Identify Market Oppurtunities Task 2 Essay

Executive Summary BBQfun was established in 2009 by current CEO, Pat Mifsud. BBQfun offers an enormous product range, incorporating both(prenominal) local and import goods. Since 2010, the change magnitudely competitive retail environment, technological change, changes in consumer buying patterns and consumer government agency has take to disappointing gross sales. However, BBQfun intends to return to healthy sales of $11 million in 2012 through with(predicate) building on its organisational strengths, through targeted trade strategies aimed at key segments and through exploiting commercialiseing opportunities. Currently, BBQfun operates two investment companys, atomic number 53 in Brisbane (Kenmore), and one on the Gold Coast. BBQfun is seeking business line and grocery storeing opportunities that could lead to interstate or national expansion if viable and scalable. flush To provide our nodes with great value outside lifestyle products and second-to-none customer d ish up.Vision To be, at bottom five years, south east Queenslands leading outdoor lifestyle retailer. determine Quality Customer value community Active encouragement of safety, teamwork, diversity, excellence, innovation and uninterrupted improvement.Strategic directionsThe strategic context in which BBQfun will achieve its mission and mickle is through engaging with customers through progression and market research building written report for tone of voice products and quality customer function supporting people to perform via grooming and performance management controlling embody. increasing sales revenue and valueability.Analysis prove 3 Opportunities and which of these fit with organisational goalObjectives Opportunities amiable with customers through promotion & amp market research. E-commerce Reduce direct & corroboratory cost of the operations. suffer stain, stack market Building reputation for quality products and quality customer service E-commer ce New market opportunities impact suffer brand E-commerce wad market Sales volume (units) BBQ 7200 BBQ 12600 BBQ myriad Sales volume (units) article of furniture 3120 article of furniture 5040 furniture 5000 Sales volume (units) Accessories 40320 Accessories 63360 Accessories 52500 Own brand E-commerce Bargain market charge BBQ $600 BBQ $620 BBQ $500 Price Furniture $850 Furniture $880 Furniture $650 Price Accessories $50 Accessories $55 Accessories $40 social unit contribution boundary line BBQ $500 BBQ $300 BBQ $200 Unit contribution moulding Furniture $600 Furniture $420 Furniture $220 Unit contribution margin Accessories $40 Accessories $20 Accessories $10 quantity revenue 8988000 15732000 10350000 natural gross profit 2012/13 7084800 164000 3625000 numberitional fixed costs add lease $1000000 Add labour $500000 Add build (depreciation) $500000 Add training $50000 Add online store victimization $100000 Add saucil y plant and equipment (depreciation) $150000 Add labour $250000 Add reconfiguartion of storage w behouse/office $50000 See approved compute (no change in fixed costs) Total net profit 2012/13 200086 1679286 1259714 out-of-door factorsBefore implementing 3 new changes what are the legislation and standards need to be analysed instant & Export standards for both the countries regulation regarding taxes maybe different in both countries Expensive labour cost run a risk analysisRisk Impact likelihood Mitigation meshing server shoot noble Likely Back up server, Back up of data ill to adequately train employees High marvellous Adherence to performance management policy, meter to time training sessions non having confidence in Own brand High Unlikely Serious marketing, Customer sensation programs, 24/7 customer service Cost Benefit Analysis (CBA) natural process Cost Benefit Risk F or MF or NF Own brand $6884714 More profit Not having confidence in Own brand F E-commerce $5484714 Less Cost Web server down F Bargain market $4884714 More business misadventure to adequately train employees MF regress on investmentReturn on investment(Income-Cost)CostOwn blur$8988000 $6884714 / $6884714 = 0.3055E-commerce$15732000 $5484714 / $5484714 = 1.868Bargain market$10350000 $4884714 / $4884714 = 1.118Rank new opportunitiesRank 3 opportunities based on its benefit.Rank One Own sendRank two E-CommerceRank 3 Bargain MarketCost & ResourcesBrief cost & resources required to implement each new oppurtunity.Resources cost Additional staff $25000 year second-rate Additional staff costs$250000 whole kit & equipment depriciation Delivery trucks ($20000 each) Forklifts ($10000 each) graft & equipment costs - $120000 & $30000 promotional Costs $500000 Website developers Contractors ($2000/ a day) Website development cost $100000 Staff training $ Online customer service training $3000 per staff compone nt Staff training cost $24000 solicitude change leadership training for store managers and team leaders $3000 each heed & leadership costs $42000 store and office reconfiguration Re-configuration cost - $50000 Total $6016000