Questionnaire Analysis
I carried out my field research by asking 50 people walking by to fill out a questionnaire which I designed Appendix 1. The way I designed my questionnaire was that I quantitative and qualitative questions in which enabled me to collect and analyse the data appropriately and to it’s full potential. I distributed the questionnaires at random which gave me a wide selection of people to analyse and also gave me an insight of what type of persons to target my business venture at. I have how analysed these results and have come up with some conclusions which could effect my potential business.
Here are tables of the results in a frequency chart:
With the results I have collected I have concluded for a better appearance and notice ment by creating graphs.
The first graph shows the age range which visit music retailers. As you can see from the graph there seems to be a large number of young people mainly students and new employed adults. I think this indicates that the main target would be on students and young working adults. This seems right as they have more time on there hands than older people.
The second graph shows the number of people that travel different distances to come to shop at Music retails and the rest of town. From these results it shows that most people that shop in Bradford actually live in the city. I only came across 1 person who lived outside of Bradford.
The next question I asked in my questionnaire was the opinion if there should be more choice to introduce a new music retailer who will give a good selection of music titles. I got a good response from this question, which lets me know that the potential public is eager to have more music retailers.
The next question was really to give the company a insight into the types of music people liked so it would give us an idea of what stock to order when finalising the premises. Overall it seems that dance music has the most popularity with young people.
The next graph shows how many people are prepared to pay for single and album CD’s. From the feedback I received I concluded that many people would pay up to £5 for a single and up to £15 for an album. This will give me a good indication to start my prices at penetration pricing on some items to get the customer to look around and then tell friends and family as word of mouth is the best publicity.
This next graph shows how often people visit music retails. This is good information as it tells me many people visit music retails quite a number of times during the month.
Existing Information (Social Trends/Statistics)
I have collected a variety of statistics which have been used in many of the social trend books. From the statistic I collected and analysed I found that the percentage of how long they spend on listening to music and radio. The response was good as many young adults and older people tended to listen too music with the percentage of around 65%.Ialso found out that not that many people spent time on their personal computers but this should not effect my business as I will only be selling Computer games. This information is held on Appendix 2.
I was interested in the music domestic market and found out some figures for music sales in the last few years. From the figure I could analyse that CD’s sold the most , then Tapes and then Singles. There seemed to be not a strong market I the LP section but I think that they should be included in my music selection. All this information can be found in Appendix 3.
Here is a graph showing you these figures:
The next primary data is of great concern as from the statistics people prefer firstly to watch TV in there spare time, then entertaining friends, then listening to the radio and then listening to tapes and records.
The graph below shows you what percentage people do in there spare time:
All this information can be found in Appendix 4.
Other information which I found in social trends book 96/97 was the fact that many people aged 16 to 35 listened to records and tapes in there high 90’s. A chart below will show you the difference.
I have also gathered other information relating to the topic in which I have included in Appendix 5
& 6.
Choosing the Location & Premises
I decided that it would be best in the interest of the business if we would be located in the town centre or near a busy shopping area. It is quite expensive to rent such premises but I think that the profit and market share is very important.
I contacted an estate agent who dealt especially on Business premises, and I received relevant information on some properties for sale or rent.
These are some of the properties that I asked for through the agents business brosure:
Property (A)
- Vacant Shop and House, 654-652 Halifax Rd, Bradford.
Situated in the busy shopping area next to the general post office and the supermarket Tesco.
Price £ 47,500 for property. Appendix 7
Map Location Appendix 13
Property (B)
- Town Centre retail shop and accommodation in the Bingley town centre.
Price £ 55,000 for the property and £1250 for rent of accommodation per annum. Appendix 8
Map Location Appendix 14
Property (C)
- Freehold Shop Unit, 25A Boothtown Rd, Halifax.
Situated in busy shopping area and fronted on the main road convenient for Halifax and Bradford shoppers.
Price £18,000 for property. Appendix 9
Map Location Appendix 15
Property (D)
- Retail Shop Unit, Baildon.
Single story retail unit. Situated in the main shopping area between Bradford and Shipley, also next to Fish & Chips Shop.
Price £69,000 for property, and £5200 per annum for rent. Appendix 10
Map Location Appendix 16
Property (E)
- Retail Shop Premises, Shipley Town Centre.
One floor retail unit situated 100 yards from Asda the Supermarket and Car Park.
Price £7000 per annum for rent. Appendix 11
Map Location Appendix 17
From looking at all the properties and viewing them I thought that it would be best to open my store in a small town near Bradford, like Shipley. The reason for this is that there is no music shop in the shopping area apart from Asda the supermarket which offer a small selection and Woolworths who also catter for the same selection. When considering my location I must look at the competition in the area. The location I would be looking for would be close to the main shopping area so it would not be out of the way for customers to reach by walk as Shipley has no roads around it’s shopping area. For the Shipley area the competition market share is as follows:
Asda 6.9
Woolworths 4.1
A pie chart will give a true image of the market share
From my ideas and research I visited and phoned Ernest Wilson Estate agent who specialises in Business properties.
I was given some information about some properties in the Bradford area which were suitable but I didn’t think they were the right location for a record store, this information is in Appendix 7,8,9,10,11. I was thinking more on the lines of the town centre or a busy shopping area.
I also received a detailed brochure, which gave me details of all location for sale or for rent. Appendix 12. I seemed interested in some of the properties as they were in a busy shopping area or in or near the town centre.
I phoned the estate agents up and then asked for details of the properties. I received some information about a property which was located on the Halifax road area in Bradford which is next to a large post office and a large Tesco superstore. I liked the sound of this property but it wasn’t in the town centre and was not located in a good area of Bradford. Another property I looked at was in the town centre of Shipley. These premises were ideal as it was very spacious and it was in the heart of the centre and only 200 metres from the main car park in the Asda store. Both these premises were ideal but I think that I would be more willing to place an offer with the Shipley location, as it has more to offer and the Shipley town centre is modernising and becoming quite a popular area to shop and has hardly no competition apart from selling chart music.
Chosen Location
Music Mania will be run from a unit not so far away from the shopping centre in the small town of Shipley, which is sited in the town centre. Appendix 11.This is an ideal location for this type of shop as many young people come to town to buy items of this sort. There is also another good point that there are not single selling music shops around apart from Asda the Supermarket and Woolworth’s. I think this will not be a problem as they can only sells a small section of the music industry and there prices seem to be higher that music retailers. As it will be noted from the street plan in the appendices, it overlooks both the town centre and is situated in the main outdoor mall which is the only way to walk around the shopping centre and is a close environment. . This location is different as other music shops are situated at the far end of town and in unusual places. With there being Asda the supermarket there is a multy story car park and there is a special bus service, which drops consumers outside the front doors. There are many advantages of this location as it is a prime area where shoppers shop at Asda and come to buy there records at there well know music store, and also many people visit from Bingley, Baildon, Keighly and Saltaire which is near by.
Therefore there are a number of potential customers, which pass by this shopping centre. An estimate of the actual numbers and types of people and prospective customers walking through the mall by the property - derived from my personal observations and interviews carried out at regular intervals over a six – month period.
Premises
By converting an existing empty hardware store, a brand new modern music retailers will be constructed, along side a multimedia sections with a number of PC to test software on. Within the premises there will be a lot of racks of all shapes and sizes which will hold many of the latest music title on cassette / LP and CD’s. Included in the premises will be fully fitted florescent carpet, strip lighting and colour
co-ordinated fixtures and fittings. This location is ideal as there is plenty of space and there is even a large storage space situated at the back of the of the shop floor. It is also facilitated with toilet kitchen area and delivery and car park space. The estate agents details are issued in Appendix 11, The location of the premises will also be included.
An artists impression of the finished shop floor as stocked with goods, and a scale diagram showing its dimensions and a internal and external layout.
Objectives (Personal)
Short term – To make my own decisions, contro0lling my professional and financial future. To be able to earn a reasonable living from my skills and expertise.
Medium term – To continue to create and supply the latest selections of high quality music listening and also to supply the consumer with the widest selection of music ranging from Soul to Dance. I will then also supply the consumer even a wider selection of Dance Music like House, Garage and Trance.
Long term – To make a satisfying living and to carry on satisfying the customers wants and needs and to build up a nation wide reputation and become successful.
Objectives (Business)
Short term – To increase my customer base. To maintain a healthy cash flow and also to achieve profit targets. To find out customers want and needs and any alteration to the selection of products on offer.
Medium term – To expand the customer base at a steady rate and also to keep these customers by offering them the lowest price and there money back guarantee if they are not satisfied.
SWOT Analysis
Opportunities -
Strengths –
Threats –
Weaknesses –
Externalities (Slept Analysis)
Economic –
Environmental –
Legal –
Political –
Social –
Technological –
Market Description
We will sell our goods to the 16 to 20 year olds. The main people who will benefit from this new venture will be students and career people. It will also interest music lovers who will have the choice of many leading music labels.
These three types of customers can be divided into three different catagories which will have different wants and needs.
Students – These are the main people that by come to music retails and buy there goods. It is vital for the retailer to keep to a good price range as students haven’t got a lot of money to spend.
Career People - The market that we are entering is quite a large market with many leading companies like HMV, Virgin Megastores, Our Price and WH Smiths, but this should not effect the business because these superstores have not reached the Shipley area and we only have competition with ASDA the supermarket and Woolworths who only both sell Top 40 Hits and Videos.
What the business will sell?
The main part of the business is selling music on the variety of choices which are Cassette, Compact Disks and LP’s. I will also sell music magazines, T shirts, videos and computer games.
All our materials will be bought by the leading music wholesalers and also directly from the music company. I have estimated that a normally priced CD can be bought for £5.50 and will be sold at the retail price of £11.99. This price can also be reduced given to circumstances. I will apply a 100% mark up which is in the line of trade and will not effect our business as all CD’s are priced roughly the same.
Organisational Structure
The structure of an organisation.
There are certain types of business organisations. including partnerships, limited companies and independent sales people. They will all have different internal structures, in the way they are organised.
The internal structure I will take into account are such things as:
- The relationships between individuals;
- Who is in charge;
- Who has authority to make decisions;
- Who carries out the decisions;
- How information is communicated.
A business will be organised so that it can run efficiently. There are a variety of different structures that a business organisation can have. The structure could be based on or a combination of the following:
Organisation by function Many businesses are organised into departments, which undertake different activities. Departments common to most firms include marketing, production, personnel and finance.
Organisation by process When production is bases on a number of operations, the business may be organised into areas that specialise in these different tasks.
Organisation by geographical area A business may be divided into regional or national sectors, which concentrate on certain areas of the country or parts of the world.
Organisation by product This is where each different part of a business concentrates on the production of a product or the provision of a service.
Organisation by customer A business may be organised so that certain sectors deal with the needs of different groups of consumers.
Hierarchical Structure
The main type of managerial structure used within most companies is the hierarchical structure. This is a style where there are various levels of authority within the company. On the hierarchical structure the higher you are the more authority you have within the company. The hierarchical structure can be viewed as a pyramid, the lower down the pyramid you descend, the larger the number of staff you are likely to find employed. The jobs at the top of the structure carry the most authority and the greatest responsibility for the success or failure of the organisation. I think that my company would not have this type of structure as it is not a large company and is only running from one location.
The advantages of having a hierarchical structure are:
- People know where they are, and so they are is no confusion.
- A clear management structure.
- Clear lines of responsibility and control.
- Rugged structure, easy to follow.
- It is more even, people run by others near to them, which means better relationships.
- Communication happens between similar levels, of the organisation.
The disadvantages of having a hierarchical structure are:
- Communication throughout the company takes a long time.
- There are many layers of communication, which makes it complicated.
- Cross-department communication can be difficult.
- To get information from the top of the scale to the bottom or vice-versa.
- Communication of more than one level are discouraged.
Authority and Responsibility
Employees in the hierarchy will have responsibility and authority. Employees at lower levels have less responsibility and less authority. However, these terms do not mean the same thing.
Authority is the ability to carry out the task. Therefor it is impossible to delegate authority to persons with no responsibility.
Flat Structures
In contrast to a hierarchical structure, a flat structure generally has a single level of management. Flat structures are normally for smaller organisations which would be idea for my particular business venture. Flat organisations are those which have a relatively few or even just one level of management. They are frequently found in the service sector of the economy. They tend to be smaller and less complex than hierarchical organisations. Many partnerships, co-operatives and some private limited companies have a flat structure with all the management at the same level.
The characteristics of this type structure are that the authority is very centralised. The span of control is very wide, and so responsibility is spread also creating a more equal workforce. It has recently become more popular, because in ways thought not possible just a couple of years ago. This style of management only works for a company with less than 200 people working within it.
There are a few problems with organisation or co-ordination as they’re all working for the same objective. It also encourages delegation within the organisation and therefore more active roles to play within it.
The advantages of having a flat structure:
- There are fewer levels of management.
- There is a greater communication between management and workforce.
- There is a better team spirit.
The disadvantages of having a flat structure:
- People may have more than one boss.
- This method is only useful to small businesses.
- It can be difficult for the organisation to grow.
A structure can be defined as having component parts, which are connected in a particular way. Structures are designed to fulfil purposes. Organisational charts are an attempt to record formal structure, showing some of the relationships, the downward flow of authority and responsibility and the main lines of communication.
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