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Small Business Management - A Case Study
Currently Dillons is still under major financial threat and business is not returning since the introduction of the Tesco store. In analysing the structure of the business it can be seen that very little long term strategies were employed and no foresight of major competition was predicted, although this seemed inevitable.
The original success of the business seems to be largely due to the major investments made by Dillons management, location of the shop and the lack of any similar shops in the local environment.
At all stages of the business life cycle it appears that there is never a great financial threat to Mr Pettifer. During expansion, nearly all the risk involved was presented to Dillons management and Mr Devis in their capital investments. After expansion, good trading and a good relationship with the priciple supplier of the shop's products enabled a sale or return method on all products (within a reasonable time period). This method proved ideal since it diminished any anxieties in regard to development of the shop's product range and ensured that there would be no profit loss on over ordering of goods, reduced slaes or changes in the market culture.
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