Introduction
Entrepreneurial activity attracts many people because a person has the opportunity to realize their potential and ambitions, earn money and gain much-desired independence. In reality, it takes work to open your own business. Today, one of the most current areas of entrepreneurial activity is the trade of products and essential goods. Therefore, this paper will consider an example of organizing your chain of supermarkets.
The company’s mission
This company is a retailer of products, personal care, and necessities. The company’s mission is to provide the country’s population with quality food and non-food products at minimum prices. Guarantee the quality of goods through highly effective technologies and ethical introduction of retail trade.
Company Vision
The company strives to rank first among competitors’ stores and sign advertising contracts with famous actors. As the company grows, it plans to become a sponsor of soccer clubs, thereby reaching more audiences. The company plans to support the ecological agenda and popularize goods with environmental packaging using discounts on this group. In the future, the company’s vision will change with new global trends.
Business locations
The location of a business or its elements is among the critical factors determining its success or failure. For this reason, the company chooses a specific location using the analogical approach. For example, assessing the ability of retail outlets to attract customers (such as large shopping centers) can be done by interviewing customers in the sales area. One large store should be opened in a room with many residential complexes. In the second case, the store is guaranteed to pay for itself faster because the rent of premises in this sector is inexpensive, and the customer coverage grows yearly due to the construction of new houses.
Customer base
The customer base is an essential means of life for any commercial organization. Understanding how to build a customer base and then maintain and expand it opens the door to the company’s success. Given that the company sells groceries, necessities, and non-food items, the customer base will consist of ordinary people from nearby homes. It is also necessary to create a customer base for the companies with which the store will work. This can be representatives of food and hygiene to attract a new audience to the supermarket. Financial mechanism
To implement a financial policy, the financial mechanism is used for its successful implementation. It represents the financial mechanism applied by society to provide favorable conditions for economic and social development (Grima et al. 211). In this company, the financial regulatory agency will be used. In this case, the state establishes only the general procedure for using financial resources, which are the enterprise’s property and remain at its disposal after paying taxes and other mandatory costs. The enterprise independently develops forms and types of monetary funds.
Influence of economic, legal, international, and cultural environment
The economic environment affects the creation of favorable economic ties to develop and create competitive enterprises. To achieve these goals, it is necessary to build good relationships with the company, which produces goods relevant to society. It is also essential to create logistics between the outlets and the manufacturer.
The legal environment requires constant consideration of new laws, regulations, and standards (e.g., tax rates). Such actions are necessary to protect the company’s rank-and-file employees from possible destructive attitudes on the part of their superiors (e.g., withholding wages). It also protects customers from potential financial fraud or physical harm to customers (e.g., selling expired products).
The international environment allows the company to enter a new country to increase profits and brand popularity in the global market. Interaction with new continents enables the company to open the market for exports and imports from different parts of the world.
In addition to economic and political factors, critical cultural differences must also be studied and addressed in advance, including but not limited to values, religious beliefs and negotiating behaviors, and language. Examining the cultural environment of another nation is essential to analyzing the profitability of a company’s services in that market. It is also necessary to study the mentality of a particular country for correct interactions with partner companies.
The Impact of Competition
Competition is associated with dynamism: it encourages businesses to innovate, brings efficient companies to market, and ensures growth while encouraging less efficient ones to leave the market. Competitors will affect the company by studying other companies, namely by analyzing the strategies of enterprises and advertising companies and what exactly they gather an audience. These actions are necessary for the continuous improvement of enterprises, which benefits both the company and consumers.
Business life cycle
The company will follow the classic business life cycle model. It includes the start-up, growth, and maturity stages of the company. After the maturity stage, the company can regain popularity or decline in favor. Since the company sells essential products and items, with correctly set up work processes, especially the process related to the company’s advertising, the company has a chance to reach the revival stage.
Business Ethics
In today’s world, ethics has become a guideline for entrepreneurs and employees alike. It is the only correct, though only sometimes followed, direction for financial and professional success. The company is committed to rules such as avoiding consumer exploitation, encouraging healthy competition, and avoiding unfairness and discrimination.
Conclusion
Any successful business requires a detailed analysis of the entrepreneur’s actions. Every detail, from the company’s mission to its business ethics, has a significant impact because a financially profitable business must work as a single organism. With adequately configured work processes, specific, realistic goals, and a responsible attitude toward the company, a potential supermarket at home can grow into a large chain of stores with branches spreading across the country and beyond its borders.
Work Cited
Grima, Simon, et al. Contemporary Issues in Business, Economics and Finance. Emerald Publishing Limited, 2020.