Definition of Success and Critical Issues
The owners of Foxy Originals want to increase their overall profits at a minimum of $100,000, while maintaining a work life balance.
The critical threats that have the potential to hinder this opportunity are:
• Increased competition for their online business
• Limited funds due to being funded in-house
• Maintaining and improving an appropriate work-life balance
Situation Analysis
Foxy Originals was founded on the belief that its products should be bright, fun and exciting, while also being unique and playful. Through the passion and enthusiasm of the owners, Foxy Originals brings forward a competitive advantage of being different from other jewelry manufacturers, through providing excellent customer …show more content…
The costs of this option involve an advertising budget for social media. For this option to be successful, we forecast 1512 orders are needed to break even. With an expected average of 3695 orders, this will net a profit of $136,234.70 with an ROI of 67%. The main risk for this option is the large amount of online competition. This option, however, permits the partners to meet the decision criteria by addressing all the perceived issues of work life balance, increasing profits of over $100,000 and maintaining a personal connection to their client base through social media …show more content…
Costs associated with this option include: registration fees for trade shows, the cost of a new booth, shipment costs, material costs and travel costs, totaling roughly $9,433.33 CAD per show. Attending trade shows will give the company an opportunity to showcase their products to 75,000 potential buyers. The best-case scenario would result in 45 orders, which will yield a profit of $163,741.67. The worse case scenario would result in 20 orders, which would yield a net profit of $20,366.67. The average of these two scenarios, would be 33 orders which will yield them a net profit of $92,054.50. This option meets our decisions criteria, if all trade shows result in the best-case scenario. The risks associated with this option are foregone opportunity costs for both partners because the likelihood of meeting the best-case requirements are limited to demand of customers. By attending more trade shows, Foxy Originals are also increasing their brand awareness which will help increase online sales significantly.
Recommendation and Action Plan
Based on the data analyzed, it is recommended that the owners of Foxy Originals implement the first option. By using this option, Foxy will be able to meet all the goals needed to address the critical issues that will keep the company in business for many more years to come. To deal with the risks of the increased online competition, the owners of Foxy should use social media to create
The owners of Foxy Originals want to increase their overall profits at a minimum of $100,000, while maintaining a work life balance.
The critical threats that have the potential to hinder this opportunity are:
• Increased competition for their online business
• Limited funds due to being funded in-house
• Maintaining and improving an appropriate work-life balance
Situation Analysis
Foxy Originals was founded on the belief that its products should be bright, fun and exciting, while also being unique and playful. Through the passion and enthusiasm of the owners, Foxy Originals brings forward a competitive advantage of being different from other jewelry manufacturers, through providing excellent customer …show more content…
The costs of this option involve an advertising budget for social media. For this option to be successful, we forecast 1512 orders are needed to break even. With an expected average of 3695 orders, this will net a profit of $136,234.70 with an ROI of 67%. The main risk for this option is the large amount of online competition. This option, however, permits the partners to meet the decision criteria by addressing all the perceived issues of work life balance, increasing profits of over $100,000 and maintaining a personal connection to their client base through social media …show more content…
Costs associated with this option include: registration fees for trade shows, the cost of a new booth, shipment costs, material costs and travel costs, totaling roughly $9,433.33 CAD per show. Attending trade shows will give the company an opportunity to showcase their products to 75,000 potential buyers. The best-case scenario would result in 45 orders, which will yield a profit of $163,741.67. The worse case scenario would result in 20 orders, which would yield a net profit of $20,366.67. The average of these two scenarios, would be 33 orders which will yield them a net profit of $92,054.50. This option meets our decisions criteria, if all trade shows result in the best-case scenario. The risks associated with this option are foregone opportunity costs for both partners because the likelihood of meeting the best-case requirements are limited to demand of customers. By attending more trade shows, Foxy Originals are also increasing their brand awareness which will help increase online sales significantly.
Recommendation and Action Plan
Based on the data analyzed, it is recommended that the owners of Foxy Originals implement the first option. By using this option, Foxy will be able to meet all the goals needed to address the critical issues that will keep the company in business for many more years to come. To deal with the risks of the increased online competition, the owners of Foxy should use social media to create