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BITA FLOWER SHOP: ORGANISATIONAL DIAGNOSIS

(INDIVIDUAL ASSESSMENT)

Karamjeet singh (2115217)

University Canada West

BUSI 660 (HBD-FALL 23-05) Small Business Management

Dr.Naji Yazdi

17 October 2023
Table of Contents

Introduction................................................................................................................................2

Organisational diagnosis of Flowe Business..............................................................................2

Three main challenges of the client company............................................................................8

Importance of addressing the challenges...................................................................................9

Improvement areas of the client for staying competitive.........................................................11

Proposed strategies for overcoming challenges.......................................................................13

Conclusion................................................................................................................................15

References................................................................................................................................16
Introduction

“Flowe” is a flower business company that was establish in the year 2022. Flowe always

imports raw materials (flowers) from the local suppliers like Burnaby Lake and United flower

cooperation. This allows Flowe to sell their products in cheaper price than the market. Flowe

is specialised in the cultivation, distribution, and sale process as they have pickup and

delivery facilities for customers, they also have the system by which if customers’ orders

their service through Shopphyfy, Uber eats, Square so Flowe delivers those customers in the

same day. This report addresses the purpose of conducting a business diagnosis for Flowe in

terms of identifying internal and external factors that potentially would have a significant

impact on the company's business. PESTLE and SWOT analysis models are used to

investigate the business market of Flowe and to identify potential business challenges for

Flowe.

Organisational diagnosis of Flowe Business

PESTELE analysis

The small business of Flowe has developed its business plan with the target of serving mainly

the customers in West Point Grey of Vancouver, Canada. The company has mainly focused

on creating effective marketing and sales strategies based on the market condition of

Vancouver. Therefore, the external market environment of Canada is evaluated using the

PESTELE framework.
Factors Implication Favourable/

Unfavourable

Political ● Canada is a founding member of the United Favourable

Nations

● It has partnerships with Arctic Council,

“Association of Southeast Asian Nations”

(ASEAN), the European Union (EU), and NATO

(International.gc.ca, 2023)

● Canadian government offer loans for supporting

growth-oriented companies

● It ranks second as politically stable among G7

countries (Investcanada.ca, 2023)

Economical ● GDP is forecasted to grow by 1.5% in 2023 Favourable

(Reuters, 2023)

● The flower industry in Canada has generated

revenue of 17 million Canadian dollars which has

increased from 16 million Canadian dollars

(Statista, 2023)

● Inflation rate has increased by 4% in 2023

(Reuters, 2023)

Social ● Population of Canada is 3.8 crore in 2023 Favourable

(Worldometers, 2023)

● The employment rate is 86.6% (Statcan.gc.ca,

2023)

● GDP per capita is 55,085.45 U.S. dollars in 2022


Table 1: PESTELE Analysis

(Source: Self-developed)

Analysis

Canada’s political situation is quite stable for executing business operations peacefully and

without interruptions. Political connection with international organisations makes Canadian

businesses sustainable and compliant enough throughout business planning. The economic

condition of Canada is consistently growing which supports production scale and good

consumption rate of customers. Increased revenue of the flower business industry indicates

Canada is a favourable country for Flowe Business. Canada's employment rate is high,

motivating customers to buy products without hesitation.

PESTLE analysis has indicated high digitalisation and usage of technologies in businesses.

Flowe Business can positively implement advanced technologies for digital marketing.

Prevalence of ICT, social media, and digital devices is essential for accessing valuable

insights about target audiences, market trends, and consumer behaviour in marketing

activities (Canadaflowers.ca, 2023). On the contrary, extreme plastic pollution may hamper

the sustainability and ethical business scope of Flowe Business to a certain extent. The large

volume of tourists and visitors in Canada increases the target customers of flowers which is

quite profitable for business. Therefore, Canada is very profitable and favourable for starting

Flowe Business.

SWOT

Flowe Business is planned to set up with its own norms, unique business values, and

customer appeal. These factors are vital for interpreting the overall business scope along with

identifying potential threats for the company. SWOT framework is used for analysing unique

company traits of Flowe Business.


Strengths Weakness

● Extensive 24/7 customer service ● Limited funds for business

● Using digital services, social media, ● Investment is only done to the

and technologies for advanced marketing and production

marketing practices department

● A large supplier’s group of local ● Business is not expanded enough and

suppliers, United Flower has focused on one location,

Corporations, Burnaby Lake Vancouver

Opportunities Threats

● Partnership with third-party ● Flowe Business has not enough cash

organisations “Uber Eats”, flow

“Shopphyfy”, and Square for ● Canada’s agriculture industry is

delivering products on the same day dealing with an acute labour shortage

● Flower industry is competitive of 30,000 skilled workers (Cbc.ca,

enough regarding product price 2023)

● Marketing and sales activities using ● Changing customer demands and

Pay Google, Facebook, and Bands purchasing habits negatively impact

Bright are cost-effective sales

● About $660,000 is invested in

Flower businesses in Canada

(Canada.ca, 2022)

Table 2: SWOT analysis

(Source: Self-developed)

The above SWOT Framework has interpreted Flowe Business’s core business values. The

company has the strengths of providing good customer service, reliable product delivery, and
an extended supply chain. Flowe Business has the value of customer centricity by offering

extensive services and product offerings to customers. Market research indicates that the

number of Canadian e-commerce users has increased to 29.62% in 2023 (Statista, 2023).

With the growing demands of e-commerce services, Flowe Business has initiated its online

shopping and one-day home delivery options for customers. This efficient e-commerce

business has been beneficial to attract more customers to the business. On the other hand, the

e-commerce service of Flowe Business has also created a competitive advantage to a great

extent.

Another internal value of Flowe Business is the cost-effectiveness of products in comparison

to other flower-selling companies in Canada. The company can sell products in a low-price

range due to its extended supply chain. As per the view of Mehta, Sharma, & Mehta (2022),

the well-managed supply chain reduces the company’s operating expenses as well as driving

profits. Flowe Business has a large supplier base both from local suppliers’ groups and big

suppliers such as Burnaby Lake, and United Flower Corporation. Modern supply chains of

the company have streamlined the process of getting flowers to market while reducing the

overall cost of products. On the contrary, Flowe Business deals with its lack of funding

sources and small network of investors. The company is interrupted to innovate services and

install new technologies due to lack of funds. Lack of cash flow hampers business activities

and does not let the company to meet expenses causing business failure (Khan, 2022). The

acute labour shortage in the agriculture industry creates problems in harvesting, caring for,

and storing fresh flowers. Companies also need to take care of the changing needs of

customers and buying habits to ensure business success to a certain level.

Three main challenges of the client company

Acute labour shortage


Flowe Business is dealing with acute labour shortage at present. The floriculture and

agriculture industry of Canada currently has 42% of skilled labour support (Cahrc-ccrha.ca,

2019). The main reason for the acute labour shortage is the lack of agriculture skills, young

people’s focus on the other industry, and lack of training for the employees. The growing

demand for workers and a shrinking supply of domestic workers have widened Canada’s

labour gap in the flower industry. This industry faces the critical problem of labour pressure

during the seasonal peaks of flowers. Flowe Business’s seasonal flower business of lide

arrangement and hand bouquets is hampered due to a lack of skilled workers in the company.

Endalew, Gebrehiwot, & Dessie (2022) have underpinned that lack of agricultural training,

high risk of health issues, tedious working hours, and limited wages are the main reasons of

labour scarcity in the business. Flowe Business would be unable to bring innovative changes

and install new services without the support of enough skilled workers.

Changed purchasing pattern of customers in Canada

The post-pandemic situation has changed the overall product purchasing intention and habits

of customers in Canada. Market insights imply that Canadian customers prefer to buy their

daily essentials such as food, groceries, and clothes rather than other products. Flowers and

bouquets are generally purchased for gifting and home decoration purposes. On the contrary,

only 22% of customers in Canada prefer to buy products for home improvement, gifts, and

DIY (Pwc, 2021). Flowers are not on the list of people’s most essentials which is reducing

the overall demand for flowers in Vancouver, Canada. On the other hand, Canadian

customers are also interested in buying products through loyalty and reliability programs.

42% of the customers prefer to buy products from the retailers that give more discounts (Pwc,

2021). Flowe Business plan does not include any plan of giving additional discounts or

loyalty programs to attract customers. The company’s business plan is not appropriate as per
customers’ shopping choices and demands which is the main reason for business challenges

to a great extent.

Lack of investment

Flowe Business is dealing with the challenge of lack of investment. The organisation has a

limited network of investors which is the reason for the limited financial support in this

business. Flowe Business is focused on developing high-quality flower delivery service with

a wide variety of flower options for getting better customer response. A large amount of

money is to be invested in giving proper care and maintenance to the flowers. As per the view

of Buyse, Heylen, & Schoonackers (2020), low investment prevents organisations from

operating business plans as well as hampers the overall business development plans to a

certain extent. The business plan of Flowe Business indicates that the company is facing a

high problem in maintaining enough cash flow to control the overall business outcomes.

Chen et al. (2021) have also stated that companies are restricted from accessing new

technologies due to a lack of resources and capital. Decreased capital of business has led

Flowe Business to limit 20% of marketing expenses and 10% of other expenses.

Limited expenses decrease product quality and service efficiency which is not good for

business growth in the competitive approach. Cash flow problems of businesses delay

product delivery and reduce overall business profitability that would hamper Flowe

Business’s growth prospects. Therefore, the organisation needs to adopt efficient strategies to

mitigate the challenges by applying new strategic steps at the earliest.

Importance of addressing the challenges

Acute labour shortage, lack of investment, and changing customer demands in Canada are

identified as the vital challenges of Flowe Business. These are critical problems of the

company which are not only hampering business growth but also eradicating possibilities of
future developments of business. Costa Dias et al. (2020) have mentioned labour shortage as

the source of many problems of decreased quality, revenue plunge, and so on. Due to a lack

of labourers, nurseries, and agricultural firms fail to produce huge amounts of of seasonal

flowers. The company cannot serve many customers for low and less quality production of

flowers. Therefore, the organisation needs to address this challenge to save it from utter

failure. Addressing the challenge would make the company more strategic and competitive in

many ways. On the other hand, Flowe Business has the strength of a large supplier’s group

both in the national and local markets. The company can use its large supplier base to recruit

more skilled and experienced workers (Govindan, Shaw, & Majumdar, 2021). A supply chain

network is highly essential for identifying efficient florists, and seasonal workers from

different sources. Therefore, the company can be more strategic by deploying its own supply

chain network to mitigate the critical problem of labour shortage to a certain extent.

Another identified problem is changing customer patterns of buying and product choices.

Today’s customers prefer more efficient and fast services from the company’s side that make

their shopping experience smooth enough. Flowe Business may include its 24/7 customer

helpline service system, online product ordering, and same-day home delivery system as the

motivations of customers. The company already has a strong customer service system that is

essential for attracting and retaining customers to a great extent. Better customer service,

speedy product delivery, and easiness of company interaction are the core factors for

retaining customer satisfaction (Palacios & Jun 2020). Therefore, the company’s strength of

exclusive customer service is highly efficient for dealing with the challenges. Flowe Business

need to address the challenge of getting the support of buyers and for ensuring business

success to a large extent. Low investment is another crucial problem that can result in stopped

business operations and a lack of business innovation. Organisations may use social media
and technologies in terms of reducing operational costs of businesses. Controlled operational

cost minimises pressure upon the company while increasing the chances of good profits.

Improvement areas of the client for staying competitive

Flowe, the flower business company should have some improvement areas of the client for

staying competitive including,

 Choosing prime location for extended market reach: Flowe should choose few

prime locations for their company, from where they are able to regulate the business

properly. Flowe should decide these locations by considering some criteria like, the

place from where they will be able to operate their both online business and physical

store, suitable location from where Flowe will easily get raw materials for their

business and could be able build a seamless and strong supply chain for their product

(flower) supply.

 Improving supplier’s network with new supplier partnership: Suppliers play the

key role in a flower business. Flowe should find suitable flower suppliers for their

flower business and build a strong supply chain to make their supply process seamless

towards customers. Suppliers provide a variety of fresh flowers in bulk, which is

essential for a flower business (Buyse, Heylen & Schoonackers, 2020). These

suppliers also offer unique and seasonal flowers that could set Flowe’s business apart.

Reliable suppliers could ensure Flowe receive fresh and high quality of flowers,

which is vital for customers satisfaction. They should also establish strong positive

relationships with flower suppliers to ensure a steady and fresh supply of flowers.

 Bringing diversity and uniqueness in product portfolio: customers have varying

preferences when it comes to flowers, so Flowe needs to bring variation in their

products (flowers). Flower should offer a range of flower variations allowing you to
cater to a broader customer base. Different types of flowers are available during

different seasons, by offering variations, Flowe cloud provides customers with options

that are in season, which often results in fresher and more affordable flowers. Flowe

should also build a range of aesthetic flowers. Because aesthetic choices matter in the

flower business. Different flower variations offer a diverse range of colours, shapes,

and fragrances, allowing customers to choose the flowers that best suit their aesthetic

preferences

 Effective marketing and sale strategy adoption: An effective marketing and sales

strategy is crucial for the flower business of Flowe. Effective marketing strategies

help Flowe to reach potential customers, informing them about Flowe’s products and

services. Flowe should develop a professional website and maintain active social

media profiles to showcase their verity flower arrangements. Marketing builds brand

recognition, making Flowe’s flower shop more recognizable and trustworthy. A good

marketing strategy engages customers through social media, email marketing, or

loyalty programs, fostering relationship (Efendi et al. 2022). Marketing and sales

strategy also helps Flowe stand out in a crowded market, highlighting what sets their

flower business apart. Effective sales strategies help Flowe to convert potential

customers into paying ones and increasing revenue. Flowe also could collaborate with

local event planners, wedding venues, or gift shops to expand your reach.

 Competitive Pricing for best value offering to customers: Flowe should maintain a

competitive price of their products and services comparing to the market, it helps

them to achieve a good business position in the market. Flower prices can vary due to

seasonality and availability. Competitive pricing allows Flowe to adjust your rates

according to these fluctuations. Flowe cloud choose to be a cost leader, charging

lower prices and attracting budget-conscious customers, offering unique or high-


quality flowers to a more active customer base. Balancing price competitiveness with

profitability is essential (Govindan, Shaw & Majumdar, 2021). Flowe need to ensure

that your pricing strategy allows you to cover costs and generate a reasonable profit.

Offering competitive prices effectively can lead to customer loyalty.

 Customer experience improvement for brand loyalty building: Customer

experience plays a vital role in the flower business. Flowers are often associated with

emotions and special occasions. Ensuring a positive customer experience helps create

an emotional connection, making customers more likely to return for future occasions

(Mehta, Sharma & Mehta, 2022). Customers expect fresh and vibrant flowers from

Flowe, delivering on this expectation is crucial to customer’s satisfaction. Proper

handling and care of flowers from the time they're cut to when they're delivered is

vital. Timely and reliable flower delivery is very essential, especially for events or

occasions. A late delivery can result in disappointment and negatively impact Flowe’s

reputation, so they should be aware about on time delivery.

Proposed strategies for overcoming challenges

The management authority of Flower Business is struggling with the issues of acute labour

shortages and lack of investment along with the frequent changes in the purchasing behaviour

of the customers. The organisational manager of Flower Business essentially needs to

mitigate the labour shortages by maintaining consistency and effectiveness in the recruitment

procedure. Additionally, the operational manager of this company is responsible to put focus

on the optimization of the on boarding experiences to manage the labour shortages.

According to Efendi et al. (2022), the labour shortages are a critical issue for a business, and

it can minimise production capability in an efficient way. Additionally, the management


department of Flower Business is also responsible for providing efficient training on the

ongoing procedure.

The operational management authority of Flower Business is essentially responsible for

maintaining consistency in the scheduling procedure to mitigate the issues of acute labour

shortages. Concurrently, the organisational manager also needs to develop quality

communication with the potential and skilled labourers. Contextually, Hildebrandt, Stone &

Bryant (2022) can utilise the approach of the “recognise and reward” approach for managing

the labour shortages issues from the organisation. The front-line managers and operational

authority of Flower Business are responsible for managing and controlling the frequently

changing behavioural patterns of the customers. The management authority needs to be more

realistic and continuously provide emotional support to the customers for dealing with the

changing behaviour. More precisely, the organisational manager of Flower Business is also

responsible for identifying customer expectations, engaging the prospects, and evaluating the

process and metrics.

The management authority of Flower Business can manage the frequently changing

behaviour of the customers by reinforcing positive innovative beliefs and shaping emerging

habits with new offerings. Concurrently, the organisational department can sustain the new

habits of the potential customers by utilising the contextual cues in an efficient way.

According to Abrardi, Cambini & Rondi, (2022), analysing consumer beliefs along with the

behavioural pattern at the granular level is the key component for managing the changing

behaviour of customers. On the other hand, the management department is also essentially

responsible for maintaining the stock of the situation for the issues of the lack of investment.

Additionally, the organisational manager is also responsible for building an efficient and

healthy relationship with the potential stakeholders for making the appropriate investment.
The operational manager of Flowe Business is responsible for conducting thorough research

before making an efficient investment for the business. Additionally, the management

authority can mitigate the lack of investment by managing a healthy and efficient relationship

with the investors. Contextually, Beer, Griffiths & Klemm (2023) critically analysed that, the

management of investment risks can efficiently create the transparency in the business

operation. The operational manager of Flowe Business is essentially responsible for the

establishment of the investment goals as well as objectives. Additionally, the determination

of the risks along with the appropriate allocation of the resources could also mitigate the

problem of the improper investment. More precisely, monitoring along with the continuous

reporting is the key component to manage the investment risks in the business.

Conclusion

Overall, in this report highlights and elaborates few points related with Flowe’s flower

business including organisational diagnosis of Flowe’s business, few challenges of this

company. Flowe is dealing with acute labour shortage, so it’s become difficult for Flowe to

manage the demands of customer, customers in Canada. Flowe expecting to set its own farm

in order to sell their products (flowers) at competitive price in the market. Flowe Business

can positively implement advanced technologies for digital marketing. Flowe should develop

a professional website and maintain active social media profiles to showcase their verity

flower arrangements.
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