Abstract
The business has undertaken through the Web, with its dynamic, fast-developing, and highly competitive qualities provide new possibilities for a capital generation as we enter the twenty-first century. Existing organizations are launching new online endeavors, while new initiatives use the Internet’s advantages. Entrepreneurial start-ups and business enterprises are the most common ways for e-businesses to generate new money. In addition, it is radically altering the terms of competition for existing enterprises. As a result, one may anticipate e-business to have piqued the interest of academics working in the domains of management information systems and information technology. Indeed, the emergence of e-business makes a compelling case for bringing the entrepreneurship and strategy research streams together. However, there is presently a scarcity of academic studies on e-business. To date, neither the research nor the concept reflecting the distinctive aspects of virtual marketplaces has addressed the fundamental challenges surrounding these new phenomena.
The electronic business, or “E-business,” results from merging computer technology with web standards. Companies will need to adapt their strategy and aims to satisfy economic demand and supply norms to succeed in e-business. Companies have had to be reformed and restructured due to the transition of traditional companies to e-business. E-business results from a convergence of economic, technological, and commercial dynamics that have reshaped classic company tactics. Computers and communication networks collectively referred to as the Internet are used in business. This can help enterprises to remain competitive and efficient. New business concepts have also been established and deployed in several different ways.
Electronic banking, often referred to as electronic fund transfer (EFT), is a type of electronic banking that substitute’s computer and electronic technology for cheques and other paper payments. Efts is started by using gadgets like cards or codes to acquire access to your account. For this reason, many banking firms employ an automated teller machine (ATM) card with a personal identification number (PIN). Some client payments are covered by the federal Electronic Fund Transfer Act (EFT Act). Direct Deposit, Automated Teller Machines, and Pay by Phone Networks are among the operations it provides.
Introduction
Background of the Study
Many IT company value studies have long acknowledged IT as essential in changing company operations, affecting IT business value. When a company deploys a revolutionary electronic purchasing system, the Value of IT is dependent on related business processes. The buying system may need to be modified when implementing improvement plans or protocols, such as electronic vendor inquiries on public or private e-commerce. Innovative information systems and workflow reform must work together to render IT as applicable and feasible for the organization.
As we move into the twenty-first century, commerce performed over the Internet, which has several competitive qualities, presents new opportunities for wealth generation. Existing companies are launching new online ventures. New businesses are also taking advantage of the Internet’s benefits. E-business has the opportunity to create enormous amounts of new money, primarily through entrepreneurial and industrial operations. In addition, it is radically altering the terms of competition for existing enterprises. As a result, researchers in the domains of business and management are obliged to pay consideration to e-business.
Both corporations and persons transfer and receive money for various reasons, including payment of salaries, settlement of commercial transactions, a fee of school tuition, and family assistance. It necessitates efficient, dependable, and cost-effective money transfer services that allow money to be placed in one place and redeemed in another in urban and rural settings. The selling of financial services has changed due to the emerging electronic age. Customers today are looking for fresh and unique economic goods and services. Essentially, banks must seek innovative marketing tactics for their goods and services. Various electronic distribution channels have been implemented to suit clients’ expectations in Kenyan banks, owing to the dynamic growth of IT.
Electronic Money Transfer Systems and Services
Money Transfer Services are programs that allow money or funds to be moved from one area to another through various methods. Money can be transferred or collected anywhere in the world using rapid, reliable, and simple techniques to execute. It’s never been easier to send transactions or purchase money orders. Compared to other traditional ways, the online world has developed an effective means for moving money with rapid, economical, and secure services.
Value of Electronic Money Transfer System in Business Process Management
The equilibrium that has amassed Customers can perform micropayments and buys on the Internet, creating a debit amount that they must clear off with their credit card or cellphone bill regularly. Transactions utilized by ABL, Vodafone, and NTT, and disk transfer, who is extensively used by the online media and printing sector, are two examples.
Regular monthly expenses are covered via electronic billing presentations and banking services. They allow consumers to monitor and pay invoices online using electronic funds flows from their bank or credit card accounts. Electronic bill presentment and payment (EBPP) is a method for creating, delivering, and paying invoices via the Internet (Alvarez, and Argente). The service uses various businesses, including financial services, telecommunications, and energy. These programs alert customers about upcoming bills, present the accounts, and handle transactions. Some of these programs, for example, check the accessible aggregate of a participant’s invoices from several suppliers so that they can all be compensated at once. Despite purchasing items with a credit card over the Online platform having grown commonplace, checking the credit card account and paying premiums to resolve the balance digitally has not. This has evolved substantially as new EBPP technologies with capabilities like secure e-mail shipment have been developed. In company e-commerce, EBPP technology has grown more prevalent.
Commercial Banks in Kenya
The Central Bank of Kenya regulates and supervises Kenyan commercial banks governed by the Finance Act of 1995. This also restricts the kinds of services financial institutions can provide and the dangers they can take with their equity. Investment funds, bank deposits, credit or debit cards, and banking transactions are common commercial bank commodities in Kenya, catering primarily to enterprise customers and elevated persons. Commercial banks have invested substantially in components that require high levels of functionality and sophisticated stuff for transaction and management and banking transactions in current history. ATMs, various card goods, branchless financial services, and electronic transfers are services. The money invested is substantial, and the customer’s prices have risen as a result. The positions of bank channels, reserve ratio demands, and stages of automated processes are primary factors limiting a reduced person’s access to financial amenities.
Statement of the Problem
The world is witnessing an information technology revolution that has affected each facet of life, including banking. ATMs and electronic transfers, for example, have launched innovative means of providing banking services to clients. As a result, financial institutions have been at the forefront of new technology adaptation for the past three decades. This encourages banks to invest in new technologies and details to maximize results and entice many customers. Working a funds transfer needs proper and dependable correspondence and computer networks, along with a management information system (MIS). This is because pace and dependability are critical product attributes for entry into the market. Bus and mailing businesses, for example, had also grown in popularity thanks to their ability to provide late-night or even same-day tangible money transfers. On the other hand, POSTA lost a considerable amount of corporate when it discontinued its transatlantic telegraph cash deposits, which could be delivered same day or nighttime.
Commercial banks are the key actors in Kenya’s payment processing industry, serving primarily large and, to a lesser degree, low-income customers. Telegraphic transactions, electronic funds transfers, and money orders are the most common commercial bank products used for big value handovers. They provide the most exact price for transferring substantial quantities. The focus of the research was to determine how electronic money transfer systems in Kenyan commercial banks can be used to generate benefits for business administration. This research adds to a previous study on Tanzanian and Ugandan money transfer networks. With in-depth surveys and focus group conversations with consumers and suppliers, especially in the low- and middle-income segments, the team used Micro-Save Africa’s (MSA) qualitative research approach. As a result, a study on the utility of electronic money transfer systems in business performance measurement in Kenyan commercial banks was required. Even though an investigation has been conducted in money transfer systems, none has been shown in Kenyan commercial banks. This review aimed to determine how the electronic money transfer system is a strategic and remedial action for something like the banking industry. Banks that were sluggish to embrace technology have seen a significant portion of their market segment taken away from them by institutions that have overhauled their money transfer technology and management capacities and are now providing faster and better operations along with a diverse variety of financial goods.
The objective of the Study
Main Objective
The study’s primary goal was to see how electronic money transfer systems in financial institutions may be used to produce benefits in customer relationship management.
Specific Objectives
- This study aimed to determine the advantages of electronic money transfer systems in quality improvement in Kenyan commercial banks.
- Identify the obstacles to using electronic money transmission in Kenya’s financial institutions.
Literature review
Electronic money transfer systems
Banks rely on EFT and TT to facilitate speedier money transfers and reduce documentation. Electronic banking, often referred to as electronic fund transfer (EFT), is a type of electronic banking that uses computer and electronic technology to replace checks and other traditional transactions. Electronic-based goods such as mobile banking, credit cards, ATMs, and direct deposit are used in growing areas. It also covers electronic bill transactions and items still in the early stages of development, such as stored-value cards and Internet-based stored-value goods.
Current food delivery relies heavily on supermarkets and grocery stores. Nonetheless, the supermarket industry must modernize to compete with the market’s most technologically advanced firms. Grocery shops have also had to confront this threat, with big-box retailers providing internet purchasing. Of course, the world has transformed since six months ago, and many shoppers are no longer okay shopping in a grocery or supermarket in person. As a result, vendors with internet shopping options and purchase online, collect in-store solutions have seen tremendous growth in current months.
To purchase goods securely, shoppers rapidly resort to new purchasing websites and methods. In fact, according to MasterCard, more than half of grocery store buyers chose cashless transactions over cash or a card because it was healthier and subjected them to fewer germs than cash or a card. Supermarkets and grocers are responsible for laying the groundwork for contactless payments.
Transactions made online are a little different. While the client can still make transactions with their credit or debit card, they may go through a payment platform. Companies can hire software engineers to connect their online payment platform to the payment gateway, reducing the number of customers to execute transactions. Customers can even join their primary processing accounts to POS units and online payment systems, permitting them to access their incentives for internet transactions. A unified payment solution is an excellent approach since it eliminates duplication and guarantees that the retailer only needs to engage with one processing dashboard.
EFT is done with the help of gadgets like cards or credentials that you employ to reach your account. For this function, many financial companies use an automated teller machine (ATM) card with a personal identification number (PIN). Some consumer purchases are covered by the federal Electronic Fund Transfer Act (EFT Act). Direct Deposit, Automated Teller Machines, and Pay by Telephone System are among the services it provides.
Forms of Electronic Money Transfer Systems
Money transfer services are presently dominated by commercial banks, second by the Kenya Postal Corporation, Western Union, courier businesses, and foreign exchange bureaus in that order. However, money transfer is also dominated in other business sectors, for instance, the hospitality sector, shopping centers, and the transportation sector. EFT and TT customers regard the programs as quick, efficient, and dependable, as Value is recognized either instantly or the next day (Liu et al.). Parents, guardians, and entrepreneurs who used bank cheques to fulfill low-value third-party commitments thought they were secure and dependable despite their high cost. Because of its cheap cost, organizations with home banking facilities employ EFT.
Financial institutions conduct credit exchange payments by mail, cell phones, telegrams, and electronic interfaces. EFT and TT are quicker and more dependable than letter transfers, which need the physical transportation of mail from the original lender to the paying bank and then to the clearinghouse before payment can be made. When one uses mail transfer for payment, it may take more days than when using EFT and TT. Because of the vast number of intra-bank linkages, financial institutions rely more on EFT and TT to transfer cash quickly and with less paperwork.
Electronic Funds Transfers: Makes a computerized system that connects the bank’s main office and its many branches. The manifestation of Value is immediate with this device. Still, it has difficulties with expensive costs of commitment in equipment and operating systems and main application and a parallel bank account (Shkvarchuk, and Slav’yuk). Other sectors will heavily depend on the EFTs to conduct their daily activities by providing products and services to their customers. For instance, supermarkets will use direct debit payments to debit their customers’ bank accounts for transactions of products and services.
Wire transfers across the sender and receiver banks are used in telegraphic transfers. It takes for Value to be realized is about 1-2 days. High-cost investments, system mechanization, and mobile and telegraphic connections with the correspondent bank are all impediments to this scheme (Radin et al.). Mail Transfers: entails the physical transfer of mail from the original lender to the credit bureau and clearinghouse; value recognition can take up to 14 days.
Direct Debits: Makes frequent payments to external parties having deposits at the same financial institution using Standing Orders. Manifestation of Value is a one-time debit to the bidder and a one-time credit to the payer, but it has the drawback of needing the payee to have a bank account.
Research Methodology
Research Design
This was a descriptive investigation in which the researcher went to various financial institutions and inquired about the advantages of adopting EFT in their institutions. The research used both quantitative and qualitative methodologies, with questionnaires providing most of the quantitative and qualitative information. The qualitative data was used to illuminate the quantitative data, allowing for a more thorough analysis of the research problem. The participants were questioned in their native environments to share more data readily.
A descriptive inquiry methodology is used when an issue has been well-designed. The scientist can survey by going to the demographic of interest and asking the participants to clarify particular aspects of the problem under study. The primary data gathered in such a study is more dependable and current.
The population of the study
The study’s aim audience was commercial bank employees, including top-level executives, middle-level executives, and lower-level executives. This made it simple to obtain sufficient and correct data for the research. A suitable sample amount was chosen depending on the number of banks in the Area. The number of institutions to be researched was determined via random selection, and then a piece of managers and senior employees was chosen.
Data Collection
Self-administered questionnaires were used to collect basic information. Facts, hypotheses, and ideas found in diverse documented sources are primary data. To address related questions, questionnaires with both open and closed-ended queries were employed to gather qualitative and quantitative data. Along with oral and phone surveys, the “Drop and Pick” technique was utilized to obtain comments, particularly from those participants who needed explanation or assistance completing the questionnaires.
The questionnaire was divided into three portions to identify critical factors such as the participants’ demographics. The third segment concentrated on identifying the utility of money transfer systems in e-business administration financial institutions, whereas the second segment concentrated on money transfer systems. The analyst self-administered the questionnaire, and each one was tagged so that only the scientist understood who had replied. The tagging methodology was used to match filled questionnaires to those provided to the institutions.
Before beginning data gathering, authorization to carry out this study was acquired from the commercial banks’ administration. Following that, the researcher met with the senior executives of the banks under investigation to form bonds with people who would be participating and schedule when the surveys would be administered. The questionnaires were handed to the respondent at the agreed-upon location on the agreed-upon date. The participants were provided a limited amount of time to complete the survey. After one week, the completed questionnaires were gathered for analysis. Finally, I conducted an interview with a business professional, to collect additional data.
My Interview with a Business Professional
- What are the benefits of using electronic money transfer processes?
The business professional stated that buses and messenger firms merely convey funds and do not act as money transfer companies due to a shortage of ability to control currency. Because pay-in and pay-out terminals and money transfer schedules are rarely harmonized for a service site, enough hovers and frequent transfer payments are required to ensure optimal and dependable service.
He also noted that in today’s society, most payment is electronic, and physical cash is increasingly becoming less common. Paper money is growing obsolete due to the development of internet / online financial services, debit cards, online bill transactions, and e-commerce services. Banks today provide several services that allow customers to transmit assets, buy stocks, participate in pension schemes, and do a range of other things without dealing with actual cash or checks. Clients are not required to wait in queues, resulting in a less stressful situation.
The business expert stated that EFT has a lot to provide regarding transactions. EFTs of any kind is quick and dependable, and they do not need much effort on both ends of the trade. As a result, EFT is an expensive alternative for organizations. The minimal effort component saves money in terms of time consumed, but it also allows personnel to focus on more important concerns because the intricacies are handled by computerized mechanization. He also explained how debit cards and online bill transactions enable instantaneous transfers of monies from a private account to a corporate account without the need for a physical movement of cash. Many people and corporations will find this extremely useful.
- What challenges do electronic money transfer systems face in listed commercial banks in Kenya?
The business expert feedback stated that each transfer method comes with its own set of obstacles and difficulties? Risk-free methods are those commonly employed by large-scale customers of institutional care, such as EFT and TT. Tangible transfers are related to the top levels of hazards and issues. These include road assaults, tragedies, and thefts, as well as financial mismanagement by friends and relatives. Also, he stated that forgeries, deception, and robbery are additional issues with the bank and postal transactions, particularly with financial institution checks and Postal notes. Virtual currency counterfeiting has become a significant concern in the past few years. Hacking into savings accounts and obtaining banking details without authorization has resulted in massive security invasions and increased identity fraud.
He stated a severe problem with the software used in virtual currencies. Power outages, data loss, and unreliable programs are all standard stumbling blocks in the advancement of technology. There have also been concerns about anonymity, with some fearing that the usage of debit cards and other similar devices will contribute to the formation of a worldwide monitoring system by the financial sector. To overcome this problem, some individuals are employed on secret e-cash.
- What are the uses for electronic funds transfer?
The business professional defined electronic business as the process of providing Internet-based services to companies or workers. E-commerce is conducting trade over the network to offer products to other enterprises. It comprises everything that has been referred to as e-commerce and every facet of its strategy and activities.
Using online bill payment
He stated that with the introduction of UPI networks and online bill payment sites like Google Pay, the government’s bill payment forum had been transformed in recent years.
Using direct debit
He also acknowledged that when using online bill payment, the cardholder authorizes the financial institution to deduct funds from their account in compliance with the fee schedule. When invoices or loan payments are due, the financial institution deducts the amount and deposits it to the relevant account.
What I have learned from the Research
A thing that I have learnt from my research is that ETFs could be a low-cost way to develop an investments or gain focused publicity to a particular sector. Buying shares in ETFs is significantly less expensive than making an investment with most equity funds. ETF management expenses ratios (MERs) are generally well below 1%, especially in comparison to 1.5% to 3% for conventional index funds. Furthermore, stockbroking transactions will be charged on ETF money transfers, but the cash reserves from relatively low fund expenses can help mitigate these charges.
Another thing that I have learnt from the research study is that ETFs can be purchased and sold through ones disnat bank statement in the same way that stocks can. To illustrate the flexibility of ETFs over equity funds, consider the fact that I can place a pay period stop-loss command for an ETF and be confident that my position will be auctioned if my stop order is stimulated.
I have also learnt that when individuals buy ETFs, they know exactly what they are getting. Because most ETFs recreate fundamental metrics, their constituents are revealed on a daily basis. Classical equity funds, on the other hand, typically reveal their complete shareholding quarterly. Only when you can see what’s in the fund portfolio can you judge how intimately the financial adviser adheres to the bank’s goals and elegance.
Work cited
Alvarez, Fernando, and David Argente. “Consumer Surplus of Alternative Payment Methods: Paying Uber with Cash”. SSRN Electronic Journal, 2020. Elsevier BV, doi:10.2139/ssrn.3739633.
Liu, Weihua et al. “Pricing Decision with Conspicuous Customers: Quick Responses versus Value-Added Services”. International Journal of Production Research, vol 59, no. 6, 2020, pp. 1691-1713. Informa UK Limited, doi:10.1080/00207543.2020.1724341.
Radin, A.I. et al. “Issue of Radioactive Forest Fire Classification”. FORESTRY BULLETIN, vol 23, no. 132, 2019, pp. 107-114. Bauman Moscow State Technical University, doi: 10.18698/2542-1468-2019-2-107-114.
Shkvarchuk, Lyudmyla, and Rostyslav Slav’yuk. “Households’ Credit Demand: Main Trends and Characteristics for Ukraine”. Banks and Bank Systems, vol 16, no. 3, 2021, pp. 13-22. LLC CPC Business Perspectives, doi:10.21511/bbs.16 (3).2021.02.
Business Decision Making Essay Example
Introduction
DD plc is a vegetarian food production firm based in the United Kingdom and portions of Europe. This essay will examine how DD plc will decide between two business ideas. Furthermore, the company’s strategic management will spend money in one of two initiatives that will produce either smoothies or nondiary milk. The article will focus on the business decisions made for two projects through the use of investment assessment methodologies. Furthermore, this article depicts financial and non-financial aspects that might aid in decision-making.
Decision-making
Every leader has his or her unique leadership style. It is critical to make judgments based on your own preferences and leadership style as much as feasible. Nevertheless, you must strike a balance between your personality and the interests of your employees. If you have an autocratic management style, for example, you must balance your personal independence in decision-making with your workers’ desire to contribute. A more approachable leadership style can help you engage staff, yet you may need to act independently when time is of the essence in a decision (Alyammahi et al., 2020).
You must also consider the influence of your actions on your staff and the overall ambiance of your firm. If you decide to reduce benefits in order to reduce human resource expenses, for example, you may achieve your cost-cutting aims while risking alienating personnel. Employees who are happy and positive are typically more useful in the long run than the few bucks saved by overzealous cost management. Every action a manager takes should take into account the impact it will have on staff.
The financial repercussions of a choice can weigh heavily on a management. Essentially, each choice taken by a for-profit management must consider whether the ultimate outcome is a gain in revenue or a decrease in expenditures. Even if a firm chooses to act responsibly in terms of the environment, this option may result in short-term expenses but long-term rewards in terms of public image. Expansion of a business or product, product development, sales, and service operations all require expenditures with the expectation of a return (De Smidt and Botzen, 2018).
The decision-making process may be described as the many stages performed by the company’s managers to choose the best choice or courses of action to suit their business requirements. Furthermore, the decision-making process entails identifying the goals, gathering the relevant information, assessing the risks involved, and then implementing the appropriate strategy. The payback period may be defined as the amount of time it takes an investor to repay the original cost of a project. Furthermore, when long-term cash flows are difficult to anticipate, the payback time must be calculated. A short payback time is regarded favorable since it assures that the risk of investment is limited to the original expense. The payback period for DD plc’s proposed projects A and B is determined here (Hassannezhad et al., 2019).
Project A’s payback time is calculated as follows
Table 1: shows project A’s payback period (source, self-generated).
The formula for calculating the payback period for project=
Where,
A implies amount for last year
D implies the last negative amount
E implies net cash inflows
Therefore, 2nd year + (8000/82000) x 12
Or, 2nd year + 1.17 months is the payback period for project A
Calculation of payback period for project B
Table 2: shows project B’s payback period (source. Self-generated).
The formula for the calculation of payback period for project =
Where,
A implies amount for the last year
D implies the last negative amount
E implies net cash inflows
Therefore, 2nd year+ (11000/97000) x12
Or, 2nd year + 1.36 months is the payback period for project B.
Net present value (NPV) can be defined as the present value of future net cash flows divided by the invested amount. Furthermore, NPV analyzes a company’s investment in a new initiative. The NPV estimate for both projects for DD plc is presented below:
Calculation of net present value of project A
Table 3: shows net present value for project A (source, self-generated).
The formula for calculation of NPV = (P.V amount – Initial investment)
Where, P.V amount is £ 300,609.
Initial investment = £ 158,000.
Therefore, the NPV = (300,609 – 158,000) = £ 142,609.
By applying the formula, the NPV for project A will be £ 142,609.
Calculation of net present value of project B
Table 4: shows net present value of project B (source, self-generated).
The formula for calculating the NPV = (P.V amount – Initial investment)
Where, P.V amount = £ 308,417.
Initial investment= £ 155,000.
Therefore, the NPV = (308,417 – 155,000) = £ 153,417.
By applying the formula, the NPV for project B will be £ 153,417.
The managers of DD plc estimated the payback period in order to decide whether to spend money in a profitable project. The computation reveals that project A has a payback time of 2nd year + 1.17 months and project B has a payback period of 2nd year + 1.36 months. This indicates that DD plc should invest in project B since its payback period is shorter, requiring less time to repay the original cost of investment. Furthermore, the NPV of project A is £ 142,609, whereas that of project B is £ 153,417. It is recommended that DD plc select project B based on the NPV calculations since it delivers an accurate result that will aid in making proper judgments. It will be more profitable for DD plc since it will give the firm with a better return on investment (Metcalf et al., 2019).
DD plc must investigate the financial and non-financial aspects that influence a company’s profitability and aid in decision making. The financial variables, such as investment return, are critical for the organization to consider. The project’s return on investment can help DD plc make appropriate judgments regarding whether the project will produce the required level of return. A cash flow statement is another financial component that assists a firm in making decisions by showing the proper amount of money moving into and out of the organization. The availability of resources, which is critical for decision making inside a corporation, is one of the non-financial elements that aid in decision making (Pranjić, 2018). The corporation may pick projects based on the resources it has available without spending any more money. Division of labor may aid in decision-making since assigning the appropriate task to the appropriate worker may also aid in enhancing the company’s production.
Conclusion
The paper has gone into great length over whether DD plc will invest in project A or project B. Based on the payback period and net present value, DD plc has opted to invest in a viable approach that will increase the company’s profitability. Furthermore, this essay has persuaded DD plc to engage in project B because it has proven to be more practical and beneficial for the corporation. The article emphasizes the financial and non-financial variables that aid the firm in its decision-making process.
References
Alyammahi, A., Alshurideh, M., Kurdi, B. A., and Salloum, S. A. (2020, October). The impacts of communication ethics on workplace decision making and productivity. In International conference on advanced intelligent systems and informatics (pp. 488-500). Springer, Cham.
De Smidt, G., and Botzen, W. (2018). Perceptions of corporate cyber risks and insurance decision-making. The Geneva Papers on Risk and Insurance-Issues and Practice, 43(2), 239-274.
Hassannezhad, M., Cassidy, S., and Clarkson, P. J. (2019). Connectivity as the capacity to improve an organization’s decision-making. Procedia CIRP, 84, 231-238.
Metcalf, L., Askay, D. A., and Rosenberg, L. B. (2019). Keeping humans in the loop: pooling knowledge through artificial swarm intelligence to improve business decision making. California Management Review, 61(4), 84-109.
Pranjić, G. (2018). Decision making process in the business intelligence 3.0 context. Ekonomska misao i praksa, (2), 603-619.
Event Planning, Coordination And Photography Enterprise Free Essay
Background
In the modern world, events such as weddings, graduation ceremonies, birthday parties, baby showers, corporate meetings, award ceremonies, auditions, etc., have become a significant part of human life. However, these moments are quickly forgotten, and eventually, people can no longer connect with their past or are disappointed due to poor planning and coordination of these events. It is a service business that looks to solve these problems by enhancing a smooth flow of the event procedures. The firm also focuses on helping our consumers; build a connection with these incredible experiences that will evoke emotions and aid them to self-reflect, communicate, and document them for future review. The business will have three roles to play in the market. First, the firm understands that sufficient planning is vital for the success of an event and the reputation of the owner. Therefore, it will be involved in the initial idea generation of the event and the timetable to be followed for our clients. Secondly, the firm will be responsible for oversight the operations involved during the event, such as vendors, decorations, etc., to ensure that it is a success and safeguard the reputation of our consumers. Lastly, the firm’s team will take professional photography for these personal and public events. It will also exploit other business opportunities, including inventory photography, branding photos on mugs and plates, portrait photography, and finally, provide services for real estate advertisement.
SWOT Analysis (Strength, Weaknesses, Opportunity, Threats)
Phadermrod et al. (2019) state that SWOT analysis fosters a better comprehension of the internal (Micro) and external (Macro) business environment, which aids the firm in making better decisions that will impact its market performance and improve its position. The firm’s strengths include the diversification of services; they include planning and coordinating event services professional photography at different levels of the market niche. Additionally, the firm possesses a strong, innovative, highly adaptable, and decisive leadership that will propel its sales and reputation in the industry to higher levels. Further, the ability of the firm to scale its sustainability in the market by aligning its resources to last longer in the market is a strength. On the other hand, the firm lacks adequate capital, which will help purchase company assets such as quality cameras and renting strategic space for business operations. Business opportunities allow the firm to grow and expand its consumer base faster, thus boosting its productivity. The firm’s opportunity is presented by the increased real estate advertisement and social events in the United States that require competent event planners and coordinators alongside professional photographers for quality images. The firm is faced with a threat from competitors of the existing brands with an established consumer base, such as Augusta Cole and David Stark, which are well-known brands across the U.S.
Ansoff’s Matrix
According to Loredana (2017), this matrix presents an opportunity for new firms to analyze the strategies that benefit them to reduce their business risks in the market, also known as an expansion grid. The matrix comprises of market penetration, product development, market development, and diversification. The management will maximize social media strategy to increase the firm’s sales, using influencer marketing and micro-influencer, such as Zendaya, and viral marketing as market penetration strategies. To introduce the firm’s product in the market, the firm focuses on providing differentiated quality services for our consumers at a low cost, personal selling, exhibitions, and free shows. For market development, the firm has leveraged market segmentation and PEST analysis to identify the various geographical locations and markets in the U.S., presenting the best opportunity to start and run. Using the eCommerce platform direct sales, the firm will develop its consumer base and market share. Florida presents an excellent geographical market that the firm can enter. Finally, the firm has ventured into different and related streams of services to offer to the consumers. They include event planning and coordination, real estate advertisements services, branding of utensils and designing, inventory photography, etc. The firm understands that diversification will allow multiple revenue streams and a channel to build a tremendous brand image in the industry.
Ideal Marketing Mix
This service firm provides intangible valuable products to the consumers in the general public and private businesses. Services are produced and consumed at the same time. Lahtinen et al. (2020) mention that for a service industry, the ideal marketing mix consists of 7Ps because it bears distinct features from a tangible product industry. The 7Ps include price, place, promotion, process, physical evidence, people, and product. The enterprise will be dealing with images for commercial sale under inventory photography. These images are meant to take our consumers on a visual journey with quality photos to inspire and engage our audience.
Additionally, the firm will be providing event planning and coordination services for handling the entire scope of an event. This service includes conducting research, designing the event, finding the venue, food arrangement, decorations, entertainment planning, transportation, and sending invitation cards to the attendees. The firm will provide value for our consumer’s money by producing quality service. Our pricing policy will be transparent based on the quality and the effort applied in delivering the service. The firm values its consumers, and they have placed its interests at the center of its operations; therefore, in promoting the firm’s products, the following procedures are used, advertisements, sales promotions, eCommerce channels, and word of mouth. For product distribution, unlike goods, services cannot be stored or transported; however, the firm will use electronic media such as smartphone devices, social media marketing, business cards, magazines to target more specific audience, promotional gifts such as free event planning and coordination to our first five clients to invite referrals and build a brand image. People are significant in marketing mix strategy. The firm plans to put the right people in the right job. The firm’s service team will include; technical support, consumer service, event coordinator, and professional photographers. Our physical evidence will incorporate the branded utensils, the real estate advertisement videos, the stock inventory, and the consumer’s referrals. Lastly, the firm will repeatedly deliver high-quality services to our consumers through processes that will save time and capital by increasing or improving efficiency.
References
Lahtinen, V., Dietrich, T., & Rundle-Thiele, S. (2020). Long live the marketing mix. Testing the effectiveness of the commercial marketing mix in a social marketing context. Journal of Social Marketing.
Loredana, E. M. (2017). The use of Ansoff matrix in the field of business. Annals-Economy Series, 2, 141-149.
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.