Damn Heels Expansion
Coleman’s recommendations on Damn Heels Expansion
Following the past success and stability of Coleman’s business considering she is the sole business owner, she has to make informed expansion decisions to maintain constant growth of the business. To begin with, decision on whether the target market should be expanded to cover the United States market or concentrate on the expansion of the current Canadian market the first decision she has to make. Following the available information relating to the two markets and comparing the expected costs and revenue of the two markets Coleman should stick to expanding the Canadian market for the next financial year and not the United States market. in doing this, she should ensure that she maximizes all the opportunities available in the Canadian market that are likely to be of benefit to her business. For instance, she should embrace the suggestion by Dragon’s Den and take part in the popular venture capitalist program even though it requires her to have a corporate website. She should also embrace the promotion options such as the popular choice retailing entrepreneurs and attend at least one show that is scheduled for September. This decision should also go hand in hand with embracing the Nikki Beach festival because even though these activities provided additional costs to the company they all brought positive financial growth to the company. The final decision that should be made in regards to the business future growth is on goods transportation, and the most appropriate method is shipping all the consignment since the method is as costly and not too slow.
The facts revolving the above decisions are mainly on the basis of the most profitable decision relating to the sales of the flat footwear that the business is focusing on. Most decisions made are arrived after establishing that the costs to be incurred are lower than the expected revenue. It is also on the basis that the decisions especially those related to business promotion strategies will not only improve business financial status but also improve public relations. For instance, the decision to focus solely concentrate on the Canadian market and not expand to United Sates market follows the fact that additional shipping cost, marketing costs or wages in United States will be incurred. Even with these additional costs in the market plus the fixed cost of the products the revenue of the sold products will still remain constant at a wholesale price of $10 to $12 per unit. In addition, regarding the Dragon’s Den decision the costs incurred are still lower that revenue expected this is because total costs include $1,600 for the website, $2,000 for website upgrading, $1,900 for the Public relation agency and $600 packaged promotional plan, leaving additional cost at $6,100. While comparing these to the expected revenue considering the website attracted 3000 hits and anticipated that the website would yield $11,000 that fiscal period then the venture would cater for the additional operational cost as well as the fixed costs.
The impact of these decisions on Dawn Hells (DH) business will assist in maintaining stable growth for the business. Since the new product flat shoes is a new product for the company embracing the available promotional opportunities such as Nikki beach party involvement, Dragon’s Den internet marketing and the trade shows at Younge-Dundas Square will ensure that the new product is well marketed and known to the target market. Further, the decision to focus on only the Canadian market and including the United States in this specific financial year is to ensure that the available resources from sales and loans are utilized on company profit maximization and not on improving public relations which will be the case in the completely new United States market.
Bottom line, the decisions made relating to the available expansion and growth opportunities will definitely assist profit maximization in Dawn Hells business. However, there are a few considerations that should be made before most final implementation. The most notable considerations are on the legal policies that relate to import and export of goods, e-commerce, wages and retail marketing, this because these factors are likely to affect costs estimations and method of operations. The other considerations made is on the financial and population growth rate of both Canada and United States to ensure the company is always in a position to attain competitive advantage in which ever market chosen.