A business plan is a common marketing tool that is normally used to lure, seduce, and impress potential investors who may be willing to invest capital but lack reasonable guidelines for such avenues. The purpose of this paper is to help highlight strategies and models suitable for turning the proposed idea into a reality. Before any investment is commenced, a careful analysis of critical factors should be done to determine the viability of such ideas. This will provide the basis and spectrum on which such ideas will be implemented and identify any factors that may be perceived to threaten the overall success of those valuable ideas. (Center for Business Planning, 1994)We will write a custom Business Plan and How to Build It specifically for you
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Critical thinkers in the business environment have always recorded spectacular performance, business does not just entail the actual buying and selling of goods and services but also involves a sophisticated and dynamic process incorporating vertical as well as horizontal acquisition of knowledge. More knowledge in business implies new product designs, new business design, increased customer service, new strategies and etc. for instance, the modern business has highly been characterized by high automation where most of core operations and transactions have been automated. This means that the world is almost achieving maximum use of technology. (WIKIVERSITY, 2007)
The whole world has been turned into a global village where continent to continent communication can be possible within few seconds and that one does not need to travel a broad to go and make payment. A few moments ago it was a dream but today it has been achieved. All these have been made possible through the use of business ideas and plans. One can easily guess the certainty with which the benefits are likely to flow to the identified organization as a result of the proposed idea but every body is uncertain as to the realization of its desired objectives. (Tolentino, 2000)
This is an idea that proposes an investment in the information technology, an industry that has undergone a complete revolution mainly in the late 19th and 20th century. The pace at which people devise new ideas on information technology has become tremendously overwhelming. This led to the introduction of portable personal computers called laptops which have increased flexibility in work schedules, allowing people to work on fields and at their homes. However anything that has merits never fails to possess demerits. The use of laptops has attracted a great public interest, this has also promoted a growing personal desire for every individual to have and own one. (Ward, 2009)
This scenario has caused a major insecurity concern in public places especially to those who use their laptops for field work assignment. The proposed idea is therefore likely to remedy the situation by manufacturing multifunction laptops fitted with security features, a bright idea indeed. Many businesses that manufacture computers and electronics have never thought of any procedure to counter physical abuse of security to their computers. It is this uniqueness that makes it more attractive and given the fact that the industry is dynamic and is ever vibrant, there is no reason to believe that failure can occur. (Center for Business Planning, 1994)
The implementation of this idea will come with an added demand for laptops expand its production to the highest limits a firm can ever reach. Consumer have been baffled with the increasing insecurity more so in this industry. It will redefine customer service and help heal the wounds already existing between consumers and suppliers. (Ward, 2009)
This refers to the design and infrastructure of the machineries and equipment, skills and competencies appropriate to achieve successful implementation of this idea. As we have discussed this is a technical idea that must be supported by adequate and relevant technology. The human resources required to aid the implementation of this idea and the technological environment that should be adopted to realize the desired benefits. (Center for Business Planning, 1994)Get your
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In order to achieve this objective we intend to employ professionals who are highly trained with relevant technical qualifications. Although we currently do not have adequate systems that can warrant such procedures we are likely to use specific organizations, accredited with outstanding industry performance. These organizations will include Price Water House Coopers or Earns and Young. We will send quality and assurance officials to check whether the hired individuals meet the standards of performance in our organization. (Tolentino, 2000)
We will also rely on the services of highly talented professional teams comprising of retired personalities who can work from their residential places. This will provide us with enough experience from their industries. Managing problems that do arise as we progress. Remember that big teams and groups possess diverse specialized ideas that are instrumental to our success. (Center for Business Planning, 1994)
We intend to develop our own packages which are not only compatible but are also flexible enough to be modified by our staff members. These packages are also cost effective. This will mean that no money will be used to buy bespoke or off the shelves packages and hence a saving. (Tolentino, 2000)
We recently launched our website where information about us can be accessed. This means that we are likely to reach clients from across the globe. Different corporate clients can also access our services and place orders should there be a need. We also enjoy the use of intranet and internet. Our communication technology as you can see is not out dated. We intend to automate the production process where the final product will be complete and may not require any additional service. (Center for Business Planning, 1994)
The automation of production is expected to increase efficiencies by doubling production units per a single moment. The use of a multiple laptop handler that carries five machines at a go will ensure that the number of laptops even increases further and that market demand is effectively met. (Tolentino, 2000)
We desire to achieve aggressive marketing policy where we are likely to use all means to reach our customers. As we have already launched our website, online marketing will be appropriate to capture international markets. Our services can be accessed through our newly launched website. This will offer cost savings to the firm as we will not need the services of intermediaries who are already eliminated by online. Online marketing also provides the clients with better improved personalized information. (Tolentino, 2000)
We intend to carry out thorough advertising campaigns on the land, air and waters. This can be achieved through using credible advertising agencies. Through digitalization we will be able to achieve an added value to the entire marketing process, we expect to capture large publication attention and therefore plans are under way to divide markets into different manageable segments. This will include regions, i.e. the Middle East, North America, Africa, Eastern Europe, India, Australia and China. Market segmentation is likely to help us capture the targeted market. Laptops are mostly used by professionals so a lot of attention will be focused on professionals, colleges, teams and higher learning institutions. (Tolentino, 2000)We will write a custom
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We are planning to establish centers in all the selected regions, where we plan to employ talented local individuals with good knowledge on the area. This will help in ensuring maximum coverage. Our strategy for marketing includes the 4ps i.e. product. Price, place, promotion and Ansoff’s marketing tool market penetration, market development, product diversification, product development and finally segmentation.
Using Ansoff’s grid (Tolentino, 2000):
|Market penetration||Product diversification|
|Market development||Product development|
This will involve making the initial entrance to the already identified market niche. A lot more energy will be required in perhaps identifying the standard of competition, the type of sellers and the prevailing bargaining power as exerted by the buyers. But since we are expecting to launch a completely new product multi-function laptop, a commodity that has never featured in these niches we are expecting little competition. We expect to begin recording high sales volume immediately the first month elapses. This will be followed by a rise in demand as we shift our advertising campaigns to the locals. Because clients are tired of the ever increasing cases of laptop theft successful implementation of this idea will be a relief to them and therefore as we have said the response perceived to be highly positive. (WIKIVERSITY, 2007)
We don’t expect much development on our product us it is already redefined, and redesigned to much the prevailing market circumstances. Here the market requirements are controlled by the buyers and the sellers. For instance if consumer want laptops fitted with security devices, then we have it, if its security or water proof we have it. You can imagine the spectacular performance likely to display by product in the market. (WIKIVERSITY, 2007)
Our financial plan entails sources of findings, cost benefit analysis, risk assessment, and the expected duration before we recoup the initial cost of the investment. (Ward, 2009)
Sources of findings
This is a big investment that will require colossal capital and therefore when we met last time we agreed to use our reserves including borrowings from Barclays bank. This was opinion scored highly and became the lasting solution. The reserves comprised mainly from our revaluation, retained earning and general share capital reserve. We bought some acres of land in Alaska whose market value now quadruples the original value. (Ward, 2009)The use of our own sources is advantageous because it is instant and therefore never requires additional procedures that will take much of our time. At the same time we eliminated additional expenditure like interests which come with borrowed capital. (WIKIVERSITY, 2007)
Cost benefit analysis
We expect booming sales and from that we are rest assured of adequate cash inflow into the firm. We expect to recoup the initial investment by the end of the second year. This has been supported by the fact that our product is unique (multi-functional laptop) and is likely to create a sustainable competitive environment that will lock many giants out. This will leave us as the only and sole suppliers in the market. We have already estimated that by the end of the first six months in operation our sales volume will have hit the highest notch. (WIKIVERSITY, 2007)Not sure if you can write
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During the first year costs will be high as a lot of marketing activities will be employed. This will continue until the end of the 5th month. After that sales will begin to swell as we begin to capture the international attention with global orders arriving at an alarming rate. Our financial experts and management accountants have explained to us that the project is actually worthwhile with some of them asking to be given shares. The plan has become the center of focus with some of our rivals attempting to lure some of our employees. (Ward, 2009)
Any investment must have certain inherent risks that come as a result of accepting to undertake decisions in a project or an investment. Ours is not exceptional and some of the risks likely to face us include, project failure, inadequate budgets, financial risks like high interest rates, high inflation rates, non-compliance and client resistance. In this case there are obvious risks that will occur anyhow, our main emphasis will be on the unexpected events that their occurrences will adversely affect our overall plan taken on the basis of financial performance. (Chastek & McGregor, 2002)
We have already liaised with our reporting management accountant and our financial experts and we have been assured that our investment is likely to be one of the worlds best performance. Risky occurrence has also been highly dispelled by the fact that we work in consultation with highly specialized professionals with diverse experience on project management, financial investment, information technology. Most prosperous organizations are also characterized by their tradition of taking risky decisions for they say that the more risk you take the more you are likely to benefit. Our risk assessment procedures are also adequately functioning and ready to counter any occurrence. (WIKIVERSITY, 2007)
Time of investment
In most cases investors are conscious about how long their investment can take before those actual benefits begin to flow to the firm. In this case our investment will take only two years to recover our initial investment back when other investments take as long as ten to twenty years. (Ward, 2009)
Since we are highly optimistic about the market forces, our production plan has been designed to accommodate the anticipated market demand as well any excess demand. We are planning to automate the production process with maximum economic efficiencies. Our new machine with capability of multi-handling is in place and is highly expected to double the production capacity. This will ensure that we keep in track with the market so that there are no gaps left. (Chastek & McGregor, 2002)
Our main is to ensure that we adopt a value chain in the production process and that all laptops are not only multifunctional but also meet the required needs of the market. We plan to align our production centers with distribution locations such that there are no additional expenses incurred as a result of geographical distance. Our distribution centers will be strategically located in mainly overcrowded places such cities and urban centers where there are already existing markets. We plan to have our organizational databases where we can be able to have all records of suppliers and their industry ratings. This will also form a basis on which suppliers can communicate to us; they can track important information about the current trend and our financial performance. (WIKIVERSITY, 2007)
In order to achieve high level of integrity, plans are underway to adopt new systems of procurement that will enable our suppliers to participate in the process. (Entrepreneurs first, 2009)Inventory management has become very important especially where the production process is automated giving rise to units of production. One major problem that will definitely a rise is how to control inventory costs relating to storage, security, and insurance. Our management accountant has already given a, proposal to us advising on the importance JIT Just in Time purchases. This is system where a company decides to produce goods on clients’ orders. It is a system familiar with big manufacturing firms like GM ltd, Mitsubishi and etc. (Ward, 2009)
The rationale behind this system is that it reduces cost further by eliminating the physical existence of stores and go downs. We see this as a potential accounting decision that will make us strategic in the midlist of our competitors. In each and every organization the most critical thing is to ensure that production meets the anticipated demand and that the process is efficient and effective. (Chastek & McGregor, 2002)
Efficient production will be advantageous for us in ensuring that we are actually achieving our cost effectiveness objective. While effective systems will provide us with an opportunity to handle and address contingencies without any laps. This will relate to the wider spectrum of customer satisfaction, steady supply, market reliability, price stability, and generally and etc. (FINANCIAL INNOVATION, 2009)
We plan to use accredited distribution agents that have existing infrastructure throughout the selected regions and where possible use retail supermarkets like Tesco, Asda, Marveling, Nakumat etc which have the capacity to serve the widest markets in Europe, America, China, Africa, India, and the Middle East countries.
We are also planning to set up production centers in these regions to better position our selves in order to reduce the cost associated with transport and marketing in overseas countries. This will also assist in studying the specific local market niches and provide prompt response as appropriate. (Albo, 2008)
Organizational plan relates to the extent of coordination, direction, procedures, and geographical regions that we are likely to adopt and operate on to ensure successful implementation of the proposed idea. Just like any ordinary business idea the process is not exception. Our aim is to achieve a world class service in providing security to our digital possessions, by capturing overseas markets. One main advantage that we have is that there is already existing market for laptops though not multi-function, so we only need to adjust to suit the market conditions. (FINANCIAL INNOVATION, 2009)
In this case our organization will involve domestic and overseas. In domestic we plan to use local individuals to harness our operations and to organize door to door campaign informing clients about the existence of a multi-function laptop that is a final solution to laptop theft. Just like we had proposed to use accredited distribution agents and large scale retailers with branches strategically placed. We will move from North to South America, East to Central Europe, Across Africa, to the Middle East, and India and Japan. (Entrepreneurs first, 2009)
In each region there will be specific people responsible for technical and professional direction and that is why we insist on recruiting highly qualified candidates. Since we are in the digitalization era we are proud to be associated with electronic business. Clients who will wish to access our products through our website will do so and make payment through electronic cards at their convenience. The regional managers will be responsible for the operations and results of their respective regions. (ALL BUSINESS.COM, 1999)
We plan to have field work officials whose duties will be to check the performance of regional managers and communicate important areas requiring changes. The field officials will be directly answerable to the general chief executive of the company who will be based at the head quarter in Canada. His responsibility will be to oversee the overall performance of the company and recommend any necessary amendments. The overseas employees will comprise people who possess adequate geographical knowledge and specific regulations and laws governing those countries and mostly nationalities of those countries. (FINANCIAL INNOVATION, 2009)
Because we plan to use just in time purchases we are likely not have physically existing stock and will mainly focus on orders from the appointed distributors and retailers. This will help us reduce the bulk of storage costs which are likely to impact negatively on our margins. There will be quality assurance units to check whether the organization is adding value to its entire production process. This unit will comprise two employees from each and every region across the globe and specifically be charged with maintaining the quality standard of every process. (Ward, 2009)
It will also look into the welfare of clients, suppliers grievances, the performance of the appointed distributors, staff morale, consistencies in application of accounting policies and bases and determine whether the company is meeting the requirement of international accounting standard or not and if then attach value derived from those systems. The overall responsibility will be to ensure that the organization’s laptops are really multi-functional and they installed security devices, water proof, and solar panel. This is the only way we are going to ensure a success in the implementation of the project and that effective organization is wholly achieved. (Albo, 2008)
This will constitute internal and external procedures instrumental for effective execution of day to day activities and operations necessary to keep the company going. These operations will include communication, production, sales, marketing, distribution, motivation, supervision, coordination, and accounting. All these are necessary for any effective management to take place. Business idea must be supported by a good managerial infrastructure to ensure that it succeeds without good management every thing is likely to fail. (ALL BUSINESS.COM, 1999)
We are governed by the fact that value chain is important in every level of management especially in the production process. Production operations should therefore meet the requirement of value chain, the final unit pact with spectacular appearance that is likely to ignite the needs of clients. Our production plan is to ensure that there are productions personnel who are fully competent to handle production problems and ensure efficiency features prominently while at the same time prioritizing quality standards. In a manufacturing firm production operations are core to the success of the final objective. In this case, these operations will include purchase of materials, sorting, blending, putting them into the production process, checks, inventory coding, and warehousing. (Albo, 2008)
Another system is communication. Important decisions need to be communicated to employees both in the lower and higher levels. Good managers are ones who inculcate all direction communication. We plan to have valid communication systems which are likely to provide our clients, suppliers, and our staff easy time. Being in a technological world we do not want to trail the people, it’s highly likely that our communication process will be characterized by use of internets, intranets and extranets. Remember that reliability and confidentiality are two important factors that should never be forgotten in the communication process. (Entrepreneurs first, 2009)
It’s only through communication that we can know what customers and suppliers want. If our communication operations become faulty then we can almost certainly expect nothing. There will be an employee responsible for effective flow of the communication process in and out of the organization. This is likely to result into maximum response to both local and international needs concerning market changes. (White & Castlelloe, 2001)
For an organization to run smoothly there should be control and coordination of crucial activities. The source of power and control will be determined by the organizational structure. This implies that there should be people who are responsible for these duties and therefore we plan to have operational managers who will comprise middle level and level managers carrying out the supervisory roles. In marketing and sales the respective managers will be responsible for marketing and sales results respectively. Any issues will be communicated to our chief executive based at the headquarter in Canada. (Albo, 2008)
Accounting systems. The accounting systems will relate mainly to the way in which financial transactions are recorded. We are likely to handle international as well as domestic transactions involving large organizations; these are complicated transactions that require proper bookkeeping in order to determine the nature and their effects on the entire organization’s costing procedures. If these transactions are not accurately accounted for then we will be at risk of losing more money. (White & Castlelloe, 2001)
We are going to employ professional accountants and finance administrators whose functions will be to look into the financial welfare of the company and provide necessary disclosures on the financial statement. We already have financial experts and reporting management accountant whose main role is to look at the internal accounting functions of the organization. (Albo, 2008)
We know that we are committing colossal capital into this idea and that failure could spell doom to us, we are in the process of forming audit committees whose main function will be to check the works of both internal and external auditors. They will also be responsible for looking at the management behavior concerning publication of the organization’s financial statements. The role of auditors will be to express their opinion on the entity’s financial statements whether the prepared financial statements portray true and fair view as provided by the international financial reporting standards. (Entrepreneurs first, 2009)
The auditors report will also provide confidence to our creditors including suppliers and financial institutions. Shareholders will also have a reason to smile since their funds are wisely invested and therefore they are assured of the annual wealth. Our doors to external capital will be finally opened and hence. This is how we plan to implement this business Idea dubbed a final solution to Laptop theft. (White & Castlelloe, 2001)
This coursework provides the reader with valuable information as to the necessary elements that should be the content and the strategies of turning those elements into a reality i.e. implementing the proposed business ideas. In a real life situation laptop theft has become an enemy to our digital possessions and therefore any idea than can be seen to eradicate it should be most welcome.
In this work one can clearly get an insight of how we can be able to turn these ideas into reality by incorporating the different types of plans discussed above. Any business idea should come with a good plan to realize success. If there are no plans on how an idea should be implemented then there is no basis of such ideas. The contemporary business environment is a flurry of business ideas but only successful implementation will realize the inherent benefits. And this is what makes the difference between successful organizations and others.
An organization should also have a design that allows its staffs to be innovative enough to take advantage of the changing moments. Mechanisms that promote professionalism as well as creativity. If this is properly done then there is no doubt that a firm can be able to implement any business idea.
This coursework has highlighted some of the key steps in implementing a business idea. Right from its inception to now the final step it is important to appreciate the generation of this bright idea. It is an idea whose time has come. The digitalization era is characterized by powerful techniques by unscrupulous individuals to gain unfair advantage at the expense of others. The implementation of this idea should not be just looked at in-terms of business opportunity but also a relief to the laptop consumers.
However for success of this idea it should be supported by good infrastructure, which will entail commitment and compromises for short term gains. There should be good technological, financial, and operational, production, and marketing plans so that the benefits are achieved to ensure that owner is compensated fully.
Another factor is that all these plans should be coordinated by professionals if a meaningful benefit is to be achieved so technical competence is instrumental to the implementation of this idea. It’s now the responsibility of the managers to ensure that this project transforms the organization into a tower of innovations. By doing this an organization can set an exemplary strategy that will surpass its rivals by far and hence establish a competitive advantage.
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Center for Business Planning. Marketing plan.1994. Web.
Chastek, Gary & McGregor John. Guidelines for developing a product line production.2002. Web.
Entrepreneurs first. What makes a good production plan. 2009. Web.
FINANCIAL INNOVATION. Organizational plan.2009. Web.
Tolentino, A. Guidelines for the analysis of policies and programmes for small and medium enterprise development. 2000. Web.
Ward, Susan. The financial plan section of the business plan. 2009. Web.
White, Craig & Castlelloe Paul. Center for participatory change. 2001. Web.
WIKIVERSITY.Resources for developing a financial plan/risk assessment and risk management. 2007. Web.