Jon Caldwell asked:
In any part of the world, engaging in business ventures to participate in the ever growing number of players who want to make their mark in the business sectors will be one aspect that needs to be carefully studied. Key aspects that include the industry that anyone is planning to penetrate, the target market and the potential buying behavior of the consumer market are only some of the factors for consideration. A thorough study of the entire matter needs to be evaluated. It is not merely a venture wherein people can simply decide to put up a business and offer a service or good. Nor is it a matter of hiring the best marketing and sales people available today to ensure a successful business venture.
A business venture entails a lot of research work to be done. It needs consideration such as currency, basic necessities, affordability and brand familiarity. It is never simply about what the management team of a company that complete the whole business mix has. The need to also consider factors as actual consumer demands, the need for substitutes for a wider selection of variants and brands is what most consumers in the market today would look at and such is something that should be considered by would be entrepreneurs and business groups.
Such are points for consideration being taken into consideration in the overall evaluation and management process for Chin Chin products that are distributed today. The demand for products in areas such as Canada, the United States and the Philippines vary in nature, especially in terms of demand. Cultural familiarity and actual needs of consumers in the regions need to be carefully analyzed. It is not merely a question of trial and error. It is identifying what a consumer wants and would purchase for a specific price. While some would disregard this consideration, it is a step towards business disaster and corporate downfall. In any business planning ordeal, the key factor of targeting the right consumer market, assessing the volume of demand and supply and focusing on the actual goods that have potential that will surely be key indicators for successful business ventures.
The price at which people pay for a certain commodity or good would depend on the overall quality of products offered in the market today. This can range from basic needs to lofty paraphernalia that most people feel to be more of a vice rather than a need. Based on the belief using Maslow’s Hierarchy of Needs, people have changed to total viewpoint when it comes to detailing what the important needs of survival are today.
For people who are not adept in understanding the whole business methodology, there should be something more than just plain reference towards the financial statements of a company such as the Balance Sheet, Income Statement and the Cash Flows. People need to also consider the overall operations, the level of investments made and the paid-up capital before they would start bellyaching about poor corporate performance.
The operations aspect of companies should be taken into account. It is not merely relying on revenues and expenses and not overseeing what the company’s actual operations are. Administration is one thing and operations is another, and both must be addressed to have a fully operating business.
The need for broader analysis and understanding of such cases is a must. Top managers cannot simply judge from what they hear. They should be able to learn how to properly evaluate a business and financial statements do not show the entire business operations of a company.