Introduction
Fortune Jewelry Store is a licensed and insured jewelry selling business operating as a retail store with a physical shop and online store at Alibaba. The business deals with selling attractive and low-cost jewelry products to its customers. In the previous year, cumulative total sales were $2,500,000, which yielded a gross profit of $800,000. The expense sum was $450,000, resulting in a net profit of $350,000 in the last financial year. The company is run by an enthusiast jewelry designer operating as a sole proprietor entity. The business has taken advantage of the ever-increasing demand for wearables, thus maintaining a consistent supply chain that never runs out of stock. For the two years of operation, the Rate of Return (ROI) has been good and never decreased, considering the persistent demand for wearables that make them look smart. Fortune Jewelry takes advantage of the ready demand to offer high-quality jewelry products to their customers.
Discussion of Fortune Jewelry Store
All the employees have basic training in terms of jewelry design, which is advantageous because they sometimes advise the customers or recommend specific products for clients who need professional advice before making buying decisions. At Fortune Jewelry Store, we never run out of stock of well-designed diamond watches, pearls, engagement rings, eternity rings, necklaces, bracelets, earrings, and other wearables. The wide range of products and a good reputation give the business a competitive edge because loyal customers recommend our products to new clients, ultimately increasing sales volume.
Fortune Jewelry Store operates downtown in the central business district, on one of the most well-known streets for domestic buyers and tourists selling jewelry. The flow space of the facility will accommodate the designers and the artisans operating under a closed-ended office layout, with the display store being at the main entrance door: windowpanes facing the street paths. All the activities will run within the facility, and the business anticipates adding more employees in the future to the five presently full-time working employees. As shown in Figure 1, the startup cost will include expenses, investment, and assets. Figure 2 shows the total expenses for the startup.
Figure 2: Startup Expenses
The good returns from business result from targeted social media campaigns. Online marketing has proved to be the modern and appropriate means of increasing sales. It has helped the company penetrate new markets (Bright & Cortes, 2019). The online team monitors and checks customer feedback and ensures they track the customer spending behavior to customize specified Ads using Artificial Intelligence (AI) marketing tool. For the better part of this business operation, using AI has been critical to maintaining purchasing consistency due to using the geofencing technique to run promotion campaigns.
Fortune Jewelry store will reward their employees based on the role-specific incentive. Due to the dynamics in the selling environment, businesses must re-model their compensation technique to motivate and retain talented employees (Hatami, 2018). The role-specific model is an incentive that rewards employees according to their areas of representation (Team, 2021). Cross-examination of the company needs to orchestrate the need to embrace the model because the company relies on sales reps and specialist sellers. These groups will be given priority in the company because they acquire and retain customers for the business. They are frontline sales reps with direct influence on their revenue; thus, a classic incentive system (awarding commissions) is appropriate for meeting revenue targets. Employees such as advisory sales, customer care, and solution architects get a salary plus a bonus plan based on the team performance or how active the member has been helpful in the sales process.
The business has a track record of embracing SMART goals because it is the only way of attaining targets. Fortune Jewelry store will focus on improving sales by 20% in the next quarter, translating to a 10% increase in company revenue, as shown in Figure 3. The company will achieve this goal by streamlining inventory, motivating workers, and massively working to improve the customer relationship with the aid of a Customer Relationship Management System (CRMs). The company will train customer representatives in this respect to understand how to work with CRM to improve our customer’s experience. In addition, the business will optimize the supply chain to ensure on-time delivery, consistent flow of stock, and speedy and efficient flow of stock clearance. Workers’ appraisals will be pegged to their performance as the company will reward hardworking employees with a tangible effect on revenue. This specific SMART goal strategy can put the business on the spectrum to compete favorably.
Conclusion
In conclusion, Fortune Jewelry Store has never stopped delivering the best jewelry brands for their clients. The jewelry brands include designer diamond watches, pearls, engagement rings, eternity rings, necklaces, bracelets, and earrings. The business has specialized in offering exceptional services because the employees are highly qualified. The company has different representations, including frontline sales reps, solution architects, designers, customer advisory specialists, and a customer service support team that cohesively work to make the company great. The company plans to use the role-specific incentive to reward the employees because the model enables performing employees to get commissions when they meet targets. The SMART goal projection for the next quarter is that the company will achieve a 20% increase in sales, translating to a 10% profit. Technology, employee training, and streamlined inventory will ensure a speedy and efficient stock flow, thus making the projections reality.
References
Bright, D. S. & Cortes, H. A. (2019). 17.6 employees’ responses to planning – Principles of management. In Principles of management. OpenStax. Web.
Team, I. E. (2021). SMART goals: Definition and examples. Indeed Career Guide. Web.
Hatami, H. (2018). Sales incentives that boost growth. McKinsey & Company. Web.