XYZ is a local theater company, which has been operating since 1970s. The company operates in the entertainment industry, with many competitors. Due to innovation and adoption of new technology in theater, XYZ Company has gained a competitive advantage making it possible to maintain large market share. The industry is experiencing stiff competition due to the entrance of new firms in the industry and expansion of the existing firms in the industry.
Due to stiff competition, the company, since 1980, it has been using various strategies to effectively compete with other companies. Advertisement has been a key method of increasing the customer base of the company. The company invested a substantial amount to facilitate its advertisement campaigns. Another strategy utilized to enhance competitive power is provision of refreshments to customers. This helps to differentiate our service package from the competitors. Another strategy employed is giving free offer of service. For example, the company has been giving a free offer every Monday first week of a month.
Statement of Problem
Despite the numerous campaigns to gain competitive power and to increase profitability the competition challenges persists. One reason is dynamism of the economy; competitors vary their business strategies in an attempt to attract potential competitors. Therefore, to maintain a market share in the industry the company has to change its strategies to counter the move of its competitors. Another challenge is that, customers lack something to identify themselves with the company services. For example, most of them lack knowledge of the company history, which is an essential component of the business. This is because once customers have the history of the company they tend to develop loyalty to the services offered by the company. There is also a lack of emphasis on how they treat their customers. Customers may not realize how the company values their commitment on these company affairs.
Therefore, necessary measures should be taken to address these challenges. However, the company management is unsure of the most effective way to address these challenges. This proposal, hence, seeks to address the challenges above.
Proposed Project and Purpose
To address these challenges affecting the company, it is significant the company invests in the purchase of a small commemorative plaque. This plaque will be placed at the back of every seat where the customer will be in a position to view and read its content. Since this investment requires a substantial amount of funds as the initial investment, the company will heavily rely on donors to fund this profitable investment. The donors should consider investing in the program because their investment will be viable, and high returns are projected on their investment.
Firstly, the program is an advertisement tool for the company. The commemorative plaque bears a brief history of the company, the vision, and mission of the company, and its objective to the customer. The current customer, who comes across the content of this plaque, will definitely have an immense knowledge about the company, and there is a high possibility of the customer to share the information with other people. In the long-run, this will lead to an increased customer base through advertisement.
Secondly, the program aims in achieving customer’s loyalty through briefing the customer on where the company is coming from and where it is headed. In addition, the objectives and vision stipulates its commitment in serving their customers. This captures the attention of the customers leading to sharing with others potential company’s clients. Therefore, this program will be of help in guaranteeing the consistent flow of income, since the loyal customer keeps returning every time.
Thirdly, this identifies the company from other companies in the industry. The purchase and fixing of the plaque in every client’s back seat aims at identifying the company from other competitors. This makes the company unique in the eyes of its customers, and this attracts the customers to the company services to experience the company’s identity. This can improve the company’s productivity through increased profitability due to the rise in the number of customers who want to identify themselves with the uniqueness of the company’s operation in service delivery.
Finally, the program will help the company to gain a competitive power in the industry. This is because it acts as an advertising tool, which will escalate the competition pressure on companies in the industry. The achievement of the customer loyalty will maintain the market share through the satisfaction of the existing customers, and preventing them from moving to other companies.
Plan of Activities with Deadlines
To guarantee the success of the project, the decision should be implemented at the right time and in an orderly manner. The implementation of the program should follow the steps as outlined. This will aim at a smooth implementation of the project to achieve its objectives.
Firstly, the company will hire the costing specialists, who will make the budget requirements for the program. This step should not take more than one week. The specialists should account for the whole cost that will lead to a successive implementation of the program. The specialist should consult from the company management, to ensure that all limitations and the strengths of the company are taken care.
Once the costing is finalized and a report of costing handed to the company management, the management should proceed to the next step, which is seeking funding from existing and potential investors. This can be through offering new shares in the market or acquiring of debenture, to finance the program. Whichever method is employed, the duration should not exceed two months from the date the costing report is handed to the management.
On successive rising of the required funds for program, management should oversee the implementation of the program. The management should ensure that a qualified contractor is hired to implement the program that ranges from designing of the plaque to the actual sticking them at the back of seats. During designing of the plaque, management should work hand in hand to ensure it meets the company’s objectives. This process should not go beyond one month from the date the companies raise funds for the implementation of the project.
In every business, the implementation of any project evaluation is useful in checking for the realization of objectives. The cost benefit analysis is a useful measure to assess the worthiness of the project before implementation. This project is worth taking because the cost when compared to benefit, the benefits exceed the cost. In the short-run, the project seems expensive to implement, and in the long-run, the cost becomes very cheap. In addition, the project’s benefits will accrue for an unlimited duration with no further cost. Other evaluations of the project after implementation are relevant in assessing the project’s contribution in achieving of the organizational goals. For instance, the assessment of whether there is an increased customer base resulting from the implementation of the project. If the objectives are not realized as projected, then the company’s management should review the project in the manner it suits.
Purchasing of a small commemorative plaque is a worth project in the organization in ensuring that the organization strengthens the competitive power. It ensures that the company increases the market share. This will enable the organization to compete well in the industry, thus, ensuring increased profitability, which in the long-run promises the companies continuity.