The Company

Posted: November 28th, 2013

Table of Contents

The Company: …………………………………………………………………………2

The team: ………………………………………………………………………………3

Opportunity Analysis: ………………………………………………………………….4

Opportunity Evaluation: …………………………………………………………………………………….5

Target Market: ………………………………………………………………………….6

Resource: ……………………………………………………………………………….7

Competitive Advantage: ……………………………………………………………….7

Conclusion: …………………………………………………………………………….8

Recommendations: …………………………………………………………………….9

References: …………………………………………………………………………….10

Appendices: …………………………………………………………………………….11

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1. 1.                  The Company

(Picture from P’kolino’s website, 2011)

Some two men by the name Antonio and Joseph finally made their dream come true when they established the high end targeting company, P’kolino, in the year 2004. Through developing quality and safe products, marketing and implementing other strategies, the company aims at improving children’s play and in the process, hitting a $51 million target in sales (Bygrave and Andrew 15). To make this come trues the company manages furniture and toy fields worth $34 billion and $24million respectively. The team involved has made sure that the furniture designed fulfills both the parents and the children’s wishes. The fifteen designers from Rhode Island School of design made sure that the products encourage the children to play more and to change with the growth of the child.

Through designing functional and posh furniture, the company believes that it is creating a strong brand and customer rapport thus encouraging the growth of the company. Of course, the quality of the products is never compromised. The products create homes that start sand encourage the playful and happy children. In the process the belief that growth and learning are greatly supported by play functions is gradually fulfilled. Additionally, the company has brought a new meaning to furniture that the children use for playing.

2. The Team

One of the co-founder’s of the company known as Antonio Turco-Rivas graduated from Babson College with an MBA degree. He successfully launched new technology in two companies and is currently working at the operations and sales department as a manager in the company. Turco-Rivas has worked with various credible institutions in Latin America and the United States. He had also worked in the Venezuelan most significant bank as a financial consultant.

Currently holding the product development and marketing manager position in the company, Joseph B. Schneider is an MBA degree graduate holder from Babson College. Schneider acquired the experience of product development at an earlier stage. Prior to this, he was the retention programs and customer acquisition manager for different fortune five hundred companies. He was also involved in diverse product marketing growth and entrepreneurial ventures.

Currently managing the designing of P’kolino products is one faculty member and fifteen designers from RISD (Rhode Island School of Design). The world report and the United States have ranked the furniture department in RISD as the best in terms of the students’ quality and creativity (P’kolino, 2010). In order to come with competitive, safe and quality products, the company has no choice but to work with the best. In this context, the company has incorporated different advisors. These include a development expert in children, an expert in manufacturing and an expert in juvenile product market. Every team member has been assigned his/her area of expertise in order to make the business a success. As recognized, the failure of one team member is the failure of the whole team.

3. Opportunity Analysis

When starting the business, a couple of opportunities presented themselves. A research was carried out in order to identify the opportunities, challenges and problems presenting themselves. A solution had to be found where necessary. In the investigation, the company realized that many parents are willing to buy products, which will greatly encourage a child’s development. It was also found out that most children’s play furniture was not designed for them but for miniature adults. In addition, it was identified that the playroom industry was establishing a growth of 7% per annum and another 9% increase in spending.

The adverse factor is that furniture depreciates in value at a very high rate. Children grow out of play furniture almost as soon as they move to the next grade. It was also identified that children loose interest in a toy they own as soon as they feel that they are no longer attracted to it. This could be after a few years, months, weeks or even days. The time factor too is not predictable. In the end, the spaces become wasted and the toys unorganized. Most consumers are looking for solutions to such problems. Parents are also in a mix-up concerning whether they are buying the right toys for their children or not. Due to such opportunities and challenges, the P’kolino Company took advantage and gathered enough research to authenticate such opportunities.

4. Opportunity Evaluation

One of the greatest analyzing tools used for problem examination and assessment within the business opportunity is the Timmon’s model of quick screening. The model was quite useful in aiding with the appraisal function for the required analysis processes. Timmon’s model identified that the company needed to enforce products with better quality and output to cover the present deficit noted by the fact that the consumers are in great search of them. This stems from the clients needs for children to play with safe toys. Through PEST analysis, it was identified that regulations and rules implemented by the government, aid in the promotion of safer furniture and toys for the children. In order to comply with such rules, the company is trying its best in fashioning safer and more children-friendly furniture. P’kolino should use this in the promotion of its products. Loyal customers and high-end users will also be attracted to such superior products. This therefore needs to be one of the company’s main aims. The business team put in place is full of experience thus ensuring that the business is carried out with the utmost efficiency (Nassif et al. 214).

Since the company will face high-end consumers and marketing needs, it needs to be highly and heavily prepared in terms of capital. Failing to undertake such measures will only lead to failure. Note that, the furniture industry is very competitive and is growing at a very high rate. An increase in competition is due to take place in a very short period. The risk of a bigger company coming up with the same quality products as well as a lower company should also be tackled since either way the company would lose the targeted market (Bygrave and Andrew 20). In order to avoid failure at any trading periods and unprepared occurrences, the company should invest in more research, which translates to additional overheads. The opportunity/opportunities presenting themselves will be beneficial to both the company and the customer. However, they do bear intrinsic risks too.

5. Target Market

The high-end market is the principle target group for the company. This segment will be reached with the collaboration of grassroot channels, direct strategic marketing and distribution, and public relations, amongst others. The company’s main target will be to reach parents who are willing to offer their children the best play tools; spending more as contrasted to other play tools should not be a problem for the parents due to the quality factor. P’kolino’s products concept is appropriate, beautiful, safe and multifunctional in order to aid in the development patterns of children. The product is also able to keep a child interested for long time so that a parent does not have to spend a lot of money within a short period.

6. Resources

The company has many resources at its disposal. These resources will enable the business to achieve a surplus cash flow in a period of two years. First, the company comprises of a great team inclusive of RSID. It has been well reported that this college ranks the best world wide when it comes to furniture designing. These team members have accumulated experience for a long period. Additionally, their academic qualifications, which include MBA degrees from well-known and performing business schools place them a step ahead as contrasted to other rival organizations. The members are well acquainted with the opportunities, challenges and problems in the given industry. P’kolino also has extensive supports from some manufacturers located in Brazil. The company has a financial capital of $50K, which will be employed in coming up with the initial product. The organization will also be able to invest in a figure higher than $400K in the coming five-year short-term period (P’kolino, 2010).

7. Competitive Advantage

The company’s product attributes acts as its competitive advantage. The company believes that major differentiating gains would include the multipurpose product’s nature, an upgraded educational value and increased functionality. In this context, the products multipurpose use, an improved functional design, which will be a learning experience for the children will be safe and attractive and thus creating the focal point of the company’s competitive advantage. This competitive advantage will enable the company come up with a strong customer base and a strong brand.

8. Conclusion

There is a great opportunity for the company to start a toy business. The present undertaking has enough resources and a great plan to keep it operational. However, risks that might lead the company into experiencing financial disaster are also present. With the above review, the organization does not seem to have a fall-back-on plan or a contingency plan (Nassif, Alexandre and Newton 221). This is because even in a well-organized plan, there are always a couple of things that tend to proceed in an unexpected direction. For example, the company’s financial statements do not have provisions for the best, average or worst-case scenarios. In addition, the company seems not to be concerned with a distinct competitor that owns a mass segment worth $800 million in the playroom furniture. This might create a bigger problem than estimated.

The competitor has a different brand in the medium and smaller segments. This poses the risk that the trade rival may adapt P’kolino’s ideas and sell the same quality products at a cheaper price since they are a well-known and established company than P’kolino is. It is therefore important for P’kolino to come up with a contingency plan. Centering on the positive side, the idea is worth investing in since the business has high growth likelihood towards progressing than failing.

9. Recommendations

The company should develop an awareness regarding the positioning of its future operations. It should be quite acquainted with the high segment market since this may fall short of the expected target. When a company only targets a particular segment, there is a high risk of buyers’ inadequacy for the given product due to elements such as high prices. It is always advantageous for a company to target a wider segment such as average and low-income earners (Nassif et al. 224). The company also needs to invest more in terms of capital. This is because it may need to spend colossal finances at the initial stages as opposed to the latter stages. More so, if the company fails to make the targeted sales, it needs more capital for sustenance purposes. As earlier mentioned, a contingency plan is also mandated in case of shortcomings in the various areas. In the long run, the company may merge with other well-established companies if coping as an individual business proves unachievable.

Works Cited

Bygrave, William, and Andrew Zacharakis. Entrepreneurship. Hoboken: Wiley & Sons, 2008. Print.

Nassif, Jorge, Alexandre Ghobril and Newton Silva. Understanding the Entrepreneurial Process: a Dynamic Approach. Brazilian Administration Review 7.2 (2010): 213-226. Print.

P’kolino. Playfully Smart. 2011. Web. 27 September 2011.

Appendices

SWOT Analysis

Timmons Quick Screen