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So successful was this new strategy that rapid growth in membership followed. 'City and Country Sports ' became SportsPower in 1985. Since then, the group has continued to increase its advertising and marketing presence, and also embarked on an expansion program that now sees SportsPower with a significant network which is highly regarded within the sporting goods industry and market. The combined strength of the group now measures more than 150 stores.
Not prepared to rest on it's laurels, SportsPower continually strives to set the pace at the forefront of sporting goods retailing in Australia, constantly looking to improve and grow.
The business of "Sports Power" specialises in all aspects of sports wear. Its prime function is:
to provide customers with top quality sporting gear, footwear, clothes and equipment; and to maintain its costs at minimum so customers may save, but also try to maintain maximum profits.
The business also employs staff that are competent in the field of sporting and Service and are willing to give answers to customers who have queries about any of our stocked items or other reasons.
The ownership structure of "Sports Power" is a sole trader, whereby the owner is solely responsible for managing and financing the business. The benefits of this type of ownership structure as opposed to others is:
the owner can keep all the profits; and
the capital needed is considerably lower compared to incorporating a business
The disadvantages of being a sole trader however is:
the owner has to take on many roles; and
the notion of unlimited liability is applicable in this case, in which the owner is liable for all losses, meaning that personal assets are at risk.
The premises that "Sports Power" will be located at, is at Stocklands Shopping Centre, Wetherill Park, where the business will attract instant shoppper as the surrounding area is filled with shops attracting many customers of Wetherill Park and surrounding residential area.
The market that "Sports Power" is targeting is the Sportswear market ranging in products from:
-Sporting gear and equipment
The Business hopes to target sporting teams and people who that are regular need sporting gear. The business will use strategies such as advertising to reach out to the intended market.
Prime Function, Goals of the business
Prime Function : The prime function of sportspower Wetherill park is to sell top quality sporting gear, clothing, footwear and team apparel. They sell these products at a reasonable price but try to gain as much profit as they can.
The business of "Sports Power" hopes to achieve various goals.
The main business goals are to keep cash flow going and to expand into a medium business to keep the business running and to maintain the quality of goods to keep the customers satisfied
The business has three distinct goals that it tries to achieve during the different stages of the business life cycle. These are economic, social and personal goals
The economic goals of "Sports Power" are to make immediate profits from our customer base. Profits are known as the amount of money left after the expenses have been deducted from the money generated from sales. The business hopes to make quick profits so that we are able to cover the high-fixed costs of the business, such as the produce itself and loan payments to creditors and suppliers.
The small business hopes to use these financial resources and place it back into the business for:
to support expansion as the business
The purpose of social goals is to:
Act socially responsible so that society has a positive view of our business and act as a business that is willing to help the environment
The business hopes to achieve our targeted levels of profits through sustainable development, in which the business uses the environment and natural resources to the extent that the business can carry on into the future and that the environment is preserved for future generations.
The business has economic and social goals that satisfy the business of "Sports Power" and society's needs. However, personal goals attempt to satisfy the needs of:
the employees of the business
the business owner
The business is willing to employ young people and to also provide sufficient training so that the employee can perform the job to the best of their abilities. The business will provide the employee with training. This will ensure that the employee is:
competent in the field of organisation
able to deal with customers in a polite manner.
The owner of "Sports Power" hopes to achieve, in running the business, an early and enjoyable retirement so that financial problems are not a concern in old age. For this to occur, the owner needs to make sure:
that the business is in operation for a considerable amount of time,
that the staff are competent in their job
that the marketing strategies are successful in attracting a customer base
Strengths, Weaknesses, Opportunities and Threats
The business' Strengths, Weaknesses, Opportunities and Threats and is an effective planning tool that sets the goals and direction of the business.
The strengths of the business are that it:
Provides quality training and education to our employees which can be perceived by society as acting socially responsible, which in-turn attracts customers and affects competitors. Providing Quality goods to people who are in need of them.
Due to the fact that the business is located around many other shops, it will attract shoppers because thy will be willing to try something new and as there are few sport shops in Stocklands mall. Regular shoppers who reside in area will hopefully be regular customers to the business.
When a shop first begins, the reputation will be questioned as customers more often trust bigger and more established companies, the business needs to show the customers that:
- They offer great produce of the cheapest possible price
- Their service matches many other well-known companies
- That their quality is amongst the highest
A major weakness of the business is that the owner contributes a majority of the capital and this could lead the business to a stop. In the Establishment Phase, the business must employ cheap and effective marketing strategies to attract shoppers and then this can be invested back into the business towards working capital. The business could borrow loans.
A major opportunity that the business of "Sports Power" hopes to exploit is the fact that there are few competitors in the area. The business will use this towards their advantage and set moderate prices, not too high but not to low so they can maintain good profits while the customer will be happy with reasonable prices.
The main threat that exists to the business of 'Sports Power'' is other shops that provide simular products, such as Rebel Sports which will try to match or even beat the pricing, and could even have a larger variety of products. This can lessen the customers that shop at sportspower.
"Sports Power" has a diverse range of sporting needs to sell to our customers that satisfy their needs. The business sells:
- Balls ( rugby, soccer, basketballâ€¦etc)
- Footwear (soccer boots, rugby boots, indoor soccer, joggers)
- Gym equipment (weights, gloves, barsâ€¦etc)
- Clothing ( jumpers, trackpants, socks, shorts, shirts, swimmersâ€¦.etc)
- Bags (school bags, Bumbags and other accecoriesâ€¦..etc)
- Other sporting equipment ( mouth gaurds, tennis rackets, baseball batsâ€¦etc)
"Sports power'' buys their product, than re-sells them for a higher price making a certain profit.
Technology has played a big part recently in the organisation of "Sports Power'', if they run out of a certain item, they can check on the computer, or if they need to know what sizes are available on a certain item, they can just check on the computer instead of spending too much time looking around in the store room which makes them able to work more efficiently and provide better customer service.