About The Acre Inc. Acre Incorporated, one of the leading names among the companies in information & technology industry. It was established in August 1, 1976. It stated its business as a manufacturing company, but from 2001 to 2007, it has transformed its business from manufacturing to marketing & sales company. It is enhancing worldwide presence with different strategy. This company is famous worldwide for its cost leadership strategy. It can provide IT tools at a low cost than any other company in the industry. It tries to bring new tech. & new design to its products.
The identified client problem We have identified one marketing problem of Acre Inc. For which it needs consultancy. Although Acre is renowned for its cost leadership strategy, its design is not satisfactory & its quality is compromised in different grounds. Quality places an important role on the buyer's satisfaction. So ensuring quality products are very important for the company. Other company, like Apple is highly renowned for its quality of products. So, Acre Inc. Needs to solve this problem. For this it needs to have marketing consultancy to solve the problem as soon as possible.
Implications for the business if the problem is not identified There are great implications for the problem we have identified in the previous stage. The quality of products of Acre Inc. Is less than the other company in the industry. Moreover, its product design is not satisfactory. Although it offers its product as low price, its product quality is not up to the mark. As a result, it is losing a potential market who desires quality products. Moreover, if the customers of the company are facing many problems with this low quality products. So they may not go for buying the Acre's product.
So, the sales & ultimately the profit of company fall greatly in the near future if the company did not identify the problems. Acre's product design is not satisfactory. As a result, its customer may decrease in the near future if it did not identify the problem. Here we can see that there are great implications for the company if it did not identify the above problems. The above problems can impact heavily on the financial performance & position of the company. So the company needs immediate solution of the above problems. The proposed solutions & objectives To solve the problems of Acre Inc. ICC have been identified before, we can recommend the following solutions.... At first, Acre Inc. Shall realize that it needs to solve the problems immediately. It should take necessary steps to solve the problems. Acre Inc. Should emphasis on the quality of products. For this the company should form a team for ensuring quality of the product. The main task of the team will be to oversee the product & ensure the optimum quality of the product. For ensuring quality of the product, Acre should incur four types of quality cost... Prevention cost Appraisal cost Internal failure cost External failure cost
To have a new & designed product, the research & development (R & D) dept. Of the company should be given more emphasizing. The company can hire experts to design the product of the company. By the above ways, Acre Inc. Can solve the problems that are faced by the company. If the company follows the above measures, it will increase the cost of the company but at the same time it will increase the profit of the company. Objectives of the company: The company may set the following objectives... To ensure quality products to the customer To satisfy the customers need by offering new product
To increase sales of the company To increase profit of the company To increase the market share of the company SOOT analysis of environment SOOT is an acronym that stands for... S - Strength W - Weakness O - Opportunities T - Threats SOOT analysis is an important tool to evaluate something. Before making analysis of environment, we need to know about environment. An environment consists of all the surroundings of a living organism. It can be two types... Internal environment External environment Internal environment: internal environment is the forces that affect the organization . . Owner of the company Board of directors of the company Employees of the co. Culture External environment: External environment is the forces that are outside the organization & that have impact on the operation of the company e. G. Suppliers Customers Regulators Economic factors Political factors Technological factors etc. (Griffin, R. W. , 2009). If we make a SOOT analysis of the market of environment of Acre Inc. We find the followings... Strength: Info tech. Is a growing industry Resources are available for the Acre Inc. O ensure quality of the products New genealogy are available Weakness: May lack resources to produce the product Lack of experts & R personnel Inefficient marketing strategy Target market is not specific Opportunities: Increasing demand of IT products Increasing market share New technologies are available. Threats: Highly competitive industry Difficult to exist in the market with high quality cost Comparator are providing quality products at a low cost Limited suppliers Conclusions In fine we, can conclude that to compete in this completive market, Acre needs to take the above consultancy or suggestions.