Business
Introduction
Pier 1 imports Inc. is an international firm in the provision of children’s furniture and accessory products. It is a corporation organization that deals with home décor product for exportation. The company has also engaged in the purchase of the stock market to subsidize in its revenue earning. Earlier in 1970s it purchased stock in American stock exchange and later New York stock exchange. The mission and vision of the company are fundamental in its operation to enhance good working relationship of the workers and management. The Pier 1 imports Inc. has a standard capacity and the organization of the employees.
Good moral values and guidelines of the company are subjected to equal gender distribution in different positions, in company ranks. The chief executive officer is the chairman of the company and has full control. International companies have managing directors who are involved in regulations and control the company at national level. The leadership style that the company uses is democratic as the employees are given chance to express their view in decision making. Market segmentation in the companies targets customers in regard to the products. Age and lifestyle are the categorizations that are used to segment the customers as the product produced by the company are mainly home luxuries.
Pier 1 imports Inc. has employed various tactics in ensuring competitiveness in the market. This mode of the Pier 1 imports Inc. of competition has gained the company more competitive advantage over the rivals hence increased revenue. This has contributed to its effectiveness in its operation that makes it be in a position of outdoing other rival companies, in home decor and children’s accessories.
Industrial structure and global marketing
The Pier 1 import can be described as an oligopoly as the number of the seller and distributors of the home décor and children accessories. It has made the company have products that are highly demanded. The company has also employed various form of marketing such as advertisement on the internet as the tactics of improving on its sales. This goes to the extent of the companies employees has to interact with the public during the social events to promote their products.
The company is facing competition from the rival companies in the sector of home décor production. These firms are majorly in the cities as they target the estate dwellers. As it is an international company it is easily identifiable and recognized through involvement in the social events hence its market is wide.
Pressure for cost reduction in the home decor and other products has made the Pier 1 imports Inc. employ it as an advantage. This is one of the planned and used strategies to counter the market pressure. The revenue developments are enhanced as the product and quality are met.
Economics
Various measures are developed in enhancing the economic development and hence ensuring the company remains competitive in the market. This helps in reduction of unnecessary costs that may result from inflation. It was a strategic measure that was enhanced to provide a good relationship with the customers as well with the employees. As an international company good understanding of the stock market as well as the exchange rate is enhanced.
The monetary policies that are subjected to the economy as the stabilization of the stock price and shares have been put in place. This has made the companies indulge in the stock market and trade in the high number of shares. The fiscal policies are aimed in controlling the level of inflation and stabilizing the currency. This affects the company as it exports the products in other markets as it sought countries that the currency can contribute to profit earning.
The transformation of the home decor and children accessories contribute to the productivity gain in the company. This can be achieved through becoming more competitive hence supporting and promote company’s growth. The economic formulation of the policies is subjected to the entire wellbeing of the market.
Market plan and SWOT analysis
SWOT application starts with strengths of the business that are supposed to be listed. These are the advantages that help in defining company's operation in the same industry. It is covering strength that relates to the employees, and the location of the business. Potential opportunities are developed and enhanced internally as it functions as a business opportunity. These are contributed by the improvement of the technology level as it helps in diversification of the business operation. The company has employed cultural balance in all sectors that are vital in enhancing performance. Pier 1 imports Inc. has successfully incorporated the strength and opportunity in the market to help in achieving the goals.
A number of business weaknesses show the disadvantages that the business encounters in the market. These include market challenges of the customer's search and the product leading to declined market level share. They are elements that contribute to low performance of the business. Together with the potential threat, as the factors facing the business and leading to problems causes a threat to the business operation. The company’s threats are competition increasing, high interest rate in the stock market, and uncertainty on the market. These effects are subjected to the business operation leading to effects on the performance and operation level. Pier 1 imports Inc. has employed tactics to counter in search of survival and enhancing competition.
In the Priority establishment, Pier 1 imports Inc. has given more consideration to the use of SWOT analysis. The business has various weakness and strengths that are key factors in business analysis. They are fundamentals to the business environment as they help in showing both internal and external nature of the business. In regard to decision making factors that contribute to positive effects in the business are used as a platform and basis of making an informed decision.
Addressing the Pier 1 imports Inc. development the issues that are to be given priority in the SWOT analysis consideration. The main point is enhanced by the strength and advantage of the company’s advantage in the field of operation. Together with the identification of the weakness, then strategies are formulated to counter and overcome disadvantages through minimization of the risks facing the company’s operations. Finally, is on how to minimize the weakness and to overcome the identified threat.
Corporate philosophy and organization structure
The company’s marketing has been focused on the business structuring helps in defining the suitable business channel in regard to market. The major role is on alerting the business management of the impending factors that may contribute to poor performance. This help in preparation in advance to counter and face the expected issue being positive outcome. The company’s competitiveness as it has many products in the market is one of the strengths it employs. The pricing level of the company are widely constant hence is making the company more competitive to be rival companies in the provision of children furniture and accessories. This is extended to home décor products as they differ with the preference of customers.
The company's management has different structural considerations in the organization. They match and set the preferable one that supposed to relate to the company’s operation and duties. The company has various structures depending with the functions in the organizations. Departmental segmentation according to in reference of the production level of the home décor products is essential as the nature and lifestyle of the customers are considered.
The company's restructure that has been improved helps to makes work more efficient and effective. The customer’s confidence with the company’s product helps in making a firm background. This helps in restoring their loyalty to the company, therefore, increasing on productivity. This increase the revenue generation as the streaming of the activities is reviewed. The company has to put initiative especially in consideration of the customers in the home decor and children accessories.
Policy of the company requires being in a way that leads to achievement of the changes as anticipated. The changes in the company's process results in the creation and emerging new roles and responsibility. This change the way staffs had been used to thus calling training in coping with a new strategy especially in the energy sector. In the implementation of the new processes, the assignment and documentation of the new roles and responsibility are required and much essential. This defines the guidelines on the systems that are in use and the operation procedures involved. The employees also need training for the new responsibilities, processes and the procedures involved.
Any redesigning of the work flow and company's processes need to be handled sensitively not to impact negatively to the results of the company. This is on the management framework involving the restructure of the role of the employees due to the changes of the departments. The training should depend on the Pier 1 imports Inc. concept that it has in place. This is supposed to focus more on the human resources strategies of making the company more competitive in the children’s products industry. The technology advancement initiates the training to employees especially in the marketing of products and stock exchange production.
The management of Pier 1 imports Inc. has restructured the company in order to set a new direction of the institution in future as it incorporates technology. The company has new technological applications that are used by the company’s customers while purchasing the products. The application of the smart card has made the customers get the products at any branch of the company locally or international level. This helps as well to identify the regular customers and hence they enjoy less price of different company’s product. The guidelines and the process that gradually change the structure of the company are enhanced by the management. This should be in a way that cannot affect the performance at the moment.
Technology and innovation
In the production of children’s furniture, technology has been applied in order to produce a good quality product. This helps in meeting the international business set standards. As an international company, the produce goods targeting the global market have to apply the steps that can make them more competitive. Due to the presence of the technology, the firm has been able to produce at a lower cost thus increasing the revenue.
This makes them enjoy globalization that offers huge profits to the firms. The level of the technology dictates the production level of the firms. Taking the example of the extraction of the home decor, this has been made possible and easy in the area such as the production. It has helped the firms to locate the viable customers and to elect the new branches at international level near the customers and this contributes to lowering the production cost.
In the production, the processed involved applies the technological knowledge that ensures that they meet the quality and the standard of the consumers. This makes the firm to earn the trust of the customer with provision of the quality products. The satisfaction of the customer and their confidence on the firm’s product and services has a major role in ensuring high productivity. The large customer scope has a significant role in profitability gaining and the development of the economy, as well.
Technology helps in restructuring as it start from the preparation of the employees to handle different situations. It is through consultative forums so that they are involved and be part and parcel. It becomes easier to implement while the workers are willing and having responsibility of ensuring the success to their decision. The Pier 1 imports Inc. manager’s consideration is to address the integrations and redesigning of the company’s services. This helps in meeting the needs that have to accommodate everyone in the company.
Finance and marketing budget
The changing economics natures such as growth rates in the exchange rate require a high quality service in the industry. The integrations of the employees, departments and the entire company can enhance quality service and high productivity leading to winning and attraction of more customers. Roles and responsibility are the major concerns of the employees. The marketing budget is used in reinstating the level of the stock as shares that the company has to purchase and sell to their members. Stock is one of the capitals of the company hence its evaluation and report are informed to the shareholders in the company.
The company’s budget since 2006 has always depicted growth rate despite harsh economic times such as inflation. The company has capitalized in both stock markets as well as in the home decor products and children’s accessories. This has helped it to be more stable and good performance that hence having a competitive advantage than rivals in the industry.
Conclusion and recommendations
In conclusion, the employment of the technology in the home products sector, has greatly improved the company’s performance. This helps the management to have different tactics to venture deeply in the sector and having different products as it subject in the product expansion. Targeting more countries to open different branches increases the companies scope hence increased revenue.
In conjunction with the purchase of the stocks, the company has made huge progress in diversification of the risks. It has enabled the company to remain more stable despite the economic troubles such as inflation. Finally, the Pier 1 imports Inc. has been stable as diversification of risks by engaging in the stock market has acted as security at the company’s recession period.
