Management Simulation Project of a Commerce Organisation

Starting from the latin quote ”mens sana in corpore sano”, in the body that we are „living” needs to be cared, because we cannot replace it, this is our business card at a first sight. The antics were right: if we are doing any sport, the muscles are atrophy. What should people know, is that the brain is in a great shape if the body is set on motion. A healty life style is an advantage of sport.

Our physical condition is kept regardless of sport we choose, whatever is jogging, cyclism, fitness, yoga, swimming, dancing or team sports like football, basket or handball. Any type of sport we practice, we need suitable equipment. Here we got this idea to open a shop with quality sport articles. We distribute sport articles because it`s very popular for the people who play sports, but also by they who prefere a casual style.

Comercial Company Sporting Store was founded on the market at 1th of January 2013 and as business activity is selling sports articles. Headquarter is on Carol Bulevard, No 42, Iasi. The company has 2 stores in Iasi and 1 in Vaslui.

• Sporting Store Iași, Palas Street, no 7A, Palas Mall, Etaj 2., Tel 0332410410;

• Sporting Store Iași, Piața Unirii street, nr 6, Tel 0332400802;

• Sporting Store Vaslui, Ştefan cel Mare Street, no. 275, Silver Mall, Tel 0332313622.

The company has 2 sellers in each shop and 4 peoples in charge of products administration, also each store and headquarter has a General Manager and a book keeper. Headquarter has an area of 70 square meters and the 3 outlets have the surfaces aproximately equal obteind through contracts of sale (the store from Piata Unirii) and by rent (the stores from Palas Mall Iasi and Silver Mall Vaslui), by about 120 square meters. The storage surface is by 140 square meters, and it needs 1 handler.

2. Entry/ exit barriers in business field

The company S.C. Sporting Store S.R.L. is newly established on market in Iasi, therefore it faced some entry barriers. A first barrier has a legislative nature: opening taxes, difficult obtainig patents, Commerce Chamber’s own obligations.

Another barrier is the current economical crisis that causes people to allocate a lower budget for buying sports clothes or accesories. The capital investment is an important barrier, a big ammount of capital is necessary to start the business. Scale economies is another entry barrier: the existing competitors on the market, high financial burdens for products differentiation.

On the exit of the market, the company needs to face some barriers like:

• remaind stocks;

• company dissolution costs;

• cannot recover fixed costs,commitments for employees(like unpaid wages);

• Emotional arguments – unsatisfying employees;

• High costs: equipment amortisation, staff trainig for other specialization;

• Undervalue equipment(cash registre, digital signage equipments);

• Value losses by selling products at low price.

3. Market segmentation

Geographical presentation: we propose to begin with opening 3 stores in the following cities: Iasi(where the headquarter is), and Vaslui.

Our company is adressed to people from the East of the country, especially for those from Iasi and Vaslui, both rural or urban environment. The people from urban environment shows a greater interest in sport articles because they have a bigger chance to practice one sport. Our objective is to attract the people from rural environment to buy our products because they have a convenient style.