Challenges Facing Delaware North Company - Case Study Example

Business Insight Assignment Student’s Name: Instructor’s Name: Course Code: Date of Submission: Introduction to Delaware North Company Delaware North Company is a young Company that offers hospitality services for those who go for concerts. It is a hospitality Company which is focused and aims to satisfy the customers’ demands by providing quality services and products (Jacobs 2012). Delaware North Company re entered the UK market in the year 2005. Early before it had entered the UK market but failed to attract customers and they left the market. The Company offers social services such as lodging, entertainment venues, bouquet and conferencing and other recreational activities. Challenges facing Delaware North Company There are various challenges which are facing Delaware North Company and they include competition from other Companies offering hospitality services (Jacobs 2009). There is stiff competition from other businesses that have already established and have larger share of the market. This makes it difficult for Delaware North Company to get customers because most customers are familiar with the Companies which have been in the market for some time. There are also economical issues which affect the business of Delaware North Company. The business is sometimes affected when the world economy is not favorable for the businesses. This reduces the number of customers who seek the services of the Company hence decreasing the revenue of the company. Inadequate resources are also another challenge for Delaware North Company. The Company does not have adequate resources to expand the market (Jacobs 2009). For example it does not have adequate financial resources to conduct marketing activities hence the market is not fully informed of the Company operations because the promotions do not reach the wider market. Macro economic and micro economic factors affecting the Company (PESTLE & SWOT) There are various macro economic factors which affect the operations of the Company (PESTLE). These factors include the political, economical, social, technology, legal and environmental factors (Slywotzky & Richard 2003). Political factors show how the government is involved in the economy of a country. These factors include the taxation rate, barriers to trade and the stability of a country politically. If the policies of the government support business operations then the business will have the favorable business environment to operate on but if the government conditions are tough then the business will reap less profits through strained operations. Economic factors include the rates of interests, growth of the economy and the inflation of a country. These factors have can affect the Company either positively or negatively. For instance if the rate of interest is high the cost of capital will be affected because the Company will pay huge interests and thus there will less financial resources for expanding the Company and the growth rate is slow (Slywotzky & Richard 2003). Social factors on the other hand affect the operations of the business. These factors include the age of the customers, the growth rate of the customers and attitude. Social factors generally influence the demand for the services being offered by the Company. In order to meet the demands of the customers the Company will have to change its strategies hence the business is affected. Technological factors also affect the business (Slywotzky & Richard 2003). These factors include the rate at which technology changes and the research and development. These factors majorly affect the sourcing of the Company materials. For example technological sourcing will affect the business by reducing the cost and increasing the quality of the products as a result of sourcing for right quality materials from the large market available. Environmental factors like the changes in weather and climate also affect the business. For example tourism is adversely affected when the climate is adverse. This lowers the demand for the recreational and hospitality services because the customers will be few. Legal factors like the consumer law and the law for safety and health can affect the business. These laws discourage of encourage the consumption of certain products and services which affects the business objectives. SWOT analysis on the other side is a network for strengths, weaknesses, opportunities and threats of the Company (Charles 2002). SWOT analysis is the planning method which comprises of the strengths and weaknesses of the Company, its opportunities, and the threats. Strength is the advantage of the business over others. This gives the Company a chance to have a large market share than the competitors for example it can be the high level of technology in use. Weaknesses are the things which affect the operations of the Company negatively for example inability to focus on the customer demands. This is a weakness because it reduces the demand for the services by customers as a result of poor forecasting. Opportunity is the element of possibly exploiting the strength of the Company. Finally threats are the elements which can cause trouble to the business. For example stiff competition is a threat because it affects the revenues of the Company. Strategies for improving the performance of the organization The pricing strategy; the pricing strategy should be appropriate so that it will attract new customers as well as maintaining the existing customers (Gerald & Fernando 2009). In this aspect the organization will be able to improve its demand for the services or the products. Delaware North Company for example should use customer oriented pricing strategy to attract customers. Improve the marketing strategy (Gerald & Fernando 2009). Delaware North Company should be able to design good marketing strategy to reach the wider geographical market. In this regard it will create awareness of the services and products hence it can get more customers. Offering after sale services strategy to the customers to increase the value of the business. These services will maintain the existing customers and attract new ones. After sale services make the customers to be satisfied with the services they receive. Use of appropriate technology in advertisements is another strategy to improve the performance of the Company (Charles 2002). Application of appropriate technology will ensure that the awareness of the products and services reach the wider market to attract more customers. Finally, there is maintaining existing customers’ strategy (Charles 2002). This strategy aims at improving the value proposition of the Company. This will attract new customers to the company thus improving the growth rate of the Company. References Charles, J 2002, Introduction to Economic Growth, New York, W.W. Norton and Co. Gerald, M & Fernando, M 2009, Corporate Taxation and the Impact of Governance, Political and Economic Factors, Palgrave Macmillan, Jacobs, L 2012, Delaware North Executive Biographies, Slywotzky, A & Richard, W 2003, Six principles for making new growth initiatives work, Ivey Business Journal, Vol. 67, no. 5, p. 1-19. Read More