Purpose of the plan
The purpose of this business plan is to offer a concise explanation of the business goals for which we intend to venture. The plan offers details of our strategies and objectives towards achieving the business goals in both foreign and home markets. The report also covers a market analysis that will aid in formulating strategies for entering the markets and achieving a significant market share.
The company will be known as HAS, a name that was coined from the initials of the owners’ names. At HAS company, we will strive to sell quality and branded mobile phone accessories at lower prices than our competitors. We will shop for these products among the world’s leading brands in the mobile phone industry.
Our target market will be the market segment made up of individuals between the ages of 18 and 35, this group is the most hungry for new technologies and will not hesitate to purchase new mobile telephony products in the market.
From market assessments, we have calculated that the current market for mobile phone accessories is $34,738,000. Our company has $5,780,000, which represents 16% of the total market, however, our market share comes to 19.7% and this ranks us fourth among competitors.
We have four main competitors, although they are operating in different markets from our targets. All of them are Merica-owned, three of which operate in markets outside Merica, and this indicates that we will have just one competitor in the home market.
Company objective and strategy
Our marketing objective will be to enhance production in the market by increasing the number of salespeople, focusing on the advertisement and adjusting the prices depending on competitors’ prices. Our future strategy will be to raise the prices slightly and advertise aggressively.
We have decided that we will increase our productions capacity and the number of salespeople. Additionally, we will enhance training, research and development, add new product lines and encourage innovation and modernity in our product.
HAS’ finance’s objective is to provide cash for the company in each quarter of the financial year, prevent the company from taking a bank loan and reduce liabilities. Furthermore, HAS will strive to maintain cash balance and to increase the market share in each quarter as a strategy.
Our objective on human resources is to increase the number of skilled staff and motivate them. The strategy is to hire salespeople, spend on training them to be highly skilled and set reasonable salaries and commissions for them.
Our mission is to be the best at identifying, qualifying, and delivering quality mobile phone accessories that augment our customers’ communicative ability. We plan to open our branches in different areas of the world in order to bring quality products to our customers, hence increasing sales and establishing ourselves in the global market. We value our customers as the foundation of our business, therefore, we want to build on what we do well and innovate to meet changing demands of the customers.
Our staff is our main asset and we respect their experience and skill. We value the contribution that every one of them makes to the business team. Our aim is to work hand-to-hand, reward, train and develop our staff in ways that acknowledge performance and individual abilities.
To obtain sustainable growth, we have established a vision with clear goals. Our vision is to position HAS as a market leader by integrating high-quality mobile phone accessories with our commitment to providing superior customer services. We will achieve this by continuously improving all aspects of our service delivery driven by the honesty, teamwork, and innovation of people
A Macro-environment consists of all factors that influence the company but are out of its direct control, they affect an organization’s decision-making, performance and strategies. The market environment is in a continuously changing position, which means that companies have to be able to adapt to these changes. Moving towards globalization means that there is always the possibility of product changes and emerging new competitors. There are different factors under the macro-environment such as political, economic, social, global, demographic, and technology. Each of these may affect the market dynamics.
For example, under political factors, trade regulations, tariffs and taxation may affect marketing or the entrance of the product into foreign countries while economic factors such as economic growth rate have an effect on the sales because if the growth rate is low, people will not be interested in buying leisure goods. Again, the interest rates affect the business because they will determine the market price, hence the demand for a company’s products.
For the social factors, people’s attitudes may affect the product’s sales, for example, new technologies may affect a product so firms have to keep abreast with the latest technological advancements in their product lines.
Merica is located on the North American continent with approximately 9.4 million square kilometers of land area and its climate changes from tropical to polar. It has a population of almost 260 million people while the median family income is over $35,000. Merica is a leading industrialized country with a highly skilled workforce, citizens of Merica enjoy a high standard of living. Many languages are spoken in the area; however, English is the dominant language.
In terms of exports, Merica offers tax and non-tax incentives for goods produced within the country. However, HAS cannot receive any tax benefits due to the nature of our product. In terms of importing, tariffs are differentiated depending on the origin, certification and products description. However, some countries are given preferential rates because of trade agreements.
Foreign investments. Merica has no restrictions on foreign investments and ownership, neither does it limit the entry of foreign funds into the country. Merica has a well-educated and skilled workforce and this makes their salaries high, making them one the highest labor cost countries in the industrial world.
Sereno is located in Latin American and covers approximately 1.8 million square kilometers. The country has a population of 80 million, Spanish is the dominant language. A fifth of the population can be considered as living above the poverty line. Sereno encourages the export of locally produced goods and offers tax benefits on exports. They have no restrictions on the import of low-cost but durable consumer goods.
In terms of investment, Sereno allows 100 percent foreign ownership of firms. Companies that manufacture durable consumer products with a minority foreign ownership take three to four weeks to receive approval from the ministry of foreign affairs while those with a larger proportion of foreign owners will take twice as long.
On dividend payments, a multinational firm with a branch in Sereno may refund its profits to the parent company. However, this amount must be equal to the entire current-quarter profit. Some restriction is also put on this money, i.e. 20% of the profit must be set aside in an equity reserve and it is only paid if, after payment, there is a minimum cash balance of 1,000,000 pesos.