The founders of Everose Company set out to make cosmetics that might make ordinary moments more magical. To meet the demand for their products and services, the owners of Everose Beauty Product Company are looking to establish a Vancouver-based independent startup brand. The Vancouver Everose Company anticipates to face significant risks, the failure of which is highly probable in the absence of adequate projections. However, strategic management is a must for new businesses to succeed in the long run. To improve their odds of success and accomplish their objectives more quickly, startups should establish clear objectives, assess their capabilities, and assess their progress frequently. The Everose Company is launching its beauty products in Vancouver, and this project’s goal is to lay out potential outcomes for its debut and provide simple flows for its operations.
Project Background
The Everose Beauty Product Company is a Thailand brand that has won several awards for its health and cosmetics. The scientific community is full of brilliant people always looking for new ways to improve existing formulas. Featured in prestigious publications like Vogue, the company’s award-winning items are well-known across Thailand and among A-list celebrities. Made with love and appreciation for all the unique people experiencing life’s many stages, the company’s top priority is making high-quality products that smell and feel fabulous. Everose Beauty Product Company plans to launch its startup brand in Vancouver and enter the Canadian market independently. Eve Rose Company in Vancouver will not be exceptional, and the statement above and the idea of ‘survival of the fittest’ are pretty applicable to startups. Every day, competition is severe in the corporate scene. It is difficult for firms to establish themselves and prosper in new environments since competitors in every industry always fight for market share (Dess et al., 2021). Even though the Vancouver market is quite competitive, Everose Beauty Product Company has a chance to succeed with the correct strategic management.
Findings
To become a leading, significant player in the Everose Beauty Product Company in the Vancouver market, minimizing costs across the board is essential. For businesses to become profitable and stay profitable, cutting costs as much as possible is essential to running the show. According to Dess et al. (2021), Everose Beauty Product Company can boost its profit margins, draw in more customers, and stay competitive by cutting costs in production and other areas. Businesses can maintain their competitiveness in the market by minimizing costs. Businesses can undercut rivals’ prices while still turning a profit if they can bring down their production costs. With this, Everose Beauty Product Company in Vancouver can reach a wider audience and capture a more significant portion of the market.
Needs to improve product quality. We mean product quality when discussing how well a product meets user criteria. A measure of its quality is how well it addresses the situation (Dess et al., 2021). In addition, most companies do not make it when they cannot earn customers’ confidence with reliable goods. When brands need to establish meaningful connections with potential customers, they can take advantage of sales opportunities. However, if Everose Beauty Product Company manages to win over customers with high-quality goods, they will have greater leeway to make decisions like increasing prices.
Due to the high uncertainty surrounding the divestiture decision, such assessments are highly challenging. Organizational inertia and executive self-interest also force companies to put off investing in failing companies. Many partnerships and collaborations fall short of expectations for several reasons, even when promising. According to Dess et al. (2021), finding the right partner is crucial. Unfortunately, there is not always enough effort to maintain the strong human ties and collaborative relationships that unite the collaborating organizations.
Instead of sharing the spoils with alliance partners or dealing with the challenges of merging corporate cultures or combining activities across multiple firms’ value chains, companies that choose internal development reap the benefits of their innovative efforts. This is in contrast to mergers and acquisitions. Businesses often save money by developing innovative products or services in-house instead of seeking outside investment (Dess et al., 2021). On the other hand, this could take a while, so companies miss out on the quick expansion that comes with mergers and acquisitions. Businesses that want to diversify internally also need to be able to swiftly go from seeing an opportunity to introducing it to the market.
Devotion to achieving greatness. The foundation of highly regarded organizations is a dedication to excellence, the initial step toward ongoing improvement. It is not a discrete process. The philosophy of continual improvement needs to permeate every part of the company. Perseverance towards greatness is the key to company and life success (Dess et al., 2021). Committing to quality should always be your first goal, no matter how long you have been in the industry. The reason is that both the competition and consumers have high standards.
Competitive advantage revolves around your company’s value proposition. It lays forth why a customer should choose your business above the competition. A compelling value offer is a critical component in achieving conversions. A compelling value proposition can turn a sale around or away. So, ensure it showcases your offerings to their fullest potential and explains why you’re the greatest option for customers. People won’t buy from you if it isn’t there (Dess et al., 2021). In certain cases, customers may go with a rival company just because that one makes its value proposition crystal evident in all of its advertising and sales materials.
Strategic Management Analysis/ Project Deliverables
Strategy 1: Business-Level Strategy
Every business unit has its strategy, which is the culmination of all the preparation and execution that goes into setting and guiding that unit’s direction. The Vancouver Everose startup can gain an edge in their respective markets by developing and implementing a business-level strategy (Dess et al., 2021). The Vancouver Everose startup needs to keep an eye on the following to beat the competition and succeed in the market.
Achieving a cost advantage over competing businesses. The Vancouver Everose startup has the means to build new markets thanks to multifunctional resources that permit combination and extensive application (Dess et al., 2021). The firm may swiftly adjust to changing circumstances and seek out new opportunities with the help of these resources, which have low transaction costs and allow for speedy transfers. Everose Beauty Product Company must consistently raise production capacity below rivals’ costs and vigorously pursue cost reduction across the value chain in order to implement the low-cost strategy (Lei & Slocum, 2023). Consequently, businesses that pursue cost-cutting measures buy their raw materials in bulk, taking advantage of economies of scale.
Stay away from customers with low spending power. Companies pursuing a cost leadership strategy would be wise to refrain from squandering resources on niche items in order to remain competitive. We argue that effective strategic positioning can enhance companies’ performance (Dess et al., 2021). Spending results in the best performance for startups that pursue a cost leadership approach. When spending goes over a specific point, the feedback loop from performance to investment decisions could delay further expenditure. The relationship would show diminishing marginal benefit if this feedback succeeds and rivals make extra investments. Spending on marginal customer accounts is higher for product-differentiation-strategy adopters than cost leadership firms (Lei & Slocum, 2023) due to the different impacts of spending on future performance. Increasing customer spending and innovation can greatly enhance Everose Beauty Product Company’s future performance, as this strategy is positively correlated with higher expenditure.
Efficient and precise handling of high-quality orders. Everose, a startup based in Vancouver, relies heavily on its order processing technology. Good customer connections, competitive advantage, and revenue growth can’t be achieved without accurate order processing (Dess et al., 2021). Therefore, businesses should put money into automated order processing systems to handle orders better.
Finally, the aforementioned tactics protect and strengthen Everose Beauty Product Company’s competitive position. A company can outperform the competition even in highly competitive markets if it maintains a low-cost position overall (Dess et al., 2021). Because a company can still make a profit with reduced expenses, even if its rivals are engaging in fierce profit-eroding competition, this strategy shields the business from rivalry. According to Eldor (2023), a startup’s competitive advantage is its superiority over its competitors in the market. Aspects including quality, innovation, cost, and services influence this advantage. A competitive edge is important, but it isn’t enough to guarantee success in the long run; other strategic measures must also be in place.
Strategy 2: Corporate-Level Strategy
Corporate-level strategy aims to gain long-term income, earnings, and market value through managing operations across various enterprises (Dess et al., 2021). Success for Everose Beauty Product Company in the long run depends on keeping its focus on “creating value” as it navigates new markets, launches new products, and develops new technologies. According to studies, most acquisitions of publicly traded companies lead to diluting shareholder value instead of its development. According to Furrer (2024), many big multinational corporations have experienced problems with their acquisition integration, overpaid for the target company’s common stock, or just did not fully grasp how the acquired company’s assets would complement their existing operations. Furthermore, senior executives may have neglected shareholder interests on occasion.
A strategic management tool for Everose Beauty Product Company’s core competencies might be the company’s accumulated body of knowledge. Coordination of varied production abilities, integration of various technological streams, and marketing of varied goods and services are all aspects of this collective learning (Dess et al., 2021). Transferring knowledge and experience from one business unit to another creates core competencies, which serve as the binding force that keeps existing organizations together. Value and synergy can be created through core competencies. However, for these to work, they need to boost competitive advantage by developing greater customer value, which means making the most of current abilities and innovations in a manner that customers love. In addition, the core competence must be consistent throughout the firm’s activities. Products or services need not be identical, but a shared set of fundamental competencies must be required by at least some link in the value chain (Furrer, 2024). Lastly, key strengths should be hard for rivals to replicate or discover alternatives. Detailed technical knowledge gained through an organization’s employment history.
Keep transaction expenses to a minimum. By bringing the process in-house, you may sidestep these transaction fees. The administrative expenses that come with vertical integration are another consequence (Dess et al., 2021). Administrative expenditures may rise due to the need to coordinate the various value chain phases that the Everose Beauty Product Company has now absorbed. Vertical integration decisions are thus grounded in a study of administrative and transaction expenses. Beard and Dess (2024) state that market transactions, rather than vertical integration, are preferable when transaction costs are less than administrative costs. Conversely, vertical integration becomes desirable when transaction costs surpass administrative costs.
A firm’s revenue and profit fluctuations over time constitute a risk that diversification can mitigate. According to Dess et al. (2021), Everose Beauty Product Company can achieve more consistent long-term results by expanding into new product categories or markets that are less impacted by economic or seasonal cycles. Even if this makes sense, it has a few flaws. To start, investors of a firm can diversify their holdings without incurring the high costs associated with corporations and without the added headache of figuring out how to incorporate an acquisition into their existing holdings. Second, it is very challenging to forecast economic cycles accurately and determine how they would affect any one industry or organization. Creating value for shareholders through risk reduction is usually not a realistic option on its own. The firm’s overall diversification strategy should be considered when undertaking this (Beard & Dess, 2024). A company can increase its value for shareholders and gain synergies through related or unrelated diversification.
When a company’s stock drops in value, aggressive and unfriendly takeovers are possible outcomes; according to Dess et al. (2021), a rival company can become a major stakeholder in a takeover candidate by purchasing a substantial amount of the company’s outstanding stock. To acquire complete ownership of the business, it then launches a tender offer. According to Beard and Dess (2024), if the shareholders agree to the hostile firm’s bid, the target company will be acquired, and the management team will be fired or stripped of their control. You can prevent takeovers in a number of ways.
Strategy 3: International Strategy
Distributing and adapting the parent company’s knowledge and skills to overseas markets is an essential component of a worldwide strategy. Industries with modest demands for local adaptation and cost reduction often employ a model where firms adapt and disseminate their parent company’s knowledge and experience to overseas markets. It’s a cornerstone of an effective company plan (Dess et al., 2021). In the increasingly competitive global marketplace, it is the defining characteristic of a multinational company’s brand. This usually means making things more efficient or at a lower cost. Companies are deemed global if they ship globally or offer services to individuals or companies in other nations. Exporting and importing goods and services while keeping a head office or offices in their home country is typically the first option most organizations choose when expanding globally. This is known as an international strategy. There is no silver bullet for expanding a company’s reach over the world (Nicholson, 2023). Everose Beauty Product Company may decide to increase its investment in its target markets as it expands and improves its business.
Sustaining excellent customer satisfaction. Nowadays, meeting or exceeding customer service standards is of the utmost importance. Consumers now have a greater say than before because of review sites and social media (Dess et al., 2021). A customer’s positive or negative shopping experience can be quickly and readily shared with the globe. Your company’s customer service is held to a high degree by these criteria. Customers’ interactions are guided by these rules (Nicholson, 2023). Everything from the way you welcome customers to the way you deal with complaints to the training your staff receives falls under this category.
For Everose Beauty Product Company to succeed, it needs access to a big workforce of talented individuals. According to Dess et al. (2021), a talent pool consists of an organization’s, industry’s, or field’s residents who possess specialized knowledge, skills, and talents. Company leaders create them to find, recruit, and keep the best employees, as well as to plan ahead for when they will need a large pool of qualified individuals. Through talent pools, businesses are able to connect with individuals whose backgrounds and experiences are a good fit with their core values and areas of expertise. Data about each candidate, such as their abilities, possible positions they could play, how effectively they mesh with company culture, etc., should be part of an effective talent pool database. In this manner, you may save time and avoid having to start the recruiting process all over again for every available position. The best way to find new employees is to use talent pools (Sutherland, 2024). A crucial long-term strategy for your organization’s ability to meet its short-term and long-term employment demands is to build, maintain, and nurture a talent pool of high caliber.
Acquiring full advantage of bargaining possibilities. For extended periods of time, prices should not fluctuate much from their fair value; arbitrage offers a way to guarantee this. It is now very challenging to benefit from market price mistakes due to technological improvements (Dess et al., 2021). Computerized trading systems are in place at Everose Beauty Product Company to track changes in comparable financial instruments (Sutherland, 2024). In most cases, inefficient price settings are promptly addressed, and the opportunity is usually gone, frequently within seconds.
Strategy 4: Entrepreneurial Strategy and Competitive Dynamics
A company’s entrepreneurial strategy is the way it forms and maintains its core ties with its surroundings. Aligning one’s SWOT (values, strengths, opportunities, and threats) with one’s company objectives is the goal of this technique (Dess et al., 2021). When making decisions, allocating resources, or setting priorities, a well-defined strategic plan is like a map.
Opportunity recognition. An entrepreneurial skill that aids in finding a market niche is the ability to recognize opportunities (Dess et al., 2021). To succeed, you need industry knowledge, the ability to spot possibilities, and a never-ending need for more. When entrepreneurs look for opportunities in current markets, they often find them. This implies that they keep an eye on societal, economic, or technological tendencies. Possibility recognition requires mental effort. Humans’ pattern-recognizing and “dot-connecting” abilities are crucial. By working with others to refine their ideas, entrepreneurs generate opportunities, as the demands of the user and the methods for meeting those needs are clarified with each iteration. Johnson and Van de Ven (2024) state that opportunity creation is a social process. The capacity of entrepreneurs to communicate is crucial.
An executive with an attitude of entrepreneurship. The capacity to greatly improve people’s capacity to see and grasp entrepreneurial possibilities is one definition of entrepreneurial leadership. A propensity for entrepreneurship does not have a hereditary basis (Dess et al., 2021). Leadership skills necessary for entrepreneurship, such as managing risk, fostering deep teamwork, and continuously learning, do not discriminate based on gender, race, or socioeconomic status. Skipping classes isn’t necessary to launch the next unicorn. Anyone can learn and implement the principles of entrepreneurship. According to Murray (2023), this style of leadership aims to encourage an entrepreneurial mindset by providing the resources necessary for people and groups to realize their full creative potential and contribute to the success of the company. Leadership techniques that “develop the ability in employees to self-generate, self-reflect, and self-correct in their workplace” are what entrepreneurial leaders use to achieve this goal.
Actions Needed to Implement the Formulated Strategy
Establishing a method for monitoring and adjusting organizational performance is an integral aspect of implementing a plan once it has been formulated. The strategy that the firm is following must be compatible with this control system. According to Dess et al. (2021), it can be somewhat challenging to introduce new objectives to your firm. Changing your focus and allocating resources to meet new goals requires careful planning, regardless of how efficient your team is. Therefore, the implementation process is a tool for strategic management that centers on carrying out your strategy. According to Netter et al. (2024), strategic control entails utilizing effective systems to monitor performance in relation to strategic goals and to take corrective action as necessary. The ability to monitor progress and spot problem areas is why organizational control systems are so important for carrying out strategies.
Implementation of control systems for data. When a company restricts access to certain types of information for certain individuals or computers, this is called informational control. The purpose of information system controls is to establish norms for the safe and effective management of an organization’s data (Dess et al., 2021). Information security makes use of both broad and specific restrictions. Based on their understanding of the information that is accessible to them, the individual will take action. All levels of management must consistently pay close attention to information because of its critical nature. Numerous applications rely on control systems (Netter et al., 2024). They are able to endure outside disturbances, control devices situated outside, and provide output data that is both reliable and easily accessible.
Adoption of behavioral-control systems. Rather than focusing on results, behavioral controls aim to control actions. The goal of behavioral control is to manage the processes that produce outcomes. When it comes to standardizing or dictating conduct, rules and procedures play a significant role. According to Dess et al. (2021), the foundation of clan dominance is a common system of values, expectations, traditions, and standards. A succession of fads has evolved throughout the years, all with the goal of bettering the control procedures within organizations. Despite the fact that these trends are often perceived as panaceas at first, executives come to understand that a combination of many good business practices is necessary to establish efficient organizational controls. Because people are more likely to exert effort toward the actions for which they are rewarded, an efficient incentive system is essential for behavior management (Gaa, 2023). When employees are incentivized to do things that look good at first glance but end up working against the organization’s aims, problems could occur.
Recommendations
Everose Beauty Product Company should give buyers a chance to talk to the vendors and tell them what they need, rather than just telling them the product is fantastic. Although it may seem self-evident, it is crucial for numerous businesses whose main point of differentiation is really the way they interact with clients.
Doggedly pursuing savings opportunities based on past performance. Relentless quest for savings through accumulated expertise Strict controls over costs and overhead Building efficient-scale facilities aggressively The experience curve shows how production costs go down as output goes up over time. Because more clients would be attracted by the reduced pricing, the plan offers the possibility to generate a constant profit. Everose Beauty Product Company may achieve its profit goals, lead its industry in terms of low-cost operations, and build lasting value with this.
Putting in place a system for managing risks. Operational and business process risks can be better understood and mitigated through risk management. The goal of risk management is to keep potential negative outcomes under control. In order to recognize, evaluate, and manage risks, Vancouver Everose Beauty Product Company can employ a risk management framework. Adaptable to each company’s unique requirements, the framework offers a methodical way to handle risk management.
In addition to being effective, the product from Everose Beauty Product Company should be easy on the eyes. That is to say, it ought to provide rapid delivery with little consumer effort required. To demonstrate that you value your consumers’ opinions and are open to their suggestions, the product should be customized to meet their demands.
Using gross sales as a metric, clearly and prominently display results. Your startup’s overall revenue is represented by its gross sales. You can see if you’re on pace to become profitable using this statistic, which is why it’s so crucial. By providing a summary of overall sales for a specified time, this statistic offers useful information about the financial well-being of the business. Knowing the definition, calculation, and interpretation of total sales is crucial. The profitability of the company can be better understood in this way.
Conclusion
Conclusively, the aforementioned proofs and arguments offer suggestions for easy flows to introduce their cosmetics to the market, and they are applicable to the Vancouver startup firm Everose. Everose Beauty Product Company has a shot at making it in the cutthroat Vancouver market with some smart strategic management. Product market share is increased by minimizing costs to customers. Consumers trust and remain loyal to a company when they receive high-quality products. In order for businesses to keep their customers happy, accurate order processing is crucial. Internalizing the activity allows for the avoidance of transaction expenses. The principles that govern the way customers engage with the business are based on high consumer standards. Finding a specific place in the market is easier with the aid of opportunity recognition. When leaders exhibit entrepreneurial spirit, they inspire followers to follow suit, allowing them to realize their full creative potential. The purpose of information systems controls is to establish norms for the safe and effective management of an organization’s data. The goal of risk management is to keep potential negative outcomes under control.
References
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