|Type of paper:||Critical thinking|
Costa, an agricultural company, dealing with fruits and vegetables, proposes to expand its operation to include aspects of tourism. The business proposal is about diversifying the venture into a new sector, agritourism. The new business is meant to provide agricultural information about the growing and the supply of fruits and vegetables while at the same time offer facilities for an entertaining and a tourist-like experience for its clients. Some of the products and services it offers include Agri-accommodation, agri-recreation and activities, direct-sales, horticultural therapy and provision of platforms for hosting events. With farms in Tumbarumba and Corindi, the company enjoys an all year round supply of farm produce. The new venture intends to take advantage of both the local tourists and the international tourists who visit Australia on a monthly and yearly basis. Other than the competitive advantage and effective marketing strategy, the organization structure and the operational bases in every major city makes the proposed diversification very feasible and lucrative.
Being a new player in the agritourism sector, the business idea proposes effective market research that would help the company familiarize with the new industry. In order to determine the feasibility of the idea, an analysis of the market situation is required. This entails the determination of the current situation of the market in terms of the available gap, the competitors in addition to the market trend. For me, the most significant part of market research is the analysis of the current business environment, both macro, and microenvironment, in relation to that of its competitors. In addition to that, previous, current and future trends should be reviewed in order to come up with an effective market strategy. Furthermore, I believe that an analysis of the target market in terms of the clients, which include the local and international customers, would help in the development of a perfect advertisement and sales strategy.
The business proposal discusses the various competitive advantages that Costa has against their competitors. Although facing stiff competition from other market players who include Australian Farm Tourism, Bilpin Springs Lodge, and Middlebrooks Station, the company possesses an upper edge in various aspects. The availability of multiple growing locations will help the company to distribute its products to a wider market easily. Aside from that, if one location is affected, the operation on the other would allow for the continuation of the business. Secondly, the ability of Costa to supply products all year round also ensures that the venture can serve its client throughout all seasons. Plus, the different of variety of high-quality products also enables the company to offer a more in-depth education and agritourism experience. Unlike previously, when the company used to acquire its revenue from only selling its farm produce, I think that the optimization of this competitive advantages would significantly increase their revenue and thus ensure the success of the new venture.
According to me, relying on the competitive advantages is not enough; an effective marketing analysis and pricing strategy are important elements that would ensure that Costa has fully diversified its operations into the new market. As stipulated by the Porter Force Model, any organization should put into account the threat of new entry, the threat of substitution, supplier power and competitive rivalry to be successful. Therefore, the analysis of the current market to identify fellow farm tourism that offers similar services and the target market is meant to help the organization to come up with the possible market solutions that would help avert any threat in the industry. Aside from that, I feel that the adoption of penetration pricing can help the company reach a wider client base. At the moment, I believe that the current market giants are attempting to protect their market base. However, pricing products lower than our competitors' will appeal to the consumers. Alternatively, market penetration may be achieved by budget more on sales and advertisement.
For me, the most relevant aspect of the organizational structure is the management team. The organization uses a general manager, who is responsible for the top-level management, and operational managers who aid in running the day-to-day activities in the various departments (hospitality and tour). The team fits well with the current business operation of Costa. Equally, the payment of salaries depending on the hierarchy is an effective move that, in my opinion, would help encourage the staff to work harder since any recognition and promotion would amount to financial benefits. Furthermore, I think that the evaluation of employees in relation to their performance and the provision of bonus to top performance in a classic move that would ensure that the organization gets the most out of its team. Alternatively, the firm can adopt the employee of the month award to help motivate its team even further.
Finally, I think that the operation structure of Costa is very effective. Being a new player in the industry, the company opens up sales offices in the major city to enable it to carry out an efficient business. This is effective especially as it helps in advertising the organization to its target client. Besides, having multiple locations in the country, the numerous centers aid in the distribution process in addition to helping the clients solicit accommodation and information about their farms. Unlike the rest of the agritourism providers, the company's country-wide outreach will help them reach new markets. In addition, the business operation is very compatible with the current organizational structures.
Having analyzed the business proposal, I believe that it is a feasible venture. The company has numerous competitive advantage that would help it fare on well against its stiffest competitors. Besides, the effective market study will assist the company in being fully adopted into the industry. The market analysis, the strategy in addition to pricing and advertisement are all ideas that if actualized properly, will make the organization a successfully diversify into the new market. Aside from the abovementioned factors, I believe that the microenvironment elements which include the organizational and operational structure are deemed to succeed. The major income from the peak seasons in addition to supplementary revenues in low seasons will support the continuous growth of the company. Based on the business proposal, the company can achieve the status of being the biggest market player in this industry in the near future. The wide arrays of products and services being provided by the company are both an excellent source of income in addition to serving as a platform for teaching client about the numerous aspects of fruits and vegetable farming. In my opinion, I believe that the adoption of this proposal will significantly improve the performance of Costa.
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Critical Thinking Essay Example: A Reflection on a Business Proposal. (2022, Jun 10). Retrieved from https://speedypaper.com/essays/critical-thinking-essay-example-a-reflection-on-a-business-proposal
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