BMGT255OLA - Final Test: Business Management Strategies & Analysis

This document provides a comprehensive solution to a final test assignment for BMGT255OLA, a business management course. The assignment addresses several key areas, including an analysis of the product mix of Dollar Stores and its appropriateness for the target market. It also explores the importance and application of Gantt charts for project management, providing examples of how small businesses can use this tool. The solution identifies and explains two federal or provincial funding programs for small and medium enterprises (SMEs), detailing their lending criteria and application processes. Furthermore, it assesses the relevance of the saying "Banks only lend money to those who don’t need it" for start-up entrepreneurs. The assignment also examines the significance of accountants for entrepreneurs, the importance of cash flow for investors and lenders, and common mistakes in cash flow planning. Finally, the assignment discusses the role of calculations within the financial section in revising business plans, providing real-world examples.

Running head: BUSINESS MANAGEMENT
BUSINESS MANAGEMENT
Name of the Student
Name of the University
Author Note

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Response to Question 1: Product mix for Dollar Stores and appropriateness for target
market
Product mix of dollars store:
Product: Dollar stores popularized from US and now establishing its operation in various
neighbouring regions. Dollar stores are usually known for selling a wide range of brands and
items. The idea of selling products emerged from the idea of a dollar. The store offers various
options for attracting target market1.
Place: There are in 31,620 in total dollar stores within the United States during 2018. In 2019,
Canada has around 1700 Dollar stores. Point of Sales for dollar stores involves the approach
and format of retail outlets, which are operated through employee contribution. Employees
deliver the service and facilitate sales based on consumer behaviour and influencing
capability of staff. Dollars stores also incorporated online stores for faster and convenient
process and decreasing the physical operational costs.
Price: Dollar stores offers optimum values for consumers with lower or economic pricing.
The pricing strategy is adopted for influencing buying decision of a wide range of consumers
and encouraging bulk purchase.
Promotion: Based on the recorded data, Dollar stores connect with his target audience
through text advertising, email marketing, printed media like newspaper. Dollars stores also
1Houghtaling, Bailey, et al. "A systematic review of factors that influence food store owner
and manager decision making and ability or willingness to use choice architecture and
marketing mix strategies to encourage healthy consumer purchases in the United States,
2005–2017." International Journal of Behavioral Nutrition and Physical Activity 16.1
(2019): 5.

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syncs their communication messages in digital media, Television commercials, and with sales
promotion technique.
People: Dollar store staff members facilitate the point of sale and service delivery. The
people involved in the whole supply chain process, which makes the operational efficiency
possible are staff members, front desk employees, suppliers, functional managers and brand
managers.
Process: The process of buying products in Dollars stores is simplistically established with
effective categorization and shelving based on the demand and product profit.
Physical evidence: Brochures, pamphlets along with the price boards attached to every shelf
with the tags of the discounted deals constitutes the range of physical evidence at any Dollar
store.
The product mix effectively aligns with the demand and preference of target group,
generation Z and Y. The price point attracts the school-goers, college-goers and bachelors for
getting value-based products in lower price range. Moreover, the online feature and delivery
system has enhanced the ease of aligning with the target audience2.
Response to Question 2: Importance and application of Gantt chart
One of the effective tools for students is Gantt chart, which can be applied for various
productive purposes such as:
 It reduces visual representations with pictures and graphs, thereby reducing the
complexities of a specific topic.
2Wang, Kitty, and Avi Goldfarb. "Can offline stores drive online sales?." Journal of
Marketing Research 54.5 (2017): 706-719.

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 Gantt charts helps in scheduling activities and strategies or time management based
on the final deadline and initial stage of assignments or research work.
 Gantt charts helps in offering potentiality or progress of the students’ assignments.
 Gantt chart is useful in representing milestones and time frames for any individual or
group task with full clarity.
One of the instances of small business using Gantt chart can be project management
business. This form of business applies Gantt chart for creating timeline in each individual
task with dates, resources allocated for the tasks and tools involved. The business also keeps
updating their progress in Gantt chart, thereby making their process easier and efficient.
Another instance can be of a social media counselling business or advertising business, which
can apply this tool for ensuring the track and success rate of each content, shares and
allocated assets from each channel.
Response to Question 3: Two federal or provincial funding programs for SME
FedDev Ontario Business Scale-up and Productivity funding program is dedicated
towards the project costs and in supporting the small enterprises in Southern Ontario
businesses for growing effectively. This funding program helps businesses for adopting
technological reforms by equipping costs and in ways for generating extra revenue. The
lending criteria for businesses involves various aspects involving, profitable operation within
Southern Ontario for two sequential years, where businesses maintains at least five
permanent employees, involves viable and logical project plan3. The application processes
3"Business Scale-Up And Productivity Program | Mentor Works". Mentor Works Ltd., 2020,
https://www.mentorworks.ca/what-we-offer/government-funding/business-expansion/
business-scaleup-productivity-ontario/.

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does not include deadlines and businesses can submit applications based on initiation state of
projects.
Strategic Innovation Fund, Canadian government funding programs, which offers
support for the productivity-boosting and technological developmental programs. The
eligibility of lending fund is applicable for various business types including medium, small
enterprises with the aim of operating business in Canada while implementing a profitable
project. The application process for this funding program involves two-stage process,
submitting SOI (Statement of Interest) for proposing project idea and invitation of
applications for review and agreement after decision of applicability.
Response to Question 4: “Banks only lend money to those who don’t need it” –
Assessing this statement for start-up entrepreneurs
This old saying can be implied for start-up entrepreneurs as there are minimum or
zero lobby groups, which are in assistance for ensuring affordable healthcare programs,
ensure employment and supports modest profits or simply lends loan for small businesses.
Moreover, banks are lending money to large businesses even now, for ensuring a profitable
business transaction and loss of risk or accountability in managing risks. However, with the
positive intervention of the government developmental programs, small businesses are
beginning to flourish with complete support.
Response to Question 5: Instances of reflecting role of calculations within financial
section in revising business plans
The business planning process is one of revision because of the frequent changes in
the modern competitive world. One business plan that we make today needs to be revised if
there is a sudden change in market policy and competition. In the perspective of investment
banks a number of trainings are required to be provided to the fund administrators before they
enter the real market of valuations. In most of the companies the banks were training these

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administrators itself and they were also sent abroad. It was observed that the payment that
were made to these administrators and the cost of sending them abroad for training were
huge, which was not equivalent to the return from them. On this issue, these banks created an
expense budget and revenue projections on each individuals and thereafter they changed the
plan of sending every individual for training abroad. They rather started to bring one
individual from abroad to train on funds to a large number of new joiners. This reduced the
cost and increased the profitability. Another example that can be provided is Foreign
Exchange schemes in retail banks. Initially the retail banks used to tie up with the tourism
department for selling their travel cards. But the result was negative as the tourism sectors
used to take advantage from the banks and didn’t provide them customers in return. So in
order to boost the sales the banks decided to tie up with Chartered Accountants as many non-
residents come to banks as well as Chartered Accountants for Travel Card and
documentations respectively. The banks promised to provide the Chartered Accountants with
its customers requiring documentation purposes if the CAs provided them foreign customers
in return. This actually boosted up the sales in the foreign exchange segment.
Response to Question 6: Significance of accountants for entrepreneurs
This statement is completely valid in case of entrepreneurial venture as:
 Accountants offer assistance for financial analysis.
 The offering suggestions for business structures by accountants.
 Accountants offer assistance with business banking accounts4.
 Accountants check compliance of business procedures with governmental
requirements and regulations.
4De Bruyckere, Stefanie, et al. "The Role of External Accountants as Service Providers for
SMEs: a Literature Review." ACCOUNTANCY & BEDRIJFSKUNDE 4 (2017): 49-62.

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 Accountants assist with auditing and tax payable process.
 Most significantly, accountants helps in building resource capability by efficient
allocation of funds and helps with financial forecasting’s.
Response to Question 7: Significance of cash flow for investors and lenders with
common mistakes in preparing cash flow by entrepreneurs
Cash flow is significant for both lenders and investors for various purposes. The
significance for investors can be witnessed in categorizing purchasing activities in relation to
non-current assets and even for long-term assets for delivery value. Cash flow is also
important for investors as it allows understanding the actual generation rate of cash with the
association of information regarding non-cash revenues. Cash flow also helps lenders in
strategizing crucial decisions with respect to SMEs5. Moreover, it indicates that a business
needs to involve sufficient cash in hand for facilitating operations for sustainable future.
Few common mistakes by entrepreneurs in cash flow planning may include, not
saving money or investment for taxes. Other common mistakes like - overestimation of the
futuristic sales volumes, not efficiently using cash-flow budget, engagement within impulse
spending during start of the business and not utilizing the investment in required areas6.
References:
5Ali, Husniyati, et al. "Financial literacy of entrepreneurs in the Small and Medium
Enterprises." Proceedings of the 2nd Advances in Business Research International
Conference. Springer, Singapore, 2018.
6Musviba, Nyasha. "Fatal mistakes for small businesses." TAXtalk 2017.64 (2017): 62-65.

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"Business Scale-Up And Productivity Program | Mentor Works". Mentor Works Ltd., 2020,
https://www.mentorworks.ca/what-we-offer/government-funding/business-expansion/
business-scaleup-productivity-ontario/.
Ali, Husniyati, et al. "Financial literacy of entrepreneurs in the Small and Medium
Enterprises." Proceedings of the 2nd Advances in Business Research International
Conference. Springer, Singapore, 2018.
De Bruyckere, Stefanie, et al. "The Role of External Accountants as Service Providers for
SMEs: a Literature Review." ACCOUNTANCY & BEDRIJFSKUNDE 4 (2017): 49-62.
Houghtaling, Bailey, et al. "A systematic review of factors that influence food store owner
and manager decision making and ability or willingness to use choice architecture and
marketing mix strategies to encourage healthy consumer purchases in the United States,
2005–2017." International Journal of Behavioral Nutrition and Physical Activity 16.1
(2019): 5.
Musviba, Nyasha. "Fatal mistakes for small businesses." TAXtalk 2017.64 (2017): 62-65.
Wang, Kitty, and Avi Goldfarb. "Can offline stores drive online sales?." Journal of
Marketing Research 54.5 (2017): 706-719.