Malincho – College Essay Example

need to market his product, he might have completely failed to tap into that market. Also, due to the absence of a strategy, he ignored his competitors, possible risks and promotional openings. Such scrutiny would have pin-pointed the web-based potentialities at his disposal. Consequently, he would have had the chance to build a website from the ground up, promote it via his pamphlets, and secure pre-purchase commitments even before the inaugural consignment landed.

Ultimately, a strategy would have aided in deconstructing each business operation, pinpointing required resources and their related expenses, gauging the potential duration of each task, and allocating responsibilities (i.e. to a girlfriend, friends, himself, etc.). This approach would have highlighted the urgent need for a van, potentially bypassing the choice of the Maxima and avoiding significant expenditure. Moreover, a detailed analysis of each process would have delineated the shipping and packing procedures, enabling an early realization around fall 2002 of the necessity to establish alliances with pivotal individuals to curb costs.

When Kalin started his company, he lacked not only business experience but also knowledge in import/export, making it a challenging process. Establishing a successful venture requires no prior experience per se, but having the right partner(s) to provide financial aid, guidance, and expertise proves highly beneficial. These partners can equip the business with skills, wisdom, and experience. Though Kalin initially attempted to partner with his friend's father, upon failing, he journeyed onward alone rather than seeking an alternative partner. Moreover, choosing suitable distributors is a critical factor in achieving business success.

The Basic Guide to Exporting suggests that U.S. companies thoroughly vet potential distributors or representatives before agreeing to work with them. This

should include checking their background, trade, and bank references, among other things. Regrettably, Kalin did not do this research on his distributor and ended up with substandard service and products that were damaged. This resulted in a loss of five percent of his shipment. Had Kalin carried out a detailed examination and even considered other distributor options, it's likely that he would have benefited from better prices and superior service. This would have allowed him to avoid the effort and cost involved in rectifying the product damage. In response to these events, Kalin's business has become reactive where it deals with situations as they present themselves.

His tactics were a response to distinct failures. For instance, he was compelled to alter his strategy of selling at lower prices after receiving a stern warning from a middleman about potential repercussions. He found it difficult to establish an efficient pricing technique due primarily to his haste in pushing the product as fast as possible. Contrary to the relationship-centered business approach of the Lebanese shop owner, his provision of subpar services sometimes mirrored the lackluster treatment he received from his own distributor, which included scanty interactions and no follow-ups. Filled with desperation and determination, rather than taking time to craft a strong selling approach, he opted to seek potential clientele in another sector, specifically among high-volume cheese purchasers.

Kalin made the presumption that business products and methods that had succeeded in the domestic market would be applicable everywhere. Moreover, he established a business based on faith, affirming that cultural norms and business customs effective in his native country could be applied in a U.S. company. For instance, Kalin proposed that

all clients held the view that failing to pay a supplier was disrespectful, and they were scared of retaliation from a nonexistent, influential business person.

Understanding clients' cultural values is crucial in meeting their demands effectively, but it should not be the ultimate determinant for all. He was lucky that only two clients hadn't settled their dues yet, but a single defaulter can significantly affect a business. Furthermore, he put a lot of trust in his Russian landlord. While necessary to have some level of trust in distributors, partners, and contacts; Kalin could have landed in a regrettable situation without the right investigation or insurances.

2. Challenges Confronting Malincho

Regrettably, the audacious approach and errors committed by Kalin may negatively impact not only the development of the company, but also its durability and sustainability. Initially, Kalin faced the hazard of expanding his venture too swiftly with the existing operational mechanisms and intense growth intentions in consideration. Given that the business lacked sufficient size to hire an additional employee, Kalin was in danger of over committing himself, taking on too many orders which could subsequently influence the standard of services and commodities. It's unfortunate that his primary concentration was towards the company's profitability and his personal vindictive triumph, rather than prioritizing the customer. This attitude presented an opportunity for rivals with better organization and superior competitive edge to encroach and potentially capture a substantial portion of his market share.

Additionally, beyond excessive growth, Kalin was confronted with the potential collapse of his business due to financial crises. Although some businesses incorporate debt into their overall financing strategy, harnessing it to boost the return on their equity, escalating risk due

to increased debt to equity ratio can yield unfavorable outcomes as the cost of debt servicing might surpass the repayment capacity. Moreover, decreased revenue resulting from subpar service, narrow margins, and inadequate management could only amplify the debt. Despite Kalin's fortune and unexpected positive turns at several instances, continued errors could ultimately produce a vicious cycle leading to his business's demise.

3. Implementing Uncommon Approaches

Kalin was on the correct path with an entrepreneurial idea that delivered quality cheese to the Bulgarian community. His ability to identify a niche market that had potential for profit, size and growth with specialized products and services was commendable. However, the ensuing steps and strategies impeded the potential success of the enterprise. An export entrepreneur like Kalin, aspiring for superior performance and enhanced outcomes, should follow a well-structured business plan and model, akin to what's demonstrated in Exhibit I. Post vision and concept establishment, Kalin should have carried out an in-depth market analysis to assess his target markets, as well as recognize the capabilities and limitations of his company.

Through this evaluation, Kalin would then be able to assess his export capabilities by looking into the distinctive or significant features of the product. "If these features are not easy to replicate, it is probable that the product will be prosperous because a unique product may face minimal competition and there could be high demand for it [even outside Bulgarian communities, verified by sales amongst other ethnic groups]." Once the potential had been identified, it was crucial for Kalin to formulate an orderly export plan, outlining his company's goals and conceptualizing powerful strategies. A plan comprises particular objectives, presents time frames for

execution, and signifies milestones so that the level of accomplishment can be evaluated and utilised to inspire his team (when he enlists them).

Upon successful completion of these steps, he would have been in a position to devise a marketing strategy, define channels of distribution, build connections and partnerships (for instance, with investors, distributors, customs broker and so on), and secure the necessary licenses in accordance with international laws. Further to this, having everything ready and a strong base set up would have readied him for a pre-launch. This involves testing the established operational systems and assessing the effectiveness of all affiliated businesses.

Should any problems have been discovered, he could have reassessed the prior steps. However, should the appraisal result in a positive outcome, he would have been primed for execution. Provided that Kalin adhered to these procedures, he could have guaranteed that all particulars were duly scrutinized, which includes defining the intended audiences, tailoring the products to suit their demands, and outlining the best strategies for implementation and execution. Moreover, he would have recognized possible 'what if' situations and formulated contingency strategies, aiding in the mitigation or swift resolution of any difficulties.

4. Suggestions

Kalin established a venture that held immense possibilities. With an average monthly sales rate of $16,000 and over 100 orders being processed weekly, his enterprise surpassed his initial vision in potential growth. Unfortunately, Kalin's concentration on profits, lack of experience and self-promotion may lead his business to failure. To accomplish more noteworthy outcomes, Kalin should first rethink his main concerns and ascertain what would be most beneficial for the company, constructing a strategic vision with a meticulous plan encompassing clear goals

and benchmarks. Although every entrepreneur aims for success, a business that places its customers at the forefront has the capacity to comprehend customer needs, develop goods and services that fulfil these needs, and in turn create a competitive edge.

Subsequently, it is imperative for Kalin to manage his finances effectively. He should begin with filing his tax returns, paving the way to secure a business loan for debt consolidation after a span of three years. Following this, Kalin's energies should be concentrated on improving his present business operations which would serve as the foundation for future success and expansion. To accomplish this, he needs to scrutinize his existing operational methods. Instead of investing funds in premature growth, it would be more beneficial for him to put his money into groundbreaking technology that could streamline his business processes if done correctly, thus providing significant time and cost savings.

Boosting efficiency involves maintaining minimal costs and curbing unnecessary expenditure (such as on harmed goods and fuel) via focusing on strict cost regulation, structured procedures, reduced overheads and making the most of the advantages of proficiently handled supply chain. With decreased costs and a more streamlined setup, Kalin is then able to invest more effort in nurturing customer and collaborator/distributor associations. After he establishes a business that operates smoothly and efficiently, gaining control over his financial affairs, he can then chase expansion opportunities. These growth opportunities should adhere to similar business methodologies and stages as mentioned earlier to guarantee success.