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Saturday, October 29, 2011

Purpose of the Business - Reasons for Selecting this Business

Purpose of the Business

The main purpose of the fast food outlet in London is to provide high quality foods at local environment with local taste. Along with this, to establish a presence in local fast food business and gain market share in the fast food industry of the UK is the aim of the business (Counihan, 2008). To fulfill this purpose, it will create unique, innovative menu and entertaining environment in outlets to differentiate the business as compared to competitors. Additionally, the main aim of this business is to provide quality foods and keep customers happy with full satisfaction.

Reasons for Selecting this Business

In present fast life, customers want fast and quick cooked foods that will increase sales and choice of fast food and would be profitable for the company (Ronald, 2008). Disposable income of customers is also increasing that is another reason of selecting this business. It will increase the enjoyment of customers that have opened new opportunities in food market. This business will offer variety of foods to customers and excellent services to ensure relaxation and comfort of customers that will attract them towards outlets. Effective services and high quality products will increase the number of customers and it will be profitable for the company.

Major Obstacles

This business would face various obstacles in launching of new restaurant such as inventory management, customer services, application of information technology, marketing and distribution strategies and capital investment etc (Counihan, 2008).

Marketing and distribution strategies: The Company would get difficulties to select appropriate marketing and distribution strategies at the time of launching (Ruteri & Xu, 2009). It will get problems in market research to identify customer taste and preferences and select right marketing and promotional strategies according to customers.

Production planning and scheduling: It will be difficult for the company to develop effective production planning due to lack of past experience and future forecast of demand (Ruteri & Xu, 2009). It is the new business and company doesn’t have any information about tastes, preferences and demands of customers’, so it will be difficult to develop planning for production.

Other Successful Organization

There are various people, companies or organizations that have been successful in fast food industry such as McDonald’s, KFC, Pizza-Hut, Burger king, Dominos’ and other local fast food outlets (Ronald, 2008). Along with this, people like James A. Skinner, CEO of McDonald’s, Peter Brabeck-Letmathe, Chairman of the Board of NestlĂ© and other chairpersons are famous and successful personalities of fast food companies that motivates for this business.

Sources for Additional Information

To get additional information and take help in business ideas, people, websites, agencies, actual business contacts and trade associations can be used. Through these sources, valuable information, past experiences, issues in launching time, opportunities and threats can be identified that will help in developing new marketing and business development approaches (Food and Agriculture Organization of the United Nations, 2002). Through fast food companies’ websites, information about their product line, supply chain management, stakeholders and other services can be recognized. Through trade association, business person can develop understanding about trade rules and regulations, rules for costing, taxation and contracts with suppliers.

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Counihan, C. (2008). Food and culture: a reader. USA: Routledge.
Food and Agriculture Organization of the United Nations (2002). Organic agriculture, environment and food security. USA: Food & Agriculture Org.
Ronald, L. W. (2008). Kleppner'S Advertising Procedure, 16/E. USA: Pearson Education Inc.
Ruteri, J. M. & Xu, Q. (2009). Supply Chain Management and Challenges Facing the Food Industry Sector in Tanzania. International Journal of Business and Management, 12(4), pp. 70-80.

Monday, October 24, 2011

Team Leader’s Role

In an organization various teams are formed by the managers and each team is headed by the team leader. Team leader has to play various roles in providing coaching and mentoring to their team. Role of the team leader is exploring the skills of their team. They are also focused towards guiding them about the efficient achievement of team objectives as well as organization goals (Schonrok 2010). All the team members should work with proper coordination and develop mutual understanding among members. All the team members should follow the instruction of their team leader. Another role of the team leader is to influence the employees for better performance of the task.

After providing the coaching and learning to the employees’ team leader must give feedback to their team members about their performance. This will help in motivating the employees for better and improved performance (Pope 2008).

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Pope, S. (2008) Team Leader Workbook. USA: Human Resource Development.
Schonrok, J.E.M. (2010) Innovation at Large: Managing Multi-Organization, Multi-Team Projects. Deutsche: Peter Lang

Monday, October 17, 2011

Monitoring Marketing Goal

Marketing goals deals in various factors of the organization. Every organization wants to increase the sales, increase the public awareness about their business, customer retention, increase in profit, reduction in cost, etc. All these factors are comes under the marketing goals. It is necessary for the researcher to monitor the goals of marketing. Researcher can use different ways of monitoring the progress of marketing goals (Dibb & Simkin 2008). Firstly researcher has to analyze whether the goals that have been framed should be according to the customer’s needs and wants. Researcher can monitor the progress by observing the employees, while working. With the help of observation, researcher can analyze the total time taken by the employees and utilization of resources (Ferrell & Hartline 2010).

Secondly, researcher should monitor that mission of the organization should be consistent with the marketing goals. Marketing goals means results that have been achieved through marketing plans. But these goals should be aligned with organization objectives also. Thirdly, organization can set the parameters through, which they can compare, the actual working with the stated goals. Another method of monitoring is to observe the results that have been achieved and analyzing the customer feedback (Kotler, Lee, Farris & Kiddon 2010).

Monitoring plays an important role in achieving the success of marketing goals. It gives the assurance that efforts are conform to the desired plans. Monitoring helps in achieving the better performance and also motivates the employees. Monitoring can be taken as tool for controlling the various activities that are beyond the desired plans. Various corrective actions can be taken in policies and plans according to changes in environment (McMurtry 2003). With the help of monitoring organization can optimally utilize all the resources and achieve the results effectively and efficiently. All these above stated factors contribute in the success of marketing goals.

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Dibb, S. & Simkin, L. (2008). Marketing Planning: A Workbook for Marketing Managers. USA: Cengage Learning.
Ferrell, O.C. & Hartline, M. (2010). Marketing Strategy. 5th ed. USA: Cengage Learning.
Kotler, P. Lee, N. Farris, P.W. & Kiddon, J (2010). Marketing Strategy from the Masters (Collection). New Jersey: FT Press.
McMurtry, J.M. (2003). Big business marketing for small business budgets. USA: McGraw-Hill Professional

Thursday, October 13, 2011

Market Entry Strategies

For every new firm, it is necessary to adopt some strategies for entering in market and give competition. This post would give students an idea how to write assignment or homework related to market entry strategies. In this, Polish market entry is taken as a case study for entry of a bottled water product. To enter into the polish market of bottled water and give competition to the market leader, firm can opt for some strategies such as joint venture, strategic alliance, and franchising (Boone and Kurtz 2011).

Joint venture: Firm can select the joint venture strategy because it is very difficult for an individual firm to give competition to market leader alone. Joint venture is the strategy in which two existing firm agree to do the business together for finite time period. Through the joint venture, firm can able to give competition to the market leader. As the competition is very stiff and need a huge amount of capital, with the help of joint venture firm can distribute the capital and can easily enter into the market. In past few years, bottled water has come under some criticism because of impurity in water. But nowadays, bottled water has captured very large part of market environment (Kupper 2009).

So, to maintain the position and give competition to the market leader, it will be more suitable for the firm to come up with the joint venture.

Strategic Alliance: After analyzing the overall market scenario, another strategy, which firm can adopt is strategic alliance. This strategy is also very much suitable for the firm to make position in new marketplace and give competition to the leading firm of bottled water. In case of joint venture, two firms need to get combined in a single entity. In case of strategic alliance, two firms decided to perform a common business to meet the critical conditions of the market scenario but both these firms remain independent. This strategy avoids the conflicts among members due to difference in cultural as well as working environment of both the firms (Glover and Wasserman 2003).

With help of strategic alliance, efforts of both firms can be able to give more competition and earn more benefit instead of putting individual efforts. Market leader of bottled water has penetrated the wider area of overall market, so to compete with them needs extra skills and knowledge that can be shared through strategic alliance.

Franchising: By taking the franchise of one of the top most brand of bottled water, firm can able to attract more customers. Initially with the name of renowned company of bottled water, firm can make position in the market place. After understanding the overall market scenario, it will be easier to give competition to the market leader. Franchising is the strategy in which owner of firm distribute their products through the dealers known as franchisee. Franchisee takes the license from the franchiser to carry out business with his name (Keup 2007).

With the help of franchising, firm can easily operate their business activities and capture the wider area of market. After making the position in market through franchising, franchisee can establish a new firm and a give competition to the market leader. This strategy is also very much suitable for the firm to enter into the new market of polishing of bottled water (Mathews 2011).

From the above, it is concluded that, before entering in the market, firm has to analyze the overall market scenario and competitors and on the basis of that strategies should be selected.

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Boone, L.E. and Kurtz, D.L. (2011) Contemporary Marketing, 15th ed. USA: Cengage Learning.
Glover, S.I. and Wasserman, C.M. (2003) Title Partnerships, joint ventures & strategic alliances Business law corporate series. New York: Law Journal Press.
Keup, E.J. (2007) Franchise Bible: How to Buy a Franchise Or Franchise Your Own Business, 6th ed. UK: Entrepreneur Press.
Kupper, V. (2009) The Use of Joint Ventures as a Strategic Tool for Multinational Companies. Germany: GRIN Verlag.
Mathews, J. (2011) Street Smart Franchising, 2nd ed. UK: Entrepreneur Press.

Friday, October 7, 2011

Importance of Forecasting

Forecasting in Communication

Forecasting plays an important role to improve communication in the organization by providing important information to employees, managers and others stakeholders. Foresting provides an idea about sales units that will be consumed by the customers that helps to communicate the production department about the number of units to be produced during a particular time period. Forecasting involves sales forces to forecast in the organization that make an easy communication about predicted results and also the efforts that would be required to achieve the objectives (Smaros, 2004). Forecasting is also made by taking the consideration of all the departments that is quite effective to facilitate an effective communication among different departments. Forecasting is also important to understand and determine the changes in customers’ needs and to generate relevant and rich information of the product that is important to improve effectiveness. Forecasting improves communication by reducing problems of every department that are working on the basis of its goals and forecasts by determining the efforts of other departments also (Smaros, 2004).

Reasons of Wrong Forecasting

There are several reasons in the organization that affect forecasted results from the actual results. Forecasting is an important and most difficult aspect that is based on uncertainty of future that create difficulty in making the forecast in a proper way. Forecasting is performed by using past data of the organization that may change due to change in the business or market environment. The lack of future aspects and changes in forecasting also make it wrong. In addition, several potential errors may create problems that affect a forecasting method’s accuracy. Similarly, forecaster cannot forecast in a right way if there is lack of time and resources to forecast as he/she may fail to judge all the areas that may affect the forecasting (Ahrens, 2007). Forecasting also goes wrong due to lack of proper communication among the employees, managers, and sales forces of the organizations. Selection of inappropriate forecasting method as per nature of forecasting is also a reason behind wrong forecast because an appropriate method helps in proper decision-making to a manager.

Ways to Make Effective Forecast

There are several principles through which a research could increase the chances that a forecast will be effective. Firstly, researcher can define cone of uncertainty of the world that outlines all possibilities related to particular event and movement of forecasting. Secondly, forecaster can use S-curve that starts with slowly at initial stage and then suddenly explode in growth phase and then it drop down in maturity and saturation stage that would be effective to enhance the significance of forecasting (Saffo, 2007). It is because it will help to cover all the aspects that will not fit with the forecasting. Similarly, the researcher should not over rely on one part of strong information, but he should apply strong opinions during the period by including the contingencies.

Models for Forecasting

In forecasting, more complicated models are better than less complicated methods because they can fit all data in forecasting, whereas less complicated models has less adjustable or uncertain parameters in the forecasting (Yuen, 2010). More complicated models can cover large output space in comparison to less complicated models that also provides more accurate results. Autoregressive Integrated Moving Average Models is an important more complicated method that fits with time series to understand data and to predict future points in series effectively. This model is used to predict time series of economics and industries that is helpful to remove persistence and to provide accurate estimation (Wang, 2010). More complicated models helps to understand about a certain problem that can be solved accurately by using potential process. At the same time, the more complicated methods include all the environmental aspects in forecasting that produces better results.

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Ahrens, C.D. (2007). Meteorology today: an introduction to weather, climate, and the environment (8th ed.). Canada: Cengage Learning.
Saffo, P. (2007). Six Rules for Effective Forecasting. Retrieved September 27, 2011, from
Smaros, J. (2004). Using the assortment forecasting method to enable sales force involvement in forecasting: A case study. International Journal of Physical Distribution & Logistics Management, 34 (2), 140-157.
Wang, F.L. (2010). Artificial Intelligence and Computational Intelligence: International Conference, AICI 2010, Sanya, China, October 23-24, 2010, Proceedings. Germany: Springer.
Yuen, K.V. (2010). Bayesian Methods for Structural Dynamics and Civil Engineering. Singapore: John Wiley and Sons.