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Strategies in the Atrium Gallery

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Atrium Gallery will use several inputs in producing its dresses where it would require materials of different types like silk, chiffon, and cotton which would appear in different colours which will be very appealing to the customers since they will be able to get a choice of the colour that they like because of the wide variety of colours that they will have to choose from.

When Atrium Gallery uses very good materials to make their dresses, they would be able to change the quality of their dresses. Changing of quality standards could have both positive and negative impacts on a project. This is because the resources which are available to a company give it an added advantage by cutting costs required to implement the project. This is because the company usually has a prolonged benefit, which makes the creation of projects much easier due to the readily available resources.

Production and Material Management

Atrium Gallery is going to use the services of skilled and professional staff into the production of its dresses since the dresses have to be designed by designers who are good at that so it shows that to be able to come up with very unique dresses from the close competitors, the designers have to be very professional. When it comes to the quality of the dresses, there will be a skilled professional whose main work will be to inspect and see if the dresses will be very appealing to the customers since the dresses are being produced for consumption by high and middle income women.

Critical Operating Factors for the Business to Operate (Key Success Factors)

  • Advantages in sourcing material

There are so many advantages of sourcing material which we as Atrium gallery have taken advantage of. The company purchases all the raw materials directly from the suppliers where the company is able to get better deals on the expensive materials which they use to make the luxurious dresses which are very unique. This outsourcing of materials has enabled the company to be able to produce a price which is pocket friendly to all the customers of the Atrium Gallery brand. Come of the advantages that Atrium Gallery gets from outsourcing material is that it gets a supply of materials which is guaranteed, it has simplified processes, it has a better leverage when it comes to the negotiation on the procurement, and it gives the company increased supply chain standards clarity where the company gets quality materials.

  • Technological innovation in the manufacturing or distribution process

Some of the technologies which are associated with Atrium Gallery have made it to be able to create markets for all its new designs. This success factor in Atrium Gallery has made the company to be able to leverage on the existing technologies and the new technologies which is more advanced to those that are being used by the close competitors which has enabled the Atrium Gallery to produce high quality dresses for all its global customers so that it can be able to increase its sales and total revenues which would further increase in the profit margin of the company. Atrium Gallery has adapted an online shopping, bar coding, and other computer aided designs which are all results of a better technology. With the adaption of this new technology, the company is able to reduce its costs of production, improve the quality of its dresses, and also lead to future innovation in the company which can be very beneficial to both the company and the customer.

  • Effective pricing strategy

A pricing strategy is a price planning which puts into consideration (maximization of profits, revenue maximization) buyer’s claim, product attributes, prices of competitors, and economic trends. Channel  distribution  is an organized group of  institutions whose aim is to  link  producers  and  end  customers so as  to achieve  the  marketing  goals. It involves activities such as selling, promotion, ordering, information and feedback. Atrium gallery has an effective pricing strategy where it makes use of the price penetration where it puts an initial low entry price for all its luxurious dresses with the expectations that the customers will shift to the new brand because of its low prices. Atrium gallery can put low prices for its dresses so as to increase its sales volume, rather than making short term profits. Advantages of using this pricing strategy are firstly the dresses for Atrium gallery will penetrate into the market quickly due to its fast adoption by consumers. Secondly, low price penetration will discourage competitors thus giving it a sustainable competitive advantage. Thirdly, it will create a high stock turnover for the firm and lastly it is economically efficient since it is possible to base it on marginal pricing cost.

  • Access to skilled employees

Atrium Gallery has a pioneer advantage over all its competitive businesses like the Dolce and Gabbana because of its access to skilled employees. Human capital is very important to a business. Human capital is one of the greatest assets which are used by Atrium Gallery which is brought up by the presence of its internal designers who make up the Fashion and design department in the company (Gerald, 2004). Their innovation which is mostly constant is very important and crucial for the creation of the unique and luxurious designs. Atrium Gallery has a very good access to many talents and incorporates them into the company which can make the company to be an international Corporation (Gerald, 2004).

Management Summary Indicative Content

Description of team members

The team members of Atrium Gallery include the managers and the employees of the company who are solely the people who are responsible for the success of the company. There are several managers who are in charge of the several departments like the accounting and finance department, sales and marketing department, Human resource department, and the production department. The managers and the employees make a very good team since there is the direct communication between the employees and the managers and vice versa.

Qualifications

All the team members in Atrium Gallery are highly skilled and professional. In order to qualify as a team member, one has to have enough qualifications which can suit him in the position of work.

Managers

One has to have at least a

  • Master’s Degree in Fashion and Design, Accounting, Human Resource, Sales and Marketing or any other Degree from an acknowledged University,
  • at least 5 years of experience from a
  • good communication and interpersonal skills

Employees

  • One has to have at least a Bachelor’s Degree from an acknowledged university
  • A higher Diploma Certificate is an added advantage
  • Be a team player

Management Philosophy, Strengths and Weaknesses of the Team

Management philosophies are set of beliefs which can be used in the decision making process. The team in Atrium Gallery has very good management philosophies which are aimed at the making of good decisions in the company. The Team members have to be role models since they have to carry out their management responsibilities effectively. The management responsibilities of the executives in the Atrium Gallery include activities like training and management of staff performance, customer interface management, risk reduction in the company, and the engagement of the stakeholders of the company (Sadler-Smith, 2006).

For Atrium Gallery to be able to survive in the competitive world, it has to have good leadership management strategy since leaders visualize, strategize, implement, evaluate, and review all the desired projects and programs, so as to be able to achieve their set goals. This information gathering performed by leaders helps in the decision-making processes of the company, which shows the importance of leadership in a business or organization (Bowman & Asch, 1996). Good leadership of a company can facilitate the success of its performance through a proper strategy planning, which is initiated by the leaders of the organization through the utilization of the available resources, which, in addition, might be limited within a challenging environment, so as to be able to meet all the expectations of the stakeholders (Lynch, 2006).

Financial plan Indicative content

Capital requirements

The capital financing for Atrium Gallery would come from the existing funds which will include the the cash balances, bank overdrafts, bank loans, shareholder’s capital, the working capital which we have already invested in the business (debtors and stocks), and the creditors (the suppliers). Most of the funding of the business will come from the owner with no additional investment required

Financial projections

The financial projections of Atrium Gallery include the income statements, cash flow statements, and balance sheets. The main aim of the financial projections for the company is to ensure that the business can be able to generate cash which is enough to be able to pay up all its backers and also that it can be able to fuel all the business’ incentives to succeed in the competitive business since Atrium Gallery is in the fashion industry which is a very competitive market.

The income statement which is also called the profit and loss account shows all the expenses, the net loss, and the revenue for a specified time. The Net income is got by getting the amount by which the total revenue is in excess of the total expenses. The profit which is then got from this calculation is normally retained at the earnings account which has all the earnings which have accumulated of the business when the inception less dividends. The presence of a net loss leads to a reduction in the retained earnings account. The income statements which are projected actually show that the business can be able to earn profits over a specified period of time.

The balance sheet on the other hand is a statement which shows the financial position of the business where:

Total Assets = Total Liabilities + Owners Equity

The owners’ equity is made up of the residual amount which is the total amount of all the assets that the business owner has a claim over because of the creditor claims and it can be derived from the paid-in capital which is usually the cash which is invested by the owner of the business, and the retained earnings which are usually the profits which have accumulated in the business. The balance sheet in the Atrium gallery helps in the reporting of the financial position of the business after a specific time.

For the cash flow statements, revenue is usually not just a cash receipt and an expense in a business is usually not just a cash payment. The net cash flow which is the receipts less the cash payments, and the net income are termed to be very different.

Assumptions underpinning the financial projections

If inadequately planned or allocated, timing can affect the project’s financial cost and company’s budget it could show that the company has to incur additional costs, which could put additional strain on the budget, since the company would be forced to plan more costs in the form of labor to successfully complete the project within the stipulated time. Time management is a major key responsibility of a company’s project manager. Therefore, a project manager should possess a good sense of time management, which is very important in project cost management.

The assumptions for the financial projections are summarised in the table 1 below

Table 1: The general Assumptions of the financial projections

General Assumptions

 

 

 

 

Year 1

Year 2

Year 3

Plan Month

1

2

3

Current Interest Rate

10%

10%

10%

Long-term Interest Rate

10%

10%

10%

Tax Rate

30%

30%

30%

Other

0

0

0

The break-even point in a business is the point where the costs equals the expenses since there is no net gain and also no net loss meaning that it is the point when the business neither makes profits nor losses. For Atrium Gallery, in the first year, it expects to sell a total of about 97 pieces of dresses from the sales forecast where if it sells less than 1160 pieces of dresses, the business will automatically make a loss, but is it sells more than the 1160 dresses, and then the company would make a profit. It is then the work of the manager of the business to ensure that the dresses which are sold should be equal to or even more than 1160 dresses for the company to be able to make profits. To ensure that the company does not make losses if the number of dresses sold does not reach 1160 pieces, then the company could come up with strategies where they could reduce all the fixed costs by negotiating for the purchases of the materials and controlling all the other costs within the business, they could also try reduce the variable costs, and the increasing of the selling prices of the finished dresses.

The Break even analysis in Atrium Gallery indicates the monthly revenue which is needed for the business to reach a break-even point.

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