Major strengths of Dick Smith INFT3100

Major strengths of Dick Smith INFT3100

DICK SMITH BUSINESS
Introduction
 Dick smith, who is known by his full name as Richard Harold smith, is an Australian
filmmaker, aviator …

Preview text

DICK SMITH BUSINESS
Introduction
 Dick smith, who is known by his full name as Richard Harold smith, is an Australian
filmmaker, aviator, publisher, businessman, and explorer known for his aviation exploits.
 Richard Harold had limited education, but his curiosity and inventiveness turned him into
one of the survival stories and signal success in Australia.
 He first displayed his remarkable entrepreneurial skills when he founded Dick smith
Electronics in 1968.
 Smith’s love for wires saw him take a leap of faith with $610 worth of investment to start
dick smith electronics which people know and love today. He started with the installation of
car radios, and his business boomed.
 He expanded the business and opened dick smith wholesale that was built to be a playground
for electronics.
 He sold the firm in 1982 to Woolworths limited, who took full ownership of the business
when he had already become a household name, and his firm was leading in the sale of small
electronics like computers and calculators.
Major strengths of Dick Smith
 Strong brand name : – the company established a strong brand name in Australia and
New Zealand. It became the best electronics shop, and customers loved it all over
Australia.
 In addition, the founder, Dick Smith, knew electronics at a tender age.
 Efficient marketing strategy : – being a household name, dick smith had an efficient
marketing strategy to reach its customers ( Zuhdi , Daud, Hanif, Nguyen, and Shankar,
2019) .
 Improved inventory management: – the company clears its old and obsolete stock and
improves its stock and ordering practices.
 Large consumer network: – the company has expanded over the years in Australia and
New Zealand. This has created a bigger customer base for the company, as it has
opened more stores over the years.
How management led to the failure of Dick Smith
 The collapse of Dick Smith has been labeled on its management. The company experienced a
lack of trust from banks, and this was due to how it was being managed.
 The banks viewed the company’s management as not up to the task.
 They were not able to manage the entire firm.
 In addition, there were internal wrangles.
 There was a lack of trust, poor strategy, and poor leadership.
 Jamie Tomlinson, a board member, and the chief executive, Mr. Nick Abboud , had
differences.
 Mr. Tomlinson stated that the chief executive was not good for the job.
 He complained about the incompetency of the CEO in court hearing.
 He said that the CEO had no credibility when dealing with the company’s management,
suppliers, and Mr. Tomlinson himself.
 These surprises included debt facilities with banks that the management organized
without consultations with the board for approval ( Kenney, La Cava, and Rodgers,
2017) .
 The company also experienced a big rise in the inventory levels and the poor quality of
inventory that the management was buying, which the management failed to deal with.
 The management was also accused of dealing according to connectivity.
 This created an atmosphere that was not good for business.
The important thing that led to the success of Dick Smith
 Dick Smith’s success in business is a blend of strong attributes, values, and personality. Smith has been
able to gain respect and admiration from business employees and leaders.
 He possesses two different entrepreneurial perspectives.
 First, nature is an important aspect in determining who becomes an entrepreneur.
 Personal traits correlate to entrepreneurship and include the need for achievement, self -confidence, and
the belief in personal efforts on results.
 For instance, Dick Smith has been a successful entrepreneur because he emulated others’ success,
fairness, low costs, good public image, extensive consultation, and hard work.
 The main theme of entrepreneurship entails personal characteristics ( Munir, and Terry, 2018) .
 People who become entrepreneurs can obtain general skills that they apply in their businesses.
 Entrepreneurial activities can be enhanced through the role of values and social network.
 Dick Smith expresses gratitude and works in service to others, notwithstanding the lack of hope from his
parents when he dropped out of school.
 Their attributes differentiate the success of entrepreneurs and non -entrepreneurs.
 This includes self -confidence, long -term achievement, and leadership, setting
challenging and realistic goals, taking risks, and using money as a performance
measure.
 Dick Smith believes in free enterprise and the virtues of hard work.
 He can connect with his employees and other businessmen, and his public image is
important for business success.
 Dick Smith works hard and wants to retain the balance of Australian business
ownership.
 A successful businessman takes risks and has cognitive ability compared to non –
entrepreneurs.
Challenges likely to face the company in the next five years.
 Low incomes: – there is increased competition in the market and a challenging business
environment. This is due to unfavorable product mix and promotional activities.
 Financial constraints: – due to the lack of competency in the management, the company
is likely to suffer financially in the near future.
Conclusion
 Dick Smith is a good businessman who has dominated the Australian market due to his
entrepreneurial skills.
 He has demonstrated the characteristics that entrepreneurs need to possess for them to
succeed in the business world.
 This is evident in his business ventures.
 He ventured into many businesses because of his resilience and understanding of
business dynamics.
 He has built his business to be the most trusted and iconic brand in the Australian and
New Zealand markets.
References
 Baumgartner, R.J. and Rauter , R., 2017 . Strategic perspectives of corporate sustainabilitymanagement to develop a sustainable organization
Journal of Cleaner Production , 140 , pp .81 -92 .
 Kenney, R., La Cava, G. and Rodgers, D., 2017 . Introduction| RDP 2016 -09 : Why Do CompaniesFail ? Reserve Bank of Australia Research
Discussion Papers , (November) .
 Munir, R. and Terry, C., 2018 . Accountants and the Ethics of Profit : The Case of the AustralianRetail Industry Journal of Business Ethics
Education , 15 , pp .327 -347 .
 Tsoukas , H., 2017 . Don’t simplify, complexity : From disjunctive to conjunctive theorizing in organization and management studies Journal of
management studies , 54 (2), pp .132 -153 .
 Zuhdi , S., Daud, A., Hanif, R., Nguyen, P.T. and Shankar, K., 2019 . Role of Social Media Marketing in the Successful Implementation of
Business Management International Journal of Recent Technology and Engineering , 8(2), pp .3841 -3844 .

QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER
error: Content is protected !!