|Type of paper:||Essay|
|Categories:||Planning Project management Sales Microeconomics|
Nordstrom Inc company has been used for this investment project. It is a retail corporation located in North America and has been operating for several decades. It is a popular company because it has been providing products and services of very high quality, which have thus enormously convinced its customers (Bailey, 2015). It has furthermore made its customers enjoy a great advantage from the capability of the company that ensures they are receiving any product or service irrespective of where they are located or time. The chief objective of the company in the future has been future expanding its business nationwide. To do so, the company has strategized to use an innovative sales division that it has delineated as the Nordstrom Rock off-sales platform. It is a new system that is fully focused on the choices of the customer in diverse prices of products and services existing, which has aided the company to have more customer loyalty in innumerable ways and has an estimated annual revenue of $1.2 billion (Jack, 2017).
The investment plan project is fully focused in a retail company that deals in personalizing numerous assortments of footwear and how they can be newly made, prepared, and fashioned at home as well as in the workplace. The investment plan is fully dedicated in realizing considerable levels of supplies by supplying high-quality products for esteemed customers (Creutzfeldt et al., 2019). The investment plan will entail expanding its sales to another country, preferably India. The analysis concerning the expansion issue reveals that the company will be able to achieve these goals since it has promising sales plans together with engaging E-commerce tactics. From the time the company ventured into the Canadian market, there is a significant rise in the profit at an alarming rate. Thus, if the company's business operations are expanded in countries like India, then it will be a crucial chance of growing the firm to a global level.
When Nordstrom grows, a serious challenge will be posted to various other e-commerce business competitors, thus expanding their entire coverage to attain more as well as having more and robust partnership with Nordstrom. To establish a firm foundation of productive collaboration with other firms that are in many locations, financing needs to be prioritized in supporting and supplementing the plans that are already laid. The expansion will ensure that the company's services and products get a wider global market. The majority of countries require investors, and India is not an exception. That assures that expanding Nordstrom retail services will give a better field of brand's constancy together with equipping the Indians with a more reliable investor. Also, there is market patentability in the country due to the high population growth together with increasing income rates for the individuals.
Long-Term funding is thus much essential for Nordstrom to create extensive and logistic networks. These funds are very helpful because they offer a backup in the attainment of revenue estimates. The funding will also aid the creation of an online shop to simplify the processes of the company in the new country and help in creating a logistics network by associated supplies in India. The estimated total cash flow of Nordstrom is $ 4.5 billion for the entire operation, thus worthy of enough support (Nordstrom, 2019).
Investment Project Resources
To facilitate the investment plan, the company will require an initial loan of $ 0.2 billion. The expected time for repaying the loan is five years. The funds will be used to undertake several tasks. Firstly, they will aid in purchasing the products like the machinery which will be used in the process of manufacturing various products. Secondly, the money will help to invest in advancing the technology and innovation of further technical products ensuring large production of products more effectively and efficiently. Thirdly, the funds will be used to hire highly qualified staff and a workforce that will enhance the production process of the products. A portion of the funds will also cover market research for the products that are purchased in hefty quantity. Still, the fund will help in purchasing the office paraphernalia together with supplies like additional computers, printers, and the internet.
All financial transactions will be entirely mandated to the management of several departments. Preferably, the obliged departments in the handling of the transactions include procurement, accounts, sales, and supplies. The expectations are that the accountant and the financial manager will be executing and determining all the costs records. The use of different financial metrics will measure the company's success. The variances in the realized profits in the long run after repaying the loans will be the main measure of company success. It will be comprised of how the products will be accepted in the place of expansion.
The project will further need some resources to ensure there is a smooth production process, comprising of the footwear products together with other hand-crafted stuff from different raw materials fabricators. Another crucial resource to be considered in the expansion process is human resources. In addition to the existing team, other human resources to be used in the entire expansion process include chief marketing officer who will be acquiescent and responsible in warranting that the business is able to sustain itself always while monitoring assets as well as the liabilities in the production projection of the company. The chief marketing officer will also be control of the overall monitoring of the activities of the company, which includes assessing different products for importation from different production places.
He will also be surveying every purchasing and marketing aspect of the products and establishing connections and associations with other cronies and transnational companies to realize international and global standards. The officer should have more than six years of experience in the marketing sector in an industrial footwear company, and have a degree in business administration, and the payment will be $40000 annually. The other human resource that will be needed is advisors who will help in making decisions in matters of company funds allocation. A designer will also be needed to help in branding as well as fashioning different wrapping types and crafted hampers in improving the gapes of the innovative modern fashion. Furthermore, the company will need part-time general assistants to assist in tasks like bookkeeping and maintaining records on procurements up to date. The payment will be approximately $20000 per year.
The estimated time to start the project is in five months period. The time is deemed realistic as there was a thorough assessment done by committee members regarding the aptness of the project. The project of investment had to undergo an approval process from some authorities like governmental personnel that deal with matters of trade and foreign agencies. The shareholders of the company have to check the review of the expansion project to approve and venture the objects that are needed in the company expansion.
The investment plan is projected to maintain a longer lifespan because there are strategies formulated strategies for maintaining the anticipation of the company. More than the prognoses of the marketing strategy meant to attract many customers in ensuring the permanence of the company, several explorations will be done contingent on the customer fluctuations in terms of tastes and preferences. Therefore, the company is predicted to succeed. Diversification will be deployed since it can create the grit of at a time there is stiff competition coming from its counterparts.
Economists have projected that the global economy is currently growing at a relatively slow rate. They further project that in the future, the growth rate will afterward increase. A few years ago, America articulated a stratagem of altering local retail stores into national stores resulting in many beneficiaries among them where the company. The development was facilitated possible by the manner clients expended products on global scales. Enhanced technology also frolicked a vital role in the same undertaking as well as over the E-commerce industry in general.
A small modification in the usual method and congregating exertions to product standing and expansion is a system anticipated to impact purchase pronouncements for Nordstrom Rack in inordinate specifics since its competitors have not yet ventured fully into the market using the marketing practice (Simons, 2016). While many strategies used are positioned on driving sales and maintaining customer loyalty, hoarding attention on operative product positioning is relatively useful and more beneficial with the anticipation that product delivery of the products will be enhanced by the augmented possibility of access together with recognition. Yet, the most imperative component has funding sources that can aid the entire expansion process.
From the figures, the Indian economy is continuously growing every day. Therefore, very soon, the entire citizens are going to be rich in discretionary funds to spend in purchasing products and services, which will probably upsurge their wage levels. The majority of developed states comprise of the middle or upper class of people as compared with India that is at the stage of growth and escalating its economy. As a result, this growth stage is a dazzling opportunity for Nordstrom Company to venture in and start investing as much as it can. Furthermore, since there are favorable trade procedures currently experienced athwart the border states, and instant implementation of the investment plan will be a crucial prognosis in the global framework. The tariffs, as well as the advancing foreign policy nature, will eventually overlay an unswerving route to instigate the plan.The investment proposal provides several effects that are either direct or indirect towards the company. The majority of the investments made depend on various factors that are considered within the stipulated time of the company. As a result of various whims, an individual in a corporation might be required to inflate the business or invest in the company stocks by the use of various approaches.
The investment plan outlined is strategically affiliated to the structural priorities together with the financial prospects. Various strategies have been executed over the year in helping to achieve company goals as well as to meet their priorities. Thus, the investment proposal is making sense strategically to the company through the following three components of strategic fit:
Organizational and financial priority: to be successful in the expansion of its retail business, Nordstrom has set financial priorities to adhere to its basic principles that aim to make India a strategic financial corporate platform when there is an expansion (Nordstrom, 2019). Going with a logistic perspective, the investment area in the country should be strategically positioned to facilitate access. The firm had a failing experience previously when it tried expansion in Canada. As a result, the company has set financial priorities by being more vigilant to circumvent possible occurrences in the future. As a result, the company very confident that the results from the Indian expansion that they have firstly prioritized will offer positive outcomes as expected.
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