Magic Whiteboard is a small business enterprise that operates its business in Worcester, in England. The company was successful in 2008 in the BBC Dragons’ Den. Since then it has received an investment of £100,000 from the Theo Paphitis and Deborah Meaden. Only in 2014, the owners of the company were able to own 100 percent of the Magic Whiteboard Limited. Thus, Meaden and Paphitis are the two main investors of the business Magic Whiteboard. The two investors got 40 percent of the equity of the business as return for their investment. However, husband and wife Neil and Laura Westwood founded the business. both the founders were able to get back 100 percent of the company’s share in 2014 by offering eight times the amount investors put in the business. The products of the business now stands on the 240 Ryman Stores, Sainsbury stores and Viking Direct. Magic Whiteboard has been able to expand globally by exporting their products to 20 countries worldwide. In the Dragons’ Den, pitch a total of 100 million people watched them which has increased their popularity even more (Magicwhiteboard 2017).
The business also has an interesting history behind the invention of Magic Blackout Blinds. It was just an initiative to stop sunlight to enter the room of their daughter that they found the interesting concept of Magic Blackout Blinds. It was then that they realize that the after making sheet blind a blackout blind can be created. This would be easy for everyone to stop sunlight and is easy to fit anywhere (Magicwhiteboard 2017).
The location of the business is in Worcester, England from where it runs all its operations and has their company registered in the same location. The company got itself registered in 2008 and is operating perfectly since then. It is known as one of the active company in that area having two directors. However, the company does have its presence in more than 20 countries all over their world where it sends its products through suppliers. The main activity of the business is to manufacture whiteboard, blackboard, sticky notes and clear board. The magic whiteboard that the company manufactures are portable that can be rolled and kept safely at any place. The company did this by keeping in mind the storage capacity of every household. Magic whiteboard is their main product along with other accessories such as black Clearboard, Blackout Blind and others. Services that the company provides include delivery service, warehouse management and others. Other activities includes sustainability motive as well in which the company carries out their manufacturing process sustainably. The main vision of the company is to sell more every time. Thus, they carry out interaction services with their exporters to export more and in new countries and educate people about the importance of whiteboard (Magicwhiteboard 2017).
Strength and weaknesses of Business
|
Strengths |
Weaknesses |
|
• The company began its service without any Loan from someone else and started the business with own funding of £1,000 • The company has always expanded its business by investing the amount they have gained as profit from their previous investment and thus, never incurred any debt burden • Focus on creating portable roller whiteboard according to the needs of the society and the storage problem they face. • Was able to gather high demand from businessman and college student due to portability and ease of carrying it from one place to the other • Has the capability to understand the actual need of the customers and the growing modern society • Has been able to create global presence by exporting their products to more than 20 countries and owns 240 stores in many places like Ryman Stationary, 142 Tesco, Viking Direct and others (Magicwhiteboard 2017) • High security and data maintenance of the customers that order products online and thus, uses secure socket layer technology • Use latest environmental friendly technology for manufacturing and owns a recycling and reusing system in their packaging operations • Has been able to attain more than expected goals with few years of operation due to their continuous innovation effort |
• Loss of 40 percent equity in the first few years of the business to investors that invested in the business • Company did not did much in starting few years of the business • It was difficult for the business to find the right market for selling whiteboard and from where they can get maximum customers • Does not have any subsidiary that can also run their business in regions they cannot reach easily • It is difficult for the company to find the right type of manufacturer during the initial phases of the business • The portable whiteboard does not always fulfill the needs of everyone who own it as there are some features that interrupt their work • Faces the biggest challenge to employ right employees to carry out the manufacturing work in order to compete successfully in the business • Lack of funds during initial phase of operations which lead to huge cost to the company • Excessive security makes it difficult for the customers to access their website |
Table 1: Strengths and Weaknesses
Sources: Author’s creation
From the above table it is seen that the company has more strengths than its weaknesses. This helped the company to grow in a much faster way in few years. The strengths that the company holds are innovative capabilities and responsibility to the environment. With these two most important strengths it has been able t create its presence globally with its own stores and not offering subsidiaries. However, such business system has proved to be the weaknesses of the company due to competition from the whiteboard manufacturing companies. for example the absence of subsidiary system in the company has allowed other competitors to capture the market with subsidiary partners (Magicwhiteboard 2017).
There are many competitors of Magic Whiteboard in the area it is operating based on their operations and services; however, Optima are one such company that offers the most competitive environment. A couple with the aim of making it a family business started optima similar to Magic Whiteboard. Optima is know from creating a different types of board for the customers and target the same market as Magic Whiteboard does. It focused at manufacturing dry erase board and offer it through its website to the customers the dry erase board is yet again a different type of product similar to the product produced by Magic Whiteboard. Even though both a companies manufacture two different kinds of boards, yet it is acts like a substitute for one another. Thus, it offers great threat to the company, as the customers of both the companies are same. Thus, a poor quality product from one will lead to a shifting of demand from one company to the other. The two businesses operate in the same industry that is the stationary industry offering college students and businesses for presentation activities. However, it is seen that the marketing reach of Optima is better than Magic Whiteboard. This is because they have a very strong online marketing. Their e-commerce reach is much better than Magic Whiteboard, which has enabled them to take a better position in the market. Optima on the other hand have six official online sites of their own from which they sell their products all over the world. The products of Optima Inc. are well advanced and uses new technologies such as the magnetic market tray, dry erase wipers and others (OptiMA 2017). Magic whiteboard is also well advanced in using new technologies in production such as magic clear board, magic blackboard and others. However, Magic Whiteboard failed to offer erasing materials for the boards that Optima produce. Magic Whiteboard has been able to capture the market and has a competitive advantage over Optima Inc. with the go green strategy that it has recently implemented. However, no such strategy has been implemented by Optima in their manufacturing department. This has allowed Magic Whiteboard to gain the market for blackboard over Optima Inc. even with various problems and inabilities; Magic Whiteboard has been able to form a better market for itself in such less time compared to Optima Inc., which has been in business for many more years.
From the above analysis, it was seen that Magic Whiteboard faces a lot of problems in its operation and in market coverage. The weaknesses that have been analyzed for Magic Whiteboard are that they do not allow subsidiaries for their business; there is lack of knowledge about potential market and lack of technical glitch. Such weaknesses has made it difficult for Magic Blackboard to cope up with the tough competition in the market where there are various manufacturers selling various kinds of similar goods with much advanced technology (Holden 2013). Thus, the company requires certain steps to cope up with such situations and gain competitive market over other similar companies.
Having a subsidiary might be complex then having a single organization; however, it doe offers a wide range of advantages to the parent company. Magic Whiteboard is a small enterprise business and it is difficult for them to take up huge liabilities for growing their business. Thus, subsidiaries help the business to lower the amount of liabilities they hold for continuous growth in the industry. This is because offering subsidiary will allow the company to reduce the amount of potential losses they might face in the initial stages of development. Thus, subsidiary act as a liability shield for a small business enterprise. Moreover, allowing subsidiaries in the business also other advantages such as increasing the identity of the brand facilitates management and increase in sales (Nunes and Simion 2014).
Company lacks the knowledge about the market they want to enter or they have the potential to enter. This takes away the opportunity from them to target the right market at the right time. Thus, for the purpose to reduce the uncertainty of entering the right market the company should strengthen their online approach compared to their competitors. This is because the online activity of other similar companies is quite more compared to Magic Whiteboard, which creates risks (Aithal 2015). Thus, by approaching the market through online medium will reduce te potential risk as they can enter any market they want through this technique.
The company has been performing nicely in the world market with its product and continuous innovation potentials. This organization has been running successfully in the UK market since 2006.Delivery option of this organization is effective. However, this organization includes strong supply chain management process to deliver the product to the consumer domain.Introduction of the innovative product is the aim of such organization. They focus on the quality improvement to meet the needs of the customers. This is an independent organization since its starting point. However, significant performance of this organization attracts the investors towards this organization. Product differentiation is one of the major advantages of such organization. Reusable dry erase sheets makes this organization unique. Apart from these notebooks, black boards, accessories, sticky notes and letter size are the popular products of such organization, which has been increasing their sales revenue. Along with this, the organization was able to operate successfully and gain huge financial gains, which are visible from their ability to return 8 times the investment amount to the first investors of the company owning 40 percent of equity. However, this organization has achieved a significant profit margin, which ensures its growth in the UK market. UK vendor Magic Whiteboard has bought back their share from its investor. Its increased sales revenue is £1.2 million per year. This organization exports their products in 20 countries. It has 237 stationary stores in UK market. The initial investment of this organization was £50,000 (Westwood 2016). In the recent years their sales has been increased due to the introduction of new product such as reusable note book. Their new target markets are France, Germany and Spain. Thus, with such opportunities and performance the company should try to introduce new product at intervals and expand their market even further. For the purpose the company can take up franchisee system as well so that they can easily enter the new market with innovative products.
The idea of offering subsidiary will also help the company to maintain its position in the existing market and enter new potential market with better strategy and management. In order to expand the market it is crucial for Magic Whiteboard to adopt proper marketing strategy. One of the major strategies is to enhance the sales of the product in an existing market. Magic Whiteboard needs to increase their sales in UK market. On the other hand, introduction of new product will be helpful to make a business local to global (Di Domenico et al. 2014). In the context of Magic Whiteboard introduction of reusable notebook will be helpful to enhance their market at national and international level. Therefore, development of a new market segment or move into the new geographic region will be helpful for Magic Whiteboard to expand their market share. As for example, Magic Whiteboard has decided to take entry in France and Germany, which will be good initiative for their market expansion.In order to make the business global it is crucial for Magic Whiteboard to make a joint venture with international stakeholders. Apart from this use of virtual marketing will be helpful for an organization to introduce their brand in the consumer domain belong from different geographical region. For Magic Whiteboard online marketing will be helpful to cover a large population and to increase their market expansion. However, virtual marketing is a way of market expansion inside and outside of the country.
Magic Whiteboard is a well-known organization of UK that provides portable whiteboard within a roll. Such whiteboards are used in the team meeting, conference and group work to show the presentation regarding business information. However, it is a small business but has gained huge popularity in their business (Magicwhiteboard.co.uk 2017). Their main business objectives are:
Magic Whiteboard has been running their business successfully since the year 2006. However, it is often difficult for the hospital staffs to carry the flipchart stand always (Storey 2016). Hence, Magic Whiteboard brings an opportunity for such clients to provide the best whiteboard in a roll. Their existing business is self-founded and they avoid taking any loan for their business. This organization focuses on the market research to understand the current demand of the customers. However, it is important for an organization to study the market to detect the customer demand. They always keep their eyes on their operation cost as it is crucial to cut the operation cost in a business. It is a good element of their business planning. Another element of their current business planning is the maintenance of the confidentiality of the customer information. Magic Whiteboard keeps the customer information confident while they provide their order via online. They use secure socket layer to keep the information secure (Magicwhiteboard.co.uk 2017). Hence, the customer information is fully encrypted and third parties are not able to access this information. This organization gives their concern to the security during the online marketing. However, they take the customer security very seriously and has developed a secure website for the customer safety. They only accept those orders which are placed through secure socket layer (Tanejaet al. 2016).
Magic Whiteboard is highly technology oriented service. They try to adopt the modern technology for their digital marketing. Application of the secure socket layer or SSL is a good example of their modern technology to secure the customer information. However, the customer placed an order via this application. This prevents the use of insecure connection while giving the personal information during online shopping. However, technology is an important element of a modern business plan (Lima and Lima 2016). Magic Whiteboard gives privacy statement via technology to ensure their commitment regarding the customer privacy. They develop the website with the help of modern technology which enables the customers to buy a product by placing one click.
Maintenance of the environmental sustainability is the major corporate social responsibility of any organization (Das and Rangarajan 2017). However, each organization needs to adopt the CSR activities to bring sustainable development. Magic Whiteboard has committed to minimize their operational impact on the environment. They focus on the innovative methods to improve their product quality. They try to make their production environmentally friendly by using reusable technologies. Apart from these, they use the packaging process, which is recyclable.
Magic Whiteboard is a small business organization of England. Hence, it is important for this organization to expand their business in the domestic as well as in the global market. However, every business needs to be global to enhance its market share as well as the profitability (Parnell 2016). Magic Whiteboard is a popular business however, it is a small enterprise. For this reason enhancement of their business outside of England will be beneficial to get an entry in a new market. This organization also needs to be global in nature. However, sharing business in the global market it will be helpful for the organization to increase their customer numbers.
On the other hand, this organization focuses on the information security of the customer during online marketing. That is good for the organization and the customer, however; it may create difficulties for the organizational staffs to access the customer information. For this reason, the involvement of more technical experts will be beneficial for this organization to access the customer information for the business requirement with proper security. On the other hand, this organization focuses on their operation cost. It is beneficial for this organization to reduce their operation cost, however, besides this, they need to invest more in their business to improve the product quality. To boost the business it is essential to improve the fund (Wheelen, and Hunger 2017). For this purpose partnership working is crucial for Magic Whiteboard. CSR activities should include methods that bring environmental, social and economic sustainability (Parnell 2016). Magic Whiteboard focuses on the environmental sustainability. Hence, taking CSR activities for social and economic development will be effective for their business.
|
Changes |
Action plan |
|
Expanding the market share |
Huge market research and managing resources |
|
Increasing the number of technical experts |
Recruitment of technically skilled employees and providing training to the existing employees |
|
Adoption of CSR activities for social development |
Conduction of training program for the employees to develop their knowledge |
|
Increase the investment |
Partnership working |
|
Reduction of the business operating cost |
Development of the new business strategy. |
|
Empower the employees |
Encourage the employees to take part in the organizational decision making by establishing effective communication. |
Table 2: Action plan for the implementation of changes
Source: Author’s creation
Proper management of the financial resources and workforce are required to enhance the market share of an organization (Das and Rangarajan 2017). However, Magic Whiteboard needs to carry out a vast market research and managing their resources to get entry in the global market. On the other hand, recruiting the skilled employees is necessary for this organization to access the modern technology along with maintaining the confidentiality of the customer information. However, training program needs to be included in the CSR activities for the development of the employees. Training enables the employees to improve their existing skill and to enhance their knowledge. Therefore, Magic Whiteboard is an independent organization and does not prefer to take loan. However, partnership working will be helpful for them to boost their business investment. Partnership working strengthens the fund of this organization to enhance their business. However, for a business it is crucial to increase the profitability besides reducing the operation cost. Thus, in order to minimize the operation effective marketing strategy needs to be developed, which will improve their logistics. On the other hand, providing empowerment to the employees by involving them in the organizational decision-making process will be helpful for Magic Whiteboard to enhance the performance of the organization.
The proposed changes that is planned for the company in order to improve their business condition and allow potential growth will have both short term and long-term impact on the business. Market expansion is a good suggestion for this organization as it will improve the business and increase the profitability. However, introduction of new product is crucial for the market expansion for a business. Online marketing or virtual marketing is a good way to introduce a new product and cover a new market segment in a new geographic region (Huaiet al. 2014). However, online marketing can cover a large population, which is not possible by the physical stores. In the recent years people are more technology-oriented. Hence, online marketing opens allows the people to buy product during their routine bound life. In order to get entry in a new geography virtual marketing is crucial. Such market expansion via online is beneficial for Magic Whiteboard to make their business customer as well as technology-oriented. On the other hand, online marketing also helps this organization to increase their sales in the existing market by retaining the old customer and getting new customers through social media. Social media helps an organization to introduce their brand in a new customer domain. Apart from these, breach of confidentiality is the major negative impact of online marketing, which may affect the business The introduction of technological innovation has an impact on the employees of the company because they are the one that needs to use that technology. Thus, the employees have to be trained and made technologically upgraded to use the new technology. Moreover, such advancement will also lead lay off of some unskilled employee from the company affecting it adversely.
Plan to manage the Change
|
Tasks |
Role |
|
Recruitment of the skilled employees |
This will be helpful for the organization to cope up with the technological changes during the business operation. |
|
Define the change and align it with the organizational goal |
This will create a clear vision regarding the change in an organization |
|
Development of the communication strategy |
This will help the employees to make a clear interaction with the management to give the shape of the new changes within the organization |
|
Providing effective training to the employees |
This will be beneficial to improve the skill of the employees to monitor the changes |
|
Establishment of the support structure |
This will help to reduce any type of risk during the implementation of changes in an organization |
Table 3: Plan for implementing changes
Source: Author’s creation
Lewin’s change management
|
Unfreeze |
Change |
Freeze |
|
Changing employees by hiring more skilled employees |
Carrying out recruitment process to hire new employees and lay off some unskilled employees |
Offering training and conducting orientation to the new employees |
|
Altering present communication tools |
Plan new communication tools such as online channels |
Implement the new communication tools in the organization |
|
Recognise the employees that lacks capabilities |
Arrange training facilities for the weak employees |
Take up training program for one month |
Table 4: Change management
Source: Author’s creation
Kotter’s change model
The employees in the organisation want the change in the organisation to be positive. There must be certain change in the organisation and Kotter’s 8 step model will help in the development of the organisation.
According to the financial report of 2015 and 2016, it is seen that the company has suffered from a fall in its bank balance from 254,714 in 2015 to 107,203 in 2016. This is due to a fall in their sales and revenue since 2015. The financial performance of the business has been declining within the past few years and thus it requires improvement on certain grounds as suggested above. In order to improve the business performance it is crucial for White Magic board to set a clear business objective. The company has always been involved in hiring investors for them. Thus, situation analysis is crucial to identify the current market trend. It will help this organization to offer new product to meet the customer demand. This will increase the sales revenue. One of the most important things is to reduce the operating cost, which may protect the business capital in the context of Magic Whiteboard. Development of new planning and implementation of new strategy will be helpful to enhance the performance of the business.
References
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