BBS0131 Case Study: Analyzing Business Issues at Original Creations

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Case Study
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This case study delves into the business challenges faced by Original Creations, a company struggling with new product development and market expansion. The analysis identifies key issues such as ineffective marketing strategies, quality control problems with outsourced manufacturing in China, inexperienced staff, and communication barriers. The report provides specific business reasons for conducting the analysis, including new product development, market expansion, diversification, and internal structure management. Recommendations include conducting effective market analysis to understand customer needs, ensuring quality assurance through methodologies like Six Sigma or TQM, and improving communication with manufacturers by hiring bilingual staff and providing training. The ultimate goal is to help Original Creations overcome its challenges, improve its product launch success rate, and regain a competitive edge in the market. Desklib provides solved assignments and resources for students.
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Foundations of Business
Management BBS0131
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Specific business reasons.............................................................................................................3
Key issues that Original creation company is facing ..................................................................4
Recommendations for Original Creations ..................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
The current study revolves around the Original creations. The firm is facing large number
of issues in relation of producing new product in market. Case study has highlighted the
numerous issues that are associated with the failure of new products. Introducing new product in
market plays vital role in increasing the profitability for the firm. Furthermore, consumers are
highly satisfied from those firms who keep introducing innovation in their products and services
(Cooper, 2019). In similar manner, Original creations has tried their large number of efforts in
order to perform innovation. However, the firm has failed numerous times. There are different
reasons that are creating the failure for the organization. Thus, analysing the major issues behind
the failure can lead to solve the major problems of the firm. This report will highlight the specific
business reasons in relation of the case. Furthermore, the report will describe the present issues
of the company. Lastly, the report will shed a light over the assuring recommendations to the
organization.
MAIN BODY
Specific business reasons
The specific business reason in order to conduct the issue analysation of Original
creations are concerned with:
New product development- The company will get the major idea that are requires in term of
developing new products in the market. As the company is facing failure in terms of making
innovations. Thus, the company can get the idea in relation of the things that needs to be done
and that should not.
Market expansion- The company can get the major idea in relation of increasing the market
strategies. In context of this business reason, the firm becomes enable to adopt the strategies that
can help them to attract the potential base of customers (Marzi and et.al., 2020). As the
marketing strategies of the firm are highly in-effective.
Diversification- The company can get the idea to develop the innovation in new market. Thus, it
will increase the sales of the company and creates larger profit for the firm. Often, the
competition threat can be known by the company within this attribute (Chauhan and et.al., 2018).
Thus, this business reason is associated with capturing the interest of consumer and on the basis
of that, the decision can be made.
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Internal structure management- The firm can assure effective focus over their internal
management of the company as the management is concerned with inexperience staff. Thus, this
is one of the specific business reason.
The above explained business reason are associated with the major attributes that assures firm to
capture new market with their products and services.
Key issues that Original creation company is facing
In regard to case of original creation, it is found that the founder of this company, Marry
Shelley is disappointed because employees of this company are unable to market new innovative
products in market. It is found that this company market number of innovative and original
lifestyle product by using direct mail brochure and internet as well. Examples of its innovative
products include: rainwear for dogs and cats, automatic air freshener, garden lights in the shape
of garden flowers (Dana and et.al., 2021). It is found that this company design product and give
ideas but does not manufacture those innovative products. It has number of manufacturers in UK
as well as abroad. Number of manufacturers are in China and due to cultural differences, it faces
problems regarding language and others.
Mary found that recent 10 new products of this company has become failed in market and
it is one of the main issue that it is facing. It has withdrawn its extended new product toenail
clipper and there are number of reasons of its withdrawn. One of the main reasons is decreasing
sales and it is taking extra valuable place in warehouse. Customers are complaining that quality
of toenail is not up to the mark and some customers complained that they received damaged
toenail clipper. New ideas come from in house team but Mary Shelley is the one who select the
best one out of number of ideas. Continuous failure of products is one of the main problem and
decreasing sales is also increasing pressure on this company. Return on sales is also decreasing.
This failure of products is affecting its image in the market and it can create barriers in taking
competitive advantages (Jagtap and Duong, 2019). On the basis of this problem, it can be said
that it may face problems in attracting new customers. This company is striving hard for being in
the competition and regaining image in the market. For this reason, it needs to identify reasons as
why its products are becoming fail in the market. In addition, it is found that it markets its
products and services via brochure. Now it is using its website that is maintained well. There has
been little investment in digital marketing and it can be one of the main reason of business
problem that this company is facing. Mary believes that the best test of products that are being
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manufactured by others can be checked by its success. This company contact directly to
customers after launching its new products and regarding services’ efficiency, it asks questions
from them and on the basis of their answers, it take better decision. It makes changes in existing
products as per the needs of customers and when customers get modified products as per their
needs then it makes them feel valued and they believe that company takes care of their views.
It is found that this company has hired experienced and skilled directors from technical
background. HE manager is responsible for running a small group with inexperienced and young
HR staff. Warehouse manager runs a group of temporary staff who are recruited via employment
agencies. After finding this problem and withdrawn from toenail clipper product, Mary called for
a management meeting and ask project team regarding reasons as why company is facing this
problem and what might be reasons that are creating problem of failure of new product launching
(Lo and et.al., 2019). So, in this regard, it can be said that lack of focus and investment in digital
media marketing can be one of the main reason. Nowadays, people get number of information
via internet and via social media platforms. But it contacts customers face to face and due to
busy schedule, customers do not tend to meet with marketers and they do not show interest. It
can be one of the main reason of its products launching and marketing failure. Other main reason
that is creating problems for this company is: only designing products by their own and getting
products manufactured by other companies. It is found that companies to which it gives its
products design for manufacturing already produces such products and sometimes they copy
their products design and by improving quality they launch products in the market. It can be said
that manufactures can snatch ideas of this company and can take undue advantages. It can also
be one of the main reason and it needs to focus on this.
In addition, it is also found that it has unexperienced HR and other staff and unskilled
employees can also affect quality of products. For getting number of new innovative ideas, there
is requirement of skilled employees (Beglaryan and Shakhmuradyan, 2020). So, on the basis of
this, it can be said that this company needs to invest in recruitment and selection process and by
hiring skilled employees, it can solve problems and by getting innovative ideas, it can launch
new products in the market with effectiveness. It is found that this company has 40/50 people in
total in which only 3 people or employees are in media team and 2 people are in customer
service department. Having lack of skilled employees is other main problem and it can cause
number of other business problem that include: poor productivity, decreasing sales, poor
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performance and poor customer services. Other problem that has been found from the case of
original creation is communication. It is found that number of manufacturers of this company are
in China and due to different languages and cultures, it finds difficulties in communicating with
their manufacturers (Chaturvedi, Thakkar and Shankar, 2018). Having clear communication
between companies is important otherwise, miscommunication can lead number of problems. In
regard to this, it can be said that it might possible as manufacturers of China could have
misinterpreted whatever has been asked by this company regarding manufacturing products. As
customers complained that they did not receive products with high quality and some products
were damaged. So, on the basis of this, it can clearly be said that Manufacturers of China did not
manufactured its products including toenail clipper in an effective manner as they did not use
quality measurement and it has happened because of communicational barrier. So, on the basis of
this, it can be said that company needs to hire employees of China and people who understand
Chinese language and can easily communicate with manufacturer of China. by doing so, it can
solve problems of failure of new products launching and it can regain its image in the market. In
addition, it can also be said that there is requirement of providing training to employees so that
they can communicate with customers and manufacturers. Training can solve all problems and
can make this company able in launching its new innovative products in the market. Also, it
needs to get signed by manufacturers as they would not copy its products design otherwise, they
will be filed lawsuit.
Overall, it can be said that continuous failure of launching of new and innovative products
in the market is the main problem that Original creation is facing. Number of causing factors
have also been identified from this case. On the basis of identified problems, it can develop
solutions and strategies by which it can launch products in a successful manner and it can help
this company out in increasing sales and productivity as well (faiz Abozaid and et.al., 2019). By
developing strategies accordingly, it can take competitive advantages and can become the market
leader as well.
Recommendations for Original Creations
On the basis of analysing the current issues of Original creation in context of developing
new product in market it has been found that, there are numerous attributes that are affecting the
growth and causing failure for the firm. Here are the major recommendation to the organization
that can lead to solve the issues of the firm:
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Effective analysation of needs & wants of customers- The company needs to assure focus over
analysing the needs and wants of the customers as it is one of the major reason that is
contributing in the failure of innovation. If the focus is made over the desires of the customers
and on the basis of that, the operations has been performed that it helps in increasing the sales for
the firm. In similar manner, Original creation needs to analyse the market in effective manner
where the needs and wants of the customers can be analysed (Kaaranen, 2018). Also, the
product development idea should be based on the needs and wants of the customer rather than
the ideas of the in-house team.
Quality assurance- This refers to assuring effective quality in the products that can maintains
the utility of customers in effective manner. The case study has highlighted the issue in relation
of the quality damage of the products and this is because the operational practices of firm has
not been performed in effective manner. Thus, the focus needs to be ensured over the quality
management of the products and this can only be done by within adopting the concept of six-
sigma or TQM in the operational practices. As a result, the quality of the products can be
increase on a higher note and sales can be increase.
Effective HR strategies- The internal scenario of the firm defines the external scenario of the
company. In similar manner, Original creations has experienced the same. The firm has
inexperience staff members in the company. Thus, this is creating the failure for the firm. As no
amount of experience leads to perform the ineffective operational practices. Often, the strategies
that are needed to manage employees become less effective due to this. Therefore, effective HR
strategies needs to be adopted by the firm so, experience and skilled staff can be included in the
firm.
Product development strategies- Company needs to be assured focus over manufacturing their
own products regarding designing the products as it is creating the issue for the firm in regards of
having similar products by the competitors (Salnikova, Baglione and Stanton, 2021). Thus, the
company needs to adopt the effective strategies of product development that is entitled with new
development strategies. Also, effective analysation over the competitive strategies are needed so,
the threat of the competitors can be reduces.
Focus on Digitalization- As case study highlighted that, media manager is only putting
brochure in terms of performing marketing. Thus, this is also one of the major issue of product
failure. Currently, the consumers needs to make aware in relation of the products and services.
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Therefore, the company needs to be more digitalized and needs to increase the interaction with
the customers so, the customers can become aware about the products and its benefits (Hagberg
and Kjellberg, 2020). Therefore, Original creations must increase interaction with customers
within adopting the social media platform and other digitalized platform that can impact the
choices of the customers and helps in attracting the customers towards the organization.
Customer feedback system- Organization needs to assure effective focus over adopting the
effective customer feedback system so the feedbacks and opinions of the consumers can be
reviewed. As the customer service system of the company is not highly effective and that is
impacting the relation of the customers with the company (Mourtzis and et.al., 2018).
Furthermore, CFS helps in knowing about the level of utility experience by the customers. On
the basis of that, the decision needs to be taken in the firm.
The above explained points are associated with increasing the market share and customer
interaction for the Original creation along with solving the failure of the new products in market.
Thus, this leads to solve the issues of the firm.
CONCLUSION
The above report has concluded that, it is highly important to analyse the certain aspects
in market before developing introducing any kind of innovation. The major aspect should
revolve around understanding the needs and demands of the consumers. So, the innovation can
ensure satisfaction to them. Moreover, effective marketing strategies needs to be adopted by the
firm as it is entitled with capturing the market and attracting the new customers along with
sustaining old customers. The report has analysed the major issues that has been facing by
Original creation in terms of developing new product in the market. Also, it has been analysed
that the customers are not satisfied with the quality of the products and it is impacting the sales
of the organization. Furthermore, it has been found that, internal issues of firm such as,
inexperience staff are generating the external issues of the organization. Moreover, the report has
highlighted the recommendations that can be use by firm in order to resolve their issues.
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REFERENCES
Books and Journals
Beglaryan, M. and Shakhmuradyan, G., 2020. The impact of COVID-19 on small and medium-
sized enterprises in Armenia: Evidence from a labor force survey. Small Business
International Review, 4(2), p.e298.
Chaturvedi, S., Thakkar, J.J. and Shankar, R., 2018. Labor productivity in the construction
industry: An evaluation framework for causal relationships. Benchmarking: An
International Journal.
Chauhan and et.al., 2018. Examining the state of risk management research in new product
development process. Engineering Management Journal, 30(2), pp.85-97.
Cooper, R.G., 2019. The drivers of success in new-product development. Industrial Marketing
Management, 76, pp.36-47.
Dana, L.P. and et.al., 2021. Success factors and challenges of grassroots innovations: Learning
from failure. Technological Forecasting and Social Change. 164. p.119600.
faiz Abozaid, R. and et.al., 2019. Perceived overqualification and its positive impact on
organization employee's behavior. International Journal of Research in Business and
Social Science (2147-4478), 8(6), pp.58-71.
Hagberg, J. and Kjellberg, H., 2020. Digitalized markets. Consumption Markets &
Culture, 23(2), pp.97-109.
Jagtap, S. and Duong, L.N.K., 2019. Improving the new product development using big data: A
case study of a food company. British Food Journal.
Kaaranen, M., 2018. INNOVATIONS AND NETWORKS AS BUSINESS DEVELOPERS FOR
SMES: Case SNOwMan.
Lo, H.W. and et.al., 2019. A novel failure mode and effect analysis model for machine tool risk
analysis. Reliability Engineering & System Safety. 183. pp.173-183.\
Marzi and et.al., 2020. New product development during the last ten years: The ongoing debate
and future avenues. IEEE Transactions on Engineering Management, 68(1), pp.330-
344.
Mourtzis and et.al., 2018. Customer feedback gathering and management tools for product-
service system design. Procedia Cirp, 67, pp.577-582.
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Salnikova, E., Baglione, S.L. and Stanton, J.L., 2021. New product introduction success for
private label products compared to branded by product category. Journal of
International Food & Agribusiness Marketing, 33(3), pp.290-304.
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