Play it safe at home or take a risk abroad

Company’s situation

The aim and goals of every business are to expand and create development in its scale of the business. Company faces a lot of hazards which could let it fail to shift in new environment and new market due to lack of own stores. The investors of the Coe’s chain faced a lot of situations where they failed in expanding the business. Customers took the product from this company without making the payment which was the foremost situation to make the company fail. The company made a lot of losses since managers couldn’t find the customers who did t make their payment. The major sticky situation facing the Coe’s as well as lease-own store is whether they expand the company retail store which is the weird situation to them. This paper is focusing on playing it safe at home or takes a risk abroad.

Actions the company took

After the company faces a lot of difficult situation, Coe’s start using the policy of lease-to-own pattern in shopping, which help to offers good to rent till that own inside an agreement appointment. This chain helps the Coe’s managers to offer monthly payment schedule in addition to shorter contract period. Coe’s managers intonate free delivery of items and free repairs of items bought from Coe’s company. The policy aids managers of the Coe’s company to enable to identify the clients who were aware of the lease-to-own chain. Clients were afraid of making big-ticket once when the policy was outlined in the company hence the company was competent to make the profit. Coe’s chain helps the consumers to demand loan-to-own store to individuals who couldn’t meet the expense of households. The company became an attraction to the clients who used their services in a way that people could make the payment without being penalized (Michael, 2011).

Outcomes for the company

According to Michael (2011), the outcomes in the Coe’s company were positive in such that market was surrounded by many clients from the time when the lease-to-own chain was identified. The Coe’s company beneficially expanded in the countrywide and this makes more customers to be more interested because the prices of transportation, labor, and real estate were lowered. The Coe’s company business leader offer training to the employees working within the company and this was most to motivate the employees hence boosting the company. The company greatly expanded in and it was able to open over thousand of the store all over the country. The company experiences positive changes by making improvement in the financial situation in addition to the growth of success in the Coe’s company. To play safe in the business just need survey about small business income and cultural feature before having intention of working globally

Company that is currently affected or recently been in a similar situation

IKEA is a company which deals with furniture that faced the similar situation as for Coe’s company. IKEA Company incorporates friendly with environmental due to the effort of the leader of the business just as Coe’s company leader. IKEA face the situation of decreasing the cost of the products in the company which makes the company development to shift low. The reduction of the cost in the company of IKEA brings the reduction of the profit in the company at the rate of 2% to 3% in every year (Edvardson, Enquist & Hay, 2006).

IKEA Company’s leader come up with a solution of developing the company hence serving a large number of clients within the country. IKEA lowers the transportation penalty by using the flat packaging. IKEA company introduced long-term contracts to their customers so as to make possible to their clients to take loans. IKEA did not only give loan but also assist their customer how to use their finance. This creates an exceptional business opportunity to the company hence facilitating the company to continue offering wide range services. IKEA offer loan to their clients to enable many of individuals to afford furniture from the company (Edvardson, Enquist & Hay, 2006).

Strong and compelling arguments based on sound business knowledge

Strong and compelling arguments based on business knowledge are that managers enjoy the increase of return in the business by not recognizing the employees and customers in the business. Businesses are highly benefiting with no lowering the price of the products to their customers. Something broader is more important and benefits a large number of people globally. Leaders of the company have to play a big role in order to develop the company metric and systematic. Regardless of compelling arguments in the business, the top management is the key in deliberating most matter in the organization. Therefore is advisable for any company to play it safe at home or else take risk abroad.

 

 

 

 

References

Edvardsson B., Enquist B. & Hay M. (2006). Values-based service brands : narratives from

IKEA, Managing Service Quality. 16(3)

 

Michael, C. (2011). Case study: Play it safe at home or take a risk abroad. Retrieved from

            https://hbr.org/2011/10/case-study-play-it-safe-at-hom