Week 2 MGT311: Enginee

Running head: Ds 2 1

Ds 2 9

Case 2.1 Island Shade

 Meenakshi Sethi

I Global University 

  

Analyze Terry's goal and plan

           According to the description of Terry's business idea, this is a sole proprietorship form of business ownership. She will need to burden all the costs of her future business, and she will manage the business on her terms. There was no mention of raising capital for her business; was it through her savings or bank loan? For a perfect business idea to succeed, an individual must first plan their source of starting capital (McKenzie D, 2017).Her goal is not entirely realistic because she tends to subject her future business to many expenses despite her business being still in the seed stage in the business life cycle.

According to Terry's view, do you think that Island Shades will succeed?

           NO to Island Shades business idea. This is because each business will experience a business life cycle, and during the first two levels of the business cycle, seed stage, startup stage, be assured that you will not get any profit from your business. My reaction to this plan can be justified, whereby the consumers will first accept the business product by trusting Island Shades as the perfect eyewear store (Prentice & Nguyen, 2020). Secondly, Terry did not plan if there would be any competition from similar stores and even planning to employ part-time workers in her business. In the first few months of her business, she should maximize her profit more to develop her business in terms of sales and variety of products.

Recommendation or Modification for this Business idea

           Before employing part-time workers, Terry should first gain trust from the potential customers to build a good reputation for her business. Secondly, the development of her business website should come after she has fully served the Palacio community and gain trust among the existing and loyal customers (Tian et al., 2015). Furthermore, after getting the first few months' profits, Terry should plow back her profit to maximize her sales.

 

 References

McKenzie, D. (2017). Identifying and spurring high-growth entrepreneurship: Experimental evidence from a business plan competition. American Economic Review, 107(8), 2278-2307.

Prentice, C., & Nguyen, M. (2020). Engaging and retaining customers with AI and employee service. Journal of Retailing and Consumer Services, 56, 102186.

Tian, L., Han, L., & Zhang, S. (2015). Business life cycle and capital structure: evidence from Chinese manufacturing firms. China & World Economy, 23(2), 22-39.