The first implementation which can be taken is an e-business strategy. This allows the management of the company to continue while mainstreaming and automating information. Combining this with a strong marketing plan online can help with the growth of the company while moving into a step – by – step process to begin to find new customers internationally. The marketing approach is one which can tie into the demand for landscapes for the environment and with the policies created while advertising the best of products that are available throughout Europe and which can be shipped anywhere. Using the same process that has led to the growth of the company and reflecting this with e-business strategies can then provide Kwaliteit Flora with a large amount of growth within the company. The first approach which needs to be taken with Kwaliteit Flora with the development of e-business is based on the design and functioning of the website. This is inclusive of the look, appeal, speed, accessibility, navigation and business model that are reflected on the website. It is noted that most users only spend an average of 30 seconds on a website before leaving. The marketing which is used for the website then needs to be reflective of the customer requirements. It is also found that the information provided to consumers and the requirements which come from information and meeting the needs of consumers need to be in place and effective. Automation, continuous links to the consumers and the ability to correspond is one which is known to assist in overcoming the barriers for websites while developing and implementing alternatives for new markets (Hernandez et al, 2009). The second establishment which needs to be made with the e-business strategies is based on market differentiation. The focus is one that will be based on the brand name of the particular market as well as ways in which this links to the overall applications with the business. The market orientation is currently one looking at different prospects in terms of high – end and quality agricultural products. Meeting this with the main outline of the website as well as with the marketing which is on the Internet provides different alternatives to those who are establishing a specific area online. The concept is one that needs to be developed with the understanding that other high – end products don’t have the same initiatives with the e-business, while creating a deeper understanding of what needs to be approached in terms of the market orientation and other developments which are associated with the needed strategies. The concept of market orientation is one which will allow the products to become highly recognized while amounting to substantial growth with the corporation (Borges, Hoppen, 2009). The second concept which then can be established with the company is based on a training program for two new employees and a manager. These individuals will overlook the customer service and the development of the company, specifically to assist with the outsourcing and growth of the corporation. It is noted that the ability to use a manager and employees is able to cut costs in the long term for businesses, specifically if there is expansion and development of the company. This comes from the training and development which occurs as well as the ability to have a smaller amount of time in the care for customers and different prospects which are available. This will also help to find more farms to outsource the different products from while creating and implementing new alternatives to assist individuals that are developing in the market. Doing this will provide new implementation within the company while helping with the overall growth and development within the market to an international level (Cimera, 2009). The gantt chart to assist with the training, development and website implementation is as follows. Activity Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Website planning Website test and launch Website marketing Training of employees / management Final structure for employees / management Monitoring and evaluation Final launch of website / employees The approach will be to mainstream the website development before hiring employees. Once this is stable, there will be the ability to train the different activities and management procedures while focusing on growth of the company. Doing this will help to mainstream need for the loyal customers while providing a way to assist with the growth of the corporation. A concept to consider with the changes made will be the risks that will be created from these approaches. A risk assessment plan will be given through the monitoring and evaluation developed from the beginning of the plan. The areas where risk need to be defined is with the relations with customers, relations with outsourcers, change with employees and technicalities with the website. The approach taken is based on business development management. This strategically identifies potential problems with the growth of the business while monitoring and changing any needs created. This can be processed first by setting specific goals while mainstreaming the information and offering different alternatives while growing the business. This may also be developed in terms of being risk – aware with the business process stimulations. The training and development as well as the website monitoring can be assessed in terms of being risk – aware. This defines specific scenarios and allows the customers to create a different response in terms of risk management while assisting with the growth of the company. Continuing to monitor, analyze, change and develop through the evaluation will lower the amount of risk while creating more alternatives for the business (Jakoubi, Tjoa, 2009). References Borges, M, N Hoppen. (2009). “Information Technology Impact on Market Orientation in E-Business.” Journal of Business Research 32 (3). Carlos, Parra, Jeron Groot, Carmen Torres, Walter Rossing. (2008). “Integrating Public Demands Into Model Based Design for Multifunctional Agriculture.” Ecological Economics67 (4). Ecoland International. (2011). “Size of World Market for Agriculture.” Retrieved December 7, 2011 from: http://www.ecolandguano.com/market/. Hernandez, Blanca, Julio Jimenez, Jose Martin (2009). “Key Website Factors in E-Business Strategy.” International Journal of Information Management 29 (5). Jakoubi, S, Tjoa S. (2009). “A Reference Model for Risk – Aware Business Process Management.” Risks and Security of Internet Systems(31). Lopez, C, JCJ Groot, C Torres. (2009). “An Integrated Approach for Ex-Ante Evaluation of Public Policies for Sustainable Agriculture at Landscape Level.” Land Use Policy 57 (1). Read More