Q1. Being true to what you say and believe in stands out to be a good virtue in business. That is one of the justifications for the success of Russell Simmons. Most enterprises are after money and will take part in the sales of fake products as well as misleading ads. That was never the case with Russell Simmons. Being authentic and producing music that meets the audience’s demand is also a crucial instance depicted in the case. It is apparent that Russell was able to listen to the client base and act accordingly. Most business premises employ myopic thinking on their premises (Li & Ma, 2015). That is an instance that Russell thwarted and was able to execute his passion, and that made it possible to explore various opportunities that existed during his time. The fact that he listened to his customers was indeed a good example, and keeping his word made it possible for the customers to trust him. That brought about customer loyalty, a crucial part of success in any business premise.
Q2. The ability to identify and work with the best target market is also helpful in fostering success within the organization. Russell had a wise strategy on the same and focused on the urban youths. Most of the population consisted of blacks, Asians, Hispanics as well as whites. The aspect embraced diversity, which promoted sales in the region. Even though he was an African-American, he found it proper to target other markets to cater to the needs of the broader population. Diversity and scalability are crucial in any business. Russell’s target was to reach as many people as possible. He never clustered customers based on their race or location. In the hip-hop culture, authenticity, excitement, style, and emotional honesty are valued, and Russell made such a reality to them.
Q3. An understanding of the market is useful in meeting the demands of critical stakeholders, and that was possible since Simmons got a comprehensive understanding of the market in such an instance. The fact that he interacted with his peers allowed him to relate to what they wanted and fill the gap, which is an instance that no one thought of in the initial stages. Hip-hop music carried the day in such a place. The fact that it remained underground was a mission venture, and he learned it through adequate market research. Bringing the genre on top not only gave people the opportunity to enjoy it but also made it possible for him to grow in some aspects, such as finances. The urban youth were attracted to the style that he created, and that also contributed to the amount of income generated at that time. What the group wears is also a factor to consider. Russell was part of creating a cloth line that the group felt comfortable with, and that further justified his success. Moreover, Russell was limited to the area due to their expertise. It is necessary for most instances to be part of a space that will give more returns and promote productivity. That is precisely what Russell engaged in and indeed made it possible for him to succeed.
Q4. A measure of profit earned is a key approach to business, and the use of Return on Investment serves best (Schermerhorn et al., 2014). According to the case, the value for the same can be obtained through:
{(100000000-5000)/5000}*100
=1999900%
The fact that Simmons used little capital and got large returns is the reason for the figures.
References
Li, X., & Ma, L. (2015). Business management practices: Converging in some aspects but diverging in others. Management and Organization Review, 11(4), 795-805.
Schermerhorn, J., Davidson, P., Poole, D., Woods, P., Simon, A., & McBarron, E. (2014). Management: Foundations and Applications (2nd Asia-Pacific Edition). John Wiley & Sons.
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