IA03
Allison Wilkes
November 19, 2018
Professor Chung
IA03
Product: Cosmetic Line
Company Name: Boss Babe Cosmetics
Mission Statement: Boss Babe Cosmetics is an affordable brand of eyeshadows that pushes for high quality, good ingredient products with high pigmentation. Boss Babe Cosmetics is 100% vegan and not tested on animals and is using sustainable packaging that won’t damage the Earth!
Business Environment
I will be competing in the cosmetic industry. An industry is a group of businesses that compete with one another to market products that are the same or similar. The cosmetic industry is dominated by a small number of multinational corporations that originated in the early 20th century, but the distribution and sale of cosmetics are spread among a wide range of different businesses. The global cosmetic products market was valued at USD 532.43 billion in 2017. In 2023, it is expected to reach a market value of USD 805.61 billion. The scope of the report is limited to various products, like hair care, skin care, oral care, color cosmetic, fragrances, soaps and shower gels, and sun care products. The cosmetics or beauty products industry, globally, is one sector which is immune to the ups and downs. However, the overall sales are affected during the downfalls of the economy. However, one can count on the sales of cosmetics to maintain a certain volume overall. This is because of continuing and growing usage of products by women, and increasingly by men across the world. Some factors that affect the supply and demand in the cosmetic industry are social factors, such as brand loyalty. A lot of consumers look around for their perfect product, then find one that works well, and continue to purchase that product or from that specific brand. It is hard as a new company to come into a market dominated by big name brands. Other factors include technology. More people buy their products from online retailers now more than ever. With so much information and brands to choose from it is hard to make an impression and get noticed by the average consumer. Some environmental include that the beauty industry is now under pressure to make more sustainable choices in their brand. Cosmetics are normally packaged in a heavy amount of plastic packaging that is horrible for the environment and is now being criticized heavily by consumers for doing so. Another environmental/ethical factor cosmetic companies are facing is the push for products to be vegan and not tested on animal.
Entrepreneur and Strategy
In starting my company I project that I will face issues being a newcomer in an already established market. I will need to establish a business plan, a formal document describing a proposed business concept, description of the proposed business, industry analysis, mission statement and core values, a management plan, a description of goods and services, a description of production processes, and marketing and financial plans. I would consider using strategies such as sales promotion, provides an incentive for a potential customer to buy something. I would run things such as sales and promotions to get new customers to buy my product over the competitors. I would also use publicity, a form of promotion that focuses on getting a company or product mentioned in the newspaper, on TV, or in some other news media, specifically I would use social media to sell my product since it has become so widely used. I would also employ public relations in an effort to garner favorable publicity for my products.
Management
As the general manager of my business, I will use planning, setting goals and determining the best way to achieve them. As well as using strategic planning, which is the process of establishing an overall course of action, for my employees. As a manager I will be engaged in organizing, allocating all resources to achieve a company’s plan. I will assign all the roles identified in the planning stages to a person or team and ensure that they have all the resources necessary to complete the task effectively.
As a manager I will direct my staff, providing focus and direction to others and motivate them to achieve organizational goals. I would choose to use the democratic leadership style so that my employees will still give input but I will have the final say on important things to ensure that my company upholds standards. For controlling, the process of comparing actual to planned performance and taking necessary corrective action, I will be doing a yearly assessment of each employee to ensure that they continue to work effectively as well as checking in weekly with each team to see where they are at in the goals assigned to them in the earlier phases. I plan to manage in a way that inspires the employees to do things themselves and get involved in the projects we are working on. I plan on setting goals both short and long-term to keep the employees on task and motivated. I will have the team participate in team bonding events so that the team works together well and can complete projects as a unit. I will ensure that there is an open communication among the team to ensure that communication occurs.
Marketing
I would promote my products through publicity such as social media and advertising to gain publicity for my product. My potential customer would be people who are interested in makeup and looking for affordable cosmetics. My product would also attract those who are conscious about animal testing and sustainability. The marketing mix is the combination of product, place, promotion, and price, which is often called the four p’s, used to market products. My product would be the eyeshadow palettes to start, the place would be the United States, Canada, and Europe with hopes of expanding sales, Promotion would be our advertisements in magazines and online as well as through social media, and the price would be from ten to twenty dollars for most of the palettes. I would design the product to showcase the features of being a vegan and sustainable brand. I would make the product be elegant and well packaged as well to attract consumers to my brand in that specific price range over other brands. Before creating and mass producing my final product I would run my product by a focus group to ensure that the brand gets the response we are looking for. For digital marketing skills, I would ensure that the brand was clearly labeled and using the same logo on all platforms to create product recognition. I would upload all of the brand's information onto websites like LinkedIn to ensure that it is easy to find the information desired.
Accounting and Finance (one paragraph)
As the CFO of Company Me, create a simple hypothetical balance sheet when you get your first job.
How do you plan to manage your own investments?
How would you create a financial plan for Company Me?
Assets
| |
Current Assets:
| |
Cash
|
$4,000
|
Accounts Receivable
|
0
|
Building
|
$60,000
|
Equipment
|
$10,000
|
Inventory
|
$10,000
|
Total Assets
|
$84,000
|
Liabilites
| |
Accounts payable
|
0
|
Total Liabilities
|
0
|
Owners Equity
| |
Paid in Capitals
|
$84,000
|
Total Equity
|
$84,000
|
The CFO is a chief financial officer, a senior executive with responsibility for the financial affairs of a corporation or other institution .To manage my investments I would have a balance sheet be mad and ensure it is updated daily to keep track of all the investments and sales within the company. A financial plan is a is a comprehensive evaluation of current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans. To create this financial plan I would hire an accountant for the company to keep track of the companies finances and keep track of the inputs vs outputs of the company and what needs to be done to ensure that the company can continue to grow and turn over a profit.
Information Systems and Operations (one paragraph)
As the CIO of Company Me, what information systems tools and analytics would you consider using to optimize your productivity and operational efficiency?
Information Systems and Operations
A CIO is a senior executive who oversees information and telecommunications systems. I would consider using information system tools such as the management information system which extracts data from a database to compile reports, such as sales analyses, inventory-level reports, and financial statements, to help managers make routine decisions. As well as the decision support system which is an interactive system that extracts, integrates, and displays data from multiple sources to help managers make nonroutine decisions.is an interactive system that collects, displays, and integrates data from multiple sources to help managers make nonroutine decisions. This would be helpful in determining whether to join new business ventures or expanding the company. I would also look into artificial intelligence, AI, which is the science of developing computer systems that can mimic human behavior. It has been shown extremely useful in businesses and can take away a lot of the minor work away from employees to allow them to focus on bigger picture products.
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