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Introduction
My company is known as Kube. This organization deals with the production of electronic devices that are so popular nowadays. The main product that is launched right now is a new multimedia smartphone, the Kube K15. We entered a mature market recently but are able to compete with various types of smartphones, as Kube is focused on the production of innovative and unique devices with emphasis on advanced features and functionality.
Our products are at a competitive value-added price, which provides an opportunity to attract customers attention and develop. Kube launches powerful but affordable devices, which appeals not only the consumer but also business markets. All products offer communication, organization and entertainment advantages.
Kube is located in Manchester, New Hampshire. This place was considered to be the best one for the company, as it is known for high ranks of business growth and licensing regulations. It is not difficult to start a new business in this location because it is a multi-industry city. Manchester is the business and financial center of northern New England ( Business & Industry para. 7). Thus, Kube can provide these businesses with its devices, which ensures competitiveness and development.
The city values high-tech and is home to electronics, which is beneficial for our organization. Thus, Manchester was considered to be a good place for the start-up and remains a decent location for Kube as a company that is willing to attract consumer and business markets by unique features and efficient technologies.
Legal Form of Business Ownership
Kube is a limited liability company (LLC). In this way, the owners are protected from being financially and legally responsible for the actions connected with companys operations. They are only partially legally liable for the issues that can come up from contracts, taxes and other things. Negligent torts are mainly covered by insurance, which is rather beneficial for the organization and its owners as it can save its finances. The owners of the company are liable only to the extent of their investment, which also provides an opportunity to avoid conflicts.
Their personal assets are safe, which is extremely beneficial. It is also significant that there are no separate taxes because all gaining passes to the owners. LLC is not difficult to run, as there is no need to form a board of directors and hold meetings. Focus on day-to-day operations can be easily maintained because approval is not required.
LLC form of business ownership is advantageous for Kube as it ensures flexibility. The main points of profits distribution are mentioned in the Operating Agreement while the number and type of partners may vary. Except for that, all members can be involved in day-to-day management of the business. This kind of ownership also provides an opportunity to build a credit regardless of partners creditworthiness, as the company is treated as a separate entity. Finally, it is beneficial that foreign investors tend to cooperate with LLCs, as they are mainly familiar with this ownership.
Supply and Demand
In order to determine the products that the company is to provide, I paid much attention to supply and demand. First of all, I identified the targeted market that included consumers and businesses. Then, I conducted research to create supply and demand schedules. Much attention was paid to the demand on existing products. Electronic devices, especially smartphones turned out to be extremely popular among the population.
The company concluded that it requires a unique product that is not limited to the particular market but provides advantages for both businesses and consumers to meet their preferences and expectations. The number of potential customers was indicated as well as their income so that the price of the product was determined. Then, production costs were considered in order to determine the most appropriate price and compare it with other suppliers (Adil19). All in all, pricing strategy was developed. It dealt with initial and adaptive prices.
Pricing strategy
The Kube K15 will enter the market at a $250 wholesale price. The retail price per unit will be $300, but it will be lowered with the new product line at a $350 wholesale price. Such prices response to the opportunities of attracting new channel partners and allow to take share from competitors.
Strategic Plan
For now, Kubes main goal is to increase its revenue and remain competitive. With the course of time, the company is willing to expand, but it concentrates on those goals that are on the front burner.
Kubes objectives determine peculiarities of its management and allow the company to assess its progress. Except for that, they provide an opportunity to take corrective actions and remain competitive.
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First-Year objectives: Kube will have 1% share of the smartphone market when the Kube K15 launches. The sales volume of 800,000 is expected.
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Second-Year objectives: Kube will achieve break-even on the product and the second device will enter the market.
As it can be seen from the SWOT analysis, Kube has a number of strength on which to build and opportunities that will allow it to develop.
Strength
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Innovative product the Kube K15 is a unique device that combines features, which are rarely found in single smartphones. It has great telecommunication capabilities and high-quality digital video, playback, etc.
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Security the Kube K15 uses less vulnerable to security threats operating system, which prevents data disclosure.
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Pricing the Kube K15 is not as expensive as competing smartphones even though it provides unique features. Thus, price-conscious customers are likely to use it.
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A well-segmented portfolio Kubes are made to be appropriate for people with different income levels. Thus, they do not pay for the brand when they buy the Kube K15.
Weakness
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Lack of brand awareness Kube is a new company that is not yet as well-known as Samsung or Apple.
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Weight the Kube K15 is heavier that the majority of competing devices.
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Limited color array only black and white devices are available.
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Advertising products are advertised on the Internet mainly.
Opportunity
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New customers the Kube K15 is likely to attract new customers to the company due to its uniqueness.
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Demand for multimedia devices devices of such kind are likely to enter public, work, and educational settings rapidly.
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Technology costs Kube allows to receive better technology at a value-added price, which is profitable.
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Sophistication of smartphone usage the general public is likely to become more interested in such devices.
Threat
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Competition many companies offer similar devices.
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Possibility of substitute creation competitors may create products with similar characteristics.
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Pressure on pricing severe competition may make prices fall.
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Compressed life cycle smartphones are rarely used for a long time.
Management Functions
Planning
I develop a strategic plan for the whole organization to know its goal and reach. A tactical plan is used to make sure that each division successfully maintains operations and fulfills its part of the strategic plan (Griffin 69).
Organizing
Functional structure allows to create departments taking into consideration their purpose. It is beneficial for Kube, as the company is a start-up and is not expanded. In this way, all departments can cooperate to improve performance.
Leading
I try to use transformational leadership style. It allows me to enhance relations with the employees, cooperate with them, inspire them and lead to the change. With its help, I am creating the collective identity of Kube. It allows me to align the personnel with tasks that improve their performance.
Controlling
Kube measures success in several ways. First of all, I make sure that the company is profitable, taking into consideration revenue and expenditures. I evaluate the progress to see if the desired goals are reached. I conduct research to assess employee and customer satisfaction. I consider if the customer base extended. Finally, I refer to owner satisfaction, as the significant measure of success (Denove and Power 5).
Recruit, Hire, and Train
To recruit and hire new employees, I develop accurate job descriptions and success profile of a perfect employee. I create an advertisement and post it on the internet, in industry publications and local newspapers. I prepare phone-screening questions to eliminate not appropriate candidates. I review the resumes, select candidates for assessment, and conduct interviews. Finally, I check ones background to make a decision (Podmoroff 19).
Before implementing a training program, I conduct needs assessment and analyze it with the reference to organizational objectives to find out where is the gap. On this basis, I define training objectives and hire trainees for a limited period of time. With their assistance, I develop training methods and mode. I select means of assessment to be sure that required knowledge and skills will be obtained. When training is administered, I evaluate it.
Marketing Mix
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Product: the Kube K15 is a smartphone that has such features as voice recognition, five-inch touch screen, wireless Web, instant messaging, and e-mail. It has a full array of apps, linked calendar, and address book. Synchronization is allowed. Instant playback, as well as music and video recording, are available.
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Price: When developing pricing structure psychological and target return pricing were considered. Thus, Kube wanted to achieve return-on-investment, focusing on consumers perception of the price (James 144).
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Place: Well-known stores, big malls, and online retailers are approached to distribute the Kube K15. The partners allow us to reach the major US markets. Demonstration products and specification handouts are provided.
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Promotion: The company refers to a point-of-sale display promotion. It uses internet marketing to advertise products online and reach customers through the personal website, websites of online retailers and social media. Product giveaways allow businesses to have samples of the products.
Accounting Statements
Balance Sheet
It shows how the business is maintained during a particular period of time. It focuses on various assets (cash, prepaids, etc.), liabilities and equity, and allows Kube to know if finances are balanced.
Income Statement
It gathers all sales revenues of the company and then deducts expenditures of doing business (costs of materials, labor, promotion, etc.). It is advantageous for Kube because it determines the net income.
Cash Flow Statement
It provides an opportunity not to run out of money as it forecasts cash receipts and expenditures for a particular period of time. Thus, Kube will always have enough funds to pay bills.
Works Cited
Adil, Janeen. Supply and Demand. Mankato: Capstone, 2006. Print.
Business & Industry 2016. Web.
Denove, Chris, and James Power. Satisfaction: How Every Great Company Listens to the Voice of the Customer. New York: Penguin Group, 2007. Print.
Griffin, Ricky. Fundamentals of Management. Boston: Cengage Learning, 2015. Print.
James, Elijah. Independent Consulting: The Definitive Guide. Victoria: Trafford, 2001. Print.
Podmoroff, Dianna. How to Hire, Train & Keep the Best Employees for Your Small Business. Ocala: Atlantic Publishing Group, 2005. Print.
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