(Solved): In teams of two to three people, search for a business that is currently failing or not

 

In teams of two to three people, search for a business that is currently failing or not doing well. a. Identify symptoms to the problem this business is facing (be specific and source evidence from articles found online) b. Once symptoms have been identified, develop a problem statement for this company. c. Develop a minimum of three potential solutions for the problem. Discuss which are stronger and better.

Expert Answer

Snapdeal is an Indian e-commerce market place founded in 2010 by two friends. Thye started it as a deals and coupons site /later it transformed to a marketplace model in 2012.

Snapdeal offers services in more than 5,000 cities and towns in India. In February 2016, the company was valued at $6.5 billion valuations. But the company has been posting operating losses over the years culminating in a failed merger in the recent months

a.Symptoms Of the failure

Lay offs

Snapdeal employs around 1200 which it may trim down to nearly half within the next fiscal

Net income loss

Snapdeal registered a revenue growth to Rs 227 million $ (2015-16) from Rs 146 million$ but loss doubled to 517 million $ (2015-16)

Poor valuation and failed merger

Flipkart, rival firm, offered $ 900-950 million offer. but it was turned down by Snapdeal as the company considered this to be an undervaluation

b.Problem statement for this company

Operating margin loss and net income loss have been continuing for snap deal for the past few years due to

  • Excessive labor expenses – with expenses tripling to 142 million $ (2015-16) from the previous year.
  • Advertising expenses rose to 87 million $ (2015-16) from 66 million $. Discount driven sales led to poor gross revenue.
  • Excessive investments in other reacted businesses before establishing   a strong business model and fundamentals have contributed to the loss

Snapdeal-owned digital payments firm FreeCharge – 42 loss, logistics firm Vulcan Express -3.12 , logistics firm Gojavas- 10.92 loss – (2015-16)

a.Potential solutions for the problem

  • Trim the employee numbers to form a lean management organization
  • Reduce advertising and promotional expenses including sales promotions like discounts
  • Focus on business fundamentals and core business of market place

Focusing on its core business and concentrating on business fundamentals is the most important because like Snapdeal many Indian e-commerce companies are failing due to excessive investments in a market that are still poorly understood and still lacks the infrastructure like cashless transaction and poor logistics. The company failed to differentiate itself with a brand and was running on discount sales. Before even establishing a decent profit the company started to build excess capacity and invested in allied business

Focusing on core business will help Snapdeal to reduce bad debts and depreciation expenses. This will help the company to understand the consumer, establish itself in the market and make revenues without depending on discounts.

iWriteHomework
Order NOW for a 10% Discount
Pages (550 words)
Approximate price: -

Why Us?

Top Quality and Well-Researched Papers

All ourbpapers are written from scratch. In fact, Clients who ask for paraphrasing services are highly discouraged. We have writers ready to craft any paper from scratch and deliver quality ahead of time.

Professional and Experienced Academic Writers

Our writers keeps you posted on your papers progress - providing you with paper outline/draft. You are also at liberty to communicate directly with your writer.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time, in many cases quite ahead of time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

× Contact Live Agents