Proposal for Establishing a New Corporate Division

Introduction 

A strong organization can continuously evolve by listening to its customers and keeping abreast of emerging trends in the marketplace. When such an organization has a strong understanding of its market, it can identify product and service gaps it believes it can effectively fill. A new division can be an effective delivery channel for offering complementary services. A business can provide services that were previously outsourced in-house. Establishing a new division can produce cost savings by eliminating third party vendors. Providing products or services through a division rather than outsourcing can produce efficiencies and improve the customer experience (Crockett et al., 2013). It is important to realize that starting a new division requires careful thought and planning. Generally, starting a new business requires a huge commitment of an organization’s resources, including manpower and capital expenditures. Moreover, starting a new division should be considered a long term commitment to customers. A new division can have a positive impact on the organization’s bottom line. 2TouchPos deals in point of sale machines and it is a market leader in the industry. The company can successfully start a new division dealing in handheld point of sale machines. 

2TouchPos’ New Service 

2TouchPos is a leading producer of 2 Touch Pos point of sale machines. The company produces quality point of sale system for restaurant and nightlife operations, specializing in everything from pizza stands to nightclubs. The company software-bundled terminals that work as great first time replacement options. With increased use of technology in modern businesses, I would propose that 2TouchPos starts a subsidiary that will deal in producing handheld point of sale machines. The division will be able to ride on the company’s popularity as the producer of excellent point of sale systems. Offering portable point of sale machines would be a strategic move because it would cater for the needs of busy restaurants and night clubs. More importantly, the convenience associated with handheld point of sale machines can help to improve customer experience. The proposed name for the handheld point of sale machine is OneTouchPos. The name will be much more related to the product offered by the parent company hence facilitating customer acceptance. The new division will sell the product to the existing customer base apart from looking for new clients. The mission statement for the division would be as follows: We are committed to provide you with high quality business software that effectively establishes procedures, tools to review data as well as factors to base business decisions upon. 

The Division into OneTouchPos 

2TouchPos is already among the top companies in the industry and it produces excellent point of sale software that is marketed around the world (2TouchPos, 2017). By bringing on a new division that will produce handheld point of sale machines, the company will be able to meet the business needs of its customers more efficiently. The new handheld point of sale machines will be able to complement the current product being sold by the company. The company will also be able to effectively compete for market a larger market share in the industry. Normally, customers prefer vendors who can meet most of their needs. As such, through the new division, the company will be able to meet the demand for handheld point of sale machines. The new move will make 2TouchPos stand out and gain a competitive edge in the market. 

Vision and Business Model 

The vision of the proposed division is to be the best in the world at providing the best high performance point of sale technology to enhance speed of service and control of business. The division will be able to offer high quality handheld point of sale machines at affordable prices. The devices will help restaurants and nightclubs ensure that business operations run smoothly even during busy hours. The devices will feature tab management, last round reorders as well as nightly specials. Whether the client will need to finish the sale on the floor or in the kitchen, OneTouchPos will be able to help in terms of receipts, credit card system, and phone integration. The division will have offices in New York, Las Vegas and Los Angeles. The division will have no challenges in terms of marketing as it will take advantage of the current customer base of the parent company. Moreover, the proposed division will have a website through which it will conduct much of its marketing. The clients for the division will be drawn from around the world. Therefore, the division will utilize the distribution channels of the parent organization. 

How the New Division Aligns with the Old 

The mission of 2TouchPos is to be the best in the world at providing high performance computing technology that is fast, easy to use and generates record profits. The new division is consistent with this mission as it will meet the demand of businesses that require efficient point of sale devices that will help to promote operational efficiency. The new division will help businesses to save on time and enhance customer experience. The new division will also strengthen the company’s position in the market because the handheld point of sale machines will complement the company’s core mandate. Moreover, the new division, OneTouchPos, will give clients an opportunity to improve their business processes and increase profitability. 

OneTouchPos’ Strategic Direction 

The new division will have to establish its own market for handheld point of sale machines. However, the current client base of the parent company will form the initial catchment for the new division. This is because the handheld point of sale machines will complement the stationary ones. The division will have its managers who will be able to drive its strategy effectively. In order to be competitive, the division will be innovative in order to gain an edge in the market. 

Guiding Principles and Values 

OneTouchPos will establish relationships with clients and suppliers based on integrity, honesty and respect. The division’s technical team will operate with creativity, innovation and openness when implanting or servicing a solution. The division’s team will strive to build long term relationships with clients on the basis of appreciation, loyalty, fairness and fun. The division will also believe in delighting its customers through solutions that provide peace of mind and freedom to live their own lives. 

Conclusion 

2TouchPos has already done a lot in the point of sale technology industry and majority of the hospitality industry players are familiar with the brand. Therefore, the new division will be able to meet their demand for handheld point of sale machines in the best way possible. The mission, vision and values of the new division are consistent with the strategy of 2TouchPos and it will help in achieving the long term goals of the organization. 

References 

2TouchPos.(2017). Company profile. https://www.2touchpos.com/ 

Crockett, D. R., McGee, J. E., & Payne, G. T. (2013). Employing new business divisions to exploit disruptive innovations: The interplay between characteristics of the corporation and those of the venture management team. Journal of Product Innovation Management , 30 (5), 856-879.