Managing small and Medium Enterprises Year 3 Essay

Managing small and Medium Enterprises Year 3 - Essay Example ABC Toys is now penchant to expand business to four major Australian cities named Sydney (city of 4.6 million residents), Melbourne (city of 4 million residents), Perth (city of 1.7 million residents) and Adelaide (city of 1.2 million residents). The company knows that there are more than 2.9 million 65-years old and above citizens across Australia (CIA Fact Book, 2010), whereas the population of senior citizens is much higher if company includes citizens of 55-years and above. For instance, the individualistic cultural values in Australia have sidelined old citizens who are normally sent to old and elder care houses or community centres. Whereas, a large majority of those who live with their families do not receive sufficient attention due to busy working life of family members (BJ, 1993) ; (Parson, 1993) ; (McIntosh & Phillip, 2003). Therefore, there is immense potential in expanding business of senior citizens’ toys, instruments and games across Australia. Policy-makers have expressed the importance and benefits of market development, thereby forecasted first year sales (April 1, 2011 – March 31, 2012) from all operations will be between $0.3 million in Sydney, $0.3 million in Melbourne (April 1, 2012 – March 31, 2013), $0.2 million in Perth (April 1, 2013 – March 31, 2014) and $0.2 million in Adelaide (April 1, 2013 – March 31, 2014). The company has planned to inaugurate 3 outlets (one after another) in Sydney followed by opening of 3 outlets (one-by-one) in Melbourne besides distribution operations; while 2 outlets will be opened in Perth and Adelaide each. However, the success of first outlet is a prerequisite for opening new stores in these new markets. ABC Toys (hypothetical), which was inaugurated in 2006 masters in production and selling of toys, activity games and instruments for infants (6 months – 3 years), tweens (3 - 12 years), teens (12 – 16 years) and senior citizens (65