Revenue (Inventory)Gambill Jewelry may achieve growth in revenue and customer base by increasing its inventory. The company is currently unable to meet the growing demand particularly in the custom design jewelry segment due to its low capacity to produce adequate stock. The inventory of the off the shelf items is small compared to the other jewelry stores in the area. Therefore, there is an urgent need for Gambill Jewelers to expand its inventory in order to meet the needs of the growing customer base.
It is expected that with the recruitment of new employees, the store inventory can achieve a 50% growth within a period of six months. Pursuing the objective of expanding inventory levels will help the company’s customers to have a wider choice of selection in addition to offering the customers a better shopping experience. Subsequently, the company will be in a position to expand its sales level while also attracting a wider customer base. Expanding the amount of inventory will also help to retain customers since they will no longer have to look for some items in other stores. Therefore, expanding the inventory level is an important step towards achieving the company’s mission.
A 50% growth in the amount of inventory in six months would be achievable if adequate strategies are put in place. The six months period will allow the company to obtain the financial resources required to expand production and supply of jewelry. However, it is important to continue expanding the inventory size even after the 50% target is achieved. The objective of achieving a 50% increase in the store inventory may be easily determined by conducting stock counts before and after the implementation of the strategies for increasing inventory levels.Human ResourceAccording to Forbs, human resource personnel provides assistance with organizational effectiveness by helping with the design of new business strategies. The human resources department of any company plays a key role in the organizational effectiveness of a company. Since the human resources professionals in a company play an essential role in hiring new employees, they also impact the company goals.
One of the major limitations to Gambill Jewelers’ growth is the lack of adequate human resource. Currently, the company has three full-time employees comprising David Gambill, a jewelry repairman who also serves as a salesperson, and one full-time salesperson. The salesperson is actually headed for retirement and therefore the firm will need to replace her. Therefore, the business is not running optimally due to the personnel limitation. With the opportunities presented for growth in the business, it will be impossible to take advantage of them with the current workforce. A customer service representative will collaborate with the salespersons to build better customer relationships with clients while the additional salespersons will help to drive sales of the increased inventory produced at the store. Moreover, hiring additional salespersons will help in the management of succession by smoothly replacing the retiring salesperson. The custom designers will help to increase the amount of jewelry produced from the store in a shorter time while the watch repairer will take all watch repair business so that Gambill Jewelers will no longer send them to another place for repair.
Moreover, the recruitment of a jewelry repair person will contribute to the overall growth strategy by enabling customers to obtain repair services for free within a given warranty period as well as expanding the business of jewelry repair. Objectives and StrategiesRevenue (Inventory)Objective: Gambill Jewelry will develop and implement a comprehensive plan to increase the inventory levels in the store by up to 50% within six months and generate sufficient revenue from increased inventories, custom work, and repaired work in order to improve its operation as well as enhance its facilities with services.Begin: July 2018Complete by: January 2019 and ongoingResponsibility of: Mr. David GambillStrategies:1.
Gambill Jewelry will concentrate on its core customers, while seeking to attract new customers. All feasible options on increase revenue will be pursued. In addition, the jewelry store will seek to discover new revenue increasing opportunities by investigating jewelry industry as well as assessing products and services offered by other middle-end and/or high-end jewelry stores in Jonesboro.
2. Gambill Jewelry will develop revenue forecasts for long-range planning purposes, which will improve financial stability.3. Gambill Jewelry will evaluate custom fees on an annual basis to ensure pricing is appropriate in order to increase revenue. The impact of these fees will be evaluated by reviewing cost and revenue projections, past records, and prices set by similar organizations. It is suggested that Gambill Jewelry consider such things as prices for jewelry packages, discounts for active duty and veteran military personnel, discounts for seniors and installment policy for young customers, leaving room for different age group customers’ jewelry price.
4. Gambill Jewelry will hire additional staff. For Gambill Jewelry to increase its inventory, the additional workforce is needed particularly with regard to the provision of custom jewelry. With an expanded workforce, it will be possible to increase the amount of custom jewelry produced and jewelry repaired at the store. Therefore, the first strategy for Gambill Jewelers would be the improvement in its workforce.5. Gambill Jewelry will expand the custom design jewelry production. With an expanded workforce, it is possible to pursue the strategy of increasing the production of custom jewelry.
This will involve:• Increasing the raw materials required for making custom jewelries and incorporating the two additional custom designers to work on customer orders. • The company is not operating at optimum capacity particularly in custom design orders deliveries where the demand has been higher than the supply. Therefore, it is important to use the additional workforce to increase the production of the custom orders as well as ensure that they are delivered in good time. The increased production of custom orders will boost the current inventory levels.
6. Gambill Jewelry will secure a line of credit from the bank in order to finance the expansion. With additional funds secured from the bank, the company will be able to purchase more inventories to ensure that the store is well stocked throughout the year. The line of credit will also help the company to purchase more inventories during peak seasons such as Christmas festivities and pay off later after the selling season. This will not only help to increase the revenue from the expanded sales but also help the company to achieve growth in its customer base.
7. Gambill Jewelers may pursue the collaboration with more suppliers of jewelry to increase the supply of branded jewelry supplied and money paid later on sale of the products. Manufacturers of luxury items such as jewelry and developers of branded products always seek out opportunities to grow their sales and most are ready to supply products to retailers and accept an agreed payment period. • By obtaining agreements with such manufacturers, Gambill could be in a good position to expand its inventory levels since the suppliers will allow the company to stock their products without requiring an upfront payment.
• Gambill may negotiate a 30-day or a 90-day payment period depending on the movement of the stock. This strategy will allow the company to increase its inventory without necessarily causing a financial strain on the company.8. Gambill Jewelry will follow up with all customers under their permission so that they receive appropriate thanks and are kept informed of store’s new arrivals with discount information. An effort should be made to follow-up with customers, particularly core customers, who contribute a lot into increasing Gambill Jewelry’s revenue.9. Gambill Jewelry will build its membership system in an effort to generate greater revenue from this source. A suggested membership system schedule is presented below:• Points system: 1 dollar = 1 point• The “one person, one card, one mailbox” system, the membership card is a real name system, one person cannot hold multiple cards, and one mailbox cannot register multiple membership cards.
• Get a white card: you can apply for a membership card for the first purchase.• Get a black card: 3000 points for a white card, or 3 times purchasing (except ordering repair work) at the store in 12 months (no amount limit).• Get Gold Card: Black Card has 9000 points in 12 months.• Time limit: The gold card will be obtained before March 1 of the current year, and the service period will be from the date of obtaining the card to February 28 of the following year; the gold card will be obtained after March 1 of the current year, and the service period will be from the date of obtaining the card to the second day of February 28.For example, the gold card will be issued from January 1st to February 28th, 2017, and the service period will be until February 28, 2018. Gold cards will be issued from March 1st to December 31st, 2017 and will be available until February 28th, 2019.• In order to maintain the Gold membership, 5000 points must be accumulated during the period of use; if the points are not met, they will be returned to the Black Cardmember.• Starting with a black card member, for every 3 times of consumption, or 3000 points, you will receive a 10% discount coupon.
• Gold card exclusive offer:1) Free home delivery within Jonesboro2) Fast payment channel3) Birthday 200 dollars Gift Card4) With 6000 points, customer can choose a free gift, such as one-time free jewelry maintenance, a small pair of earrings, cosmetic mirror, cosmetic bag and so on, in the exclusive gift of gold card.5) There will be a 20% discount on a regular basis.Human ResourceObjective: Gambill Jewelry will develop, document, and adopt several recruitment strategies in order to expanding the workforce within a year in an effort to shorten product processing time and improve the service level for the customers.Begin: July 2018Complete by: July 2019 Responsibility of: Mr. David GambillStrategies:1. Gambill Jewelry will set aside a budget for the entire process of recruitment and financing the expanded workforce.
Without a financial budget, it will be impossible to achieve this budget. 2. Gambill Jewelers will expand its workforce to place job adverts in the local media such as print and electronic media. With the growth in the use of internet, many job seekers are now online, and this makes it cheaper to advertise for the jobs. 3. In addition to placing adverts, Gambill Jewelry will adopt the strategy of referral recruitment particularly for skilled workers such as custom designers and repairers. In this strategy, current employees are encouraged to refer to individuals they may know to fill the vacant positions (Breaugh, 2008).
4. Gambill Jewelry will seek the services of recruitment agencies to fill the vacant positions. Although engaging the services of professional recruitment services may be expensive, the strategy may ensure that the company gets the most qualified persons for the job positions.5. Gambill jewelry will hire at least seven additional employees to bring the total workforce to ten. These new employees should include two salesperson, a watch repairer, a jewelry repairer, two custom designers, and a customer service representative.
The process of hiring new employees should take a maximum of one year until the last employee is recruited. 6. Once the employees are employed, Gambill Jewelry must put in place strategies for employee development and retention through programs such as training, promotion opportunities, bonuses and other rewards for performance, and ensuring that the employees have an attractive compensation package as a way of boosting morale and building motivation (Allen et al., 2010).
Some suggested programs are as follows:• Budget for development and training.• Help employees to understand how they contribute to Gambill Jewelry. Show them the company-wide objectives and how their work contributes to the company’s performance.• Create collegial teams of workers without micromanaging them.• Make employees a CEO of their work.
Empower them to contribute ideas and allow them as much autonomy as feasible to make decisions.• Encourage each employee to be customer-focused.• Immediately, show appreciation for good work and counsel employees following sub-par work.• Show flexibility to enhance employee balance for career and personal life.
• Establish an employee assistance program. • Provide workers bonuses such as travel plans, employee jewelry purchasing preferential policy and so on.7. The success of every organization is determined by the motivation and dedication of its employees thus creates company’s need to establish motivation programs.
Therefore, Gambill Jewelers should ensure that its workforce remain motivated in order to serve the customers better and subsequently promote good customer relations.
