REVISED BUSINESS REPORT

• Blossom Cosmetics is a well established cosmetics manufacturer based in Australia that produces cosmetics for the consumer market
• Due to its rapid growth and heightened demand, Blossom Cosmetics is now considering expanding overseas
• The cosmetics industry is highly competitive, and they are concerned about local and foreign competition
• To accommodate its growth and expansion, Blossom Cosmetics is also attempting to shift its legal structure to a private company
• As Blossom Cosmetics continues to grow, they must respond to external influences and create innovative production processes to sustain its growth despite competition in the global market
• Technology and technological influence

  Advanced devices that improve production efficiency, increase productivity and reduce business' reliance on expensive human labour
• Technological advancements


  Make importing and exporting cosmetics easier for Blossom Cosmetics when expanding overseas
• Technological advancements


  Allow smooth communication between countries, reducing international barriers and promoting customer satisfaction
• Technological advancements


  Allow Blossom Cosmetics to gain a competitive advantage over local and foreign competitors and overcome the monopolistic competition of its markets
• Technological advancements


  Require Blossom Cosmetics to constantly adapt, which may disrupt the current processes of the business, thus disrupting efficiency
• Private company


  An incorporated business with private ownership, consisting of 2-50 shareholders
• Advantages of a private company

  • Limited liability
  • Personal selection of shareholders
• Limited liability


  The business will operate as a separate legal entity to its owners/shareholders, therefore the owners are not to be held personally liable for financial obligations
• Shareholder selection


  With the addition of more shareholders compared to a partnership, the ownership becomes more diluted and owners can privately select the most productive and talented experts in the global market to assist in expanding and meeting demand
• Disadvantages of a private company


  • Shared ownership leading to dilution of profits and control
  • Legal responsibilities and obligations to keep records and publish finances
• Growth stage


  The business experiences increased sales, profitability, and demand
• Blossom Cosmetics is currently in the growth stage, evident from its large customer base and upcoming expansion overseas, accompanied by rising profitability and demand
• Challenges in the growth stage

  • Meeting demand and constantly innovating the product line
  • Pressure to diversify and differentiate products from competitors
  • Risk of local and foreign competitors replicating products and designs
• Maturity stage


  Sales and profits may begin to decline, plateau, or stabilise
• Challenges in the maturity stage

  • Maintaining a loyal customer base and attracting new customers
  • Loss of business funds hindering innovation and expansion
• Challenges in the growth and maturity stages

  Require strategic responses like mergers, acquisitions, and embracing technological advancements
• It is recommended that Blossom Cosmetics examine the external influences that may affect the company, consider the advantages and disadvantages of a private company as they enter global markets, and consider strategies to overcome the challenges associated with the growth and maturity stage of the business life cycle