Sample Management Essay on DIY Toys Business Plan

DIY Toys Business Plan

Part A: Human Resources and Labour Relations

Position Descriptions for the Top Three Jobs

The Chief Executive Officer (CEO)

The top three positions at DIY Toys will be the chief executive officer (CEO), the factory manager, and the merchandise manager. For someone to qualify for the position of CEO at DIY Toys, he or she must have at least an undergraduate degree in a business-related program. Additionally, the person will need to have at least five years of management experience. Management experience in the Canadian Toys industry will be an added advantage. Moreover, candidates for this position will be screened for the skills needed to do the job, such as communication, interpersonal, problem-solving, delegation, conflict resolution, team management, networking, budgeting, and analytical skills. The company will look for traits such as flexibility, being result-oriented, integrity, innovativeness, ability to self-motivate, foresightedness, and humility in all the candidates for this position.

The roles and responsibilities of the CEO will be overseeing and leading the formulation and implementation of strategies for the organization.  This person will be required to refer to the organization’s strategic plans to play an oversight role to make sure that all the functions within the firm serve their purposes.  Furthermore, all the managers at the function levels will report to the CEO, and they will be charged with the responsibility of being the final determinant of the course of the organization through the application of the second level of decision-making. They will be expected to step in at a time of crisis and conflict to make sure that decisive approaches in search of normalcy are made. The CEO will be the chief controller of the organization’s budgets. Additionally, CEOs usually evaluate the operations of the enterprise and work with lower-level managers to identify improvement possibilities (Chen, 2016). The company will expect the same of its potential CEO.

Factory Manager      

The factory manager position has some qualifications. The needed academic credential for the position is at least an undergraduate degree in business administration, logistics, industrial management, or other related degrees. The applicants need to have at least two years of experience in undertaking leadership roles associated with the position of factory manager. The key skills that the factor manager would need to have include communication, interpersonal, project management, organizational, conflict management, delegation, problem-solving, analytical, IT skills, process management, and schedule management skills. Moreover, the corporation will look for traits such as self-discipline, confidence, integrity, diligence, time consciousness, and flexibility.

The role that the factory manager will play in the organization is controlling and supervising the production processes. The person will be anticipated to plan and organize the production schedules at the organization and assess resource requirements and any possible changes and engage the CEO in decisions making on any possible changes. He or she will also be expected to estimate and manage the budget and schedules associated with the production processes. Besides, the factory managers will have the responsibility of ensuring the safety of every employee working at the organization’s factory. With consultation with the CEO, the factory manager will come up with quality control standards to be used in production. Lastly, the person will also inform the CEO and suppliers about any possible changes in schedules.

Merchandise manager

The next position is a merchandise manager, and this role comes with myriad demands and responsibilities. The education qualification for the position will be at least a bachelors’ degree in a business-related program. Additionally, the merchandise manager must comprehend how the toy market in Canada works. The skills that will be relevant for a person in this position are communication, interpersonal, analytical, organizational, market study, setting and management of sales goals, and logistics management skills. On the other hand, the necessary characteristics include integrity, diligence, flexibility, innovativeness, open-mindedness, and foresightedness.

The responsibilities of the merchandize manager will include keeping watch over the company’s inventory and engaging the CEO in the interpretation of sales data in creating an understanding of the needs of the market. The merchandise manager will be charged with the responsibility of managing the retail space to maximize the profitability of the company’s core products. The merchandise manager will be expected to undertake demographic studies that will be used in guiding the company’s marketing strategies.

The Strategies for Fulfilling All of the Critical Functions

I will rely on people that I have known for a considerably long time to make sure that the critical positions at DIY Toys are filled with the right set of individuals, and I will prioritize abilities over any other factors. I prefer not to hire people by virtue of them being family members because depending on them could lead to various challenges, for instance, not having the best workforce that the market can offer, unnecessary conflicts, and failing to perform roles and expecting no reprimand, among others. However, I will depend on family members, friends, and acquaintances for recommendations. The recommended individuals would be scanned to determine whether they have the required qualification, skills, and attitudes to drive the enterprise towards the achievement of its goals.

At the start-up level, the contracting of virtual employees will be restricted to certain functions. For instance, it can be beneficial to work with virtual employees for designing products. Using virtual employees will increase the pool from which the enterprise secures innovative design ideas. Otherwise, the firm will rely on employees who will be physically available because most of the processes require physical presence.

The corporation will take advantage associated with full-time and part-time employees by using a hybrid system. Part-time employees bring some advantages. For instance, they enable companies to reduce the total human resources budget (Cassidy & Parsons, 2017). Part-time employees will allow the corporation to use agile strategic approaches since they will only be needed to meet the strategic goals of the company. An agile strategic approach, in this context, refers to using different products and operational strategies based on circumstantial demands. Indeed, a start-up can afford part-time employees but cannot afford full-time ones. For instance, instead of hiring a full-time IT system security expert, who is expensive, the corporation can contract a short-term one, who is cheaper, and still access the best service. However, the use of part-time employees will be restricted to non-essential positions. Full-time employees would be needed for the vital services for forsake of stability. Essentially, the permanent staff will be employed in manufacturing, merchandising, human resource management, and sales functions.

The core functions that will need to be fulfilled for the company to be successful include manufacturing, human resource management, sales management, and procurement. Manufacturing will enable DIY Toys to do more than just selling as it will be able to the corporation to produce its own toys. Human resources management will give DIY Toys an avenue for impacting the performances of their employees and, ultimately, the experience of customers.  Sales management will ensure that the organization meets its sales goals. Procurement and supply will facilitate sourcing for finished products and raw materials.

The Management and Union Strategies for Dealing with Conflict

As far as conflict management is concerned, the company will take the collaborative approach. The method is characterized by processes that are aimed at finding common grounds such that all the involved parties benefit (Bukhari, 2016). Therefore, the strategic goal of the management team when it comes to conflict resolution will be to try to come to mutually beneficial conclusions, which is possible by taking the needs of all the involved parties into consideration. Indeed, the collaborative approach will play a vital role in managing conflict between the management and labor unions. Despite the commonness of goals, conflicts might arise between the management and the labor unions. The manager will make sure that consultations regarding how to resolve conflicts are made when conflicts between the management and employees arise.

Part B: Marketing—Organization’s customers

Demographic

Indeed, the toys will be meant for a specific demographic. Children of all ages use different types of toys; therefore, it is the responsibility of DIY Toys to make sure that it targets the right age group. The company will target children aged between 2 years and six years. The market strategy that DIY Toys will use will not be gender-sensitive because both girls and boys use DIY toys. However, a distinction between products and brands that target boys and the ones that target girls will be made because the genders prefer distinct toys. Moreover, DIY Toys will target urban middle-class families, especially the ones that frequent shopping malls. DIY Toys will use a marketing strategy that will reflect the ethnic diversity that is observed in the Canadian population. Canada has one of the most diverse populations in the world (International Test Commission, ITC). Therefore, having a marketing strategy that is anchored on diversity would increase the chances of success for DIY Toys. Given that parents are likely to be the decision-makers, the company will position its self as a provider of toys that are of educational value to children. Such an approach will enable the company to attract educated parents who are likely to be concerned about the psychomotor development of their children. Moreover, the corporation intends to produce the best quality that the market can offer, which is likely to attract the middle class and the rich families within Richmond. The mentioned classes are likely to be willing to pay for quality as long as the firms create a reputation for selling only high-quality toys.

Geographic

Being a brick and mortar toy store that is located in Richmond in British Columbia, Canada, the geographical target of the business will be Richmond and its environs. Being centrally located would increase the possibility of the store being accessed by people living all the parts of the city of Richmond. DIY Toys could target various segments. It could opt for areas with dense residential populations and those with a high level of commercial activities. Opting for the areas with a high density of residence would be more beneficial based on an understanding of the factors that are used to determine the attractiveness of a shopping location (Khanna & Seth, 2018). Indeed, it would be convenient for the store to be positioned as a place for families to come and spend time while they seek to find their children the most appropriate toys. The road network in Richmond makes it easier for most of the locations to be accessed. However, being located along one of the major roads would enhance the visibility and accessibility of the business by both customers and employees.

 

Figure 1. Map or Richmond (sourced from http://www.destination360.com/north-america/canada/british-columbia/richmond/ramada-limited-vancouver-airport/hotel-map)

Psychographic

DIY Toys targets children who have high levels of curiosity and love for trying out new things. The corporation will attract children who are seeking adventures by availing of DIY toys that are aimed at giving them a chance to build their own toys. From a lifestyle point of view, the company targets families that allow their children time to play and explore by themselves. Furthermore, the company aims at attracting parents with positive attitudes towards the psychomotor experiences that are brought about by DIY toys. Parents with a negative attitude towards the use of smartphones and other digital devices by children are also likely to find the concept of this business interesting.

Volume

The DIY toy buyers can be categorized into either retail or wholesale buyers. The company targets both wholesale and retail buyers. However, the primary target of the company is families that seek to buy toys in small units. Such a decision is based on the fact that brick-and-mortar outlets are still relevant in the Canadian toy industry. The company will target frequent buyers, who, in this context, are parents with children aged between 3 and 6 years.

Benefit

Children seek distinct experiences from different toys. The benefits that DIY Toys seek to offer its customers is adventure and choice. Therefore, it will target buyers who are interested in more than just one type of toy. Unlike adults, children tend to lose interest in new acquisitions at a rate that can be considered to be relatively fast. Therefore, the company focuses on giving diverse experiences with a focus on sources of variability such as shape, color, size, use, design, and brand. The idea is to ensure that every customer would get a toy of their preference. As far as the provision of a variety of toys is concerned, the store will also take into consideration the need to make sure that shelf arrangement and sectioning of the floor allows finding it easy to locate the products that they need. As much as the corporation will endeavor to provide the provision of safe and quality toys, the focus will also be on making sure that the shopping experience leads to convincing to the shoppers.

Part C: Marketing—Product, Price, Place, and Promotion

Product and the Strategies

The corporation will sell a variety of DIY toys, including ragdolls, toy cars, face masks, helicopters, zappy zoomers, kites, art spinners DIY geoboards, jigsaw puzzles, among others. There are various established DIY toy sellers in Richmond; therefore, the corporation intends to use customer experience as a tool for differentiation.

How DIY Toys Will Obtain a Consumer-Perceivable Competitive Advantage

Moreover, the enterprise will ensure sure that it stocks the best quality. The attendants wear bodysuits that have animated illustrations of dinosaurs among other animals and some of the popular cartoon characters, such as Mickey Mouse, so that children will get the impression that they are interacting with their favorite cartoon personalities. Such an impression will increase loyalty among children.

Price

The corporation will endeavor to provide quality DIY toys and experiences that customers cannot get elsewhere. Therefore, the enterprise will not use pricing as a source of competitive advantage. Instead, a premium pricing approach will be utilized because it will give us the opportunity and ability to focus on delivering our promise of quality toys and unique experiences.  Furthermore, premium pricing will also emphasize the value that DIY Toys want to be associated with DIY Toys as a brand.

Distribution Channels

Apart from making sure that the store is strategically located, the enterprise also invests in e-commerce. E-commerce has become a common tool that business organizations in retail sectors use to increase the population size that they can potentially serve (Jimenez, Valdes & Salinas, 2019). By engaging in online sales and doorstep deliveries, the firm will diversify the experiences of the customers. Not all parents who wish to buy quality toys for their children might have the time and ability to visit the store and buy the toys of their stores. Therefore, the investment in e-commerce would be aimed at making sure that the firm can serve all types of customers. As far as the store sales are concerned, the company will invest in making sure that DIY Toys have all the popular toy brands and types at the store. This way, the firm will ensure that customers will have a toy of their choice whenever they want to.

Services

DIY Toys will make sure that employees have effective communication and interpersonal skills. DIY Toys will have a culture that is based on putting the customers first. The interior of the store will be designed colorfully to create a warm feeling for customers while they are at the store.

 

Promotional Campaign

Using a memorable theme based on the message of where to get the best toys would help in increasing the number of targeted individuals who will know about DIY Toys at the initial stages. At the onset of the business, the company will also invest in sales promotion activities to increase the traffic of customers into DIY Toys stores. Such a firm can also offer loyalty points as a way of increasing the number of returning customers, as per Rao and Kotianv (2018). All the approaches mentioned herein will be aimed at making sure that DIY Toys increase brand awareness, especially during the initial stages of the business.

The Promotional Mix

The internet will be the primary promotion platform. Facebook, Instagram, Twitter, and YouTube accounts will be used to enhance communications without a target market. The enterprise will also spend money on magazine adverts with the preferred platform being family and parenting magazines because they would enhance the possibility of reaching out to parents with children of the age that the company targets. TV adverts will also be broadcast during the hours that children’s content is aired or on TV stations. This avenue will enhance the corporation’s ability to popularize itself among children.

Part D: Production, and Operations

Production Process

As much as the corporation will be involved in the production, a majority of the toys that DIY Toys will sell will have to be sourced from local and international producers. That way, the customers can be assured of both quality and variety because DIY Toys will not be limited to the local markets when it comes to sourcing quality products. The firm will research the most popular and trusted brands before making decisions on which of the brands to stock most.

Site Selection and Facility layout

Moreover, the store will be strategically located near Richmond Centre to enhance accessibility, and the physical facility will be characterized by a spacious floor arrangement to facilitate movement. The products would be arranged into sections depending on types and be divided into two wings. One wing will have toys for boys while the other will hold girls’ toys.

Resource Planning

Among the resource that would be needed are human resources, stock supplies, and interior design materials. The human resource department will be responsible for the recruitment of employees while the interior design work will be outsourced to a local interior design specialist.

Communications

For communication, a local system development company that will develop an integrated communication system for use will be contracted. The integrated system will be used for monitoring sales and supplies. The firm will also make sure that online communication and customer service endeavors are well integrated to enhance the quality of experience that our customers will get.

References

Bukhari, S. S. H. (2016). Managing Kashmir Conflict: A Collaborative Approach. Journal of the research society of Pakistan, 53(1).

Cassidy, N., & Parsons, S. (2017). The rising share of part-time employment. RBA Bulletin, September, 19-26.

Chen, H. M., & Chung, H. M. (2016). How to measure personal brand of a business CEO. Journal of Human Resource and Sustainability Studies, 4(04), 305.

International Test Commission (ITC). (2019). ITC guidelines for the large-scale assessment of linguistically and culturally diverse populations. International Journal of Testing, 19(4), 301-336.

Jimenez, D., Valdes, S., & Salinas, M. (2019). Popularity comparison between e-commerce and traditional retail business. International Journal of Technology for Business, 1(1), 10-16.

Khanna, P., & Seth, S. (2018). Expectations of Retailers: An Empirical Investigation of Malls in Tier II Cities. IUP Journal of Marketing Management, 17(4), 7.

Rao, D., & Kotian, R. R. (2018). The impact of loyalty cards in retaining customers: A study with reference to mega mart retail outlet in mangalore city. Anveshana, 8(1), 103-124.