Identify Market Oppurtunities Task 2 Essay

decision maker Summary BBQfun was established in 2009 by current CEO, Pat Mifsud. BBQfun offers an long product range, incorporating both local and imported goods. Since 2010, the increasingly competitive retail environment, technological switch over, changes in consumer buying patterns and consumer confidence has led to disappointing sales. However, BBQfun intends to rescue to healthy sales of $11 million in 2012 by means of and through construct on its organisational strengths, through targeted trade strategies aimed at key segments and through exploiting grocery storeing opportunities. Currently, BBQfun operates two barge ins, one in Brisbane (Kenmore), and one on the Gold Coast. BBQfun is desire business and marketing opportunities that could lead to interstate or national amplification if viable and scalable.Mission To provide our clients with great value outdoor lifestyle products and second-to-none customer service.Vision To be, within five years, south east Queen slands leading outdoor lifestyle retailer.Values Quality Customer value People Active encouragement of safety, teamwork, diversity, excellence, innovation and continuous improvement.Strategic directionsThe strategical context in which BBQfun will achieve its mission and vision is through engaging with customers through promotion and market research building paper for quality products and quality customer service supporting people to cause via gentility and performance guidance controlling be. increasing sales receipts and profitability.AnalysisAnalyse 3 Opportunities and which of these fit with organisational goalObjectives Opportunities Engaging with customers through promotion & market research. E-commerce Reduce direct & indirect cost of the operations. cause brand, wad market Building reputation for quality products and quality customer service E-commerce New marketing opportunities impact protest brand E-commerce lot market Sales volume (units) BBQ 7200 BBQ 12600 BBQ 10000 Sales volume (units) furniture 3120 piece of furniture 5040 piece of furniture 5000 Sales volume (units) Accessories 40320 Accessories 63360 Accessories 52500 Own brand E-commerce Bargain market Price BBQ $600 BBQ $620 BBQ $500 Price Furniture $850 Furniture $880 Furniture $650 Price Accessories $50 Accessories $55 Accessories $40 Unit contribution leeway BBQ $500 BBQ $300 BBQ $200 Unit contribution margin Furniture $600 Furniture $420 Furniture $220 Unit contribution margin Accessories $40 Accessories $20 Accessories $10 Total revenue 8988000 15732000 10350000 Total gross profit 2012/13 7084800 164000 3625000 cast upitional fixed costs Add lease $hundred thousand0 Add undertaking $500000 Add plant (depreciation) $500000 Add training $50000 Add online store development $100000 Add new plant and equipment (depreciation) $150000 Add labour $250000 Add reconfiguartion of warehouse/office $50000 See approved budget (no change in fixed costs) Total net profit 2012/13 200086 1679286 1259714 international factorsBefore instrumenting 3 new changes what are the legislation and standards need to be analysedImport & Export standards for both the countriesLegislation regarding taxes maybe different in both countries Expensive labour cost jeopardize analysisRisk Impact Likelihood Mitigation Web waiter down extravagantly Likely Back up server, Back up of data calamity to adequately train employees High Unlikely Adherence to performance management policy, Time to time training sessions Not having confidence in Own brand High Unlikely Serious marketing, Customer awareness programs, 24/7 customer service Cost Benefit Analysis (CBA) swear out Cost Benefit Risk F or MF or NF Own brand $6884714 More profit Not having confidence in Own brand F E-commerce $5484714 Less Cost Web server down F Bargain market $4884714 More business misfortune to adequately train employees MF wages on investmentReturn on investment(Income-Cost)CostOwn Brand$8988000 $6884714 / $6884714 = 0.3055E-commerce$15732000 $5484714 / $5484714 = 1.868Bargain market$10350000 $4884714 / $4884714 = 1.118 clan new opportunitiesRank 3 opportunities based on its benefit.Rank One Own BrandRank two E-CommerceRank threesome Bargain MarketCost & ResourcesBrief cost & resources required to implement each new oppurtunity.Resources Costs Additional staff $25000 year middling Additional staff costs$250000 install & equipment depriciation Delivery trucks ($20000 each) Forklifts ($10000 each) Plant & equipment costs - $120000 & $30000 Promotional Costs $500000 Website developers Contractors ($2000/ a day) Website development cost $100000 Staff training $ Online customer service training $3000 per staff genus Phallus Staff training cost $24000 Management change leadership training for store managers and team leaders $3000 each Management & leadership costs $42000 Ware house and office reconfiguration Re-configuration cost - $50000 Total $6016000