FlashMobz: Business Challenges & eCommerce Transition - Case Study

This report delves into the business and technical challenges faced by FlashMobz following its acquisition of PhonesRUs and its subsequent transition to eCommerce. It identifies key issues such as competitor analysis, customer retention, service competition, and internal coordination. Furthermore, the report examines barriers to implementation, including communication gaps, cost calculation difficulties, global pricing strategy inconsistencies, linguistic hurdles, international company structuring complexities, foreign legal compliance, tax adherence, and cultural communication problems. The report concludes by offering recommendations aimed at mitigating these challenges and facilitating a smoother, more successful business process, focusing on better management and strategic alignment. Desklib provides students access to similar solved assignments.

Running head: FLASHMOBZ
FLASHMOBZ
Name of the Student
Name of the University
Author note

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Executive Summary
This report will discuss about the key business and technical challenges of FlashMobz
acquisition of PhonesRUs and transition to eCommerce. These issues will be elaborated.
Barriers that are present in expansion of the business will also be stated in this report. This
report will also provide the recommendation that will allow better management of the
business process.

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Table of Contents
Introduction................................................................................................................................3
Technical Challenges.................................................................................................................3
Barrier........................................................................................................................................5
Recommendation........................................................................................................................9
Conclusion................................................................................................................................10
Reflection.................................................................................................................................11
Reference..................................................................................................................................12

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Introduction
FlashMobz is a mobile and accessories of mobile retailer, established in England. Asif
has been the owner of the business and has been expanding the business in a rapid rate. He
has expanded from a single shop to 11 shops. Asif has now bought PhoneRUs and wants to
collaborate with them. Now they are thinking of implementing the e commerce platform in
their business making. Asif now wants to expand his business to East of England. This report
will discuss about the key business and technical challenges of FlashMobz acquisition of
PhonesRUs and transition to eCommerce. These issues will be elaborated. Barriers that are
present in expansion of the business will also be stated in this report. This report will also
provide the recommendation that will allow better management of the business process.
Technical Challenges
Competitor analysis
In case of using the e commerce the main problem that is present is the competition that
is provided from the other business organization. The products that will be offered by the
FlashMobz will already be available. Hence to gain proper interest from the clients who are
present in the e commerce platform, the product needs to be unique and innovation will not
be present. This leads to the fact that understanding of the people demands is very important.
Implementation of proper strategy regarding marketing of the products that are to be sold.
Differentiating of the products that are to be sold are the main function of the marketing
strategies. Thorough research is to be performed in order to understand the demands of the
users and the clients. Understanding the demands of the present clients as well as spotting of
the potential clients is one of the main job roles. After spotting the potent client,
understanding their requirements are also important.
Retaining of the customers

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The options that are available in the e commerce platform are huge. This is one of the
main reasons that the retention of employees gets difficult. The fact that gaining new
customers is important but retaining of the existing clients are more important. The main
reason of this importance is that the management of the entire scenario understanding is
performed with the help of the existing clients. With the help of the existing clients a fixed
revenue can be achieved. With huge amounts of options, it gets obvious that the users search
for new options in a constant basis. Providing proper quality products are one of the major
ways of retaining the clients.
Providing benefit of product return and refund
E commerce platform using organizations provide the terminology of return and refund.
This aspect is often misused by the users of the brand. Hence if FlashMobz has to gain an
identity in the e commerce-based business brand, FlashMobz will also need to provide the
return and ref und facilities to their clients. This might lead to loss in revenue earning. Hence
the processing of getting registered in the e commerce platform might be challenging. Both
the cost of shipment as well as the cost of the product will be in vain. This will affect the
business making of the organization. The delivery charges are often free of cost, this will also
reduce the margin of profit for the products that will be sold by FlashMobz.
Competition in service providing
In case of using of the e commerce platform the main disadvantage that is present
includes the terminology that competition with other business organization is not only in the
field of the quality of the product but also in the field of the service that are to be provided
while reaching out to the users of the products. This sis the main reason that the prosecution
of the entire project will get commenced with higher efficiency only after developing higher
balance. After developing a proper balance in between the delivery service and the quality of

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the product gaining an edge over the other competitors can be expected and in case any of the
above field gets subdued the entire process will get performed in a negative manner. This
negative reputation will again harm the FlashMobz. In case the goodwill of FlashMobz is
wasted, it can be stated that FlashMobzb will lose its acquired clients.
Improper maintenance of the group momentum
In order FlashMobz is to collaborate with the PhonRUS, the main concern that is
present in the business management is that the prosecution of the entire section of the
employees will need to coordinate among each other for achieving better result. Hence this
might act as one of the major issues. The employees might not be well aware of the process
that the other employees will be working in. this will ensure the fact that the management if
the employees will get difficult. This is one of the main reasons that efficiency of the project
will get lower. A prolonged period will be required for understanding the method of each
other. This might reduce the efficiency of the project.
Barrier
Higher distance in between the authorities
Due to the fact that the higher authorities will be located far apart from each other,
staying in touch with each other itself will be a challenge. Monitoring the employees will be
another problem. This is one of the main reasons that prosecution of the entire business
management will get prosecuted in a negative manner. In case the employees are not properly
monitored it is obvious that the business commencement will get hampered. In case the lower
ranked staffs are not having proper transparency of communication medium, the employees
will not get motivated. Sharing of the issues that will be present are present in the
commencing of the business processing will remain in between the employees and the higher
authorities will not get to know about the issues. This will reduce the efficiency of the

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business organization functioning. The tasks that will be required to be performed by the
employees will also remain as a main problem. In case the employees are not well aware of
the tasks that are to be performed, efficiency in the completion of the tasks will not get
performed. FlashMobz will suffer a significant loss in the functioning of the turn over of the
business.
Cost calculation
The cost estimation gets difficult as the management of the project will be done in
collaboration with the FlashMobz and the PhoneRUS. This is one of the major aspects that
will be projected as a major issue. In case the work procedure is different from one of the
organizations and hence the functioning of the business organization will not get estimated
and hence the cost that will be incurred will not get estimated in a proper manner. This is one
of the most important aspect that the prosecution of the business will get effected in a
negative manner. Target setting will be another issue as the functioning of both the business
organization will be having different path of completing their project and hence the resources
that will be required will be different as well. Hence wastage of the resources will be present.
This will be a major problem in the prosecution of the cost estimation.
Global pricing strategy:
The pricing strategy will also act as a barrier for the FlashMobz. As they are planning to
expand their business, the countries they will be invading will be different and so will be their
price standards. There is a huge difference in the price standards in between the European
countries and the Asian countries. The practicing must be done as per their pricing standards.
In case the pricing is not done in a standardized form, the localities will not think of buying
their products. This is one of the main reasons that the projection of the global pricing
strategy will be a major issue. Understanding the price trend of the country will be important

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before establishing the price segments for the products that FlashMobz manufactures. This
lack of standardization in the field of the pricing of the product, an imbalance in the pricing
strategy of the product in the world-wide scenario will arise. This will lead to the fact that the
manufacturing of the product will be facing a major issue.
Linguistic problem
Problems that will be related to the processing of the business will be present as the
functioning of the business will require proper mode of communication. In case of proper
communication, language plays an important role. This language might be a problem in case
of expansion of the business. As it cannot be expected that the employees will be transferred
from one branch to another at a whole rate and hence recruiting local people will be required.
This is the time that the language barrier will come into action. Another aspect that must be
taken into consideration is that the prosecution of the entire process will be performed with
higher and better management. This is the main reason that processing of the entire process
requires better functioning of the language related problem. Communicating with the clients
of the business will also be another major issue. This is the main reason FlashMobz must take
care of this issue.
International Company Structuring
International Company structuring is one of the major aspects that is needed to be
implemented in order to get success in the global market. Business executives are required to
be efficient enough in order to design the business structure that will suit globally. Another
aspect that must be taken into consideration is that the projection of the entire process will get
affected in a negative manner in case the functioning of the project is performed with high
efficiency. This is the main reason that the efficiency of the project will get hampered as per
the designed system of the business.

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Foreign laws
Foreign laws will also play an important part in acting as a barrier in the commencing of
the business globally. Staying in the good books of the government is very important. This is
the major reason that commencing of the entire process must get performed in a legal
manner. Getting to know the laws that are present are quite difficult. This will lead to the fact
that the laws that are set up by the government will have to be followed. In case FlashMobz
gets into the bad books of the government, the users of the products manufactured by
FlashMobz will keep on decreasing and this will affect the turnover of the business
management of FlashMobz.
Tax Compliance
Tax compliance is one of the most important issue that might arise in expansion of the
business. This is the major aspect that will be taken into consideration for proper projection
of the business making the tax that will be due needs to be cleared in order to keep a clear
reputation. The main issue is that the formalities of tax payment is different inn different
countries and hence in case of getting confused and missing a date of tax payment,
FlashMobz might face several issues in tax clearance process.
Cultural and Communication problem
A gap in between cultural and communication process will always be present. This
leads to the fact that the understanding of the stakeholder needs will be an issue. In case the
stakeholders are not being able to interact with each other the business performance will
gradually decrease. Hence understanding of the business requirement will not be possible. In
case the stakeholders are not able to understand each other’s problem, conflict is sure to arise
and this will lead to dissatisfaction of the end users of FlashMobz. This will reduce the good
will of the organization and hence decreasing the audience base of FlashMobz.

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Conclusion
From the above report it can be stated that Asif has been performing very well as the
owner of FlashMobz. He has been expanding the business ever since and is looking forward
to expand again. This expansion of the business has a role to play with different kind of
issues that might arise. But mitigating those issues will be the sole option to expand the
business. Asif also wants to implement the e commerce platform in the business making of
the FlashMobz. This will ensure the fact that the business proceeding will get easier for the
FlashMobz. But different issue might arise in this section. This report also provides the basic
issues and mitigation processes of the project. After following the mitigation processes that
are stated in the report. This process will help in better processing of the business
management. This better business management will help in earning higher revenues. This
revenue earning will help in better management of the business process. This will help
FlashMobz to expand in a higher rate.
Recommendation
 Conducting surveys in every new country of establishment
Conducting survey in every new country of establishment is very important. This is the
major reason that the processing of the understanding of the demands of the newly potent
stakeholders will be done. This section will lead to the fact that understanding of the project
will be mainly related to the data that will be collected from the survey. This process will
require to hire a team who will conduct the survey. This hired team will conduct the survey
and analyse the market. This analysing of the market will ensure that the probation of the
market demand. This will again help in better conduction of business.
 Separate accountancy firm

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A separate accountancy firm must be set up which will be monitoring the accounts related
issues of all the branch. This accounting branch will be responsible for commencing of the
accounts related issues. This is the main reason that procurement of the accountancy firm will
help in better functioning of FlashMobz. This firm will also help in mitigating issues that are
related to the geographic prospect. This also helps in increasing the efficiency of the business
organization and FlashMobz branches can focus entirely on the sales and marketing
department.
 Hiring of lawyers
Lawyers must be hired in order to get safely discard the issues that might arise due to
expansion of the business globally. Legal issues can harm FlashMobz financially as well as
morally. The goodwill of FlashMobz will get affected in a negative manner. Hence hiring of
lawyers who will be taking care of these issue will act beneficial for FlashMobz.

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Reflection
I personally feel that expanding business is one of the best way to find success in
business. Keeping on expanding is the motivation that one must have in order to serve their
clients well. Providing better quality in products and service will be helpful. FlashMobz must
have been providing proper quality product and services to the client. This is the main reason
that functioning of the business process has got very effective. But In feel expansion of a
business in a global scale is not very easy. For expanding the business proper planning must
be implemented. This proper planning of expansion will help in better understanding of the
requirements that will affect the business in a positive manner. After planning of the
expansion hiring of survey conductors must be performed. This survey conducting team will
help FlashMobz in understanding the requirement of the local people. I feel this
understanding of the requirement of the local people will help FlashMobz in performing as
per the demands of the people and hence serving their needs purposefully. Implementation of
e commerce will also affect FlashMobz in a positive manner. I feel implementation of
updated technologies will definitely help FlashMobz in performing business in better manner.
But I feel there are some serious issues that will arise in case of implementation of the e
commerce platform. The main issue that will be faced is that the cost of the products and
service will increase. The main reason of increase in the price of the products and service
includes the fact a particular amount of payment is required to be made. This ensures that the
prosecution of the entre process will get costlier and this will either effect the profit margin or
the rate of the products. Despite this issue using the e commerce platform will help in better
business management and will make reaching out to the people easier and marketing will be
more efficient.

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