Managerial Accounting
Essay Preview: Managerial Accounting
Report this essay
Austin Watches is a start-up watch producer and distribution company. Its strategy is to serve the upscale niche markets of the watch industry. It will capitalize on the German engineering and manufacturing used to build the watches. There are many untapped potential markets within this industry that desire high-quality, stylish goods, but do not think they can afford them or do not know where to purchase them.
It is the firms intention to build and export its products to the United States and to make Austin Watches the number one selling European watch in the Western U.S. To do this the companys long-term goals are to achieve a 20% market share in the U.S, build brand image and brand equity through marketing, achieve a sustainable 55% profit margin, and eventually produce luxury watches in addition to the initial, moderately-priced line.
Mission
Austin Watches is a watch company that produces wristwatches for sale in the United States – initially in California. The company will build its image, as a quality watch first, and then will begin selling higher profit, luxury watches.
Austin Watches sells quality watches and provides excellent customer service for customers seeking a reliable watch. In the future Austin Watches intends to enter the luxury watch market
The Company and Ownership
Austin Watches is a privately owned international corporation. Production takes place in Germany and sales and marketing are focused in California, United States, for the short-term future.
Ownership is divided among three principal individuals who are putting up the initial investment. These include: Franz Austin- head of production department, Henry Winston – head of American division and sales and marketing division, and Walter Johns – vice president of American division.
Company Locations and Facilities
The German factory is located in Frankfurt, Germany at 210 Automotive Drive. The factory is 1,000 square meters and should be large enough for the first three years of the companys growth. The watches will be shipped to and distributed from Henry Winstons house at 343 Palm Avenue, in Los Angeles, California. The watches will be initially sold in upscale watch stores in Los Angeles and San Francisco.
The watches will be shipped to and distributed from Henry Winston house at 343 Palm Avenue in Los Angeles, California.
The watches will be initially sold in upscale watch stores in Los Angeles and San Francisco.
Sales Strategy
Austins sales force will consist of Henry Winston and two freelancing sales representatives. Order processing will be achieved through communication between Henry Winston in the U.S. and Franz Austin in Germany.
The Products
Austin Watches are elegant analog watches with sporting characteristics, able to be used to depths of 100 meters under water.
The Sport watch will be made of a durable steel and hard rubber combination that will provide both style and durability.