Nakigudde is a young entrepreneur who started a business dealing in manufacture of liquid soap four years ago. The business became very successful due to the high sales obtained as a result of dense population in Bubulo West ,Manafwa district where it was operating.
After two years, the sales began to decline despite the dense population due to the entry of other firms in the market dealing in manufacture of liquid soap. Nakigudde was only using a direct channel of distribution and un attractive sales persons with ugly faces. She had no delivery trucks thus she would only sell to customers who would visit the factory premises.
She later read through business magazine and discovered an idea of including spicing ingredients in the liquid soap to cope up with competition. She treated customers well, decorated the business premises , recruited nice looking sales persons and used to open very early and close late.
She even increased on the number of employees, bought modern machines to improve productivity and hired ten trucks to widen the distribution. The business is now operating on large scale, serving over one hundred and fifty primary and secondary schools and the products are liked by most people country wide.
After two years, the sales began to decline despite the dense population due to the entry of other firms in the market dealing in manufacture of liquid soap. Nakigudde was only using a direct channel of distribution and un attractive sales persons with ugly faces. She had no delivery trucks thus she would only sell to customers who would visit the factory premises.
She later read through business magazine and discovered an idea of including spicing ingredients in the liquid soap to cope up with competition. She treated customers well, decorated the business premises , recruited nice looking sales persons and used to open very early and close late.
She even increased on the number of employees, bought modern machines to improve productivity and hired ten trucks to widen the distribution. The business is now operating on large scale, serving over one hundred and fifty primary and secondary schools and the products are liked by most people country wide.
- Identify the reasons for the failure of Nakigudde’s liquid soap business (07marks)
- Give factors that determine business success (04 marks)
- What channels of distribution would Nakigudde have used to compete favourably with other firms (03 marks)
- Advise Nakigudde on other possible sources of business ideas other than magazines (06 marks)
- What entrepreneurial skills have you learnt from Nakigudde’s liquid soap business
(05 marks)
