The emergence of new technology has created the need to create contemporary business entities that can meet the ever-growing demand for goods and services across the world (Keskin, Diehl, and Molenaar 2013). In light of this, therefore, an entrepreneurial venture named KitchDirec will be started to help in the elimination of many intermediaries who always increase the cost of distribution of kitchen wares. Further, considering the increased adoption of modern communication devices, KitchDirec will exploit the technology in reaching many consumers within a short period. More often than not, many consumers face the problem of accessing certain products in the retail stores, and KitchDirec will be instrumental in curbing this problem by developing customer bases and delivering goods and services directly to them. Also, starting this venture will be important to the consumers as the price hike that is usually introduced by middlemen will be curtailed (Harrison and Hair 2017). The new venture will focus on plugging supply deficit and strive to enhance the consumer experience in the contemporary business environment.
Understandably, an entrepreneur always observes the environment and identifies an opportunity that can be tested and turned into a business (Harrison and Hair 2017). The underlying innovation in the modern business environment and the need to create an alternative to retail stores for consumers informed the starting of the new venture (Keskin et al. 2013). Furthermore, the mindset to enhance consumer satisfaction and promoting convenience in the provision of goods and services played a key role in starting KitchDirec to address inherent problems caused by middlemen. More significantly, the starting of KitchDirec was premised on motivation to promote innovation and address emerging business challenges that have not only resulted in adverse effects to established businesses but also consumers. Additionally, supplementing income through the creation of value for customers influenced the starting of the venture (Lechner and Gudmundsson 2014). Equally important, in light of the many problems associated with the tedious distribution channel, starting a new venture to curb them was instrumental in increasing efficiency.
KitchDirec focused on the concept testing to demonstrate how the venture will be instrumental in alleviating problems associated with retail stores. Most consumers always prefer moving to retail stores to choose their products (Keskin et al. 2013). KitchDirec dispatched different salespersons to different households to demonstrate how it will be more efficient in providing kitchen wares directly to them. More fundamentally, KitchDirec conducted product testing to illustrate how various kitchen wares can be handled and how that will enhance consumer satisfaction. Moreover, there was an immense need to conduct a feasibility study on the industry. Undoubtedly, there is always increased competition in the business environment as many companies have adopted direct selling to enhance their profitability. KitchDirec evaluated potential opportunities in the market and embraced modern communication methods to reach many consumers within a short time. Additionally, KitchDirec conducted a feasibility study on the existing barriers in the industry before embarking on the business. More importantly, the venture evaluated its organisational capacity to operate efficiently. KitchDirec focused on assembling critical resources to establish significant structures that will guarantee the sustainability of the venture. Also, the organisation conducted a financial assessment to provide the entrepreneur with adequate financial information on the amount that will be required to launch the venture.
Business ethics encompasses the implementation of the best and appropriate business policies and practices that will guarantee the promotion of the welfare of consumers. Evidence has revealed that many businesses have excelled because they have embedded moral principles into their business structures (Lechner and Gudmundsson 2014). Undeniably, business ethics often helps in fostering trust between the consumers and sellers, which is integral to the success of any business entity.
Benefits of Business Ethics
KitchDirec emphasized on embedment of business ethics in its structure to ensure that the much-needed trust between the potential consumers and the organisation is reinforced. The new venture was cognisant of the fact that promoting ethical standards would undoubtedly create a competitive advantage over its rivals in the industry. Operating under the confines of the ethical principles will be beneficial to KitchDirec as there will be enhanced cooperation and interaction with the customers of different kitchen wares. Also, the code of ethics will outline the expectations of employees and help in guiding them to effectively conduct their distribution in a respectable manner (Harrison and Hair 2017). Furthermore, observing ethical standards will help KitchDirec in making vital decisions that will gear towards the satisfaction of consumers and hence increased profitability. More significantly, the infusion of business ethics in the organisation's structure will be instrumental in improving its corporate image, which will consequently result in an increased customer base. Also, adhering to the organisation's prescribed procedure will inevitably enhance the distribution process and careful handling of various products (Lechner and Gudmundsson 2014).
Impact of Not Practicing Business Ethics
More often than not, businesses that fail to practice business ethics may be edged in the business environment. Studies have revealed that many new ventures always crumble as a result of not practicing business ethics (Harrison and Hair 2017). Undoubtedly, the failure to embed ethical principles in the business plan will adversely affect KitchDirec as the relationship between employees and management. When a manager exhibits unethical behavior, employees are more likely to have a strained relationship with the management and hence low productivity. Moreover, the new venture is likely to experience damaged credibility if it fails to infuse business ethics in its structure. The customers will have a negative attitude towards the organisation, and this may impact negatively on business sustainability. Additionally, the inability to practice business ethics will lead to the erection of legal barriers that may dent the reputation of the organisation within the business environment (Harrison and Hair 2017). Worse still, the new venture will be negatively affected financially as unethical business behavior will undoubtedly result in the diversion of vital resources that can be used in enhancing the direct distribution of kitchen wares to various households.
Policies and Procedures
The success of any business venture is often premised on its ability to establish the best policies and procedures (Lechner and Gudmundsson 2014). KitchDirec's policies will be focused on developing and rooting codes of conduct that will guide the smooth operation of the business. The policies will outline the responsibilities of the organisation's management and employees. More fundamentally, policies will provide the much-needed framework that will be integral in addressing any emerging problems that may bring adverse effects to the new venture. Additionally, policies will ensure the entrenchment of better decision making that will shape every aspect of operation within the organisation. KitchDirec's policies will outline different principles that will create a framework for daily operations and interaction with the consumers within the business environment. Businesses always create procedures that assist them in accomplishing their activities (Lechner and Gudmundsson 2014). KitchDirec's procedures will be hinged on creating a consistent distribution process with minimal or no hiccups. Equally important, procedures will help KitchDirec in eliminating certain inherent challenges that may bring adverse effects on the organisation's credibility and reputation. Undoubtedly, the adoption of contemporary business policies and procedures will guarantee the success of the new venture.
The Law-Intellectual Property
The organisation will be legally required to operate under the confines of Regulations 1988, which will focus on the protection of consumers (Harrison and Hair 2017). Also, the existence of the name of the venture "KitchDirec" would be confirmed from the registrar before the availability certificate is issued to the entrepreneur. Further, the organisation will be required to file Memorandum of Association outlining the nature of the business in tow with the owner's and witness' signatures. Moreover, Article of Association will be presented to the registrar succinctly, outlining compliance with the business' rules together with four copies. The logo will be created to demonstrate the organisation's trademark and its purpose in the business environment.
Direct sales have provided a much-needed revolution in the contemporary business environment. The advent of technology has played an integral role in enhancing the operations of different direct sales companies across the world. KitchDirec's services will undoubtedly create a great turn-around in the modern business environment and enhance consumer satisfaction. Different challenges have been associated with purchasing products in retail stores. More often than not, many consumers lack better knowledge of handling different kitchen wares. KitchDirec has identified this entrepreneurial opportunity where it will focus on improving understanding the products by initiating demonstrations through its salespersons. Further, KitchDirec will be instrumental in reducing the number of middlemen that not only increase the cost of distribution but also create delays in delivery. Undoubtedly, KitchDirec will ensure that product testing is encouraged, and immediate feedback of the consumers is sought to guide in the creation of additional policies that will improve the services.
Harrison, D.E. and Hair, J.F., 2017. The use of technology in direct-selling marketing channels: Digital avenues for dynamic growth. Journal of Marketing Channels, 24(1-2), pp.39-50.
Keskin, D., Diehl, J.C. and Molenaar, N., 2013. Innovation process of new ventures driven by sustainability. Journal of cleaner production, 45, pp.50-60.
Lechner, C. and Gudmundsson, S.V., 2014. Entrepreneurial orientation, firm strategy and small firm performance. International Small Business Journal, 32(1), pp.36-60.
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