Value Proposition and Financial Indicators for Small Medium Enterprise

Over the years there has been a rise in health complications due to eating disorders that are potentially life-threatening affecting emotional and physical health. The eating disorders develop with time when individual fail to take the right amount of nutritious food especially the young generation who are fond of taking in fast foods. As a result of this devastating eating habit there are serious consequences in health, relationships, and productivity. Due to this reason, the proposal of a healthy food vending machine has come to be. With the technology evolution the vending machine has a BMI reader and a microwave for heating purposes in order to deliver the product to the customer on the spot. For this reason the customer value proposition plays an important role in order to ensure its success (Ringland & Young, 2006).

It’s easier accessibility with minimal effort and cost which ensure that the sure will have a life time experience. Finding out the value an individual will get will vending machine especially in terms of health will draw many consumers in as it will be both nutritious and tasty. Consistency in quality service and products will ensure that a strong positive brand is built for both existing and potential customers. Packaging and messaging is another value proposition (Ringland & Young, 2006). This is important because the target group is the young generation as well as the aging one. The packaging has to be appealing in a prominent position should promote the consumer to make the selection. This is critical as most consumers eat with their eyes which should be seen to be fun and convenient. Assurance of fresh products is a value proposition that will ensure that the consumer is convinced that the product is fresh (Ringland & Young, 2006).

Key Performance Indicators

Performance indicators help in gauging business health. Cash flow forecast plays an important role in indicating the performance of the business. Cash flow problems in the small business can be identified in the early stages of business (Dainelli & Bini, 2011). Positive cash flow indicates that there is enough cash in circulation for the business and there is surplus cash that can be used in case of the unexpected. Gross profit margin shows whether the price of the products is appropriate. This is the difference between the revenue and the cost of goods sold. Net profit is an indicator of the business performance.  This is the difference of total revenue and total expenses. If it is a negative profit this indicates that the business is poorly performing as it is incurring more expenses that the revenue. Net profit margin is also an indicator of business performance. This is a benchmark for profitability that helps in projecting future profits.

Talent Management Challenges

As a new business, there are bound to be challenging especially with talent management. This involves attracting, selecting, deploying, developing and retaining talent.  It is a constraint as the business lacks specialized expertise. This may result due to the fact the organization lacks diversity and proper instructional design. It is further strained by the big companies already in operation that can easily poach the talented work force (Machado, 2015). However these challenges can be eliminated through staff motivation. This may come in form of salaries and bonus. Exemplary work by an employee should be rewarded making other follow suit. Creating better environment at work enhances bonding making it an organizational culture that assists in staff retention. Success in a business is not recruiting the best rather than creating congruence between the employees and the organization will create personal growth as there is a sense of ownership of the employees creating numerous entrepreneurial opportunities of the organization thus increasing staff retention (Machado, 2015).

 

 

 

 

 

 

 

 

 

 

Reference

Dainelli, F., & Bini, L. (2011). The informational capacity of financial performance indicators in European annual reports. Santarcangelo di Romagna (Rimini: Maggioli.

In Machado, C. (2015). International human resources management: Challenges and changes.

Ringland, G., & Young, L. (2006). Scenarios in marketing: From vision to decision. Chichester, England: Wiley.