According to Bowhill (2012, p. 23), “every business organization wants to become successful”. Several recommendations and strategies will make it easier for Clovis Jewellers to achieve most of its business goals. Clovis Jewellers is currently struggling to become a leading player in its industry.
The company has embraced various practices and strategies in order to achieve its potentials. However, the firm’s business functions (or areas) are characterized by different challenges. Such weaknesses have made it impossible for Clovis Jewellers to achieve its business potentials. This essay begins by identifying the major gaps that are making it impossible for the company to achieve its goals. The paper also offers meaningful recommendations that can support the company’s profitability and growth.
Business Structure
The first secret “towards a successful business is promoting a powerful organizational structure” (Wittmann & Reuter, 2008, p. 13). Mr. Neudorf is the manager of Clovis Jewellers. The manager monitors and undertakes most of the operations at the company. His wife works as the company’s assistant manager.
The manager completes various duties such as “financial management, accounting, and analysis of different store operations” (Wittmann & Reuter, 2008, p. 54). Mrs. Neudorf also works as a salesperson at the company. She also monitors the acquisition of various products and raw materials. The Assistant Manager (AM) also controls most of the company’s financial documents. The company has also employed an accountant and a lawyer.
The above description highlights the major issues and weaknesses affecting the company. To begin with, the company should have “clearly defined roles for every employee” (Wittmann & Reuter, 2008, p. 19). The leaders of the company should not be from the same family. This practice can affect the performance of the company. Mrs. Neudorf should not work as a salesperson at the company. The manager should not undertake most of the duties at his firm.
These duties “can make it impossible for the manager to achieve the best goals” (Wittmann & Reuter, 2008, p. 35). The company has failed “to redefine the unique roles of different employees and managers” (Bowhill, 2012, p. 38). A “clear organizational structure will ensure the company’s employees understand their duties and potentials” (Wittmann & Reuter, 2008, p. 24).
The manager should “oversee every activity at the company without becoming an obstacle” (Wittmann & Reuter, 2008, p. 29). A proper leadership approach should become a critical aspect of this company. This strategy will make it easier for Clovis Jewellers to achieve its goals.
Personnel
Most of Clovis Jewellers’ employees have been ready to support the company’s goals. However, the company has been unable to acquire and retain new talents. This malpractice has forced the company to use its traditional practices. The firm expects Mr. and Mrs. Neudorf to hire new employees.
The company’s hiring process is inappropriate. This strategy makes it impossible for the company to get the right people. This malpractice has affected the company’s performance. The company “should use an effective Recruitment Strategy (RS) in order to identify the strengths, competencies, and qualifications of different individuals before hiring them” (Wittmann & Reuter, 2008, p. 32). The process should embrace the use of social networks, newspapers, and radios.
Clovis Jewellers should also implement new practices to train and empower its employees. The “introduction of new remunerations and overtime payments will also encourage more employees to support the company’s goals” (Bowhill, 2012, p. 39). The manager should “hire a competent Human Resource (HR) manager” (Wittmann & Reuter, 2008, p. 47). The HR manager will be ready to address the challenges affecting different employees. These recommendations will address the major obstacles affecting the company.
Location and Layout
The company’s current location does not support its objectives. The company is located in Brandon City. This city is characterized by small communities and farmlands. According to the case study, oil and farming are the leading sources of income in the region.
The success of the company depends on the performance of these two industries. Clovis Jewellers’ sales have been decreasing within the past three years. This fact explains why Clovis Jewellers should identify better locations in order to achieve its business goals. This approach will support the company’s potentials (Wittmann & Reuter, 2008).
The company should also construct its own building in order to reduce most of its costs. The company incurs a lot of expenses in an attempt to support its business performance. The company should therefore identify new locations in order to expand its business. The company should also relocate its location because Ross Street is always characterized by heavy traffic.
The human traffic experienced around the region affects the company’s goals. The company should “use the best interior designs in most of its stores” (Wittmann & Reuter, 2008, p. 76). This approach will “ensure every customer gets a positive impression after visiting the company’s stores” (Bowhill, 2012, p. 63).
Marketing
The company’s marketing mix has supported its goals for several years. However, the company has mainly focused on rings because they present the required sales. The company’s decision to market low-quality rings is something that might affect its future performance. The company should therefore “identify quality products and jewelries in order to support its competitive advantage” (Bowhill, 2012, p. 83). This strategy will support the company’s marketing strategy.
Clovis Jewellers is currently planning to introduce a Direct Distribution Channel (DDC). The company “should purchase various products from different manufacturers in order to streamline its supply chain” (Wittmann & Reuter, 2008, p. 63). This approach will reduce the company’s expenses and eventually increase its profits. A similar distribution channel should be used to support different customers in every targeted region (Bowhill, 2012).
The company has been using several Individual Factors (IFs) in order to market its products. The company’s engagement rings are highly-priced thus affecting its performance. The use of various IFs has affected the prices of various commodities. This strategy has failed to address the issue of competition. The company “should use competitive prices for its products” (Wittmann & Reuter, 2008, p. 67). Such prices will support the company’s objectives and eventually make it profitable.
Clovis Jewellers has succeeded because of its powerful promotional strategies. The company’s uses newspapers, radio stations, and television channels in order to support its advertising strategy. However, the company’s advertising costs have been on the rise. Personal Selling (PS) has remained a major practice at this company.
Mr. Neudorf attends different parties and events in order to support the company’s marketing goals. The firm should identify new promotional strategies in order to support its goals. For instance, the company should embrace the use online marketing.
The power of “different social media sites such as YouTube, Facebook, Pinterest.com, and Twitter cannot be underestimated” (Wittmann & Reuter, 2008, p. 87). Clovis Jewellers should also “use billboards in order to attract more youths” (Wittmann & Reuter, 2008, p. 88). A powerful promotional strategy “will embrace the use of different celebrities in order to achieve the greatest goals” (Wittmann & Reuter, 2008, p. 47).
Accounting and Finance
Mr. Neudorf has been preparing the company’s Cash Summaries. The purpose of such summaries is to balance the company’s cash transactions. The company also operates an extensive Watch and Jewelry Repair Department (WJRD).
The company also lacks an effective Budgeting Process (BP) thus affecting its performance (Wittmann & Reuter, 2008). An effective BP will support the company’s goals and potentials. Mr. Neudorf is always in charge of the company’s Expense Budget. He also prepares the company’s Cash Flow Analyses (CFAs).
Mr. Neudorf also prepares the company’s income statements. These income statements make it easier for the company to identify several changes in its capital. New operations at the company’s Accounting Department will ensure the company achieves its potentials. The manager should not be completing most of the tasks at the company. It is agreeable that Mr. Neudorf might possess the best accounting skills and competencies.
However, it is appropriate to have an accountant who completes every financial role at the firm. Managers should “focus on the major issues affecting their companies” (Bowhill, 2012, p. 57). The company’s accountant will monitor and undertake the relevant financial activities. The company should also hire a competent Financial Manager in order to achieve its business potentials.
Business Planning
Clovis Jewellers’ managers have not taken the issue of planning seriously. The company does not have an effective long-term planning strategy. That being the case, the company should identify new strategies in order to support its business goals. Long-term planning makes it easier for companies “to project their future goals and expectations” (Bowhill, 2012, p. 87). The company’s manager focuses on short-term planning.
Short-term planning at the company focuses on “promotions, cash-flows, and budgeting” (Bowhill, 2012, p. 87). Most of the promotions are planned using informal strategies. The company does not identify any concrete promotional goal or objective. This fact explains why most of the company’s promotional strategies fail to produce the best goals. Neurdof’s Cash Flow Analyses (CFAs) do not always offer accurate projections.
The company should hire the right individuals. Clovis Jewellers should also identify the best goals and objectives. The issue of financial accounting should be conducted by professionals who understand the obstacles affecting the company. This approach will ensure the company prepares accurate financial documents and cash flows (Bowhill, 2012).
Business Planning should become a critical issue at this company. The manager should use appropriate “long-term planning in order to achieve the best goals” (Bowhill, 2012, p. 92). Short-term planning should be designed in accordance with the targeted goals. This approach will ensure the company achieves most of its business goals.
Concluding Remarks
Clovis Jewellers can use the above suggestions to support its departments and business functions. These new practices will ensure every employee understands his or her roles at the company. Mr. Neudorf must also embrace a positive organizational strategy in order to achieve the best goals. The manager should employ competent individuals who will support the company’s objectives.
The manager should use appropriate business models and HRM strategies. This approach will make it easier for the company to achieve the greatest outcomes. These recommendations will support Clovis Jewellers’ expectations. The company will eventually increase the number of its stores and emerge profitable.
Reference List
Bowhill, B. (2012). Business Planning and Control: Integrating Accounting, Strategy, and People. New York, NY: Wiley.
Wittmann, R., & Reuter, M. (2008). Strategic Planning: How to Deliver Maximum Value Through Effective Business Strategy. New York, NY: Kogan Page.