Introduction of the Strategy – Executive Summary
iWork aims to support businesses in redefining how real estate transactions are executed, in order to motivate them to provide wider choice and mobility to their employees, resulting in a happier workforce and a supportive environment. The business will also develop exciting environments in which solitary workers, satellite teams, budding firms, and established businesses can thrive. We aspire to develop work environments that provide you with the atmosphere, tools, and professional network you need to Get Work Done.
Business Description
iWork is an online accommodation marketplace that hosts listed houses, offers online marketplace for rented houses, offers a variety of unique accommodations, and provide property damage protection. By hosting listed houses, the business will provide its consumers with a platform where they can easily access listed houses. By offering an online marketplace for rented houses, iWork will ensure its consumers easily access available rented houses through its online platform, website. Similarly, iWork will provide its consumers with a variety of uniquely developed accommodations to provide them with various designs that will potentially meet their housing needs. Given that not all consumers that use rented housing have good intentions, iWork will provide property damage protection for those houses that might vandalized by users.
To expand the business to Canada and later to the Caribbean, iWork has to meet the following goals to facilitate its expansion. The business will have to develop an effective sales plan that will enable it successfully reach the Canadian consumer. Through a good networking system, the business will effectively communicate with its consumers to market its services in Canada. Given the nature of the business, web presence is a critical aspect in achieving success and therefore, iWork will ensure it has an effective internet presence for ease of accessibility. An ideal client profile will also play a critical role in how iWork will market its services in Canada. The same applies to the business’s accounting process since it will allow for clarity in its financials. The presence of an effective healthcare plan will ensure all employees focus on the business instead of worrying over their health. Communicating with the Canadian authority will ensure the business handles any potential taxation issues, which will contribute to its revenue repatriation.
SWOT Analysis
SWOT Summary
Having a team filled with experienced business and technical professionals, as well as properties secured provides strength for our SWOT analysis. However, iWork lacks the funding to roll out the final program and lacks a proper marketing team to promote our company. However, these weaknesses will be rectified in the future.
We face serious competition and expect legal challenges that threaten the success of our company, however. The Canadian government is an advocate for remote work and we also have large commercial property owners that are eager to working with our company.
Competitor Analysis
The new business is expected to face competition from Airbnb with certain factors viewed as difficult to overcome, such as scaling the business to secure the market share. Moreover, since iWork is still a young business, competing against existing organizations, For instance, in order to successfully compete, Airbnb will need to open multiple locations across Canada and the Caribbean. However, given the current status of the business and the potential for venture capital investment, the company is likely to be able to effectively compete against both known and potential competitors. iWork will essentially be the first company to have a platform that supports remote work for any company. Additionally, iWork will leverage the knowledge already available by enlisting its employees to fully commit to reducing employee hesitancy, which affects corporate performance.
Competitor Summary
The new business is expected to face competition from Airbnb since we are going to become the first company to offer vacant rooms and properties for rent for the sole purpose of remote work. Furthermore, iWork is still a relatively new company, so having multiple sites across Canada will be necessary to properly compete with established companies like Airbnb.
However, the company is expected to be able to compete effectively against known and potential competition due to the current state of work and the possibility of venture capital interest. Further, iWork will capitalize on the existing information by engaging its workforce to be entirely committed to minimizing possibilities of hesitance among employees, which impacts business performance.
Business Viability Assessment – Basis for the Strategy
The basis for the strategy will rely on the existing/intended business activities. As shown in the BVA, the corresponding proofs of commitment and passion for the business, primary business drivers, and additional commentary as proof of commitment and drivers will be aligned according to the respective business activities.
Goals Established
iWork will begin by seeking legal help as the business expands to Canada, determine Canadian market structure, find the appropriate location for iWork’s branch in Canada, and research about competitors, specifically those based in Canada. Thereafter, iWork must accomplish the following tasks that define its goals. First, the business must include a personal touch in its services while empowering its subordinates to customize its workspace. Second, under design space to be user friendly, attractive and encourage networking, iWork must provide conference rooms or co-working spaces, which are equipped with internet-capable gadgets such as laptops, smartphones, and tablets. In line with the co-working spaces, the business will also provide secured internet and secured ports or computers allowing for connections with personal computers. Additionally, iWork must set up a common working or resting space where its members, individually or collaboratively, can work to achieve the objectives of the business, separate from the working area.
Ideas for Attaining Goals/Objective
For iWork, the ideas for attaining goals/objectives will depend on the goal. For goal 1, “seek legal help as the business expands to Canada,” the idea/solution will be to contact Canadian authority. For goal 2, “Determine Canadian market structure,” the idea/solution will be to research about the market. Based on the diagram, the respective goals and ideas/solution, relationship will follow the same association as already shown.
Action Steps to implement Ideas/Solutions
To implement the ideas/solutions established in goals 1-7, iWork will establish a focused plan where every goal will be concentrated on. Specific attention relative to the key business drivers will enable the business build that necessary focus on the activities to take and categorize them based on actions to take. By increasing steps while varying existing initiatives in near term implementation and coming up with fast solutions, iWork will then be able to work clearly and coherently. Through this, the business will utilize the available business resources by applying the differentiated leverage and power. This will be essential towards establishing absorbers against potential business distractions.
The New Business in the first year
The average cost of a single-family rental house for one month is $2,095 meaning that to achieve the anticipated $2.12 million dollars in returns in the first quarter, iWork will have to rent more than one thousand houses in the three months. Moreover, with a projected eligible expense of 17% for the first three months, iWork is expected to give out $360,400 for tax and working expenses. As such, for the business to make the projected $2.12 million in revenue, it will have to rent an additional 173 houses for the same period. Meaning iWork will rent 1,185 houses for the three months to make revenue of $2.12 million. The same calculations will be applied for the second quarter, the third, and the fourth quarters throughout 2023.
Country fit for your business
From research, the following were established as success factors for iWork in Canada. Canada’s GDP has been on the rise in the past three decades and is one of the man indicators that show a country’s economic performance. With a strong GDP, businesses are afforded the confidence to invest more, in turn, laying the foundation for economic growth in the future. With a strong GDP, it means the Canadian government is willing to support businesses, by providing loans for organizations to thrive. Canada has a thriving online market that amounts to US$35 billion in revenue, as of 2021, giving iWork an opportunity to share in the market. Moreover, entering the Canadian market is relatively easy presenting iWork with a platform that facilitates room for growth. Canada has a strong legal right meaning the afforded security right will ensure the business is safeguarded from collateral damage of iWork’s original assets and assets leased for operations. Even with Covid-19 in place, the temporal rental market size in Canada has been on the rise and this promises iWork to invest in the market to partake of the rising demand for the services.
Strategy Evaluation Scorecard
Since the business is expanding its operations to Canada, the objectives set for the first year are to contact the Canadian federal authority for guidance on corporate law and research about the market. Other objectives for the first year of operation will be to research about available locations, identify user targets, standardize conference rooms, and choose the right conference rooms. With the objectives in place, iWork targets to increase its cashflow, generate opportunities, and generate visibility. The necessary things to consider for the business’s future in Canada will be when to innovate, innovation opportunities and how the business will evolve. Since the business is yet to start, every associated plan is work in progress.
New Business Strategy Summary
iWork develops exciting environments where businesses can thrive, gets work done, and support businesses in redefining how real estate transactions. The business will host listed houses for sale, offer online marketplace for rented houses, offer a variety of unique accommodations, and provide property damage protection. The business is expected to face competition from Airbnb, compete against existing organizations, compete effectively against known and potential, and capitalize on the existing information. By the end of the year 2023, the business anticipates it will have reached the $2.5 million and in five years, the business will have grown by a 9 percent margin.