Market Segmentation, Targeting, Ratio Analysis, And Operational Management

Market Segmentation

Market segmentation

It is the process of dividing a business market accompanied with existing and potential customers in the market. However, this strategy is used by corporation to provide different products and services to its clients. It is ideally related with dividing population in groups as per their certain choice of actions (Jabbour, et al. 2013).

The following table illustrates the market segmentation and targeting of Visavicjobs Ltd

Target marketing

It is the market or group of people for whom company manufactures its products. Target market of company varies with the size of market. However, company need to have large enough target market which can be used to draw a good amount of profit (Li, et al. 2013).

For example

A company in order to produce a determined products or services could select a group of people. This company may ask its selected group of clients to provide information regarding age, gender, education and employment status. By evaluating these information’s company could develop its products with a view to capture particular segment of clients (Altmann, et al. 2014).

Computation of ratio analysis

Liquidity ratio

It provide the ability of company to pay off its short term and long term debts debts.

Current ratio

This ratio reflects company’s ability to pay off its all debts with the help of current assets. In this case company has 1.11 current ratio which divulges that company has more current assets than its current liabilities. However, this company has good amount of current ratio which reflects that company is very efficient in paying off its debts.

Quick ratio

This ratio divulges company’s abilities to pay off its shorts term debts with the help of quick assets. Quick ratio of company is .87 which is also very good and provides that company is having good amount of quick assets in its business.

Working capital

This is amount of difference between company’s current assets and current liabilities. This is the amount of capital which company has engaged in its business functioning (Weygandt, et al. 2015).

Working capital = Current assets- Current liabilities

The case study has been depicting the strength and desire of Victoria in engaged in children health care business. Now with several factors company has been successful in archiving the set targets and goals in determined approach.

Factors that enable company to be successful

Targeting Clients

This business has been successful on the basic of following factors

• Children health care business was a niche market for Victoria and without any competition it indulged in providing offers and services.
• She was an experienced business woman who knows how to run business and her partner was also an experience player I finance field.
• Tax implication was very liberal on the company which increases its profit significantly.

Would company achieve its lofty targets?

With the effective business strategy and clear vision Victoria could easily achieve her target. In addition, Victoria’s business is easily getting capital and other resources without any difficulties. However, the economical factors and tax implication are very rigid which might results into accomplishment of set targets and goals for Victoria.

Anyone could start this type of business

It is observed that it is newly generated business idea which could be easily adopted by anyone for earning benefits. However, in order to achieve set goals and objective a business men needs to excel him in this field first. Victoria was running business of providing same services to school children. Therefore she was very prominent in providing children care activities for children at large. Now it would be easy to conclude that children health care business would result into tough competition in the market once it is disclosed to other entrepreneurs (Cheung, 2015).

Advisors for starting children health care business

• Financial advisors
• Heath care advisors
• Dietician
• Pediatrics
• Care taker advisors
• Baby sitters
• Law compliance officers

Operational management

 It refers to administration of business activities so that it could result into effective business functioning within organization. In simple words operation management is related with how organization converts its raw material and labor into finished goods and services for its clients.

In the video given we have considered how Emirates catering in airplane is being managed. It is the airline based in Dubai which provides valuable services to its passengers. The operational management of Emirates is very effective which manages all the needs and demand of more than 644 passengers daily. It is hard to fill the plan with required foods by its employees as it catering gate is very high from the floor. However, Emirates has been successful in managing its problems by deploying custom highly loaded machine with hydraulic pumps and its efficient staffs. It is also further evaluated that all the operational activities in business concerned with systematic plan and all employees are determined to deliver their work accordingly. All the works in Emirates has been distributed to employees as per their designations. There is different department such as storage department, administration department, security department and kitchen department. These departments have different working areas. Emirates despites its several problems provide breakfast, lunch and dinner by the clock to its clients. There are several automation machines and fridges which assist moving and storage of foods in its value chain activities. All the foods are managed to the best of its quality so that best level of services could be provided to its clients (Yu, et al. 2014).The most amazing thing which have been noticed in this video was its loading and unloading of foods in the plan by the complete collaboration of high tech machines and efficient working employees. In addition, the vast sophisticated network of emirates plan control or direct other the departmental functioning in disciplined manner. All caters put their best efforts to produce 20 million meals every day with their hands. It could be said that Emirates operation plan is accompanied with effective management of its employees and collaboration of machines at the same time. However, Emirates flying bird has record breaking capacity to fly in the sky up to 18 hours without filling its tanks with fuel. The operation plan Emirates divulges the example of discipline, collaboration, effectiveness and sophistication of work to handle all the problems in effective manner (Oakland, 2014).

Computation of Ratio Analysis

Now in the end it would be inferred that Emirates has been successful in its business functions due to its two quality

• Effective operation management
• Quality of staffs with sophisticated use of technology

 Employees are the backbone of company who make efforts to accomplish those set objectives. Therefore, it is required to align their interest with the development of organization in determined approach. It is observed that in order to align employee’s wealth with the development of company there are several options which could be adopted by company such as issues of employee stock options scheme, issues of bonus, providing incentives and rewards to employees (Cortazar, et al. 2014).

Profit sharing

Profit sharing is one of the motivational strategies which are used by top management to provide reward to company’s hard working employees.   In profit sharing strategy employees are also given partition in the amount of profit earned by company. In this strategy company surrender its part of profit share in its employee development funds. This fund is used to distribute bonus, incentive and development program of its employees.

If I would be working with Vacounver- based Purdy’s chocolate then the most admirable benefit were to be training and development program of employees. It is the most motivational development program.  This will not only contribute the success of organization but simultaneously will increase the value of employee in market.

How it helps employee in motivation

In profit sharing strategies employees are give option to share the profit earned by company. If Vacounver- based Purdy’s chocolate aligns the interest of employees with the development of its business then employees would give their best efforts. It would be obvious that if they are given return for their extraordinary efforts then it would surely result into employee motivation. In addition to this, as per the various researchers’ motivational theories such as Tylor, from reward system is the best motivational tool which pursues employees to put their best efforts in organization working system.

It would be true to say that the entire motivational program which is related with sharing profit with employees will result into increment of cost of value chain activities of Vacounver- based Purdy’s chocolate. However, it will help organization to grow at the same time by reducing its employee turnover cost and other training and development cost. It is further observed that if Vacounver- based Purdy’s chocolate satisfys need of employees then they would make extra efforts for the success of organization. There are various big companies such as Virgin media, Apple incorporation, ITC, Tata Consultancy and G.E. capital who have developed their business functioning as employee oriented business functions.

There are several reasons which results in business success despite several added cost in employee development.

• It increase company’s brand image.
• It increases the efficiency of employees in their working.
• It helps organization to align the interest of employees with business development
• By adopting these reward system in value chain activities, company could increase its productivity by two times better.

Karen’s approach

Karen is following a reward system approach for the development of business functioning. As per several researchers it is observed that reward system is the most motivational tool which increase turnover of the company and reduce the cost of operation in determined approach. Therefore, it would be said that Karen’s approach will be beneficial for all the employees as it will help all the business operation to align the interest of employee with the development of business (Jabbour, et al. 2013)

References

Altmann, S., Falk, A., Grunewald, A., & Huffman, D. (2014). Contractual incompleteness, unemployment, and labour market segmentation. The Review of Economic Studies, 81(1), 30-56.

Cheung, L. (2015). Feasibility and Cost Analysis of Composting Campus Dining Food Waste in Cal Poly’s Compost Facility.

Cortazar, P., Zhang, L., Untch, M., Mehta, K., Costantino, J. P., Wolmark, N., … & Swain, S. M. (2014). Pathological complete response and long-term clinical benefit in breast cancer: the CTNeoBC pooled analysis. The Lancet, 384(9938), 164-172.

Dolnicar, S., Grün, B., Leisch, F., & Schmidt, K. (2014). Required sample sizes for data-driven market segmentation analyses in tourism. Journal of Travel Research, 53(3), 296-306.

Jabbour, C. J. C., de Sousa Jabbour, A. B. L., Govindan, K., Teixeira, A. A., & de Souza Freitas, W. R. (2013). Environmental management and operational performance in automotive companies in Brazil: the role of human resource management and lean manufacturing. Journal of Cleaner Production, 47, 129-140.

Li, X. R., Meng, F., Uysal, M., & Mihalik, B. (2013). Understanding China’s long-haul outbound travel market: An overlapped segmentation approach. Journal of Business Research, 66(6), 786-793.

Oakland, J. S. (2014). Total quality management and operational excellence: text with cases. Routledge.

Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & Managerial Accounting. John Wiley & Sons.

Yu, W., Chavez, R., Feng, M., & Wiengarten, F. (2014). Integrated green supply chain management and operational performance. Supply Chain Management: An International Journal, 19(5/6), 683-696.

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