The Kwaliteit Family Business

Published Date: 02 Nov 2017

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Executive Summary:

Kwaliteit Family Business- Dutch Company Based in Tilburg-Netherlands in 2002 Plan exporter-Buy and Sell also hire to local events.All operations are in Europe. In Dutch language Kwaliteit stand for best quality, Flora stands for plant life .International Micro Sized Company with Sales Turnover € 2 million

Company has large warehouse for storage of plants. Holds small portion of overall market possibility to increase its size each year 50%.Home country of company hold 17th largest economy in the world with £26,000 GDP per capita and ranks 10th in the world half of the national income are primarily in transportation, distribution and in financial areas. The Netherlands is the leading plant exporters to the EU and the world’s largest plant seed exporter. The Netherlands is the fifth largest consumer market for plants. To assist customers want better than a challenger is the real source of maintainable competitive advantage. The business idea gives different ways of business and it will be performed virtually and different tactics that will be applied in order to endure. Currently, Company is performing very well and it is growing well but the competition needs not to be undervalued. Marcus trusts in maintaining good relations with suppliers and customers. The case study tells about the policies of company and how they maintain customers and suppliers. The goal of Marcus is to keep good image in the market. The competition will be faced by well customer care. Efforts are still needed to keep developing the company.

Aims and objective:

The Kwaliteit Flora’s doing their business in different style ,Pioneering way of utilizing business intellect for the implementation of plants related business. There is a sector of market which needs and loves plant adornment for various events and this intact market segment needs to be discovered. This business idea will serve those customers and provide excellent customer service.

Business and product:

Kwaliteit flora is retailer business .company buy large amount of plant from farmers around the Europe and re sale to the retailers in the Europe and local customers. Company has small amount of market and it got more in the local market

Company need to adopt new way of technology like E-business and internet marketing to grow the business in their home country.

Internet Technology: Influence business

The Business needs to adopt resourceful and advanced way of utilizing business intelligence for the execution of its operations.

Internet Technology can provide "Influence" to the business because Internet will provide greater "reach" to the target market of the business.

Strategic Analysis-

Marcus and his wife succeeded to run the successfully business. Consequently in order to run the business for a long term. With a trade’s turnover of € 2 million and a rapid growth in the business, Marcus as a managing director of a company has took a responsibility to look over customer care and sales of the company.

SWOT Analysis:

Strength:

Popular and Profitable Business: Experienced/ Dedicated Management

Supplier Trust the Business and So do the Customers

No "agency problem" as owners are the managers of the business so no "Conflict of Interests"

Established Brand name in the local market and potential for growth

Weakness:

Management as well as employees have no experience of Information System and related operations

The business may run out of cash/resources while implementing e-business model because implementation costs will be high

Opportunities:

Large Profitable and Unexploited Market.

Business is in Growth Stage.

Industry is growing too.

Increase Awareness in the Customers regarding Internet Technology.

Internet can provide the "reach" to a huge market.

Threats:

Power of Buyers is high.

Threat of Alternatives is high because Exchanging Costs are Low.

Low Barriers to Entry so Threat of New Entry is high.

Many direct and indirect competitors.

Slept Analysis:

Social:

Company needs to obey the local councils rules

Marcus needs to focus on customer’s social loyalties and values.

Branding and maintenance of customer care is a primary reason for the growth of the business.

Strategies implementation to compete with local businesses to growth business.

Legal:

Registration in the commercial register.

Foreign limited companies with legal personality, like companies in the (E.E.A)

Taxation with local government and tax allowances.

Law to record anything with financial implications for the business in a systematic administration.

Economical:

Making in the local organize bodies.

Decision-Making: Strategies, Policies and Plans. (relationships with key clients)

Major Groups Involvement.

Netherlands Government is a strong supporter of regulations that improve market force.

Political:

Easy to open up a business in Holland.

Government subsidiaries.

New market segments are proven and profitable in Holland.

No government interference in the managerial decisions of the company.

Technological-

Flexible communication technology.

Connectivity of people, staff and firms (telecom, IT etc.)

Strategic objective:

Utilizing business methods and leveraging internet technology Kwaliteit Flora will lead the plantation retail market in coming year.

Customers:

Emphasis on the Intact Market.

Offer quality and accessibility to customers.

Link with the customers through internet.

Suppliers

Build Long-term business Relationships.

Link with the suppliers through internet.

Operations:

Use of Information Technology.

Leverage the operations though Internet.

E-business strategy:

With the start of the Internet technology and lots of network development technologies around the world, E-business is the new "mantra" for businesses in the present world. Internet has help in many ways to grow the businesses in global market that can reach out to a wider user support and advertises their products more successfully and economically. Business infrastructure, interface designs, critical frame applications are also found on the Internet. E-business has been added as the newest domain in commerce and has become a highly reasonable technology driven open market.

Information distribution has been broadly regarded as the speciality of E-business, which uses information technology in a most competent manner. E-business has come to play a very important role in the world trade scenario; there is no business without an associated to E-business in today’s world. E business gives a occasion to open its entry to the worldwide market and become a part of the international and global business community. E-business has achieved distinctive levels of success in business, which have not been enjoyed by any other business models. Some of the examples are "MRP (Material Requirements Planning), EDI (Electronic Data Interchange), and ERP (Enterprise Resource Planning)".

E Business Strategy would generally include:

Supply chain management: Supply chain can be handled with the help of E-business strategies, which will verify better organization between the wholesalers and the retailers of a range of products. Better incorporation of the supply chain right from the source till the final delivery of the product can be successfully implemented using e-business strategy. This also brings us to the point of E- commerce where a parallel network of buying and selling can be observed using spreading of information over the Internet. Everything ranging from plant industry to electronic gizmos can be bought over the Internet in a hassle free manner under the support of sound supply chain management. 

Consumer service and relationship management: Effective of E-business strategies would absorb better customer service and relationship management ensuring the peak level of consumer satisfaction. E-business can provide customer-friendly services, which would include the timely delivery of goods right at the doorstep of the buyer.

Inventory and service management: E-business strategies can also help in better list and service management merging through formulating specific plans for list of increase and purchasing machinery and equipment which will avoid unnecessary purchases which can lead to higher expenditures entailing different tax implications.

Strategic operations: strategic operations focussed towards short-term goals as opposed to strategic development for long term goals can be better coordinated implementing in E-business strategies. 

E-business diverges from the conservative sphere of business by speeding up the business performance and giving a totally new aspect and description to businesses worldwide be it whether the business in partnerships, joint ventures or large corporations. The internet, cellular networks and other forms of digital technology have created a role values and chain among clients, Employees, suppliers, stakeholders and traders coordinated in the world of web marketing. The outfit of E-business strategies include acceptance and getting payments over the Internet, on-line trading and mart deals over the Internet. E-business strategies will also fluctuate for small, medium and large businesses.

Advantages of E-Business:

Here are some of the important advantages of upgrading business to E-Business.

Cost-effective Communication and Marketing Strategy - The most apparent advantage of "upgrading" to E-Business is that it gives you an essential web presence. In an upgraded "E-Business environment" make company web site becomes the important point of communications and marketing strategy. When an increasingly large number of people are using the web as their first source of product and service information, "being there" 24/7 is extremely important.

Making innovative Markets World Wide - The internet offers exhilarating ways of reaching new markets that could only be dreamed of in the past. There are methods of promoting your products online that allow you to exactly target the customers are after whether they are in your town or on the other side of the world.

Reaching Local Customers more efficiently - Until recently, company’s product or service to local customers could not see the profit of having an online presence. But as more and more people become easy with using the internet instead of traditional advertising sources like classified ads, having an aggressive web presence makes better business sense even for local companies. This may also offer a springboard to developing new markets further.

Promotion and Marketing Costs - Online promotion is not only more efficient, but it is often less exclusive than conventional advertising. After sales training expenses can also be reduced by utilizing online seminars, training videos and tutorials

Streamline Ordering online process - Implementing an online ordering system allows you to eliminate manual paper work or telephone order taking. It also offers the possibility of integrating your sales order system with order performance and delivery so customers can be up to speed on the progress of their orders at all times.

Communications and Telephone Costs – In present world internet is playing important role in day to day life the costs of telephone communications using for long distance services have been coming down quickly over the last few years, upgrading to an E-Business model offers the decreasing of totally eliminating many of these costs. But beyond that, there are systems like "Live Help" where customers can chat live with support or sales staff. And the most recent development is VoIP (Voice over Internet) which promises to totally develop telephone service. (Economy watch 2010)

E-business solutions:

Build and Maintain a Customer and Suppliers Database.

Software Applications should be customized according to the business need.

Develop a Website and connect it with the Database.

Connect with the customer through website and various social media pages.

Outsource the website and database management, so Kwaliteit Flora needs not to bear all the expenses etc of maintaining a database and development of a website.

The website provides a digital view of the plants and information about the planters.

Customers are encouraged to provide feedback on website and in this way Kwaliteit Flora can improve its product and keep in touch with the customers.

Conclusion:

Kwaliteit Flora’s business is leveraged by innovative internet technology and it will prove to be lucrative and there is a lot of growth potential. The product is attractive and cost effective as well the ease accessible by Internet provides unique strength to the business.