BUS 435 Cherry Janaya Week 3 Challenges to Growth

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Strayer University *

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435

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Business

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Feb 20, 2024

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Uploaded by Janaya0502

Challenges to Growth Janaya Cherry BUS 435: Management and growth in Entrepreneurship Dr. Samuel Garwon January 22, 2024

The evolution of an organization from its inception to becoming a well- established and professionally managed entity involves a series of strategic transitions. The journey of 99 Cents Only Stores from its accidental launch to its growth, transition to professional management, and consolidation provides a captivating case study of such a transformation. This paper delves into the company's transition through Stages I to IV, analyzing how the needs of the company drove each transition, evaluating management's role in facilitating these transitions, assessing the impacts of success and areas for improvement, and justifying the most challenging stage in the company's growth trajectory. Stage I: Accidental Launch of 99 Cents Only Stores It is possible to trace the beginnings of 99 Cents Only Stores to an accidental pricing experiment. Market demand and client preferences for set price at 99 cents drove the company's requirements. This unintentional launch served as a prime example of the entrepreneurial spirit, as the organization took advantage of an opportunity to test out a new pricing plan in response to consumer feedback and market findings. In this period of management, Dave Gold stood out for his risk-taking and entrepreneurial ability. His capacity for innovation and adaptation helped him

respond to shifting consumer preferences and behaviors. The first store's success proved that the business had identified an unfulfilled market need. Success in Stage I was underscored by the innovative pricing strategy and the unexpected launch of the 99 Cents Only Stores concept. An area of improvement could have been formalizing the business model and strategies to sustain this initial success. Stage II: Expansion of 99 Cents Only Stores The business had to switch to an established growth strategy as the demand for discounted products increased. The company's requirements were now determined by the new store's success and potential expansion. The business tried to take benefit of the 99-cent price approach after seeing its potential. The expansion became more formal as management's responsibilities extended to include strategic sourcing via exhibitions and auctions. Effective supply chain management and the purchase of goods at a discount complemented Dave Gold's business skills. The business's ability to carve out a distinctive market niche was clear evidence of its success. The quick growth of 99 Cents Only Stores served as evidence of Stage II's success. Streamlining supply chain procedures and maintaining constant product availability might have been areas for improvement.

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Stage III: Transitioning to Professional Management Stage III was the change from a family-owned, entrepreneurial company to a professionally run company. Organizational structure, succession planning, and sustainable growth were now essential for the corporation. Maintaining the entrepreneurial spirit while implementing formal management processes proved hard. Management's role shifted to succession planning and professionalizing the company's leadership. The transition was facilitated by individuals like Eric Schiffer and Jeff Gold, who brought in formal business education and experience. The company's IPO and public listing reflected the successful transition to a professionally managed enterprise. The key to Stage III's success was striking a careful balance between upholding the company's core values and adopting modern management methods. Refining organizational structures to meet the changing needs of a larger organization might have been an area for development. Stage IV: Consolidation Combining the gains earned in earlier stages and adapting to changing market conditions were both tasks of stage four. Strategic consolidation, preserving

a distinct market position, and keeping competition were priorities for the corporation. To create a culture statement and uphold company principles, management became essential. The company's effortless change to private ownership and ongoing operations represented success. The ability to adjust to shifting market conditions and support competition may need improvement. Most likely, Stage III: Transition to Professional Management was the most difficult. Managing complexity in management, personnel management, and strategy planning was necessary for the transition from an entrepreneurial, family- owned corporation to a professionally managed organization. This change required striking a balance between the requirement for structured processes and structures and the entrepreneurial drive that was the foundation of the company's success. In conclusion, 99 Cents Only Stores' progression through Stages I to IV serves as an example of how an organization can develop from a modest experiment to a professionally run business. Each step was distinguished by specific needs, difficulties, and chances. The company's successful changes were greatly supported by management's capacity to adapt, innovate, and strategy.

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