Life Cycle Stage
Essay by PeihsuanShih • May 13, 2014 • Essay • 1,397 Words (6 Pages) • 1,172 Views
1. Life Cycle Stage
I would like to say that Yosir was in the end of Collectivity Stage. Here are some claims to back up my sentence. Firstly, According to Daft (2013) mentioned that the company which in the end of Entrepreneurial Stage need to face the leadership crisis. In order to take control of more employees, company needs to have strong managers to take over the leadership. It means the central control for the business owner is going to share the decision-making power and the risks of decision with managers (Product Art, 2010). Yosir did go through the crisis when the president hired another manager to take control and tried to make changes with certain rules for the management such as sale's people will need to wear formal clothes and the weekly report must present in the meeting every Monday morning. Those changes did help to maintain the business running process, the communication between each department, and make Yosir grown to the Collectivity Stage.
Secondly, Deft (2013) explained that on the Collectivity Stage the organization might start to develop clear goal, as well as a clear direction made by the managers for the employees. Employees might feel better involved in the organization's growing and the goal that company is going to achieve. After the new managers came and made some changes, Yosir start to have a better goal. Even though it was not a big vision, but we had weekly and monthly goals for our sales in wholesale and retile business, the research for new target markets, and the new product line. Also, Yosir was starting to hire more employees with better arrangement of departments for bigger market and sales. Manager hired more workers in China for developing stronger purchase department in order to get more competitive product price.
Thirdly, an article (Zoltners, Sinha & Lorimer, 2006) noted that the new product innovation is also happen in this stage. In addition to the original single and narrow product line, the organization can start to expend the product line base the original product. Yosir started new product line in promotional product base on the E-commerce of old product line in cell phone accessories and the similar purchasing process. The only difference is the customization for promotional product.
Fourthly, the article also concluded (Zoltners, Sinha & Lorimer, 2006) that the target market expanded is necessary. Market growing can bring more sales to help continued growth but grow to the right size. In order to grow the market, a better sales strategy and plan need to be made immediately with good control of market size. Some of companies fail in this stage because of over growing without well strategy and plan to load the large order and customers. Yosir is the best example here. At the beginning, Yosir only focus on the US online market by selling the product on E-bay, Amazon, and our own website. Once the new manager came in with new rules and working process, he try to expand our market to worldwide with hasty strategy. Without well planning the process and underestimate the online purchasing power was the biggest mistake. There were several very huge orders that we haven't experience before and didn't even expect at the beginning of our worldwide expansion. So we actually delay to deliver the product and couldn't control the product quality well at that moment. So we did decrease our reputation.
2. Primary Goal
a. Primary Goal
The major goal for the Collectivity Stage is continued growth (Daft, 2013).
b.
Yes, as mentioned in Daft (2013) that Yosir's primary goal is keep growing. Internally, firstly Yosir started to hired more employees for handling larger purchasing amount in China. Also for the sales department in California, we hired more sales people for targeting more local distributors and retailers. Also, we outsourcing the financial specialist for manage our finance and account as Davidson (2009) noted that is required in this stage for company growth.
Secondly, for better management Yosir started to have more formal rules. According to Daft (2013) noted the structure of Collectivity Stage is still informal but with some procedures. As mentioned before we have weekly meeting for presenting our weekly work in order to communicate with different department, know about the company current situation in both China and California, find out some problem in the process earlier. Furthermore, although we still have flexible working hour, due to the better motivation from new manager employees are more spontaneity to stay little late to finish the work or arriving earlier to contact with the department in China.
Externally, we started to develop new online market worldwide and also expanded product line in order to target larger online markets. We start with researching more profitable and in trend products to fit the American customers interest. In order to get new wholesale customer, we stared local advertising by using the brochures and visiting the retail stores in big Los Angeles area. For the large online customers, we were using the E-mail marketing and having some promotional discount. For the old customers, we try to collect the customer information for the reward
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