ORGANISATION SUMMARY

Founded in 2015, Malvin’s Furniture was a small-sized enterprise which started as a small
business in a warehouse in Texas. It started with a purpose of using sustainable sources of
wood and cotton. It is a home-furnishing brand which provides a great value of merchandise
and exclusive fashionable houseware. All sorts of home furniture, décor , self- assembly
furniture, kitchen and bathroom items and household items are readily available. Our main
focus is on innovative designs, using sustainable products, customer satisfaction, value for
money prices. We offer prices easily accessible by all budget levels.

Our first store launch was on September 17th, 2016 in Texas along with the launch of our
online store and today we are successfully established across 4 countries – US, Saudi
Arabia, Sweden and Canada. It is a SME turned into a large enterprise over the 5 years .
Currently we are working in our own store but will be soon be launching some of our
products with other online retailers to make it more easily accessible by people.

Our products are to fulfil the customer desires and needs and we try to make them as eco-
friendly as possible. There is wide range of varieties of furniture and household items for
each and every room of your house. We offer in-home décor service which is a program in
which our designers visit your home for consultation regarding the measurements, colour
options and provide tips and help you design your house. Each and every aspect of this
process id monitored from designing building to testing the product. Our materials are
durable and long lasting .

In this developing world it was a very competing task to develop your own brand . Some of
our competitors are Ashley signature, American furniture, and James and Charles Co. .

The main aim of this business was to be able to reach out to a wide range of customers by
providing a wide range of products. It is suitable for everyone since high quality products are
offered with less prices.

Table of Contents
ORGANISATION SUMMARY.......................................................................................................1

INTRODUCTION.................................................................................................................................3

TASK 1................................................................................................................................................4

Some Common mistakes made by entrepreneurs.:.......................................................................4

TASK 2................................................................................................................................................7

Strategies.......................................................................................................................................7

Pricing Strategies...........................................................................................................................7

Customer Service Strategies..........................................................................................................8

TASK 3................................................................................................................................................9

How business will be innovative....................................................................................................9

TASK 4..............................................................................................................................................12

Resource Requirements:..............................................................................................................12

CONCLUSION...................................................................................................................................14

REFERENCES....................................................................................................................................15

DECLARATION..................................................................................................................................17
 INTRODUCTION

This assignment is based on the concepts of entrepreneurship. Entrepreneurship means to

start a new business with available resources and be ready to accept all the risks, failures
and even the rewards following it. An entrepreneur is a person who has innovative ideas
and want to start something with those ideas and keep the business running smoothly.

Behind a successful business there can be multiple attempts or failures . Entrepreneurs

make mistakes in the starting which could be critical for their business. But with suitable
strategies a business could boost in no time . Using relevant pricing strategies for the
products and maintaining customer service strategies could be a boon for the business.
Always try to bring in new innovative ideas in your business. Resource Management is one
of the important thing in the proper functioning of a business.

In this assignment we talk about the organisation ‘ Mavin’s Furniture ‘. It is a home furnishing
store based on the idea of using sustainable products. The store offers a wide variety of
furniture , accessories, kitchen and bathroom items. Basically, a store which fulfils all your
basic home needs.
TASK 1

For every business, an entrepreneur must be multi-skilled. They need to handle all the
management activities, like financial management, customer care, product development.
Even after the business expands, the entrepreneur will have to manage their time wisely.
Being innovative, self-confident, having excellent management skills, and resilience are
some of the most important characteristics of an entrepreneur.

Early months of trading are very crucial for an entrepreneur. Many uncertainties can occur.
Some of the major concerns include, funding, skills, the right product etc.

Some Common mistakes made by entrepreneurs.:

1.Financial Exposure:
The most common issue faced by entrepreneurs is with cash flow, debt repayments
and funding throughout the business. Usually for new enterprises, it is hard to get
financial support as they no earlier performance records. Many new businesses drop
trading because they either run out of cash or have very low access to loans. They
might have problems in reordering as their thinking might not be accurate according
to the demands in the market or the suppliers might not trust as business relations
won’t be developed with them.

A major mistake made by entrepreneurs is not being able to manage the working
capital cycle. Working capital is the difference between the current liabilities and the
current assets.

It includes :

 Credit control :

 Cash flow management

 Inventory/stock Control

HOW TO AVOID: Entrepreneurs should review the working capital regularly.

 Credit control : includes the process of receiving payments and the ways to
recover outstanding debts. Debtor-analysis , credit offering and terms should
be decided so that the entrepreneur has control over the money owned.
  Cash flow Management : allows estimation of cash on-hand at a point. Helps
the entrepreneurs to keep a record of when there will be insufficiency and
when there will be a surplus and accordingly manage the funding of
expenditure.

 Inventory/Stock Control : keep a track of the goods and try not to tie up your
money with unsold/unused stock. Reordering is important as it will keep a
balance in your inventory. If the market demand is high , plan the re-ordering
processes accordingly and avoid tying up your cash with it.

2.Sunk Costs:
It refers to the costs that the entrepreneur spends earlier in the business eg:
significant purchases or day to day items. Some decisions that must have looked
appropriate at the time of investing might not achieve the desired results. Sometimes
some entrepreneurs stick to these investment plans because of the sunk costs,
which would be a mistake .

HOW TO AVOID:

Entrepreneurs should always take decisions depending on the current situations, so

it is best to accept the sunk costs and move on. Try to compensate it as early as
possible.

One way of avoiding sunk cost is to not make hasty decisions in the start and
purchase products outright. Plan everything beforehand .

3.Leadership Burden:
An entrepreneur should have a clear understanding of what he is planning on
starting and what all risks he will face in future. Should always have a positive
attitude since the start, failure shouldn’t be the first consideration. Problems arise
since the starting of any enterprise, but an entrepreneur having a risk-taking
characteristic should be evaluate the consequences. Entrepreneurship is a burdened
responsibility, and the fear of failure can force and entrepreneur to make fast and
hasty decisions due to the pressure of work and external forces. The key decisions
taken at the start have a solid impact on the growth and development of the
business.

HOW TO AVOID: Important decisions should always be taken when you are relaxed
and not when you are overworked.
4.ADVICE: Taking too much or none
One of the characteristic of an entrepreneur include self-reliance, so they might not be
comfortable in asking for help. It is beneficial to take feedback and support from experienced
people(mentor) or anyone who can train and guide them . This would have a significant and
positive effect on an entrepreneur. Mentor can guide new entrepreneurs in the right
directions and help them in finding solution as they could have faced similar situations. BUT,
First time entrepreneurs shouldn’t completely depend on the feedback as it would result in
postponing decisions, which would be tragic for them .

HOW TO AVOID: Keep the feedback process as smooth and beneficial as possible for your
company. Keep the feedback into considerations but do not delay any functioning of the
company. Feedbacks can be taken side-by-side while executing individual tasks.

5.HIRING The WRONG FIT:

“Your biggest Challenge will be building a great team” – John Doerr

A difficult challenge most entrepreneurs face is forming up a team and integrating them into
one unit. Usually the sales staff is hired earlier rather than the product head. Key staff with
little or no experience hired.

HOW TO AVOID: Always look out for passion, hire the best one depending on company
needs to get the maximum benefit from them and giving them the same back. Motivate and
always be patient rather than being short tempered.

(Word count 892)

TASK 2

Strategies

A strategy is a move made by the business to attract customers, achieve goals, compete
successfully.

Pricing Strategies

Physical goods require time and energy to get a desired output. Pricing strategies are
effective in increasing and improving sales, growing and making your brand a Competitive
warehouse. It is essential to use the correct strategies as one product sold in a loss will
result in a loss with every sale. There are many methods to price your products depending
on the brand type, your goals and target market.

Some of the pricing strategies used for Malvin’s Furniture:

1.Cost-plus Pricing- A pricing strategy where a particular cost is added to the product in
order to get the selling price. The material cost , labour cost, and overhead cost is added
along with a small percentage to get the final product price. The advantages of it is it is a
simple and justifiable method with assured profits.

2. Competitive Pricing – A pricing strategy which doesn’t focus on the customer or cost.
But, it focuses on the value of your product in the existing market. The competitor prices are
pondered and researched upon while setting up a price range for similar products. The
prices should be somewhere around the competitor prices for being competitive.

3.Value-Based Pricing – A pricing strategy which is customer-oriented where the cost of

the product is decided according to the value it will provide to the customer. It is not similar
to cost-plus pricing rather in this method the price of the product is determined by how much
the consumer is willing to pay. The advantages are you build the best product along with
getting to know your customers.

4. Psychological pricing- A strategy where the prices are set less than a whole number.
The customer check the price and consider it lower than the actual price. Eg: Pricing an item
for $4.99, the customer would consider it as a $4 rather than a $5.

5. Referent-Pricing – Considering occasional price drops making the customers believe

that the revised prices are a great deal. This is done by providing the earlier prices as well
for reference.
6. Tiered Pricing- Setting up different pries for different variations of the similar product.
This helps a large amount of consumers to have access to the similar product according to
their budget.

Customer Service Strategies

1.Educating the staff: Employees should understand what the goals are for customer
service and understand how they can help achieve them. Teaching them customer skills, will
help them have a better customer service experience than those companies which have
untrained employees for dealing with customers. Everyone in the company should be able
to act as a support so that customers can get queries answered properly. The employee
must know what the customer wants.

2. Resolving concerns at first call: The person in charge should the complete
responsibility to resolve the customer concerns.

3.Personalise the experience : The staff should be able to connect the previous
interaction like emails, phone calls etc.

4.Customer Feedback: Feedbacks are always necessary in a business to help improve

and to understand what the customer actually wants.

5.Multi-Channel Servicing: the use of mobiles, social media platforms to provide good
support services . Ensuring that the customer-service and support pages are capable to
assist between you and the customer. Improving response time.

6.Recruiting and training: some people are better than the rest. Always hire your staff
with the right attitude. Training programmes for providing people skills and job skills should
be planned and maintained. Never try to cost cut in this area . the staff should have
customer service qualifications.

(Word count 603)

TASK 3

How business will be innovative

Any business requires dedication, perseverance and hard work. And for a business to be
successful, fresh ideas are required to keep the business running smoothly and keeping the
services and products the best. Always try to stand out from the crowd, this is where you
need innovation. The flow of new ideas into a business regularly is known as innovation.
Innovation means to do something better to your abilities and creating a unique identity. With
every innovation, we make changes in the business model and adapt to the environment to
be able to deliver the best products and services.

Nowadays, many customers look out for new and improved versions of furniture or décor
accessories. A new trend of innovative furniture for small spaces is in high demand in the
market . The one product multiple uses kind of furniture. In this competitive environment is it
very essential to be competitive and introduce new and new ideas .

Some of the innovative processes which help boost the business are as follows:

1.Approaches to Innovation:
Innovation in any business would mean a rise in product sales. New products and services
should be introduced in the market. Regular analysis of the market should be done to
understand how your innovation will add value to your customers. Always keep an eye out
for new opportunities for innovations. Adapt your services and products according to the way
the market is changing. For example: introducing environmental friendly furniture to increase
the sales among the planet-lovers.

Malvin’s Furniture tries to bring new products in market, some of which include products
created by recycling plastic. An environment friendly practise which will be liked and
appreciated by all. Advanced technologies and techniques along with changing working
practices will also boost the energy of the employees to work better and produce quality
product.

For customers who have time issues to visit the stores can always order online and get the
product delivered at home. Launching new services like in-home design service for people
who want to get their houses customised according to their choices.

Look out for what products your competitor offers and what reputation they have for their
products, instead of reducing prices according to them , increase the quality of the products
and charge accordingly.
2.Planning Innovation:
Innovation should be a part of the business strategy . Take time to monitor the trends in the
business sector, so you can focus in your innovations in the key areas. Innovations not only
help you with increasing your business but will also help to grow and help you gain profits.
Assess your ideas to ensure that they have a profit potential. Some ways of doing it is to find
your competitors and check what they are offering , this can be done through internet
sources or advertises. This gives you an idea of what you want to bring in market. For
example: if the competition is based on the value of prices then you should try to emphasize
on high quality products and services.

Climate awareness will help in planning out your business.

Just knowing your customer base is not enough, try building a relationship with them
through effective communication. Communication just doesn’t involve listening to their needs
but also understanding their behaviour with the products and how you can build products
with improved ideas .

Involvement of suppliers and business partner by pooling resources with them will help in
developing more creative ideas.

Scrutinize what every innovative step taken by you could do for your business. Asking
yourself what extra training for staff is required or what extra resources are required, or how
the work will be financed.

Your business plan should include your vision by noting down all the goals and how you
want to achieve them. Associate your goals with your financial targets, expecting a definite
turnover in a given time. Review your plans regularly.

3.Encouraging innovation in business:

For a business, you should always find sources to help you in generating new ideas. Your business
partners, suppliers can make contribution to your creative process along with encouraging and
supporting you.

Employees are an important resource in the innovating process. To get the maximum from them , an
environment should be created which encourages the employees to freely present their ideas.

Some steps include:

 Setting up suggestion boxes or keeping some occasional days off to bring out ideas.

 Encouraging atmosphere without any risk of criticism.

 Encourage experimenting with ideas rather than criticising them.

 Reward the innovation and celebrate the success.

4.Funding Innovation:
There are numerous ways of funding your growth through innovation. You can either use
your own funds or get help from external sources like loans or equity finance. External
funding would require a high quality business plan which would describe about your
business and a detailed estimation about where the business is going and what you are
expecting from your business. Businesses usually turn to banks for loans or finance
depending on their needs.

If you are planning to hand over some business to investors , there are two ways to do so.
Either business angels who are wealthy and invest in private companies or venture capital
firms who provide high level of investment in return for a share in the business.

(Word count 882)

TASK 4

Resource Requirements:

Without having adequate resources, it would be impossible to build a successful and

rewarding business.

1.Financial Resources:
One of the most crucial and important factor for starting a business is FUNDING. For
starting, an initial capital investment is required for paying the needs of the business until a
sufficient amount of revenue is produced and maintaining the finances to tackle the cost
before launching the site or business. The capital includes the salaries, rents, business
needs, utilities, supplies and advertising. There can be many sources of obtaining financial
resources, but the easy source is from your own assets. Inventors will look if you have
invested in yourself or no even if you want small loans from them. Loans and credit can also
be taken from relatives, friends, private investors and even the government.

2.Physical resources:
Understanding that it is important for every organisation, either a small business or a store
with multiple locations to have physical resources like working space, storage space, office
space and storefronts. These also include marketing material, information systems,
telephones, mailing boxes, brochures, cards etc. this resource can be one of the most
expensive one and may require financial resources investment.
3.Emotional resources:
Entrepreneurship is a stressful job, and starting a business and building it requires a lot of
patience, time and energy. At some point it can be frustrating but it is important to stay
motivated so a good support system is needed which will always guide and inspire you.
Support can be from any one like a mentor who has been in similar situation and would be
capable of helping you out with your questions or your good and bad times. Trusted
members of family or friend could make a great team who are similar business-minded.

4.Human Resources:
Every successful business requires qualified and talented employees. The success of the
business is heavily dependent on the strength and talent of its employees . Always hire the
employees who are enthusiastic , qualified, customer-friendly and have a record of
excellence in their area of expertise to make sure that your goals can be reached effectively.
Many agencies are specialised in placing employees within every field. an alternative would
be through references of trusted individuals.

5.Educational resources:
A critical task for any entrepreneur is to gain the business knowledge as much as possible
before establishing any business or else all the determination would be of no use if you
aren’t aware of how to run a business. By understanding and educating yourself, you will be
prepared to make decisions for your business and ensure the smooth functioning of it.
Professional associations offer educational resources

Educate yourself in areas like:

 The type of business you want to invest in

 How to hire and manage your staff to help you

 Marketing and sales, know your competitors and compare your products and
services, know your target market and develop a plan to create promotional products.

 Business management , inventory management, delivery

 Resources management

(Word count 494)

 CONCLUSION

Malvin’s Furniture had also started in a small warehouse , but by using proper marketing
strategies, it was able to build its place in the market. This assignment focuses on multiple
areas for smooth running of any business. It shows how to overcome the mistakes new
entrepreneurs make and assists them in maintaining the pricing strategies for the business.

To sustain in the competitive market, the company should keep revising its marketing
strategies, pricing policies, product management and new promotions.

(Word count 80)

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 DECLARATION

I confirm that this assignment work entitled ”Malvin’s Furniture” is my own work for level 4
Introduction To Entrepreneurship under the supervision and guidance of Professor Mani.

For the present assignment work, which I am submitting to the ASSOCIATION OF

BUSINESS EXCEUTIVE (ABE), no degree or diploma or distinction has been conferred on
me before, either in this or in any other University.

Student Name:

Place: Riyadh, KSA

Date: