Case Scenario
You have decided to develop a business that concentrates on importing fair-trade world goods for sale in retail mall outlets in several different American cities (Detroit, Philadelphia, Seattle, Las Vegas, Atlanta, and Dallas). The theme you have selected is, "A Small World." Because of the nature of this business, you will need to investigate world economic trends and theories, as your products will come from many different countries and cultures. Your product line will be primarily décor items, some small furniture, small gifts, and bric-a-brac items. The stores will be relatively small (about 4,500 square feet) and packed with items, so that there is a lot for potential customers to see and touch. You will also offer free coffee samples for shoppers (and may also decide to sell some), but coffee will likely be your only consumable product. The outlet stores will follow regular mall hours and because of the parking provided at the malls, parking should not be an issue.
The malls usually have high foot-traffic, so the potential for a lot of impulse buyers is high. This is good, because you will likely have little money for advertising. You are unsure about product mix and about the range of products. You have also thought about adding a sales Web site and perhaps selling home décor products to other retailers, such as Target, J.C. Penney, and Sears.
Based on the above scenario:
1. Research and identify demographics and geographics.
2. Describe the competition sources and types.
3. Calculate the size and trends of the market
4. Select an appropriate structure for the buseinss, matched to its specific needs, market, and surrounding cultures (see organizaitonal theory about this issue).
5. Provide a description of the structure and explain how the structure is strategically and appropriately matched to your business's specific needs. For example, will your company be organized by product line? by geography? By functional area? Will it be a flat organization or a tall one? How will the stores be managed.
6. How will the stores be related to company management?
7. Describe how your market analysis influences the organizational structure you chose, your decision-making, and value creation for the organization.
8. Describe how your business will reflect the various economic theories, strategies, trends, and practices for domestic and global environment. How will your business be influenced by these factors?
Please cite sources.