Create an outline of the whole-system approach for a consulting problem within an organization that deals with the opening of a new retail outlet.
Identification of demand in the target market. This is the process of identifying a market gap with a relatively higher customer demand of a given product/service that is not currently supplied at the substantial levels.
Identification of the possible location of the outlet in the realized market. After the identification of an opportunity in the market, it is necessary to send a team of people acquainted with knowledge on the best place of locating the outlet, in order to meet the needs of the whole market niche. This involves the consideration of many factors that may include security, accessibility and vicinity among others (Coffey, 2009).
Basic floor plans of the outlet. This is the main lay-out and display of the products in the outlet.
Pricing procedure/strategies: This involves the consideration of the following factors:
v Living standards of the people in the target market,
v The average income of the target market
v The average prices on the commodities in the target market
v The proposed costs of various preferred prices for profit realization by the outlet management. These factors will enable the retail to set the prices that will enable them to attain their proposed market control (Block, 2011).
Market penetration strategies. These involves several strategies that are applied, in order to meet the set targets. They include the issuance of discounts to the customers, carrying out sales promotions and advertisement in the target market, where free samples are offered to the consumers in order to entice them to purchase the products. Finally the provision of after sales services and excellent customer care service to the customers is also a vital application that most organizations do apply.
- Compare the outline to that of a third-party approach.
In the above case, the acquiring of a third party approach would require the consultant to carry out a reconnaissance in which the evaluation process would be carried out in the proposed market. This would involve a lot of consultations among the involved parties within the management and outside. Thus, much time will be wasted in the process, as the consultants will relatively take longer time for evaluating the market niche before coming up with a report on the setting up of the outlet. The incorporation of the third party approach would be very costly to the organization, as it involves the application of techniques of analysis where various experts will be hired to conduct the evaluation of the market, the identification of the possible location and designing of the outlet. This will in turn cost the organization heavily, as compared to the application of the whole system approach.
The process will undergo delays, as a result of consultation among the parties involved, as feedback will be needed from time to time before making any vital decision by the third party. This is not in the case of the whole system approach, where the system gives the mandate of making the decision on the spot, thus, making work more effective (Block, 2011). The third party has no authority of taking any decision on behalf of the organization, unless after discussing the issue with the management.
The involvement of a third party approach is an endangered move towards the success of any firm in the market organization. This is in relation to his/her involvement with other firms in the market who are competitors in the same market. The fact that the party gets access to most of the company’s secret information on the set strategies and policies puts the outlet at risk, as he/she is likely to share out the information with our competitors in the same market. The organization’s confidentiality is normally put at risk, thus, the application of the whole system approach remains the best option in establishing the outlet.