Corporate businesses have all forms of connections with other businesses that bind them in a loop. A manufacturing firm has relations with other businesses including vendors, distributors, and other service providers. It is considered as a compulsory practice for organizations that they derive and provide incentives from and to their other business connections. Companies provide offers and incentives to maintain healthy relationships with other businesses. In the case of Orlando Bizline, the parent company from which Orlando Bizline Split had an agreement with a local radio channel for discounted rates.
Operational Problems
After splitting from the parent company, Orlando Bizline faced several challenges. One of the significant problems is when Orlando Bizline split from its parent company it requires renewing the agreement with the radio station. At the time of renewing the agreement, the radio station discontinued the discount rates. The decision of the radio station for discontinuing the discount rates caused Orlando Bizline trouble. The new agency faced difficulties as it did not have the same benefits as the parent company did.
Establishing the business at this stage was challenging for the company as the business in Orlando area was experiencing rapid growth with several competitors for each products and services. Moreover, the business model of smaller firms was considered more fragile than the business model of larger companies. Smaller companies also seemed anxious about external change because of the unstable business model. Such companies also face challenges in managing their operations and relationships
Smaller and newer business creates insecurity and doubts among the stakeholders and clients. Stakeholders prefer the larger business and agency for investment and put the newer and smaller companies in the voting period. Also, the economic condition of the state where the company operates does allow people to buy most of the expensive products and services that Orlando Bizline offered.
Possible Solutions
Orlando Bizline needs to take measurable steps in making future strategies. After analyzing the entire operational problems, it is clear that the company has sufficient credit. Each of the strategies requires by the company to establish and grew the agency in Orlando area need a significant amount of credit. The company needs to make strategies that require comparatively lesser credit but are effective in emerging the business.
As the radio station discontinued giving discounts, the company can use other promotional mediums such as the advertisement on television, newspapers, running campaigns, and creating awareness through social media. However, the cost of advertising on television is thought out as almost equal to that of the radio stations. Moreover, the number of newspaper readers is significantly decreasing day by day. Therefore, the two best ways that can help the company in creating awareness about the products and services are either through running campaigns or through advertising on social media channels such as Facebook and Twitter.
If the company has a choice to use either one of the two promotional options, then it would be best idea for the company to go for the social media advertising. Running advertising campaigns often require significant investments. On the other hand, using social media advertising can benefit the company in many ways. It could be noted that marketing through social media requires less investment and it could help the business to reach masses. Secondly, the use of social media platforms is in trend at present and the company can reach large number of customers by using this form of media for its business and products.
References
A voting period. (2010). Miami International University of Art and Design.
Alan, E., Gregory, D., Lumpkin, G. T., & Gerry, M. (2013). Strategic management: Text and cases. New York: McGraw-Hill Education.
Charlesworth, A. (2014). An introduction to social media marketing. New York: Routledge.
Nicolescu, O., & Lloyd-Reason, L. (2015). Challenges, performances and tendencies in organisation management. London: World Scientific.
