What could potentially go wrong in the operations of the business?
When launching a business, you are faced with many challenges and there are always many
things that could potentially go wrong. No management, no funding, no business plan. These
are all things which can affect all businesses, as much as these are important to understand
and control it’s also just as important to have an understanding of what could go wrong within
your specific industry. To make this process easier its beneficial to look at a similar existing
business, due to the Ice cream industry sitting within a niche market we may struggle to build a
strong customer base.
Ice cream businesses are also known to be a fairly cheap start up, compared to something like
a tech company, therefor we may see a higher volume in competitors within our market. One
more thing to consider, is the geographical location, Australia is one of the hottest countries
during summers, therefore you will excel during those busy periods. But during the winter, sales
and customers will slow down.
What are some contingency strategies that might be implemented?
When looking at implementing a contingency strategy there are 5 major factors which you have to
identify. Firstly, you have to manage the program that is mapped out to improve the brands
performance, this allows us to clearly see our objectives and goals. Once you have introduced an
idea, you then have to create a plan where you can pull those ideas together and make it work. This
step is the most important of the process as this determines how you are going to perform these
objectives. Next is the process of implementing the plan and introducing the new changes, this is
where you begin to see a difference, followed by a testing and exercise period, where you will
determine if the plan works or if it needs improvement. Based on the feedback from the testing
period you will have to make a decision whether you leave or improve the program.
How do you intend to measure your retailer objectives?
Measuring retailer objectives is a beneficial way of determining whether you are achieving the
required KPI’s and business goals, this will indicate whether your business is on track. There is
multiple way to measure your retailer objectives, but firstly you need to be able to understand
what objective are you originally trying to achieve. Looking at our sales objective goal, we aim to
gain a 25% increase in sales and increase our overall customer base. This can be tracked
through the use of average transaction value; which tracks exactly how many people are
purchasing and specifically what they are buying.
Profit is often an easy objective to measure because it’s a quantifiable figure. You can measure
this objective by simply tracking the profit made every day after expenses, then calculating the
NET profit.
Positioning of brand can be sometimes be difficult to determine, therefore turning to similar
competitors will give you a good understand of your business position. In our case, we are
familiar that we are selling a niche product and we need to focus on targeting these areas.
When introducing a business into a new market, it can be difficult to measure the overall
satisfaction of the public because there are so many external factors which can have either
have a positive or negative affect.
There are 2 key measurements which can be used to determine this principle, conversion rate
and traffic. Traffic is broken into 2 segments, foot traffic and digital traffic, foot traffic is used to
measure the overall popularity within your physical store and digital traffic is used to measure
your brands exposure and online awareness. Conversion rates are usually measured alongside
foot traffic as you get an idea of how many people who enter your store actually make a
purchase
ANNDDDD that’s all for today, does anyone have any questions?
Goodmorning everyone, I’m here with tony, sam, vinh and Michael and we are presenting
A swot analysis is helps you break down your business into different parts, allowing you to identify your
Strengths, weaknesses, oppurtnuites and threats
A SWOT analysis will help you identify areas of your business that are performing
well. These areas are your critical success factors and they give your business its
competitive advantage. Identifying these strengths can help you make sure you
maintain them so you don't lose your competitive advantage.
Tony, Sam, Vinh and Michael