Proposal for Artemisia Sportswear Company Team-C Timothy Koehler and Demander Hurtled COM 215 - Essentials of College Writing December 1, 2011 Dry. Cassandra White Because of the current market economy, the Artemisia Sportswear Company has decided to execute a small number of reconstructions without change of ownership and implement some energy saving strategies, all of which are focused at cutting operational costs and overhead expenditures. It is imperative that the company continues to make best use of its available resources in addition to implementing newer, more innovative, energy conservation strategies.
Simply put, the company's objective is to cut its yearly utility expenses and increase profits with minimal effects on productivity and its employees. Background Established in 1967, the Artemisia Sportswear Company introduced its first official sports team Jersey and currently continues to manufacture a wide array of athletic products and men and women's clothing, ranging from team Jerseys to sports equipment. Since then there has been a significant increase in business competition, together with stricter state policies and regulations, all of which have contributed to the current status of the company, and its slight decline in annual revenue.The company has been in profitable business for 45 years, and to remain a cost effective and lucrative business, the company will need to undergo drastic infrastructure modifications to offset the increasing utility costs associated with operating a company in Southern California and other high cost energy areas. Companies that implement energy-efficient measures outperform their competitors by as much as 10% (Flex Your Power, n.
D. ). The company is presently considering various restructuring options and renewable energy retrofits to ensure that it remains a profitable and successful company in the 21st century.The goal and objective of the company is to cut overhead utility expenses by 33% sequentially raising profitability with minimal effect on productivity or their employees. In addition, to become more efficient and productive, the Artemisia Sportswear Company is strongly considering an internal company restructure.
Based on an analysis of in-depth research gathered over the past five years, a number of under-performing company stores across the United States will be closed-down and their product, machinery, and in some cases, even their workforce would be relocated and merged into more efficient and refutable company.Company Reconstruction Merging of Companies Given that the Artemisia Sportswear Company has many stores located in various states, the company will be closing underperforming stores and merging inventory and personnel into those higher performing stores. In a sense, the company will be creating one bigger more accessible outlet per region. Because stores are closing down that do not receive as much sales and people to look around at our merchandise as we would want, would be at the top of the list to close down.Opening a big and more valuable store monopolizing to a location where there are more redirected sales and frequent re-stocking to a major city.
With the recent employees in the stores that we plan to shut down will be categorized in certain departments of who Just started and who have been there for a while when our company was building. For our most trusted and faithful employees, those that have been with us over the years will either receive a special retirement package or a choice to relocate in one of the new stores around the area. With the relocation package also comes with the company help of about 50% of the moving costs.For those employees who eave not been with us for a while will receive a different severance package and a choice to relocate only the difference being we will not help with the 50% of the moving costs. Last but not least the employees who have Just started with us, they will receive a minor severance package and a "thank you for being a part of the team" gift. Shipping While our stores are closing down, they can order from our web-based program that we are now Just starting to introduce within our company and to the outside market, which will be discussed in more detail later throughout this proposal.
Shipping costs ill be analyzed between meetings with Feted and UPS for around the world shipping contracts and proposals will be discussed on whom gets the deal done with the company. Shipping will be more convenient to people who hardly have time to go to our stores now much less when we relocate. By having available shipping our recent customers can be satisfied with an easier and faster way to receive our sporting goods without acquiring the time to drive somewhere and search within the store for certain items. With this new approach, we hope also to attract more customers with our new and easier shipping methods AdvertisingNotifying customers of closing and relocating While we are in the process of closing our current stores, we will be notifying our current clientele about our future business movements. Explaining about our relocation of a bigger store to a new and easy up and coming web-based store. Notifying within the stores as well as handing out special coupons like 25% of the customers first online purchase, from advertising throughout the web with places like or similar to online radio stations, search engines like Yahoo, Being and Google side advertisements and through social outlooks like opening a Backbone and Twitter count.
Web Based Our recent approach to attract new customers as well as keeping in touch with our current customers we will be opening and establishing with an online store. The online store will have many similarities as if the customer went and shopped at one of our regular stores. "First and foremost, the company's team has focused on enhancing the consumer experience by making it easier for individuals to differentiate between products and, ultimately, decide which product best suites them. " (McGowan, 2009, p.
65).It will have the online navigation in-store appearance including graphics resembling each part of the department store. The home page will look like one of our outside stores with the home navigation links. For example little graphics of: Jerseys, shoes, equipment, hats, uniforms, etc. With easy links to find and categories set up to how we think would best fit the customer. "Phillip Rain said, 'Buying habits change frequently as emerging technologies take hold at startling rates.
Consumers want to be able to shop online from wherever they are... " (Handled, 2010, p. 31).With an easy in basket page to proceeding to check out ND purchase page, our site will succeed in being an easy transition from having to get up and shop to doing so in the convenience of the clients seat.
Of course as the company is starting out with the online store there will be online surveys right after you finish purchasing your products to see how we need to improve our online store to better suit the customer. We will keep up with the small questionnaire throughout our entire time having the online store because it will help the company in concluding to proceed to more and better profits for this company.Cutting Operating Expenses with Efficiency The Artemisia Sportswear Company executives are continuously, and eagerly, pursuing ways of cutting operating expenses. Energy efficiency is one of the lowest-risk and easiest methods to cut operating costs and increase company profitability with little or no negative effect on customer relations or employee service, and it comes with the added benefits of improved facilities and work environments, reduced carbon footprints, and improved community, and employee goodwill (Parke, 2009).
Lighting Lighting upgrades represent one of the best opportunities for energy savings in NY large business. A company with multiple owned buildings/factories can have tens of thousands of individual light bulbs, which account for approximately 30% of its total electric costs (Flex Your Power, n. D. ). By switching to a more energy efficient fluorescent light bulb and by installing occupancy sensors and LED exit signs, the Artemisia Sportswear Company can expect to save thousands of dollars in electric utility cost each year.In addition, the increased lifespan of every fluorescent bulb when compared to the standard "currently in use" incandescent light bulbs (5-years average) will also cut annual replacement costs significantly, saving the company additional money in operating costs.
Electricity consumed by commercial office buildings represents 37% of Californians total electricity consumption.Based on the United States' average, energy efficiency improvements such as those listed could cut that company's power use by 80% (Flex Your Power, n. D. ). Water Usage With the ever-increasing water shortages in Southern California, and in very many other drought-plagued regions, water usage and its conservation has become a crucial element for almost every successful business. By switching-out current sinks, toilets, and urinals with low-flow variations, the company will save thousands of gallons of water each year.
In addition to switching-out faucets and water using fixtures, the company will replace existing landscaping with less water dependent native plants, and install upgraded drip irrigation and soil moisture sensors to monitor and regulate proper watering. The costs associated with this conversion will most certainly take a few years before it deemed profitable from a net return perspective; however, by making these changes, the company will immediately gain he respect and admiration of the state, city, and community for its part in preserving one of our most limited resources (Flex Your Power, n. . ).
Solar Power The two most obvious disadvantages of using solar energy are the up-front costs associated with the solar panel purchase and that of installation and the geographical location of where the solar panels are intended to be used. Therefore, the Artemisia Sportswear Company will be installing solar panels only on buildings which are in optimal solar power collecting locations, those locations where the solar rower capacity is greater than 186 skew/square feet per year (National Public Radio, 2009).