Business Setup: Navigating the Market to Achieve Objectives - Essay Sample

Introduction

Many businesses have been set to fill up positions in various markets. Most of the companies are made in such a way that they remove a niche in a market system. In many instances, there are ideas that the entrepreneurs have in mind that guide their dreams and visions about the business that they have at hand. There are many ways that the objectives can be achieved, depending on the type of setup that the firm has. In most of the service sellers, customer satisfaction is one of the most paramount ways that people use to ensure growth and development. One of the most critical resources is the labor that the people put into the business. It forms an integral part of the operation and management of the other resources, such as capital. Several forms of money need to be managed, and they include working capital, savings, among others. Capital is also a basic need for the growth and development of a business.

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In most modern businesses, it is paramount to ensure that the rate of growth and development are at optimum levels (Higgins, Koski & Mitton, 2016). This means that the standards should be in line with the amount of money that the businesses are making. This is an excellent means that is used in the preservation of the working capital and also helps in saving for the future. The working environment is also not strained, and the people in the company also try to fulfill their needs properly to ensure that there is maximum protection of the resources. This paper is an analysis of the growth patterns of Ross Industries and, based on the growth pattern, the expected developments that the company is likely to undergo soon. Ross company has been experiencing a significant growth rate over the years, as noted in most f their jobs and texts. They are discussed below.

The first means that the company has used to ensure maximum growth is by ensuring that the buyers are given bargains on the goods that they buy from the company (Ross Inc, 2018). This is an integral part of the business since it will increase consumer satisfaction and make the company more eligible for growth. The bargains will also make the prices of the goods lower, which is a positive step in attracting more customers. There are some of the measures that are also taken to ensure that the company gets more clients. The action is also a method that may be used in branding the name of the company. This is because it will make the company so popular among people and the name of the company will be well known to more people. As a result, market dominance will be established. There are many advantages to market dominance since they can now control the pricing and some of the market forces such as supply and demand. The result is that there will be maximum development of the store and the creation of future strengths. From such findings, the stores will expand more since more clients are willing to purchase goods from them(Higgins, Koski & Mitton, 2016).

The discounts have increased the income sales of the company for the fiscal year 2018 (Ross Inc, 2018). The result of the year's auction is that there was an increase in the number of clients after th discounts that the company has. The statistics of 2018 proves it. The year was marked by the rise in 95 new stores all over the United States (Ross Inc, 2018). The development was a very positive outcome of the previous management since they are the ones that allocated the funds from the existing stores to build new ones. The administration also made sure that the other stores were operating at optimum standards. They maintained a steady flow of cash, which is an essential aspect of planned development (Ross Inc, 2018). To retain their customers, the firm run by the use of discounts that they allowed on the people. It is discussed above.

In the process of growth, some risk factors need to be considered. As stated above, the main idea behind entrepreneurship is taking risks to achieve a financial objective. It is crucial to analyze the risks and come up with an estimate of the expected results. In the case of Ross's, the risks involved are discussed below. Fists one is competition from brands that sell similar products. In the clothes market, there are very many well-known producers. They all have different tactics that they use to achieve maximum benefit by attracting more customers.

Competition is beneficial to the consumers but detrimental to the producers. Ross is no exception since the other companies may have decided to use some strategies against them (Ross Inc, 2018). Others may even choose to copy the idea of the discount that had been applied by Ross. The competitive aspect would have significantly reduced the growth of the firm. It would also make the expected pattern to vary. This disorients the development plans that the company has.

The other significant risk is the unexpected change in consumer preferences and the number of sales (Ross Inc, 2018). The fashion market is very dynamic, and people may love a commodity today and hate it tomorrow. The behavior is based on the music that people listen to, the type of events that happen all around the globe, among other factors (Higgins, Koski & Mitton, 2016). The changes in preferences have a lot of impact on Ross' development plan. In the cases when the choices went lower, the fashion brand suffered from reduced development. This was, however, compensated in the times when the demand for their products was higher.

Apart from that, the company was faced with weather and weather patterns (Ross Inc, 2018). This is because of the people in the community shop when there is good weather. The aspect made Ross have some shortages in income and hence reduced funds for growth. It was essential to avail of all the customers to keep the business running. There was also a need to keep them updated on the best trends of fashion. The unexpected weather could be solved by ensuring that the forecasts that were made by the weather stations were followed, and in the times that the weather was unfavorable, the stocks were reduced to the optimum. The measure prevented the accumulation of stock in stores without anyone buying the goods. It also helped in ensuring that the profit margins can be estimated.

The company aims at refining off-price strategies to improve the financial return in which is calculated at the end of the year. The strategies are recorded in inventory to make sure that they can be easily recounted in the future (Ross Inc, 2018). The use of records also makes it easy to assess the trend which the business is taking. By establishing appropriate targets of growth that would help in stabilizing the business, monitoring of share trends was mostly driven by the ever committing customers of the company through the earning of gains in 2018. One of the most critical aspects that every firm has is customer satisfaction. In ensuring that the customers are satisfied, the business can have a bright future, which would also increase the chances of success. It is achieved via a means, as explained below. The merchandise is formulated in a way that would easily take advantage of the demand for fashion across all age groups and also attractive discounts that the store is willing to offer. The sale would then be evaluated at the end of a fiscal year that is approximately 53 weeks (Ross Inc, 2018).

The company offers discounts to people to attract business. The expenses that the business undergoes, therefore, increase due to the measure, and the goals of the organizations are not easily achieved due to a reduction in the profit margin that the company has (Ross Inc, 2018). This can easily be reduced by ensuring that the stores have only the required number of staff. The company could also make improvements by ensuring that they use the best means of technology to make sure that the cost is reduced. Smart machines can work as perfectly as several humans in any business setting (Higgins, Koski & Mitton, 2016). The employment of such measures would save the business a lot of capital. As taxation becomes inclusive in the net expense, it may prompt the company to get into more debt to meet the costs of expansion, and increasing the production output quality is most likely to be affected through its reduction leading to a high chance of loss of sales or consumers.

Ross company makes sales and ensures that the records are analyzed per year in meetings where the fiscal year and strategies employed are evaluated. The company has experienced an increase in sales over the years and has developed significantly. The debt ratio has also reduced, and in the last three years by a favorable margin. This is connected to the net profit margin that is on the increase. This is an excellent sign for any investor who would be interested since the company shows signs of growth over time. The cost of the sold goods increased in three years. The company had then opened 95 net new stores in 2018, prompting an increase in sales by up to 4%. The sales increase of 6% in comparison to the previous years showed an impact immediately after 53 weeks in the business (Ross Inc, 2018). Though the company has set aside strategies that they would deem as helpful, they could not always be too sure of the increase in the net earnings due to factors like the competition that they would face. By the persuasion of refining existing policies and merchandising their mix to fit diversities, the company would first have to lose then experience gains, which would also not be specific.

There is a general increase in the total costs and expenses, which is expected of a company of a high profile such as Ross, Inc. The net earnings are also on the rise, but it is noted that as the earnings before taxes increase, so does the provision for tax reductions (Ross Inc, 2018). In simple terms, the taxation system of the country favors the growth of the industries. An increase in sales, however, could have been caused by a reevaluation of prices by perceiving values that were expected by customers. An advantage to the company is also that they can capitalize on the idea of value by placing premium prices on clothes that are only going to be in use once in a person's life while trying to remain competitive with everyday purchases (Higgins, Koski & Mitton, 2016). The net expense also increases in an attempt to make the brand more prominent by promotional discounts on clothing items. In the process of growth, there are expenses that the company faces. They are explained below.

The company has an unsecured credit facility expense that expires on April 2021, which is approximately $600 million and has a subject that could increase the size of the latter by letters of credit, which would cost up to $300 million. The lenders of the company have additional credit facilities that could offer the company about $200 million under which could be paid quarterly and only upon its maturity (Ross Inc, 2018). By the year-end, the company surprisingly had no borrowings and was in strict compliance with the agreement of its lenders with the facility being under the direct control of financial leverage agreements of the debt to equity ratio with the company's standby letters protecting trust between them and the debtor and letters of credit. The standby letters are protected by the equivalent of cash, investments, and also liquid cash. Ross, Inc. had $13.3 million and $20.7 million of the notes that would be in use of credit by the years ending in February 2019 and February 2018, respectively

The company can lease buildings, and it has two locations with terms that are not cancellable, which terms range from about the first three years continuing to the ten years of the expiration of the agreement. Store leases in most cases are renewed with...