MKT assignment1.pdf - Written by Victor Galanton | Emma...

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Written by: Victor Galanton | Emma Bonhommet Introduction This report was written with the purpose to consult the company VitalOptics and to give practical solution to the current financial issue. The report starts with an analysis of organizational and financial side of the company followed by the reasoning behind the marketing strategy which was chosen, and the steps followed to implement the marketing strategy. Organizational and Financial Analysis Organizational analysis Analysing the work environment, personnel and transaction processing system, few issues were identified. The company has three accountants, for such a small business it is not needed, since one accountant can deal with all the duties, if he has good expertise and attention to details in its field. The stores have not seen significant refurbishing since the beginning of their operation. Due to old equipment and weak organizational structure the stores have more personnel then needed. Another major problem is that the company lack a good transaction and processing system. First change that has to be made within the organization is the adaptation of a new transaction processing system (TPS) that will collect, store, process and analyse all the transactions. This change will support decision making, coordination and control. Once such a change is implemented daily transaction can be processed by only one accountant. Assuming that we keep accountant 2 and give him a training for the new PTS platform and we fire accountant 1 and 3, the company will be able to save 39.000 euro early. Almost every store has more employees than it needs. First, the equipment must be updated which will lead to automatization. Instead of using 3 opticians per sore, the company will be able to use one optician. Moreover, the employees need a greater degree of job diversification. For instance, with a solid apprenticeship and training an employee can embrace few different tasks. To give a better idea of how job diversification can be useful let’s look at the store Inca1 At the moment, the company has 8 employees that can be reduce 4 employees. The store manager can be trained to serve as a sales person. An optician can be trained as audio technician and so on. This does not necessarily mean that the rest of employees must be fired. We can give them a 0-hour contract (with this type of contract the employees are called at work only if needed). With the implementation of 0-hr contract, job diversification and automation the wage costs can be reduced by 50%.
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Financial analysis By analysing real value of Vitaloptics assets, current liabilities, operating account, sales and contribution margins, big mistakes were identified. Real value of assets The company own 4 stores out of 6 which gives a good competitive advantage. The real value for Inca/Inca2 and Binissalem had increased, on the other hand the value of the store in Palma has decrease, however in long-run the value will increase as the comical situation of Spain is stable and major changes are not forecasted.
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  • Spring '18
  • Eric Voerman
  • Marketing, Vitaloptics

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