• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Case Study - Recovery Kitchens Ltd

Extracts from this document...

Introduction

Lara K. Business 11B 10th March 2008 Case Study - Recovery Kitchens Ltd What are the target markets of the business? The target markets of the business are people who want to buy a kitchen which is 'old' looking and suites the style of their house and people who are concerned about the environment, also known as environmentalists. Recovery Kitchens Ltd use recy.cled wood so therefore they appeal to the segment of their target markets who are worried about the environment. Due to the fact that the kitchens they produce are traditional so therefore look like aged kitchens they also attract those customers from their target market who want to buy an 'old' style kitchen. The company is also targeting a population which has a relatively high income, as the kitchens do not come cheap, due to reasons such as the cost of production. The target market of Recovery Kitchens is a differentiated market because kitchens are a very broad market however; kitchens using recycled and reclaimed wood are a niche market. Explain the internal and external factors that might affect the business. The internal factors that may affect Recovery Kitchens Ltd come from within the business itself. These could be positive or negative. Possible internal factors are: - Management of Resources - In some cases the wood may not be suitable to be prepared so then wood that has been bought by the company is wasted. ...read more.

Middle

They offered these kitchens at a cheaper price so therefore became rivals with Recovery Kitchens Ltd. Due to the fact that Recovery Kitchens Ltd only offer one main product they can not take the risk of loosing sales which businesses producing more than one good might be able to do. Once competitors enter the market Recovery Kitchens Ltd has to think of a feasible solution in order to avoid going out of business. Consumers want to buy a kitchen utility made out of recycled or reclaimed wood because they are environmentalists or because they like the 'old' looking kitchen. Recovery Kitchens Ltd is only aiming their product at a tiny segment of the overall kitchen market so therefore there are a variety of other materials used to make kitchens that consumers could choose from. However, consumers that come to Recovery Kitchens Ltd are concerned about the environment or are interested in a particular style so therefore these consumers want their kitchen to be made out of recycled or reclaimed wood. There is an immense price difference between the price charged by Recovery Kitchens Ltd and competitors because a tremendous amount of work is involved in reclaiming old wood so therefore Recovery Kitchens Ltd have to charge a higher price. Comparing this price to competitors, they are able to make the price lower because they offer cheaper pine products which look similar to reclaimed wood. ...read more.

Conclusion

There may not be a significant difference between managed wood and recycled wood so therefore the members of staff may not have to be trained how to prepare it. Expertise The demand for managed wood may not be high because other kitchen manufacturers sell kitchens at a cheaper price using different materials instead of wood or cheaper pine products. The demand for managed wood should be high because many people are concerned about the environment so that would be a major factor when they want to buy a kitchen where all the utilities are made out of wood. Recovery Kitchens Ltd will still maintain their environmental image even though they are using a different kind of wood. Demand In conclusion, Recovery Kitchens should definitely consider moving to managed wood because they will maintain their environmental image however diversify their products which could increase their profit. In order to ensure that moving to managed wood is the correct way of expanding the business, a SWOT analysis should be conducted and all factors, both negative and positive, should be considered so that the decision that is made is thought about in depth. There are many positive and negative factors concerning the situation of whether Recovery Kitchens Ltd should move to managed wood or not however, the decision should be based on the factors stated in the table and after a SWOT analysis is conducted, the business would have a better idea of what strategy they should follow in order to expand. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Case Study: BMW 's New Oxford Way

    It combines knowledge and skill making the best use of the employees by allowing them to work on their strengths. Teams can also compete with each other which could be an incentive to work harder and faster. ii) The business itself BMW benefits in many varieties of ways in terms the Wings program.

  2. Marketing. In my project, I am going to be looking at how Nestls Smarties ...

    There needs to be a catchy slogan, it could be printed on the packaging. Evaluation Criterion 1 (4 marks) Setting of an aim appropriate to the investigation Candidates should ensure that the aims of their investigation are clearly stated at the outset of the work.

  1. Rolling Case Study of Kellogg's

    Kellogg's perfectly understand the importance and value of the children and infants segment/audience, as they represent both current and future customers.

  2. This paper will concentrate on Apples Apple TV business, and its complementing iTunes business.

    They have a comprehensive online and offline strategy. Apple products always cost more to purchase than other products in their respective category. They do recognize that premium and provide very high level of support. It is evident from the fact that Support is listed very prominently along with apple products on the main navigation widget on their website.

  1. Business Leaders on Managing Organizational Change: the case of British Airways

    The same approach was used. This suggests that relied on the power of communication and not just information. He communicated with his followers to better explain the situation and make them understand were all of the actions being taken were leading to . By communicating, dialogues were opened and all of the parties involved were able to air their sides and give suggestions or explanation.

  2. Difference in working culture of Malaysia & Singapore

    ward them from evil spirits: one on each shoulder and one on the forehead. If a voice calls out to you from behind, and you turn halfway to acknowledge that person that turns out to be something not quite, you run the risk of extinguishing one of the 'lamps' on your shoulder.

  1. The Business Strategy of Pizza Hut

    3.3 ? PRICING STRATEGY In a business in some cases you can set the prices for your products and services, in other cases you cannot. If you are able set the price there are some pricing strategies. For Pizza Hut, there are not so many competitors, and this Company has big advantage comparing to their competitors.

  2. Organisational Behaviour (in short called as OB) is concerned with the study of the ...

    ? Decision makings can be quicker since units are focussed on one particular field. ? Faster and clear communication and high quality of customer service within the department. Disadvantages ? each department would have a lack of knowledge and not concerned about what is going on, to other departments.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work