Essay BIBM678 Strategic Planning For Small Business

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Pages: 6

BIBM678 Strategic Planning for Small Business
Assessment 1

A Strategic Plan for Gifts Gallery

By: Yolanda Yu/13389472
Date: Friday 13th March, 2015
Course Lecturer:Dhammika Silva
Word Count: 1, 287

Table of Content

1. Introduction to the business
1.1 Name of the business
A new physical store, Gifts Gallery, is to be founded for selling well-designed gifts in the City Central of Hamilton.

1.2 Purpose of the business
The long-term direction that I have determined for Gifts Gallery is to turn itself into one of the most well-known gift shops, along with delivering quality-assured and brilliantly designed presents, novelties and souvenirs at a reasonable price to those who potentially have a demand in term of gifting or decoration. In other words, Gifts Gallery aims at satisfying all customers’ demands no matter which age groups they are from, and providing customers with a visibly relaxing and engaging shopping atmosphere characterised by diverse merchandise selections and friendly customer services.

1.3 Description of the industry the business is
Hoover's Inc argues that customer expenditure, special occasions and tourist level serve as the major drivers of demand for gift, novelty and souvenir industry (p. 2).

Products and operation - The dominating products manufactured in the gift, novelty and souvenir industry include souvenirs and novelties, seasonal decorations, greeting cards, and giftware. Typically, there are three normal types of gift retailers, which are national and regional chains and independent retailers. The main locations that the majority of gift stores seek to operate in contain “strip malls, indoor shopping malls, resorts, hospitals, museums, and airports” (p. 2).

Rivalry from alternative retailers - Gift shop owners are confronted with a high degree of competition from mass merchandisers, department stores and online retailers. Especially when technology is rushing to develop, in addition to be dependent on gift fairs, trade publications and sale promotion, more and more gift providers turn to be online retailers since online gift market has a growth potential. Therefore, alternative choices for consumers to select result in a situation where growth of sales from stores are restricted (p. 5).

Industry Characteristic - Reliance from Gift and souvenir shops on tourist market are high, particularly those stores in the vicinity of tourism region. The peak earning period of stores selling gifts and novelty goods is previous to occasions and anniversaries because of these commodities for use in gift giving and interior decoration. Conversely, Souvenir shops experience their peak during the summer due to increased number of tourists (p. 5).

Increase of online gift orders - Ordering gifts via Internet have considered to become increasingly popular among Kiwis as a result of online order business satisfying to certain criteria showing in Figure Two. According to Figure one, appropriately 70% of kiwis in New Zealand have experienced online gift ordering.

Figure One. Ordering gifts online is popular (Source: Firstdigital, n.d.)

Figure Two. Price and offers are encouraging (Source: Firstdigital, n.d.)

Increasing profitability - The gift, novelty and souvenir industry is constantly growing to be more profitable as customers’ discretionary spending are boosted on purchasing decorative home accessories, general gift items, collections, seasonal decorations and greeting card (Highbeam business, n.d.).

1.4 Location/Contact details
Location – I decided to set up the physical retailing store within the Waikato’s leading shopping center, Center Place, which locates in 501 Victoria Street Hamilton 3240.

Contact details - Phone & Website: Both are required to be developed.

1.5 Design/Structure of the Business
A business structure developed by me will basically formulate a well-defined chain of command, which follows the layout of a pyramid and consists of three hierarchical levels. People who will