The aims and objectives for both businesses seem to be very relevant in order for it to expand and progress in the future. Ownership of Cadbury Schweppes 5. Cadbury’s was founded by John Cadbury and Schweppes by Johann Jacob Schweppe. In 1969 both Cadbury’s and Schweppes merged to form Cadbury Schweppes. Cadbury Schweppes is a public limited company and is listed in the London stock exchange with many shareholders. This means the general public can purchase a share in the company and be a ‘shareholder’.
Ownership of Richer Sounds 6. Richer Sounds was founded by Julian Richer and his first store was opened in 1978 at London Bridge Walk. In 1978 its legal status was limited company; however, from 1990 it became an Unlisted Public limited Company meaning that it would not be listed in the London Stock Exchange. Julian Richer purposely chose to do this because of the many advantages such as being in full control of the company without having to inform shareholders about decision making. This decision makes it easier for them to gain suppliers as they (suppliers) can trust them to make payments promptly without hassle. It seems that this was an appropriate choice for the business to survive and run smoothly.
Location of Richer Sounds 7. There are currently 45 Richer Sounds stores with the majority in London due to the increased number of customers available. When searching for new locations for their stores they consider many aspects before finalizing a decision. They take into account the number of sufficient potential customers for them to be profitable and also the distance between each store as they want to attract new customers from various locations.
They are very cautious when it comes to expanding the business as it can cause many financial problems in the future. Unlike many other electronics retailers who tend to open larger stores in more expensive areas, the directors working in Richer Sounds take a different approach. Their aim is to locate stores in inexpensive areas, the reason for this is because if they hadn’t they would not be able to offer customers better deals on products as a substantial amount of money would be spent on rents and rates. In addition to their stores, they have one major warehouse situated in Lancashire which is also a distribution centre. The factors which influenced their decision were:
8. The cost – a distribution centre is large and takes up a lot of space, making it expensive to rent or buy. Therefore the cost of the site is critical. 9. Accessibility to motorway networks – because we deliver all over the country Suggestions I suggest Richer Sounds introduce a new range of products and they should start to sell different types of electronics such as vacuum cleaners, washing machines etc. This may cost more money but it would attract more customers to their stores who may be willing to spend more on other items.
Similarly, Cadbury Schweppes should start to manufacture products such as breakfast cereals which may attract more young children. This would expand the business and may be profitable.18. Security of the IT system in very important as valuable information is held on these networks and can be easily lost if certain measures are not taken. The entire system is protected by a firewall and the emails used for communication are frequently checked by message labs that prevent any malicious viruses entering the system. Computers are always used at Richer Sounds stores as they use an EPOS till to process every transaction. This is used instead of bar-coding as large items have to be in certain positions and are sometimes difficult to handle. It makes it easier for the sales colleague the information of the item can be obtained from the stock database which is automatically updated after every transaction.
19. The IT department has to solve major system problems that affect all computer users. In 2002 the main email server failed and the department was responsible coming up with a solution. Most communication is now done by email, this is significantly beneficial as it has cut down the usage of fax and the bill for this type of communication has decreased. How these functional areas together 20. At richer sounds, or in any business, it is essential that all individual functional areas work together as a whole for the business to run proficiently. Information which is vital, for the business to operate accurately, has to be passed on from one to person to another in order for decisions to be made. A continuous flow of communication is essential for any business to function effectively as up-to-date information is needed to make decisions. This is the usual four-stage process of communication:
(a) Obtaining the information (b) Sharing information with relevant colleagues (c) Deciding what action should be taken (d) Communicating the decisions or plans for action 21. One example of communication between the finance, IT and marketing departments is as follows: The marketing department may want to advertise and promote more of their products in newspapers, so the person in charge may send an email to the finance department for information on the department’s budget. Another example is: If the marketing department has trouble creating POS material due to problems with the computer system, they are most likely to inform the IT department for assistance. Consequently, the IT department may need to purchase further equipment to resolve the problem so they may inform the finance department about the situation.
22. Both descriptions are examples of how different functional areas communicate and work together to keep the business running appropriately. It is obvious that different departments play different roles in the business such as the finance area deals with work mostly based on money and the production of financial documents. However, the marketing department has the responsibility of promoting products and attracting more customers which are significant to the business as they (customers) are the ones who purchase products and increase profit.
23. On the whole, the functional areas work together effectively; however, there may be occasional difficulties. Richer Sounds has set itself some aims and objectives so the company can run efficiently and meet certain targets. Moreover, the marketing department has a very important role and for it to work effectively it must abide by the aims and objectives of Richer Sounds. 24. The majority of the goals are met by the marketing department. One example is the ‘point-of-sale’ which is responsible for keeping the stores looking attractive which contributes to one of their goals – ‘keeping the business fun’. The department also pays careful attention to how products are advertised and the cost of it as it doesn’t want to spend too much money or profit levels would decrease, this also contributes to another goal ‘ consolidate the business and improve our profitability’.
25. The IT department has a major role in the business as computers are very widely used in the world, especially in businesses, and many tasks cannot be done without them. Richer Sounds has a vast computer system which enables employees to communicate with each other both internally and externally. However, computer networks are extremely vulnerable to many threats such as viruses and in 2002 the main email server failed and caused serious problems. Fortunately, the IT department resolved the problem by choosing the best solution and decided that the email server should be backed up by a third party. As a result of their decision, all the stores would be able to send emails; therefore, fax use would decrease resulting in the fax bill being reduced. This would also contribute to one other goal ‘to be profitable to ensure our long term growth and survival’.