How NOT to Stuff Up a Company Restructure

How NOT to Stuff Up a Company Restructure

by | Sep 13, 2019

Each product has its own life cycle.  A product will be ‘born’, it will ‘grow’, it will ‘mature’, provide a period of ‘saturation’ and, eventually, it will ‘decline/die’.  Some products, like Tip Top, have retained their market position for a long time.  Others may have their success undermined by falling market share or by competitors.

The product life cycle shows how sales of a product change over time.  There are typically 4-5 stages of the life cycle of a product.  Not all products follow these stages precisely and time periods for each stage will vary widely.  Growth, for example, may take place over a few months or, as in the case of Tip-Top, over decades.

However, perhaps the most important stage of a product life cycle happens before the birth, namely the research and development (R&D) stage.  Here the company designs a product to meet a need in the market.  The costs of market research – to identify a gap in the market and of product development to ensure that the product meets the needs of that gap – are called ‘sunk’ or start-up costs.

Climbing a Mountain – The Ultimate Metaphor for Business Success!

Climbing a Mountain – The Ultimate Metaphor for Business Success!

by | Sep 13, 2019

Each product has its own life cycle.  A product will be ‘born’, it will ‘grow’, it will ‘mature’, provide a period of ‘saturation’ and, eventually, it will ‘decline/die’.  Some products, like Tip Top, have retained their market position for a long time.  Others may have their success undermined by falling market share or by competitors.

The product life cycle shows how sales of a product change over time.  There are typically 4-5 stages of the life cycle of a product.  Not all products follow these stages precisely and time periods for each stage will vary widely.  Growth, for example, may take place over a few months or, as in the case of Tip-Top, over decades.

However, perhaps the most important stage of a product life cycle happens before the birth, namely the research and development (R&D) stage.  Here the company designs a product to meet a need in the market.  The costs of market research – to identify a gap in the market and of product development to ensure that the product meets the needs of that gap – are called ‘sunk’ or start-up costs.

Product Life Cycle

Product Life Cycle

by | Jul 30, 2019

Each product has its own life cycle.  A product will be ‘born’, it will ‘grow’, it will ‘mature’, provide a period of ‘saturation’ and, eventually, it will ‘decline/die’.  Some products, like Tip Top, have retained their market position for a long time.  Others may have their success undermined by falling market share or by competitors.

The product life cycle shows how sales of a product change over time.  There are typically 4-5 stages of the life cycle of a product.  Not all products follow these stages precisely and time periods for each stage will vary widely.  Growth, for example, may take place over a few months or, as in the case of Tip-Top, over decades.

However, perhaps the most important stage of a product life cycle happens before the birth, namely the research and development (R&D) stage.  Here the company designs a product to meet a need in the market.  The costs of market research – to identify a gap in the market and of product development to ensure that the product meets the needs of that gap – are called ‘sunk’ or start-up costs.

Meeting Customer’s Buying Needs

Meeting Customer’s Buying Needs

by | Jul 30, 2019

In a modern world of retailing consumers can have their needs met in a variety of ways such as local shopping centres, out of town shopping centres, and by direct delivery from Internet orders.  Competition among retailers is increasingly getting tough.  Differentiation is therefore the key to developing a compelling competitive advantage and winning loyal customers. Differentiation is the process of making your business stand out from rivals – making it different and better.

Marketing departments are therefore continually concerned with addressing the questions:

  • Who are our customers? (A company needs to find out as much as possible about its customers in order to meet their needs.)
  • Are we offering the right combination of choice, value and convenience?
  • How can we create a compelling competitor advantage? (How is the company different from the competition?)
  • How can we defend what business we already have and how can we grow?
  • How do we effectively communicate to our customer base?

Most established companies are very strong, with a trusted brand focused on value, choice and convenience.  Cosco Wholesale is a trusted retailer for bulk buying grocery; it has a major presence in many other markets including gardening, consumer electronics and furniture and a significant market share in jewellery and sports equipment.

Consumers at Cosco Wholesale are offered a multi-channel approach to shopping.  New Zealand supermarkets have also been adapting the way they service customers.  They also offer a multi-channel approach to buying including customers ordering online and having their groceries packed for collection or delivery.  Most retailers are now thinking about consumer spending with the likes of different methods to pay and allowing the consumer the goods now with payment options of 6, 8, 10 weeks or 12-60 months – all interest free.  A business has to be open minded to how they do business and meet the needs of an ever-changing customer purchasing market.  The Engine’s Growth membership provides businesses the option of a Customer Satisfaction Survey.

Cashflow Management

Cashflow Management

by | Jul 30, 2019

Each organisation has to manage and monitor its cash flows carefully. Cash does not just arrive; it must be chased, recorded and managed. At all times, there must be enough cash to pay bills.  For a retail business like The Warehouse, the main cash inflows or receipts will be from sales; the main cash outflows or payments will be for supplies and overheads associated with its stores, such as rents, rates, wages, power or transport.

If there is too much cash in any organisation, it needs to be put to work for instance, in a deposit account or investments where it will earn interest.  If there is too little, the business needs to know how much it will have to borrow to cover the shortfall and for how long.  Borrowing money also has costs which need to be managed.  Good cash flow management requires good information, professional training and good management decision making.