Case study Essay Example | Topics and Well Written Essays - 2000 words - 3

Case study - Essay Example That was the time when she realized that this bag can be popular product for people who loves innovative designing articles like cloths, umbrella, handbags, wallet, makeup bags, lamp shades etc. Clare, mother of Calypso also helped her with the business. Her first year turnover was ?180 000 and she became the London Business person of the year at the age of 22 (Burns, 2011). Calypso and her mother Clare chose to manufacture the bags from UK and use their house as the office. The reasons are: Working from home was advantageous cause their Calypso did not had to pay any rent for her office to anybody. Except that no extra electricity or internet bill there are flexible office time. She could able to work any time in a day and handle any matter whenever they arise without delay. And she got her mother’s help from home (Clippy London, 2013). She was worried that any big and established manufacturer in market can easily steal her idea or copy it so she had to make the sales fast an d regular, to do that she needed the supply unit and manufacturing unit to be close. If the supply unit is thousands of miles away somewhere in china and she had import everything from there it would took couple of valuable days. Instead of that if that if both the unit in UK the orders can be more quickly handled. And once the business start and run smoothly the payment terms for business chain will be regular and spontaneous and it will help the cash flow for her business. An online directory namely Kelly’s online directory (Kelly Search, n.d.) helped her to find out a manufacturer from UK (Smith, 2010). Calypso was a first timer in business field and she had no experience in that domain. Also her volume of business was not very big it was precisely 250 bags only. So for 250 bags going to foreign country to search supplier and renting a separate office would have been more fancy for her cause she was not sure the idea of transparent and graphics bag would hit in the market or not. Her initial customers were family, relatives, friends and those people who appreciated her idea earlier. The official launch of the product was on 2004 during Christmas Fair in Olympia’s Spirit (Stylist.co.uk, n.d.). These three were the main reason of choosing UK as the place of manufacturing for calypso for her fashionable see through bag with customised designs. During start ups and initial growth period manufacturing unit of Clippy was at UK, there were some advantages as well as some disadvantages also. Advantages can be: If supply and manufacturing unit are nearby then time cycle from order of raw materials –delivery of them –and making finished items and delivering them to market become fast and regular. Communication between various members in supply and delivery chain is become easy and effective. In that respective if we look at Clippy’s initial days (start up and initial growth) it was quite expectable for such an innovative product. It was an innovative product no such see through bags with pockets and photos of family and friends on it was available previously in any market. It was an experiment for her to launch it in small scale in UK market from where she also got couple of encouragements from various fashion lovers. So it was like a gamble for her. So it was better to choose her home market rather than foreign market for manufacturing (Department for Business Innovation and Skills, 2012). Calypso did not have any experience as a