Strategic goals of Interworx pty ltd
The primary strategic goals of this business are:
• Increase market share –Interworx pty ltd wished to increase its market share
• Increase turnover - Under its previous owner, it annualised less than A$ 250 000. As a result, Interworx wanted to increase its turnover.
• Increase sales volume and cash flow – the directors of Interworx wants a larger sales volume and a more reliable cash flow.
• Establish a brand image – in order to secure government and other corporate clients, Interworx needed to establish a brand image, as smaller businesses are more unstable and are less likely to draw government business.
• Secure government and corporate business
Role of operations in achieving business goals
Under its previous management, Interworx annualised at less than A$ 250000. In order to increase its profit, Interworx could source lower price resources for the input phase of operations. By doing this, the cost of production is reduced, this can result in increased turnover (assuming sales remain the same). This can also result in increased sales volume. Interworx will also be able to lower its prices, thus attracting more costumers and increase sales volume.
In order for Interworx to secure a larger market share, it can improve its transformation process, specifically, value adding. Value adding ‘is the creation of extra or added value as raw materials are transformed into finished products through the stages of production’. If