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Business and Finance

Shoe Co. Inc. Company Analysis

Running an Organization

Every business activity, whether it is on a small or large scale, or targeting a niche or mass market, requires effective planning and a sense of direction. Firstly, the purpose of the business is the most significant step of starting a business and planning out its strategy. A business without a purpose and ultimate objective is meaningless, misguided and unsuccessful. The basic objectives and purposes of most firms are profit maximization or satisfactory profits, growth, providing services and most importantly survival in the market.

Once the firm knows its objective and purpose in the market, it is directed towards its goals and helps them to keep on track throughout the process. The second most important step is to create a plan that is effective for achieving the ultimate aims of the business. Planning requires, identifying your objectives, understanding the market, recognizing the strengths and weakness of the business and studying the competition in the market, hiring adequate resources to cater the requirements of the clients and meeting your goals, analyzing the financial situation and finally making an action plan.

Thirdly, creating a business structure and recognizing the type of your business is another important step in running a business successfully to survive in the market. A business structure refers to a framework according to which a business operates and performs all the tasks in an order of the command structure. It is important for the business to identify their market and the scale it will operate on such a small or large scale and targeting niche or mass markets. At the same time, the firm requires to create an organizational structure where there is a leader who can direct the rest of the workers, and the structure should be effective enough to keep track of communication and the activities throughout the organization (Curran and Storey).

The most important step for the success of every firm is conducting a market research. A study of the market is crucial before launching the product to reduce the risks of failures. If a firm creates a product that does not address the requirements of the clients and does not have enough demand in the market, it will fail and lead to losses. Therefore, a market research provides an insight into the customer’s preferences and what they want from a certain product to meet their needs. It is also a research of the market and studying the competition in the market and possible threats from the society, environment, government policies and laws, which is important for the business to understand before initiating their activity.

Furthermore, a firm requires a leader that is visionary and motivated towards the goals of the firm. Vision and planning for future prospects are essential for the firm in the long-term to reduce risks of failure and be prepared for any kind of situation that will damage the firm. It is important to be able to see the future preferences of the market and how it will change and affect the firm. A motivated and focused leader and manager is able to motivate other employees in the firm, which is one of the most important factors of for the success of a firm. Motivated employees are efficient and productive which reduces the costs for the firm and maximizes their profits.

Lastly, every business requires constant direction and focus on their ultimate goals which should never be a limit and always aim higher to keep on expanding and increasing their profits while reducing their costs. It keeps the firm and its employees motivated and on track.

Suggestion to Shoe Co. Inc.

Factories in China and Mexico or Kentucky and Tennessee

Shoe Co. Inc. has hopes to expand into the international market with its factories in China and Mexico. The idea can be a successful attempt at turning their business to larger scale, and the cheap labor in China and Mexico will reduce their costs and maximize profits. However, Shoe Co. Inc. works on a niche level that creates shoes on small scale with local American workers who bring the native and patriotic effect to their shoes for aircraft workers. China and Mexico have bad reputations for their cheap labor that is not treated justly and uses unethical ways to minimize their costs.

On the other hand, Kentucky and Tennessee are American states that meet the requirement for expanding the business, minimizing costs and not exploiting the law or business ethics that can damage the image of Shoe Co.

New Equipment and Workforce

The new equipment will prove to be beneficial for the firm in terms of reducing costs and increasing the quality of their shoe. This will attract more customers to buy the shoes if Shoe Co. is able to charge lower prices for the shoes that are created by machines. The quantity and quality both will increase which will lead to increased profits. Nevertheless, the company is known for its niche market and creating personalized shoes for a very small and specific group of people, so the firm can produce expensive shoes on a small scale.

This will not require them to redundant their employees for which they have been known for a long time. However, the demand is expected to reduce by 20% which is an alarming situation for the firm and will require to reduce their costs and lay off their workers who are not required anymore.

Wichita Operation

As the demand for aircraft workers’ shoe is decreasing, the new opportunity of creating shoes for the military can be profitable for the firm because it is a guaranteed sale and does not involve a lot of risks. Additionally, the design of the shoe does not require major changes, so the company will not require making major investments. It will also attract more customers that are not in the military but passionate about them. The operation has a good chance of success that will help Shoe Co. Inc. create a good image in the market and increase its market share.

New Computer System

Every firm requires keeping their practices up to date using the latest technology to increase efficiency. Similarly, Shoe Co. requires adopting the new computer system to increase their efficiency.

HR Practices

This is the most important step to consider for increasing the efficiency of the firm as a motivated employee are the key to the success of a firm. The labor force is poorly managed and is not happy with their benefits, which requires to be catered by the HR and assure the labor force the security of their jobs.


A successful business requires considering all kinds of risks and threats in the market and the economy while seeking new opportunities and pushing its limits. It needs to identify the basic objective to approach the market and stick to that for a long time in order to avoid confusion and chaos in the firm. Additionally, effective communication is the key to the growth and profitability of a firm. Shoe Co. needs to focus on its niche and improve the strengths and motivate its employees so that they can stick to their traditional practice for which they known.

Works Cited

Curran, James, and David J. Storey. Small Firms in Urban and Rural Locations. Routledge, 2016.



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