e of the following businesses. Assume you have decided to establish and 1. Selec
ID: 352857 • Letter: E
Question
e of the following businesses. Assume you have decided to establish and 1. Select on operate that business in Orangeburg. a. What market segment would you serve? b. What needs do these customers have that you could satisfy with your business? w would you satisfy those needs? What business level strategy would you use? c. Ho d. Businesses: (1) Restaurant, (2) Retail Clothing store (3) Day Care Center 2. Can an overemphasis on cost leadership or differentiation lead to ethical challenges (such as poor product design and manufacturing) that create costly problems (e.g product liability lawsuits)?Explanation / Answer
1.
d) Orangeburg is a small city with a few tourist attractions like gardens, museums and also home to two historic universities. Since it is a place of tourist attraction the best business to operate here would be a Restaurant.
a) In a restaurant business both demographic and geographic segment play important roles. The most ideal market segment out of these both would be demographic segment. As Orangeburg is a place where lots of tourist visit and also there are students from all over the country and abroad. There is a lot of diversity with respect to age, gender, occupation, education etc.
b) The prime ethical business of a restaurant chain is to satisy the taste buds of customers. After having a economic analysis of the inflow of tourists and international/local students of orangeburg, a restaurant with a cuisine other than the local food would attract a lot of customers. A differnent taste once a while would be more than delightful for the people of the area as well. Also the pricing has to be kept in mind which satifies consumers of all social classes.
c) The strategy would be very simple. The main intention to grow is giving customers a mixture of interesting and quality food with an environment focussing on varied group of people.
To stay ahead in the market I will have a competitive menu with an excellent chef for international menu cooking with the freshest and hygienic ingredients available. The environment and decor will the comfortable and warm. The management would pay attention to every details so as to make the customer’s day delightful and memorable.
The marketing strategies to employ would be word of mouth, online marketing through social media, brochures, local food delivery services, VIP Parties and newspaper campaign.
2. Advantages of cost leadership or cost differentiation programmes result in either high volume consumers or premium price consumers. But it is true that overemphasis of either of the strategies can lead to eithical challenges that can create costly problems.
In case of cost leadership to maintain a low cost product, a firm will have to reduce costs in areas such as customer service, else the customers will be driven away by products with better service. Also in the longer term the employees of the firm must be kept highly motivated else loosing experienced worked will further affect the productivity and incur costs to train new workers.
Also a firm must always worry about its competitors for their cutting-edge technologies used for manufacturing the product and the knowledge. If not patented it can always be stolen, incurring huge losses for the company. It takes a lot of time, money and effort for a firm to get known for its technology and bloom as a premium brand. It has to be updated every second with the taste of the consumers which is always a risk. Even after spending a fortune on technology, quality and customer service, if the demands are not met there is a high risk of loosing potential premium consumers.
Both strategies are like two ends of the scale. You are at times bound to run either side, in order to seek help with costs or with productivity.
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