Johnson and Associates
The main problem Johnson and Assoiciates are facing is that they have no organisational structure. Their Duties are not properly defined even though this is a partnership business but still they should have one person to whom every other partner is answerable otherwise no one would know exactly what to do. Moreover, they have no customers, since their start up they only made two sales and both were through friends who worked at the health clubs, which means the market and the customers are not aware of the existence of Johnson and Associates. According to the case they never worked on the main mix of any organisation 'the Promotional mix'. Johnson and Associates face immence competition from eight major software vendors as well as hundreds of small software vendors who had two things in common, first, they were promoting heaivly and secondly they had more than one product in the market. Johnson and Associates on the other hand are working with only one product. Another issue is the price they are charging, since there is competition all the existing companies are surviving on low profit margin but Johnson and Associates are expexting to make $700 profit on every product sold which is a bit too much because the final price of the product becomes $4000. Anyother company can fleed away johnson and Associates by selling the same product with lesser margin. Unless they create a value for their product and which can be done by providing something that others are not, but up till now Johnson and Associates have failed to do so Solution:
The main solution could be to make an organised organisational structure, defining and dividing duties to every partner so that all the tasks are performed properly, moreover Michael Johnson and Jackson are more aware of the product so they should handle the distribution department, Michael Johnson has a major degree in business...