Analyze The Jamaican Business Environment Commerce Essay

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Over the last 5 years Jamaica has undergone an economic depression , as a result of the global re-cession financial crisis . A reasonable growth of about 1.2% in gross domestic products (GDP) was recorded in 2011 . The Jamaica government has been turning to the International Monetary Fund (IMF) . Since 1973 , in an effort of aiding the country's dwindling resources . The Jamaican government depends on two of its largest revenues , agriculture and tourism as a means of trying to fill the economic strain it has put on the country . The statistics has shown that the unemployment rate is high , at 14.1% since January 2012 . Some of the underlying causes of which puts Jamaica poor economical straits are ; government over spending , banks willingness to lend has plummeted , individuals and companies refusal to invest into projects deemed unsure of returns . The International Monetary Fund authorities suggested that , macro-businesses should continue the development of economic programs in an effort to curtail the publics debt and increase growth and expenditures . The IMF presses the Jamaican government to also broaden the tax measures and increase the tax administration . They recommend an unlimited attention to better debt management strategies . The banking system needs to be revolutionized and the reinforcement of its framework needs to be enhanced to improve growth and stability . With the re-evaluation of reforms , this will attract and increase expectations of potential business clients and future investors . In this economic agenda its objective is ; the growth of a better business climate and in return this will reduce Jamaica's debt and making room for even larger business opportunities .

POLITICAL

The birth of Jamaicans' government introduced the foundation of two major parties . The Jamaica Labour Party and The People National Party, but so far none has been able to improve the stability for business growth in the economy . Both parties unwillingness to co-operate left an ever growing void within the business sector . The type of business environment in Jamaica is so poor . The government lacking to establish an fruitful business environment could cost the country billions of dollars worth of investments and revenue . The businesses in the country will be deprived of growth , infrastructural expenditure , contracts and chance of bettering the Jamaican economy .

SOCIAL

The impact socially on business organization could be negative or positive , but depends highly on how the business portrays itself and the type of relationship it has with costumers , stakeholders , shareholders and investors . Businesses should always have that personal relationship with clients and customers in order to build an excellent reputation for the organization . Any bad experience such as improper business transactions or the organization been accused of fraud , could pose negative publicity for the company and its workers . Social media will thrive from juicy stories such as this and now the organization will be placed in a unacceptable spotlight . Individuals aren't interested in working with this organization anymore , customers took their business elsewhere , investors pull out and shareholders removed there shares from within the company . The social impacts are great and the organization looses its income and costumers , therefore going bankrupt . Its sold or the government will replace it with a new organization . So every business depends on the impacts on the surrounding business environment in order to achieve and be successful .

LEGAL

Business organizations and companies have to operate by the laws implemented by the government in order for it to function legally . Many organizations stumble over these laws everyday to make there business legitimate . But not all abide by the rules and regulations been put in place . Some impacts on the business environment are labour hours , type of relationship with employees , health and protection , anti-discrimination laws ( sex, age , sexual orientation, disabilities , race) ,wage laws, vacation and compensation . Other regulations are; waste management and disposal , environmental issues , insurance , taxation, resources, security, banking and investments .

TECNOLOGICAL

With the advancement of technology many businesses have taken advantage of what it has to offer . Although this is so Jamaica has been able to keep up , therefore loosing its competitive edge in the economy . The businesses haven't been fully able to market there products and services enough to make a profit . They limited by the type of technology that they have . Technological introductions within organizations can reduce costs of advertising , accounting , record managing ,payrolls and costumer information . With these technology the communication process improves and costumer -employee relationship will increase . The work force will be better equipped and the work is done promptly and efficiently . These technology could reduce the number of labour needed and replace them with technology , thus increasing productivity . Other positive attributes are that it open new markets regionally , nationally and internationally .

Competitive Environments

What is business without competition ?. Many businesses today in the Jamaican business environment has at least one major competition , each vying to claim more costumers . But this isn't the companies' choice , its the costumers' decision . The costumers are searching for the best prices for there moneys worth . Not only that companies have offered benefits such as points company card for choosing the company , saving as you spend and packages deals . Many organizations do so but it all lies on the decision of the customer . Some companies even have cash reward games and customer appreciation day to show that they are thinking about their customers .

Task 2

Develop a plan to show how you will translate the gains in sports to gains in business and economy .

COMPANY INFORMATION

Name : Jamaica's Glory Momentums

Address: 15 Bond Street, New Kingston

Phone number: 1-800-445-1243

Website: www.jgm.jam.com

Date of foundation : November 4, 2011

OWNERS INFORMATION

 Name: Christol Walker

Title: CEO

Address: 13 Mayberry Road , Kingston 13

Phone number: 1876-256-7894

 Name: John Brown

Title: Marketing and Communications Manager

Address: 5 Mango Crescent

Phone number : 1876-386-2874

 Name: Samorah Johnson

Title: Productions and Finance Manager

Address: 21 Love Lane

Phone number: 187-956-7119

Mission Statement

"Teamwork is the way forward"

Objectives

Specific

Jamaica glory momentums would like to increase its markets and become a success.

Measurable

With the first year we would like to have increased our market shares to 4% . Stating the amount would show that it is measurable .

Achievable

For the acquiring of such markets , the business environment was analyzed and the capabilities of achieving this objective was thoroughly processed .

Realistic

Before setting a deadline a revision of our resources , the market , staff and competitors thus ensuring that an increase of 4% in a year (12 months) market shares where achievable .

Time

This objective will be achieved by a 12 months period .

Strategies

With the evaluation of the target market ,the strongest would be located on the north coast in the tourist capital . In recent sporting events Jamaica have craved there name into the heart's of many foreigners and has highlighted us on the world map . A team would be placed in the tourist hot spots on the north coast to promote and advertise our products .

Tactics

During promotions in the north coast interviews and surveys of customers will be carried out. Identifying the customers needs and the demand for the product is important . Also estimating the time and cost to market the product should be researched . Researching how to properly execute the plans objectives and seeing through its success .

Milestones of Jamaica Glory Momentums

Products

Percentage of growth

for (12 months)

Percentage of products sold

for (12 months)

Clothing Items

1%

25%

Shoes

1%

25%

Hand made jewelry

1%

25%

Ornaments

1%

25%

Total percentages

4%

100%

Table 1: This shows rate of which the business should reach in 12 months .

Opening ceremony to unveil the products will be held at Pegasus Hotel, on November 5, 2012 . Guest speaker and owner, Christol Walker will be addressing the viewers .

The first shipment of products will arrive on the north coast at a branch in Montego Bay on November 8, 2012.

Duties and responsibilities/ Monitoring and evaluating Techniques

Christol Walker (CEO), she is in charge of decision making process. What is needed and can benefit the company in a positive way is acted upon her choices . But every choice made is analyzed and evaluated through a number of means , such has ; reviewing financial statements , bank records and the markets position .

Samorah Johnson (P&FM) , her input provides that the quality of goods been sold are of the highest quality . She also ensures that the goods prices are right and people are getting value for there money . Another duties is that she manages the companies' financial statements , this shows the income of what it earns .

John Brown (M&CM) , his main objectives are to promote the products , search for marketing opportunities and to evaluate the conditions surrounding investments associated to the company.

Task 3

Develop marketing and communication strategies to show how the plan will be communicated to the stakeholders identified above and other external stakeholders .

Marketing Objectives

To build awareness of the importance of the business and its products .

Do extensive research on your target market and its potential demand for the businesses' products .

Creating a website to allow costumers to view upcoming sales, events and new releases .

Create promotional campaigns to advertise product.

Marketing Strategies

Promotional advertisements are to be done by such means, the use of technology (websites ,mobile phones , computers, television ),brochures and trade shows .

Invite media houses to broadcast a press release on the unveiling of the company.

Ensuring that the message portrays a positive message and image of the products .

Opening booths ,comment sites and a social media page for customers feedbacks on the products .

Communication Objectives

Raising awareness about the company an its products

Persuading costumers about the quality goods and services offered, compared to other competitions .

Promoting flexible return policies and refunds.

Communication Strategies

Inspiriting the costumers about the foundation of the company .

Using testimonies from past customers to highlight the company's' quality products.

Donating a small portion of there income to a charity.

Task 4

Finance and Budgeting

How will this plan be financed?

A loan of $5,000,000 was borrowed from Bank of Jamaica (BOJ) for the financing of this plan .

Income Statement, Jamaica Glory Momentums

Revenue

Cost of products sold

$2,870,145.00

Raw goods

$458,786.00

Purchases

$505,753.00

Cost of products sold

$3,834,684

Operating costs

Gross

$885,475.00

Salaries

$250,000.00

Advertising

$100,000.00

Travel

$598,876.00

Insurance

$56,974.00

Entertainment

$326,000.00

Total costs

$1,891,651.00

General Expenses

$50,000.00

Telephone

$12,500.00

Electricity

$12,500.00

Water

$12,500.00

Payroll Taxes

$12,500.00

TOTAL EXPENSES

$4,074,335.00

NET INCOME

$4,061,835.00