Nimble Electronics is a regional chain that deals in the sale of consumer electronics laptops and mobile phones consisting of 3 stores. The company has presence in two different states and strong online presence. Mr Forye and Mr Jack, who own 50% of the company each, founded the company in 2005. Their choice of location was greatly influenced by familiarity and available resources. Being American, both partners had wide knowledge about American markets. They understood where, how and when they could easily reach their potential customers. Additionally, America provides a conducive environment for electronic retailers to flourish.
Form of business ownership
Nimble Electronics is a partnership between two partners, Mr Forye and Mr Jack. A partnership is a business that involves two or more individuals, known as partners, who concur to share in the business’s profits or losses made. This form of business was chosen mainly because partnerships do not have to pay taxes for profits made or the benefit made from losses and having more than one investor increases the amount of capital available. Any profits made are only charged against the partner’s personal revenue. Lastly, partnerships are easier to start than corporations and they do not require the owners to complete extensive paper work.
How Supply and Demand determine the products/services to be provide
Whenever starting a business, the product or service to be offered is one of the major decisions that must be made. The product or service to be offered is highly dependent on demand and supply patterns. The ideal product or service to be provided would be the one with a high demand and low supply. Demand and supply patterns not only dictate the price of a product but the level of sales to be expected too. When the demand for a product is high and its demand is low, sale prices go up and retailers tend to sell more (Henderson, 1922). When supply increases and demand decreases or remains constant, product prices go down and sales decrease too. Consequently, Nimble Electronics would need to determine the products with a high demand and low supply.
Company’s Strategic Plan
Strategic plans can be divided into various sizes and method. However, the different strategic plans share strategic plans next to supplier.
SWOT: A SWOT analysis is view of your current position, specifically your strengths, weaknesses, opportunities, and threats (Dyson, 2004). In the case of Nimble Electronics, SWOT analysis results are as shown in the figure below.
· The size of the company
· Strong online presence
· Rich human capital
· Narrow product portfolio
· Higher prices as compared to some of its competitors
· Does not offer financing services to its customers
· Social media has opened up considerable opportunities for Nimble Electronics
· Online marketing and online direct sales, which could help increase market share.
· Expanding the business to new geographical areas, especially the ones overlooked by the industry’s main players.
· New companies entering the market
· Major players in the market with already significant market share.
· Rapidly evolving technology in the consumer electronic sector.
Implementation of the Management Functions
Nimble Electronics will have a Matrix Organizational Structure. Under this structure, employees will report both horizontally and vertically. That means that an employee can be a member of a functional group, where they will have to be answerable to the group’s supervisor or manager but they can also serve in other teamsif need be (Miles, Snow, Meyer & Coleman, 1978). This kind of structure will have employees from different groups working together on various projects, which will strengthen teamwork and reduce monotony. Additionally, employees have a responsibility to their respective groups and to organizational projects too, which can increase job satisfaction.
Dominant leadership style
The dominant leadership style at Nimble Electronics is participative form of leadership. Participative type of governance values team member’s input but the final decision’s obligation remains with the leader (Ogbonna & Harris, 2000). This form of leadership motivates employees because they are given the opportunity to be a part of the decision-making process. Having a platform to air their views and contributions makes them feel valued and gives them a sense of belonging. Moreover, participative leadership helps in ensuring that employees adapt to any changes made within the organization since they were involved in the process from its initial stages (Ogbonna & Harris, 2000). This style meets the needs of Nimble Electronics and helps tackle challenges associated with decision-making process effectively.
Reasons why function of control is needed in Nimble Electronics
The control function supports management of a business in several ways. It directs the management on how to achieve pre-set organizational goals and objectives. Additionally, the control process helps in ensuring that various business functions are and remain efficient by reporting various fields’ shortcomings.This helps the organization come up with corrective as well as preventative measures (Merchant, 1985).
Marketing Mix for Nimble Electronics
Marketing mix are the elements that combine in order to promote product’s exclusive selling points that make it different from its competitors (Constantinides, 2006). Those elements can be reduced into the 4Ps, product, price, promotion, and place. Nimble electronics will need to ensure that is unique and meets the needs of its target customers. To do so, the organization will ensure that it only retails high quality consumer electronics and offers an exceptional service to its customers throughout and even after the sale (Constantinides, 2006).
Price is another issue that Nimble Electronics will need to consider. The organization will need to find a price that customers will consider reasonable without adversely affecting its profits. Since customers buy an experience and not just the product, offering the exceptional service, as noted above, will ensure that customers view even premium product prices as reasonable.
Once the business has a suitable product and an ideal price, the next action is creating awareness. Nimble Electronics will promote its products through public relations, social media marketing, advertising, video marketing, and email marketing among others(Constantinides, 2006).An effective promotion strategy is essential for ensuring return on investment.
Having a suitable product that is offered at a reasonable price and one that customers are aware of would not translate to sales unless the product is availed to potential buyers at the right place and time(Constantinides, 2006). It is thus critical that Nimble Electronics identifies ideal locations that will help convert potential customers into actual customers.
Developing and using the basic accounting statements
Nimble Electronics accounting will be done using chart of accounts. The four major statements will be prepared including balance sheet, trading profit and loss account, cash flow and a trial balance. The accounts will be done using a computerized accounting system, where the chart will be based on a four-digit numbering system. The chart will have five categories, assets, liabilities, expenses, revenue, and equity.
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