Setting Up New Business in the United Arab Emirates Coursework

Executive summary

This is a company which will be publishing magazines, newspapers and distributing them within the United Arab Emirates. The company also intends to venture into news papers and journals. It will operate in the print media thus most of its revenue will be from advertising within the country. The name of the company will be parents which will be derived from the name of the magazines that they will start printing. This venture is viable because I have carried out careful survey on the local magazines and realized that in the country no print media is producing these magazines targeting the customers this print will target.

In the United Arab Emirates print media has gone electronic however magazines dealing with parental issues are short of expectations. A business that will produce a magazine promoting parental issues will have a great market that is readily available. Research carried out by my team show that there is a great need for a parent magazine that will cover a variety of issues for the sake of the market. The business of print and electronic media is complicated because of competition and equipment required for production but at the same time it is highly rewarding for any person who takes the risk and invests in it. I chose this business because I love writing stories therefore business relating to writing will be viable and like my hobby. It will operate as a sole proprietor however if it proves to be successive it will be corporate into a company limited by shares and it will offer the shares to the public.

It will succeed because:

• The magazines already has a ready target audience, who want a magazine that the whole family can read, hence with the right awareness the target audience have the purchasing power to purchase the magazine.
• The target market/audience is big i.e. varies from fathers, mothers, parents to be, to even babies who get to participate in the magazine articles.
• Used as an advertisement tool for especially business owners or companies that manufacture and sell home appliances, baby stuff etc.
• Magazine will offer employment opportunities for fresh graduates who will bring with them fresh and innovative articles for the magazines
• Fun-literature to read that educates enlightens and teaches the target audience in family matters by offering day to day advices, etc.

Mission statement: We have made a promise to our clients to be that parents print media would do its best to improve news reporting and production of magazines most memorable and admirable by many. We shall over the best prices in town at the best services. We shall also be able to behave as role models to other media firms and the community. We shall deliver competitively priced magazines and newspapers suiting various needs of our clients irrespective of their segments. We shall create an open culture where our customers can discuss and critic our services to enable us act to ensure future services please the customer.

VISION:-Our vision is to be a market leader and get committed to improved products and services. We intend to have a market share of 20% of United Arabs Emirates and Environs

Objectives of the Firm

The main objective of the firm will be to provide:-

• High quality products and services that need the local population needs.
• Significant professional reporting.
• We shall be committed to a wide spectrum services in areas of print media.
• We shall also diversify into offering various media services.

Products

Parent magazine which will be the main product at the beginning will have five categories from which articles will dwell on and they will talk about different issues for different target market. The categories include:

• Reflection advices and thoughts: This category deals with teaching the target and audience about day to day living and how to live positively. The sub-classes include:- Living value, Relationship, Lifestyle’ From the pulpit and Sex
• Educative and informative:-This category is to educate and equip the target audience with tools and advices about the daily issues and will include Youth talk, Hair chat, Family escape and holiday vacations, Know your rights and Pregnancy.
• Child corner:-This involves the children i.e. how parents should relate with them, health issues that concerns children. Together with this, parents get to send their children i.e. babies (3months-3years) snaps/photos for competition and will include Child clinic and Baby of the month.
• Real life experiences:-Here, the target audience gets to contribute about their life experiences and they vary from different topics which include It happen to me, Marriage that lasts, Celebrating our heroes, Young achievers, Bond of love (wedding of the month) and Unforgettable
• Nutrition and kitchen tips:-The target audience are taught about different nutritional values, where to target kitchen appliances and easy to cook recipes. They sub-classes include issues such as Nutrition file, Eating home-recipes and Kitchen tips

External analysis

Pestle analysis for the print media in United Arab Emirates

• Political: Before jumping into business I will carry out political analysis for the area this will update me on various issues. Most companies updates themselves about the rules and regulations of the country they are operating in. these regulations will range from taxation, competition regulations, licensing regulation. Apart from the mentioned factors many other factors will affect the business in operation. I will be ready to adjust and fit into the political situation of the United Arab Emirates where am going to operate. As mentioned political environment is inclusive of tax laws, government laws, government agencies, leisure groups which forms barriers for businesses operations. The tax system in the United Arab Emirates is favourable for the business and it encourages local people to invest within the country. It takes a shorted period to register a business in United Arab Emirates. It also does not allow foreigners to have quicker citizenship. This curtails great competition that could have emerged from foreigners who will become citizens.
• Economic: Interest and exchange rate affects the consumer spending and this could affect profitability of the firm. The current financial crisis that has affected the world is also affecting the economy of United Arab Emirates. At the moment there is growth in real estates in places like Dubai, meaning that there is a swift of economic activities which is necessitated by the fear that all reserves are depleting. The current financial crisis has reduced the purchasing power of the people in United Arabs Emirates. Once the purchasing power of the citizens comes down then the company in operation will reduce profitability. On average income distribution and disposable income available among the United Arab Emirates citizens is fair as compared to other parts of the world. The United Arab Emirates has stable balance of payment and low foreign exchange rate thus any business operating in the United Arab Emirates will be stable business. With such environment, investment in print media will be of great concept and viable in the long run.
• Social: – Issues like ethnocentricity are contributing greatly to the marketing of some tools and services in the various parts of the world. Therefore before I understand where they are going to operate in they must know the culture of the people. The people of United Arab Emirates have a culture which does not prohibit print media that discusses about parental issues and other society related can issues so long as it does not affect the moral settings of the society. It is a country with a strong Muslim foundation where the Koran teachings are of paramount importance. Therefore a magazine that will deal with social issues and at times is having quotes from the Koran will be acceptable in the society.
• Technological: Every individual in the U.S at the moment is having or hoping to have broad and connections. Also it is important for the company that will be set up to have up to date encryption technology that will assist in setting up and reducing theft of revenue and data by hackers this will be possible after we have set up our website which shall market us to the community surrounding our company.
• Legal: We must familiarize ourselves with the laws governing the businesses in United Arab Emirates.
• Environment: The Company, photography masters should dispose of environmental hazard, wastages according to regulations to avoid penalties and loggerheads from environmental pressure groups. However the company should identify all stake holders in the running of the organization.

Opportunities and Threats

Opportunities

• Could develop and improve the new product
• Attract age groups
• Open of new points in viable locations for distribution
• Sources new suppliers (home/overseas)
• Can surprise competitors
• Profit-margins will be good
• The company is utilizing modern technology in its operations.
• The company benefits from its good brand name.
• The company will offer quality services within UAE and it will also covers other parts of the world.
• We appeal to the needs of the community.
• The product will be linking the changes of lifestyle of people

Threats

• Threats of the key staff is critical
• Mimic of the idea by the competitors
• Vulnerable to reactive attack by major competitors e.g. sabotage
• Cheaper substitutes and imitation from other small companies.
• There are many competitors in the market.
• Maintaining online shop will be very expense as we need to hire qualified personnel to be regularly maintaining it.
• Reaching all its customers within and overseas and competing favorably with its competitors

Industry analysis

Five forces model

• The threat of new entrant: There are several threats to entry into United Arab Emirates print media industry, among them is strict laws governing the business of print media industry. The other factor is the number of industry players who are financially stable and they are ready to take over small scale print media industry. However, any new entry to the market poses threat of neutralizing the company’s profits as well as reducing its market share. The company will need to use generic strategies such as cost leadership and product quality thus will be able to reduce this threat and maintain profitability. The company will also produce journals, daily newspapers and eventually enter into electronic media for differentiation.
• The degree of rivalry among established companies within an industry: This force emanates from other companies within the same industry like Abu Dhabi media company, Jebel Ali Jaziir, media network, Dubai media City Company, CNN and many others. The companies have been in business as for many years and they understand each other well therefore any new entrants will find the rivalry among industry players very competitive for it to handle. However, the company’s framework/ strategy is to reducing competition among the industry players and this will be through reduction of prices whenever faced with the problem.. Prices are then reverted to normal after the exit of that company the specific market segment.

Consequently, parents print media products will adopt strategies that will reduce competition and rivalry in the industry. Focus should also be on the use of generic strategies to solve these problems- rival companies cannot effectively meet differentiated as well as focused needs of the customers.

• The bargaining power of buyers: The Company faces the threat of buyers shifting their loyalty to other rival companies. This phenomenon according to porter is referred to as backward integration. To curb this threat, parents print media company will come up with three generic strategies to counter this threat.
• Cost leadership: It will reduce the price of some its products including the cost of offering services such as advertising.
• Differentiation strategy: The Company will come up with differentiated products are different from the rival firms. These products should be economical and are environmentally friendly in terms of cultural acceptance.
• Among the customers of the industry include the general public, parents, parents to be, care givers and other people interested in social issues.
• The bargaining power of supplier: Parents print media company will be faced with the threat of the suppliers being able to control the price of some of the materials that are used. Paper manufacturing companies may increase prices especially this time of financial crisis and this may affect our production to the market. The labor laws are also stringent and the workers are so unionized that treating of employees fairly and equitably is inevitable. To counter this force, the company will extend its supplier chain making the prices of for instance production of printing papers to be cheaper. The generic strategies that should be adopted by the company against supplier power are by increasing the price of their magazines and newspapers. In essence, the extra prices charged for the raw materials are borne by the customers. Another strategy to insulate itself from this force is that of focus on differentiation. In this strategy, the methodology has been improving the quality of their products. By so doing, the prices can be increased without harm being made to the customers.
• The threat of substitutes: this force will emanate from electronic media, radio media, television companies and other broadcasting companies. From the economist point of view, threat of substitutes arises when the demand of that good is likely to be affected when the price of the substitute changes. This elasticity of price has formed a real force that the company has to fight if it has to be sustained shortly. Print media will find competition from Abu Dhabi broadcasting section, Jebel Ali Jaziir. This bars the company from effectively increasing the price of its products whenever need arises. To reduce the strength and danger of this force, the company will strengthen its differentiation generic strategy as its framework. Customers would then be loyal to the uniqueness of their products even when parents print media company increase in price.

Strengths and Weaknesses of the Business

Strengths

• We shall offer competitive pricing of the magazine and newspapers
• We shall have convenient distribution locations
• The magazine shall be long shelf-life and acceptable, playing the role of a live reference.
• Right magazine, quality and reliability
• Creation of direct mail delivery capability
• We shall have on going innovation to improve quality.
• Management will be committed and confident
• We intend to have superior magazine performance as compared to the competitor
• Low cost of setting up because the partners in the business are young trained professionals in various fields.
• Low cost of production
• Will be able to produce several products at the same time

Weaknesses

• No pilot or trial done yet
• Software failure for the design and creations
• No company brand awareness
• More training of the staff to familiarize without the design program software
• Limited budget
• The company will find other companies operating in the area offering the same services.
• There will be barrier to enter to the market because of regulations.

Competitive Analysis

The company will be operating in an environment with stiff competition from revival companies who offer similar services this is because no single company in the world today is operating without competitors. In a such situation it is a monopoly which is left to government owned institutions.

Competitors offer business challenges and ensure there is fair prices in the market for the benefit of the customers. In our case there will be many competitors. We are planning to offer rival companies a challenge on capture there market driving some of them out of business. However the company has come up with structures that will enable them remain in business, this will include product differentiation and cost reduction strategies. We shall also use focusing strategies. We shall engage ourselves in various strategies to help us deal with our competitors. This will include diversification, outsourcing, and differentiation. We shall analyze possible competitor’s steps to ensure we remain competitive in the market. The possible steps that are likely to be taken by our competitors include possible product diversification, expanding product to various parts of the town, reducing costs due to outsourcing, investment in digital equipment and expanding product base.

Value chain analysis

Parents print media company will adopt a value chain that will result into the maximization of value while maintaining the costs to their minimal levels. Activities where value will be created and costs reduced include procurement of raw materials, Human Resource Management and Technology development. Other areas include Research & Development, Sales, and Marketing.

In procurement, Parents print media company management will ensure that the raw materials and other supplies are close to their proximity to reduce transportation costs. Production of magazines will be on high technology while ensuring that their products cannot suffer from poor quality. We have incurred a significant cost in research and development but this cost will be covered by the value generated.

Value is also added when it comes to outbound logistics. To reduce the distribution costs of magazines and other products, the company distributes them in large quantities distributors using vans and opening printing houses in various towns to reduce the number of the distribution channels. Recruitment and hiring of staff will be done online to reduce costs

The benefits/value of the exercise is enhanced by recruiting and hiring staff of high integrity, professionalism and expertise.

Core competencies

• Target market: our product will be unique and will target parents, parents to be, people who are planning to have families and many members of the society. This target group will form a large portion of the target market share. The parent magazine will be the best to this group.
• Positioning: the parent magazine is the most superior, best and most reliable magazine dealing with parental issues and contains high quality and day-to-day colour development that will be added to enable customer satisfaction.
• Distribution: the magazine will be printed in various towns to reduce the cost of distribution and to reach a wide market at a minimal cost.
• Service: Quick and available services.

Capabilities

We have collected enough resources that will ensure that this company becomes a success. The proprietor is a trained business administrator with marketing techniques and will include a staff team that will deliver the services. The staff structure is attached in the appendix. While the financial resources that will push this company to the next level are available and the first years transactions have been budgeted as shown in the appendix.

Strategic option

Parents print media company will has outperform its rivals companies by adapting strategic position that aims at ensuring the profits grow up and diversify into various markets. The success story of the company will be to focus on the weaknesses and threats as well as ensure competition is managed. This will be done through offering of products and services that are target market tailor-made at competitive prices. This will make the company have a huge market share. The company will am at horizontal integration between departments incase a department is seen to underperform. We shall have a strong brand that will aim to reduce barriers to entry into the United Arab Emirates market as well as foreign market. We shall also launch products that cover various languages to be able to enter into markets such as India, china, with huge population and fastest growing economies.

Possible Strategies for parents print Media Company

1. Diversify its products such Start TV to meet the needs of peoples.
2. Expand its products into other countries.
3. Reduce their cost by outsourcing business activities to India, Philippines, Indonesia and Pakistan to stay competitive.
4. Joint venture or acquire rights to broadcast popular TV serials to increase market share and reduce competition.
5. Investment in technology such as Record, Rewind, forward consumers favorites TV Serials
6. Expand its product base such as Internet and Telephone combined with TV to provide more entertainment packages. And produce multi language movies
7. Differentiation strategy

Winning strategy

There are number of suitable strategies mentioned above which will increase parents print media company markets share as well as revenues. The winning should be diversification as it’s less risky and meets the criteria of suitability, acceptability and feasibility.

The target market

The target market for the magazine includes all members of the society with extra cash in there pockets. They will included parents, parents to be, singles both male and female and young people. This are the groups that are interested in issues relating to parents, this people must be between the age of 5≥50. However if they exceed the age of 50 they must have special attention to children’s affairs. It cuts across all community members.

The age structure for the demand for this magazine will determine the layout. Children will be interested in a certain section of the parent’s magazine elderly men and women of over 60years will be reading the magazine for special purposes. People who also are nurturing old people in in-home care or any other place will also be interested in this magazine because the care given to the old people is almost given similar to the children.

Before designing this magazine I will consider the economic purchasing power of the market segments, I will wish all segments to be included in pricing. The target market for the magazine is divided into three groups which include: –

• Parents: The magazines will have articles that educate the parents on how to bring up their children, together, with giving them tips on how to spice-up their sexual relationships, how to cook delicious and nutritious foods, and how to run their homes. This usually consists of 35% of the general population. Some couples have been married for over 5 years.
• Parent’s to be: These are either married couple or single individuals who are intending or already expecting a child. The magazine will have articles that satisfies their needs e.g. how to deal with pregnancy issues, what to expect after delivery, tips on successful marriages etc. this consists of 30% of the general population.
• Single individual: These are people who are not married and are not expecting a child. They include both male and females. This market segment is large, hence the variety of the articles in the magazine is meant to capture them. These generally consist of 35% of the population. Though these target audiences aren’t married but in the future they are i.e. 3-10years.

Corporate strategy

The company will employee three level channels of distribution by offering the magazines to distributors creating two middlemen before the magazine reaches the market. This strategy aims to ensure that the product reaches the market where we cannot reach.

The company will produce the magazines in large quantities at the same time hire the best human resource for the purpose s of benefiting from synergies from economic of scale as well as employment of efficient of human resource. These will the company the competitive advantage in the industry. The company will also use modern information technology in production which will give the company an advantage in production of goods. Print media industry is one f the industry that require technological techniques therefore the company will take advantage of diversified technology in production.

The company shall also vertically integrate her operations by owning some of the distribution centres to reduce the cost of distribution. We shall also enter into strategy alliance with suppliers of raw materials as part of integration.

Business strategy

We shall employee various business strategies for us to succeed in the market. Among the business strategies we shall employee include:

1. (cost leadership:- a the beginning we shall offer our magazine at price lower than the competitors but above contribution margin. This will aim at first acquiring the market then our prices will be adjusted into a profitable price. This strategy will not only help us acquire the market but will also help reduce number of new entrants to the market by imitating our magazines. This strategy will be possible since we have enough capital that will sustain the business for one year as we market our magazine. We also have good expertise in accounting and marketing, this will ensure that we do not charge the price lower than the contribution margin and marketing strategies will handled with care.
2. Differentiation strategy:- our magazine shall be unique because it covers various topics relating to parenting but targeting all age groups. This will also include a feature which will be written by a parenting consultant. This will be a magazine with a difference in the market from the competitors are offering. Because of it uniqueness customers will buy whether change the price upwards. If the suppliers of printing paper papers and unions demand for pay rise for unionisable employees it will be easy for us to pass some this to the customers without loosing the market share. It will be easy for competitors to come up with a magazine of this kind because we shall pay our employees well therefore they will not lick out our secrets.
3. Focus strategy:- although our products has features for all age groups but most we shall focus on parents and parents to be. This group will be largest consumers of the magazine and account for almost 80% of sales. This group will be very loyal to us because our magazine will touch topics of their interest. We shall be able to have loyalty from this group because of cost leadership and the differentiation strategy adopted by this company. Our research indicates that most of available magazines do not specifically target this group and this will give us a competitive advantage.

Project execution strategy

To make the project successful continuous, innovation will be of paramount importance for its success. The organization will encourage employees to come up with ideas which will help the company grow. I will encourage employees to come out with innovation on how to carry out marketing.

Critical success factors in the industry

The critical success factors for the company will be:

• Reputed brand – people can rely on the name
• Diversification – providing magazines in different languages to attract large target market.
• Targeting all age groups from kids to adults
• good customer service
• Joint ventures with other print houses to attract customers
• Value for money for £3 have magazine that covers many features.
• Bringing new ideas to keep them ahead of competition.

Quality management

For us to have quality product we shall hire an editor who has ten years experience in the field of editing we shall also embrace technology in carrying out most of duties.

Business objectives and goals

The major objectives of the firm will be:

• To increase sales by 30%- 40% in the next two months.
• To employ 25 employees within the next 4 months to be able to satisfy the needs of customers.
• To be to serve the e market with efficiency.

Long term goals

After three years the business shall open new branches.

The business shall buy more shares from its profits to be in a position of rising more capital.

The business shall be offering permanent employment to the community after becoming stable.

The business shall be aimed at being the market leader in world.

After 2 years the business shall have efficient trained staff to improve productivity.

After three years the business shall. Be able be able to open up new branches.

Salaries will be received from time about the sales.

Entry and growth strategy

To make business to be known in united Arab Emirates at the start, posters will be printed and placed at strategic places to inform its customers of its existence, its area of specification, its location the services it offers and the products are sold.

After three years the business shall start diversifying various fields related to the business. The business will practice segmentation and start specializing in areas where the competitors have weaknesses.

Key performance indicators

For us to know whether our business is performing we shall accept a return on equity of 12% or a figure nearly to the industry at the start. We also accept a net profit of 10%, current ratio of 1.8:1 and return on capital employed of 15%.

Internal analysis

The company we shall be able to control the production process by ensuring that variable factors are controlled. We shall ensure that papers used for printing are efficiently used while efficient managers who are their shall be paid.

Our company logo shall be watermarked to ensure that most of our documents are safe and cannot intimidate by anybody. Printing equipments will also be purchased since we cannot get alternative therefore enough resources shall be set aside to cater for this.

Functional strategy

Finance and account functions – our initial makeup of the budget averages to 17% of the funds going towards Business Management Leadership, 56% of the funds dedicated to Functional Operations Leadership, and the remaining 27% directed towards the Technology and Systems Requirement category. After establishing the brand through the business management leadership roles, the hope is to redistribute the funds from that category into advertising to establish a connection with the consumers.

Revenues are expected to grow at considerable rate even though competition will be stiff. Despite of expected competition the operating margin will go up significantly and at the same time ROCE increase dramatically without injecting more cash.

Marketing:- our company is expecting to have an exceptional growth that will be due to the brand name which will be created by using different marketing strategies, targeting all age groups and serving all communities with our products and services in United Arab Emirates. We shall employee the following making strategies;

1. Product – we shall be in print media industry offering magazines and newspapers.
2. Price – we shall offer competitive reduced price of our magazine and this will make it the fastest selling in United Arab Emirates.
3. Promotion – This is an important function of marketing which is charged with the task of informing the target customers who are 80% parents or parents to be about the unique and availability of parents magazine, their unique benefits and features as well as the price and place at which the product will be available in the market place. The company will engage the use of the promotion mix which are:-

• Advertising:-This will include use of media such as outdoor poster, television that mainly has parents progammes, for example hire the Nanny, catalogues, bus posters, billboards etc. The company will engage the services of an advertising agency to come-up with creative ways of targeting the market. There will also be the use of internet advertising, targeting the customer who’s the local distributors do not have them and creation of a website product.
• Personal selling:- This is the oral presentation in a conversation with one or more prospective purchase to make sales. This will be done through the use of these categories of personal selling and are:-

1. Merchandise delivery- here the sales person, whose main job is to delver the magazines, hence wearing of company’s T-shirts popularize the brand.
2. Inside order-taker- the company will have sales person whose main purpose is to service the customers request or suggest appropriate product to meet the customer wants.

• Outside order-taker- there will be sales persons who will be located at different entrances of the main buildings who will engage the task of informing parents about the company’s magazine.
• Missionary sales person- the company will have a person whose main task is to address the organization and parents who deal with special children.

• Public relation: publicity:-Since the company is engaging in building an acceptance of self-image and improving parenting of parents, the company will engage the partnership with a parent consultant. The use of this approach will be done after the launch of the product to the market.
• Sales promotion:-This involves of the use of incentives to complete the push-pull promotional strategy of motivating the sales force. The company will engage the use of:

1. Price-off offers. This will especially used in the product introductory phase, to attract the customer.
2. Quantity-off offers. This will be used for parents who are purchasing more than two magazines. This is the offering more quantity of the same product at no extra cost.
3. Use of coupons. This will be used after 3months of the product introduction to the market. The customer will be entitled to redeem a specific standard certificate for the magazine free or in part payments. This will encourage purchase of the magazines, build loyalty.
4. Discounts. This will push for more sales to trade, especially when the magazines sales, start to decline especially in the months e.g. January February, March etc.

3. Place – the magazine will be produced and distributed in United Arab Emirates, however it will have a website for international readers will be required to subscribe annually and get a password. Their accounts will be disabled immediately annual subscription is exhausted.

Our company extensive success will be due marketing techniques such as price skimming, penetration pricing and offering multiple products at one price and mostly promoting in our media. Our success depends on appealing our products to diverse range of users.

• Procurement: Procurement will be done by the procurement department. We shall have laid down procedures for purchasing all consumables by our company. All supplies will be made by suppliers who will be lowest bidder and at the same time have been issued with local purchase orders.
• Research & Development: we have set aside 10% of the amount raised as capital for research and development. We shall also designate 15% of the profits to be for research and development and this will aim at increasing the market share by improving the magazine quality. We shall have a a department for research and development to assist in carrying out the activities of the research and magazine improvement.
• Human resource management: our success will specifically be due our staff members. We shall recruit intelligent, talented and highly qualified staff and management teams. We shall employ over 25 employees at the beginning and we anticipate that the number will grow at 15 % per annum until we reach the maturity level or our level of incompetence in business. We shall also come up with new features and new products to attract the brightest and effective new employees, and retaining old staff by offering shares, promotion and bonus options.

The management style will be more of autocratic and to some extent controllable as management will be required to report their performances every week for evaluation in terms of organization commitments.

The management plan

This is the heartbeat of the magazine that its activities include strategic planning, setting objectives, managing resources, deploying human and financial assets needed to achieve the objective and measuring results.

Financial plan

The current makeup of the budget averages to 17% of the funds going towards Business Management Leadership, 56% of the funds dedicated to Functional Operations Leadership, and the remaining 27% directed towards the Technology and Systems Requirement category. After establishing the brand through the business management leadership roles, the hope is to redistribute the funds from that category into advertising to establish a connection with the consumers.

Conclusion

The marketing campaign will be successful promoting the product i.e. parent to its target market, hence ensuring the product has a long life cycle and expansion of the target market. Parents Print media will increase its market share due to the special magazine. Their rivals who are performing better now will merge to increase profitability and market share. And by implementing this strategy we will not just gain market share but also gain experience in the market which will provide us first step towards successful future of becoming an International company. This will provide us with extra opportunities to launch our other products.

This strategy will help us to build international image by diversifying our range of products and could also help us reduce our products costs and keeping us ahead of the competitors and successfully meeting our objective of ability to grow.

References

Burnet John J, (1984) Promotion management, A strategic Approach, West Publishing Company.

Carter, s & Jones Evans D (2000) Enterprises and Small Business. Financial Times/Prentice hall.

Grant, R. M. (1991). Contemporary Strategy Analysis: Concepts, Techniques, Application, Cambridge, MA: Basil Blackwell.

Kotler, P. (2005) Principles of Marketing. New York. Melbourne Press.

Schaik J.L., (2002); The Task of Marketing Management; J.L. van Schaik (Pity) ltd.

Wickham P. (2001) Strategic Entrepreneurship 2^nd Edition, financial Times. Prentice hall.

Appendix – management structure

The management plan includes:

Managing director and Editor-in-chief

• Specifies the company’s objective
• Head the public relations to create more awareness of the magazine
• Develops the overall direction of the whole enterprise

General Manager/Human resource Management

• Organization design (determining the staff needs)
• Recruiting and training the best employees
• Performance management
• Ensuring personnel and management policies conform to regulations.

Accounts

• Accounting and financial reporting
• Budgeting
• Collecting accounts receivable
• Risk management
• Insurance

Sales and marketing executives

• Come up with marketing strategies to create awareness for the magazines
• Ensure monthly circulation of the magazine countywide

Advertising executive

• Set up campaign adverts for other companies in the magazine
• Design the lay-out of the magazine to accommodate all paid adverts

Senior staff writer

• Co-ordinate the writing of the articles, by the junior writers
• Ensure the articles, are written well and handed in time for publishing.

Appendix

Parents Magazine incorporated

Cash flow project statement( all figures in thousands)

For year 2009

Parents Magazine incorporated

Projected income and expenditure( all figures in thousands)

For year 2009