Q.1) What Do You Think Of Lewiss Method Of Finding An Unfilled Niche
One can quite positively conclude that Tim Lewis is indeed a very observant fellow. His finding a niche area came from observing his very own clients he worked with. He identified that the small to medium-sized firms were not serviced by the consultants adequately. Also he carried out a thorough 18 month market research to ascertain that the niche did in fact exist. As his clients while working with TMC were hospitals of the Birmingham area, his niche area eventually became hospitals and healthcare (mostly small and mid-sized), an area from which a third of his business came.
Q.2) What growth possibilities are there for him in this expanding technological age?
With rapid advancements in telecom and associated technologies, the growth possibilities are immense. Lewis should consider concentrating on setting up video conferencing systems and providing broadband and internet telephony solutions too. Video conferencing has huge potential for growth, especially in hospitals, as it enables specialists in different cities, or even countries, to collaborate and discuss a case and even carry out surgeries, in some cases. Also looking at options to expand business in mobile phone services is a good option.
Q.3) What suggestion would you make to him as to where to live? Explain.
I think that Tim should consider moving to Birmingham. I say so because with the growth in his business and setting up of training facility in Birmingham, it would be required for him to be more present at the workplace. Also Birmingham is a twice as large in population as Tuscaloosa, and more likely to be the location of his future clients. Agreed that Tim provides telephony solutions to his clients and staying far from his work location might seem acceptable, but new clients would always like to meet their new solutions partner personally, which might not always be feasible with him staying this far.
Q.1) What kind of financing did Williams use to start her business?
Ella Williams started her business by taking out a second mortgage on her house. This kind of financing, called a Mortgage, is a type of loan. The collateral of this mortgage was her house.
Q.2) How could SCORE have helped?
SCORE, acronym for Service Corps of Retired Executives, is a non-profit organization that offers business mentoring services to entrepreneurs and small business owners in the United States of America. It consists of both active and retired executives who offer mentoring services free of cost. The organization consists of volunteers registered in various chapters in the country. SCORE could have helped Ella Williams by providing free of cost training to her on various facets of business. She could have learnt about how to get clients sooner than she eventually did. SCORE services excel in offering help to small business owners in starting their new business. SCORE could even have helped her in growing her business once it was established. Ella Williams, no doubt did pretty well for herself without any guidance from anybody, but a little bit of free mentoring never hurts. SCORE mentoring could have been especially beneficial in her getting her first client much sooner and avoiding times of hardships she faced in the first three years.
Q.3) Do you think the cycle of “uphill battle” is typical for minority owned businesses?
In my opinion, minority owned businesses do in fact have a more difficult path to success than the rest. It is evident from the fact that Ella had to please her clients by adapting non- conventional means. She was not taken seriously as a professional business owner who could provide the technical services she offered. She had to give a personal touch by baking cakes and bread for her prospects as a way of pleasing them. For a white-male, taking up such steps to prove himself professionally as a new business owner might not have been necessary to secure a new client.
Byrd, M.J., Megginson, L., 2011. Small business management: An entrepreneurs guidebook. 6th ed. New York: Pearson
Q.1) Do you think the “personal touch” is still feasible in today’s mass merchandising climate? Explain.
Yes, it still is. Being customer oriented is a key to having a successful marketing strategy for a small business. It is through such personal touch or customized servicing that a small organization can compete against a larger corporation. A happy customer treated well by a small business is more likely to return to their place, in spite of it being not so competitive on pricing as a larger corporation can be. The concept of “personal touch” is in no way exclusive to a small business. As in the case of Walmart, a mega retail giant, it is the smile and warmth of the associate that truly makes a customer’s visit rewarding.
Q.2) What are your thoughts on hiring customers? What are the strengths and weaknesses of the practice?
I believe that there is a certain advantage involved with hiring customers as employees. As only a satisfied customer would think of getting a job at the place he or she once shopped, these employees can act as live testimonials of a superior customer satisfaction that the business provides. Hiring loyal customers also might be beneficial in a sense that a business owner might know the person a little bit personally and chances of hiring the wrong kind of employee could be reduced.
The down side is that since shopping at a place and working there are two entirely different things, the new employee might find his/her expectations falling short as a person might treat customers and employees differently.
However if one follows the principles of Bert and Barbara, chances of hiring a wrong employee are much less.
Q.3) Is the philosophy of letting students without medicine a practical one?
Since Barbara and Bert provide medicine to only students without money, it looks to be well thought of and considerate policy. The students of the university living on campus typically stay for the whole duration of their college. So, the chances of them vanishing and never seen again is much less. Also since these students usually have no local guardian and might not always have money for medicines, the practice of giving them medicines and billing their parents is a genuinely noble practice. The parents of the student who got medicines for free in times of need would certainly appreciate such a gesture and definitely pay on their kids behalf. Thus the practice is indeed not just noble, but a very practical one, as such measures would bring more and more students into their store and also build customer loyalty.
Q.4) How do you explain owners’ success in using the golden rule as an operating philosophy?
The golden rule of Barbara and Bert English of striving for the personal touch and treat people the way they wanted to be treated themselves is indeed the reason for their success. The “personal touch” method has ensured that they always rank very high in customer satisfaction levels. This also builds loyalty of the customer towards the store and might even extend to generations. The Englishes have been very good retailers and always been polite to the customers. Although it might incomprehensible, but even such simple traits can indeed make a business, small or large, a successful one
Q.1) What type of distribution channels does Feeling Special Fashions use?
Sarah Hammet of Feeling Special Fashions uses the direct from producer to the consumer model of distribution channel. One can also call it as direct marketing or zero level marketing, since no level of intermediaries are involved.
Q.2) Should Sarah Hammet consider selling through intermediaries, such as retailers? Discuss the advantages and disadvantages.
I think that Hammet should consider looking at retailers who stock and sell special clothing. Since her business is expanding and her direct marketing technique cannot work everywhere for her, especially far off hospitals, she can cater to the needs of customers in a much larger area than before. I think she should consider retailers who sell such different and special clothing and especially look for places beyond her reach to travel. Both forms of her direct and retailer marketing can coexist. Her direct marketing can provide feedback on designs and patterns on which she can build upon and supply to the retailers accordingly.
The immediate advantage is that it would bring about a growth in business. A disadvantage could be that she would have to cut her margins if she wants to remain price competitive as the retailer would be taking a percentage of the profit. Also customer feedback might be difficult to gather with this distribution system.
Q.3) How would you rate Hammet’s selling strategy? Recommend ways she could increase sales.
Hammet’s selling strategy is indeed unique. She has found a niche market and a fun way of selling her clothes to senior citizens with mobility and dexterity restrictions. Her strategy is to sell directly by involving personal consultations and fun activities like fashion shows etc. for the seniors. I recommend that she should look for retailers who sell such “adaptive clothing”. This way she can serve customers not in the hospitals and undertaking private care. She can thus cater to a much larger customer base this way. Also advertising might help, but is a very expensive step and might not be feasible for her.
Q.4) Should Feeling Special Fashions advertise? Discuss advantages and disadvantages.
I don’t think it is necessary for Hammet to advertise to seek growth in her business. Advertising, considering her clients don’t move about much, is going to be most effective in the Television and radio. This is going to cost a lot of money which might not be available with her. However she can consider a print advertisement to popularize her product. Advertising would however make people aware of such clothing, since every disable senior would require it. But I still feel that it is not worth the costs and a new retail distribution might just do the job.
Q.5) How do you rate Hammet’s chances for success? Why.
Hammet has found herself a niche market. If she can find an effective retail network, she has immense growth opportunities, as there are few clothing companies serving the segment and almost all seniors with disability and dexterity restrictions would want comfortable yet fashionable clothing to wear.
Q.1) What does the case show about the need for management emphasis on safety?
The case shows that the management needs to be constantly alert and attentive that the employees are adhering to all the safety regulations at all times necessary. Safety is not a one-time activity, but an all time practice. The management, if need be should be stern with the regulations on safety with its employees, even if it makes them unpopular. As such practices would save lives, much more precious and valuable than being a pal with the workmates.
Q.2) How can you explain the workers’ lack of interest in their own safety?
Workers working together in a group often follow or even mimic one individual considered to be the most skillful and efficient among them. In this case it was Sam Sawyer. So if Sam did not wear the glasses, the others feel it is OK not to wear them, since Sam had the best safety record too. This tendency of imitation is indeed dangerous as it propagates ill practices to spread like a disease among all workers.
Q.3) What would you do if you were the supervisor?
I would consider giving Sam an unofficial warning and state that penalties could be levied if such behavior continued. I would act tough, but in private and try to convince that whatever norms that are put in place are for the good of the workers themselves.
Q.4) How would you explain it to an OSHA inspector?
An OSHA inspector would be difficult to convince if he/she finds discrepancies in safety regulations and practices. This is why I would try to get the conduct and practices of the workers correct.
Q.5) What does this case illustrate about the role of informal leaders?
The case shows that sometimes informal leaders can be taken a bit lightly by some workers. Although being an informal leader has its advantages, like the workers are more open and comfortable with you, a leader must understand where to draw the line. Especially if he feels that he is not being taken seriously.
