Category: Business Planning

AMP energy drink is energy drink brand which is produced by PepsiCo and was introduced in the market in 2001. The brand has made a mileage from 2009 to date and it now enjoys its own trade mark name. The product has found its markets in the United States, Canada and now in India and by 2009; the brand was ranked fourth energy drink in the United States with regard to all retail sales (Hein, 2009).

Marketing mix is the marketing model that is consisted of four P’s so when planning to market AMP drink it is essential to know how customers perceive it and for our case the quality of AMP energy drink will determine how it will fare in the competitive market (Schermerhorn, 2004).

The AMP energy drink has the original flavor of mountain dew but in order to make it more unique, and appealing to consumers it has been enhanced with ginseng, taurine, B complex vitamins, maltodextrin which is a complex protein as well as guarana which the company has patented as MDX5 (Hein, 2009).

AMP energy drink is also made unique by vitamin B that makes it to glow in light. In addition AMP is a catchy name that is used to illustrate the effect the product has on those who consume it. The consumers are required to get “AMPed up” which has been used to mean partying all night long and PepsiCo has used the slogan “get plugged in” (Hein, 2009).

The target consumers for AMP should be college men ages below 25 years because males, more than females drink more energy drinks. The other way under the product mix is the packaging of the brand which is like any other energy drink in an 8.4 ounce can but the AMP drink can, should be uniquely designed with an image that appeals to mountain drinkers. It is however wise for company to consider having different varieties to make it appealing to different consumers.

In the marketing mix, where the product is found is very important and the underlying factor is that the place should be accessible and presentable to the buyers. AMP brands should be distributed conveniently within the college campuses or near the college because it should target college students (Wyatt, 2004).

Other places where the brand can be placed are the bars and clubs because they remain open until late evening in India. With more than three hundred deemed universities a part from the private universities, India will make the best market for the AMP energy drink.

Displaying the brand in campus buildings, store and vending machines will get the attention of targeted consumers. This can be done by utilizing the university’s vending machines which are used to make the AMP available.

There are many health benefits which are associated with AMP energy drink, one outstanding potential is its ability to fetch substantial profits to the PepsiCo company. Even when the retail price for AMP is relatively low the company can earn a lot of money through economies of large scale when is sells in bulk and at the international market (Hill, 2009).

One way the company can encourage large scale buying is by giving promotions to its customers. For instance it can decide to add an extra can for anybody who buys in cartons for retailers and for consumers or insert coupons on the cans as an offer to customers who more products.

The product is sold at a price similar to those of competitors such as red bull but PepsiCo should be careful not to engage in price war with such competitors (Wyatt, 2004). The price should determined more by quality and the demand of the brand rather than looking more into the prices of alternatives.

Mountain dew has not given AMP a lot of promotion in India and therefore the company should invest a lot in promoting the product and thus stepping up promotions in university stores and bars can be useful (Wyatt, 2004).

The only advertising that the AMP has utilized is the online and therefore there is a need for the company to employ other means of advertisement such as print like magazine which can provide the direct contact with the male students. Posters can also be used to advertise within the stores in the campuses and thus this can influence buyers and new ones to continue buying.

Today the AMP drink has been in the market for quite some good years to be able to compete like other energy drinks and especially in India. PepsiCo should now concentrate in modifying the product in a way that it becomes a top competitor.

This can be done by modifying its taste to have as many flavors as possible. In pricing today the AMP is sold at prices higher than carbonated beverages and PepsiCo must research to attain the suitable price which is able to compete in the market. In order to attain these PepsiCo must step up promotional programs in India especially the advertising strategy.

The brand can do well if promotions such as raffle tickets, coupons, advertising by television, magazine and online ads and so forth are exhaustively utilized (Hill, 2009). Lastly the brand should be distributed through possible stores targeting the consumers as we have already seen with an aim of making AMP a generic name after which PepsiCo will have to incur no further expenses in promoting it.

References

Hein, K. (2009). Monster Goes Small While AMP Goes Big. Brandweek. Web.

Hill, C.W. (2009). International Business Competing In The Global Marketplace (7th ed.) Boston, MA: McGraw-Hill.

Schermerhorn, J. (2004). Core Concepts of Management. New York: John Wiley & Sons Inc.

Wyatt, K. (2004). Energy drinks winning fans at bars, not gyms. Online Athens. Web.

Executive Summary

The business plan relates to FriCo Incorporation which operates in the US food industry. The firm intends to venture the US coffee market by introducing a new variety of instant coffee. The plan details a comprehensive situational analysis of the US coffee industry. This is achieved by conducting a market research and market analysis which aid in understanding the characteristics of the coffee market.

Additionally, the plan also includes an analysis of the competitive environment. The situational analysis also integrates a SWOT analysis and critical success factors. The competitive analysis evaluates the competitive nature of the industry. In order to cope with the competition, the report illustrates the competitive strategies to be used by the firm. The firm’s mission statement, marketing objectives and target market are also indicated.

Additionally, the plan also illustrates the operations and production plan to be used by the firm. In order to create market awareness, the report illustrates the marketing strategies which the firm intends to use. The plan also illustrates the firm’s financial forecasts. The conclusion illustrates the management’s position regarding the success of the venture.

Introduction

FriCo is a private limited company which intends to venture the US beverages industry. In its operation, the firm will have a human resource base of 100 employees. In an effort to meet all the market need, the firm’s management team appreciates the fact that consumers have got diverse product preferences.

In an effort to meet the market demand, the firm’s management team has integrated the concept of product diversity. Some of the products which the firm will produce include fresh brewed coffee, hot chocolate and coffee. FriCo will attain this through incorporation of the concept of product innovation. In an effort to attain its profit maximization objective, the firms’ management team has come into a consensus to undertake development of a new variety of coffee known as Frico Instant Coffee.

Market research and analysis

The global beverage industry has undergone a significant transformation over the past 2 decades. This is evidenced by the emergence of ready to drink beverages. One of the sectors which are experiencing a significant transformation is the coffee industry. For a considerable duration of time, there were numerous inconveniences within the coffee industry. However, emergence of instant coffee within beverages sector is likely lead into a significant transformation within the sector leading into a high growth rate.

A market research conducted by the firm revealed that there is a high market potential within the sector. There is an increment in demand for ready-to-drink beverages amongst the consumers. A market research conducted by the firm’s marketing department revealed that consumers are increasingly shifting to consumption of instant coffee compared to other beverage products.

Findings of the market research conducted by the firm also revealed that the market for instant coffee is undergoing a significant growth. For example, in an effort to cope with the increment in consumer demand, convenience stores such as supermarkets are increasingly carrying varieties of instant tea and coffee products in their shelves (Randy, 2002, p.6).

Additionally, instant coffee is also being incorporated in non-traditional outlets for example, gas marts. This is likely to increase the efficiency with which consumer’s access instant coffee. The US is also experiencing a change in its demographic characteristic. This is evident in the fact that the US society is increasingly becoming a cosmopolitan society.

This means that there is a high market potential for the new product to be launched. Due to the industry’s profitability potential, there is a high probability of more investors venturing into the industry. This will culminate into an increment in the degree of rivalry within the industry.

SWOT analysis

The table below illustrates an analysis of the firm’s strengths, weaknesses, opportunities and threats.

Competitive analysis

Over the past decade, a large number of investors have considered the coffee industry as a very lucrative investment sector. There are approximately 20,000 firms which deal with coffee products within the US. This indicates that the degree of industry concentration is relatively high. Despite the large number of firms in the industry, the market is controlled by only 50 top firms. These firms control approximately 70% of the total market.

The total annual market revenue is approximately $ 11 billion. As a result, most investors are increasingly venturing the sector in order to get a share of the market profit. The resultant effect has been an increment in the intensity of competition. The intensity of competition within the industry has made most firms to incorporate the concept of internationalization.

One of the markets that they have considered is the US. However, the US has a large number of instant coffee producers and distributors. Some of the players within the industry include Life via Coffee, JKS Enterprises, Organo Gold, Sam’s Donuts, and Healthy Organic Coffee.

In addition to competition from firms within the coffee sector, FriCo also faces competition from firms which deal with production of substitute products especially instant tea. An example of such a firm is Nestle which produces a wide range of instant tea products. Over the years it has been in operation, Nestle has managed to develop global market recognition. These firms have also managed to develop a high competitive advantage.

Competitive strategy

In order to cope with the increment in the intensity of competition, the firm’s management team will incorporate various competitive strategies. Michael Porter developed a number of competitive strategies that include differentiation strategy, cost leadership strategy, and focus differentiation strategy (Schermerhorn, 2010, p. 147).

In its operation, the firm will adopt the differentiation strategy. Schermerhorn (2010, p.147) asserts that the differentiation strategy is used when the product being marketed have a unique attribute. To be effective in its differentiation strategy, the firm’s management team will incorporate the concept of continuous value addition. The resultant effect is that the firm’s product will be of high quality. This will play a critical role in the firm’s effort to develop a high degree of customer loyalty.

Additionally, the firm will also adopt the concept of cost leadership. Decision to adopt this strategy arose from realization of the fact that consumers are price sensitive in their consumption patterns. In order to be effective in its cost leadership strategy, the firm will incorporate the most efficient technology. This will contribute towards reduction in the cost of production. As a result, it will be possible for the firm to implement an effective pricing strategy.

Critical Success Factors

The success of firms in different economic sector is dependent on a number of factors (Sexana, 2005, p.91). These factors are referred Critical Success Factors. When venturing into a particular market segment, firms’ management should have a comprehensive understanding of the Critical Success Factors. Consideration of the Critical success factors contributes to the effectiveness with which a firm penetrates the market. In an effort to venture the instant coffee market, FriCo has identified a number of Critical Success Factors.

One of the Critical success factors that the firm will consider is the quality of the instant coffee. In order to develop a high quality product, the firm will incorporate the concept of quality control. This arises from the fact that the quality of the firm’s product will determine the probability of the consumers attaining a high level of satisfaction. Additionally, integration of the concept of quality control will contribute towards the firm’s product meeting the set market standards.

To ensure high quality instant coffee, the firm’s management team will incorporate a comprehensive criterion in the selection of the raw material suppliers. This will play a vital role in ensuring high quality products. According to Sexana (2005), organizations should ensure that they have a sufficient amount of raw material at all time so as to avoid disruption of the production processes.

To attain this, FriCo will integrate effective inventory management. One of the inventory management techniques that the firm will use is Just-In-Time method. JIT will enable the firm to minimize costs associated with raw material running out. The firm will also eliminate costs associated with overstocking of inventory.

The success of organizations is also dependent on the effectiveness with which the firm’s workforces from different departments coordinate in executing their duties. In order to achieve this, FriCo will incorporate the concept of teamwork. In order to achieve this, the firm’s management team will incorporate the concept of teamwork. Another critical success factor that the firm will consider is market research.

FriCo will conduct continuous consumer and competitor market research. This will aid in determining the changes in the market, the resultant effect is that the firm will be able to undertake product improvement. Teamwork will contribute towards effective organizational coordination. The firm will also conduct training on its employees in order to equip them with emerging techniques.

Mission statement

In its operation, the firm is aimed at stimulating the coffee market within the US. To achieve this, FriCo will be committed at ensuring that its customers achieve a unique experience upon consumption of the product. The firm will achieve this through provision of high quality instant coffee. To ensure continued product innovation, the firm will undertake continuous product improvement.

Marketing objectives

In its operation, the firm intends to achieve the following objectives.

1. To attain a sufficient level of brand recognition.
2. To attain a market share of 20% within the US coffee market within a duration of 1 year after its inception.
3. To attain a markup of 30% within a duration of one year.
4. To attain a sales revenue of $ 1 million within a period of one year.

Target market and positioning strategy

Target market entails the specific category of customers that a firm intends to capture by supplying its products. The success with which a firm addresses the needs of its target market is determined by the effectiveness with which it undertakes a market research (Kurtz, Mackenzie& Snow, 2009, p. 79).

In establishing the venture, the firm targets both institutional and individual consumers. With regard to individual consumers, the firm targets customers of different demographic, economic, psychographic and geographical characteristics. The product will be consumed by both the young and the elderly. The product will also be distributed to customers of different economic class across different geographic sectors.

Positioning is a critical element in the success of firms in different economic sectors (Transtod, 1995, p.7). One of the benefits of positioning is that it contributes towards the firm attaining a competitive edge. In its operation, the firm will consider using effective technology and expertise in its production. This will contribute towards production of high quality instant coffee.

Operations and production plan

In its operation, the firm will be composed of a number of departments. These will include the production, marketing and sales, research and development and the finance departments. Every department will have its specific responsibilities. However, all the departments will be dependent on each other in order to achieve the desired objective.

In producing the instant coffee, the firm’s management team will ensure that a high degree of expertise is incorporated. To appeal a large number of customers, the firm’s management team will ensure that different natural aromas, tastes and colors are incorporated. This will contribute towards the product appealing a large number of customers. The firm will ensure that the coffee beans are effectively dried, roasted and grinded to produce the instant coffee.

During the roasting process, the production department will undertake an effective control. This will ensure that t important nutrients are not destroyed during the production process. In an effort to improve on the quality of the coffee, the firm will also undertake the process of blending. This will entail mixing coffee beans from different sources during the roasting and grinding process so as to improve the quality of the final product.

Marketing Mix

Integration of an effective mix is vital in the process of marketing products and services. Marketing mix results into development of a synergy between the various requirements for effective marketing.

Pricing strategy

The firm will use penetration pricing strategy considering the fact that it is a new venture. The strategy will entail setting the price of the product at a relatively lower point compared to its competitors. Considering the price conscious nature of the consumers, the firm will be able to attract a large number of consumers.

Additionally, the firm will also integrate psychological pricing strategy. This will entail setting the price of the product at a point that appeals the consumers’ emotions. For example, the price of 500mg of the firm’s specialty coffee will be set at $ 3.99. Adoption of these pricing strategy will enable the consumers perceive the pricing strategy as being fair.

Promotion strategy

Creating market awareness is a critical element in the success of a firm’s products. In its operation, the firm will incorporate both traditional and emerging marketing communication techniques. Some of the techniques that the firm will use include advertising, sales promotion, public relation and personal selling. The firm will also use emerging social communication tools such as wikis, blogs, YouTube and Face Book.

Distribution strategy

To ensure that its products access a large number of consumers, the firm will has developed a comprehensive distribution strategy. The firm will establish outlets in different parts of the local market. Additionally, the firm will incorporate retailers and wholesalers in its distribution strategy. To increase its market share, the firm will also venture into the international market by using agents.

Financial overview

Sales forecast

As a result of the high rate at which consumers are integrating coffee in their consumption, the firm’s management team projects a significant growth in its sales revenue. The table below illustrates the firm’s sales forecast for the next three years.

Expense forecast

In order for the product to be successful in the market, the firm’s management team recognizes the fact that a substantial amount of cost will be incurred. This arises from the fact that the firm will be required to undertake a comprehensive marketing process. To achieve this, the firms’ management team has allocated $1,000,000 in its marketing budget. The chart below illustrates a breakdown of how this amount will be allocated.

The chart below gives an illustration of the cost that the firm expects to incur in creating market awareness.

Conclusion

Through implementation of this plan, the firm’s management team expects that its products will penetrate the US coffee market. Through production of high quality coffee, the firm will attract a large number of consumers. The resultant effect is the firm will acquire a substantial market share hence attaining its profitability objective.

Additionally, the firm’s success will also be stimulated by incorporation of continuous product innovation and product improvement. For the plan to be successful, the firm’s management team will conduct a continuous evaluation. This will aid in determining the effectiveness of the strategies implemented. In the event that the strategies are ineffective, the firm’s management team will undertake the necessary adjustment.

Reference List

Kurtz, D.L., MacKenzie, H.F. & Snow, K. (2009). Contemporary marketing. New York: Cengage Learning.

Randy, A. (2002). Instant tea, instantly. Tea and coffee journal. Vol. 1, issue 2, pp. 1-8. New York: A D& B Company.

Schermerhorn, J. (2010). Exploring management. Hoboken, N.J: John Wiley.

Sexana, R. (2005). Marketing management. Chicago: Tata McGraw-Hill.

Transtod, R. (1995).Product positioning. Web. Web.

Executive summary

This business plan provides details for investors on all the operational and start-up features of “The Entertainment village”. It specifically outlines the infrastructural issues, business growth, procedures and many other strategies that will be essential to the success of this business.

It has been estimated that a total start-up cost of $10, 063, 535 will be needed and operational costs of $1,142,284.5 for the first year will have to be added thus making the total costs to be $11,205,820.

Risks for investments will be reduced through the following: Project commencement will occur only after adequate capital has been obtained so that investors do not lose their funds.

A thoroughly trained workforce will be available in order to provide the best customer service. Investments in the latest technologies will ensure that the services on offer are a cut above the rest. A perfect location for the business has been selected; it will ensure a consistent flow of clients. Lastly, the products involved do not require excessive inventory so the project will not have many operational costs.

Objectives

Entertainment village will be located at the heart of Riyadh. The intention is to provide a recreational centre with eight main attractions: indoor and outdoor shooting ranges, four golf simulators, four paintball fields, seven bowling lanes, a play station 3 zone, restaurants and coffee shops, an arcade center and two projectors for matches.

The project will cost a total of $11, 205, 820 to start up. The funds will be borrowed from financial institutions at a rate of 10% per annum for a period of ten years. It is likely that Entertainment village will be opened in one year’s time although the first year profit will not exceed investments in the assets. However, in the second year, gross revenues indicate a return and they are expected to grow in the subsequent years as well.

Mission and vision

The aim of creating The Entertainment Village is to offer residents of Riyadh excellent entertainment in an enjoyable and pleasing environment. Quality services will be provided through the most technologically advanced facilities in the recreational industry. This center will be globally competitive because it will borrow trends from different parts of the world. In short, the mission is to provide excellence through the latest technologies and global competitiveness.

The vision of the business is to be the first of its kind in entertainment and recreation; to become the best in the industry and to become the biggest recreational service provider in the country.

Competitive comparison

The success of The Entertainment Village will be dependent upon the social abilities and the expertise of the management team that will run the facility. This leisure hub will be the most technologically advanced entertainment venue in Riyadh. The contractors that will be used in its creation will be internationally recognized and will build the most reputable entertainment venue in the country (Schilit 104).

The Entertainment Village will be marketed aggressively to potential clients so that they can come and use the facility when it has been completed. Lastly, the center will be located at a prime area with lots of customers who have disposable incomes.

Company summary

The site for The Entertainment Village will be at a prime business location called Jeddah. This area is five minutes away from the airport and the city centre is about 15 minutes. It is in North Riyadh and is richly endowed with many private residential areas. This is a very busy area but is also known for its recreational services.

A lot of customers usually come to that side of town in order to enjoy themselves. They will find that there is a lot of room for parking. Besides, the architectural requirements for establishing such as complex recreational centre will have been met if the business will be located in that part of town.

The market for a recreational centre is quite high in Riyadh. It has been reported that there is an increase in the number of people aged between sixteen and twenty five. These would be the ideal market segment for the business. The target area has very few similar activities, so this facility will enjoy first-mover advantage.

Demand has been going up for the product so chances are that people will respond well to the initiative (Kiyosaki 25). It will also be possible to expand the activities quite rapidly in this chosen area. As people continue to learn about the centre, more and more of them will continue to participate.

The main priorities will be the arcade center, golf simulator and play station 3 zone. These areas will all possess the latest game versions and play technologies. All areas will be well spaced and beautifully designed. Ample lighting will be provided depending on the nature of the activity under consideration. The Play station 3 zone may not require too much bright light. Consequently, the lights will be strong enough to allow visibility but will not be too overwhelming.

In the arcade center, facilities will be arranged in a straight row so that everyone can witness what the other is doing and thus have more fun in the process. The use of high quality equipment will also make the services quite satisfactory to the patrons. Since The Entertainment Village will have four golf simulator screens as well as four paintball fields, then customers will not have to wait in line in order to use them.

The bowling area will also be highly computerized. Staff members will be ever present at each lane so that clients can be assisted. Scores will be shown through an automated system that will be recorded for every single game. Customers will be informed about prices of each game through a visible board. Promotional and marketing campaigns will also quote those prices so that buyers can be aware of what to expect in the recreational centre.

Time schedules or waiting times will be communicated to the clients before using the centers so as to manage inflow and outflow traffic. It is likely that this sufficient information will translate into a great service experience that will cause most clients to keep spending their money. The structured sources of income will come from the golf simulators, the paintball fields, arcade centers, play station 3 zone, and the shooting range.

These will all have a fixed price that will be paid per hour. However, the cafes, restaurants as well as the projectors for matches will be dependent upon how much the clients choose to spend on food and drinks. Some of the customers from the gaming centers will be the same ones who will frequent these eateries. Given the fact that there will be virtually no competition, this business is likely to elicit very positive responses.

Company ownership and legal entity

The organization will be privately owned and a portion of the stock will be made available to investors. This means that it will be a joint stock firm.

Establishment

At the start up of the event, a number of things will occur concurrently. First, the entrepreneurs will obtain investment for the business. As stated earlier, the intention is to do this through a commercial loan (Kiyosaki 29). The business plan will be sent to a variety of funding sources in Riyadh in order to carry out the project. At the same time, it will be necessary to obtain a permit for carrying out the business. This will be collected from the government revenue collection authority.

All other legal requirements will be considered in the process as well. This will be followed by the purchase of the land where The Entertainment Village will be located. As soon as the latter step is completed, architectural drawings for the facility will commence. Since some of the items needed to complete the recreational centre have long lead times, then their orders will be placed immediately; they include steel and other metals.

It will be essential to start looking at the equipments for the arcade centers, bowling, golf simulators and many more. Orders will be made for the equipments at that time. After completion of the orders, it is likely that the architectural drawings will have been completed. It is at this point that the architects will be given the final approval. Shortly after, site clearance and preparation will be done.

The building will then be started and will possess a timeline of about six months. After the six months, employees will be hired to work in the various segments of The Entertainment Village. A number of in-house training initiatives will be developed and implemented immediately after the completion of the building. Finalization of operation procedures will be made such as: streamlining the play station games, pretesting the shooting range and golf simulator equipment and ascertaining that the bowling alley is working well.

Now the company will be ready to start advertising. An intense marketing campaign will be launched in order to let the public know about the services that will be available in this recreational centre. Additional staff will be needed to carry out other functions, so a second hiring phase will be necessary. They will still require some training before then can start working.

After all the structural components have been put in place, the firm will need investors. The restaurants and cafes will require food supplies as well as other kinds of supplies that will be essential in service provision. There will also be a need for gloves, head gear, knee caps, paintball suits, bowling bowls and other supplies that will be necessary in the running of the centre. After all inventories have arrived, then the organization will be ready to open for business.

Table 1: A summary of the establishment requirements.

Company location and facilities

This entertainment center will be strategically located. It will be adjacent to a number of supermarkets, shopping complexes, banks and smaller businesses that are different from this one. As a result, a multipurpose recreational centre will be ideal in such an area.

Recreational experts and analysts often assert that most centers should be between one to file miles away from a market place. The Entertainment Village will fit this requirement flawlessly; demographics of the location will be perfect. Since the facilities will be made from scratch, then it will be possible to custom-design the place.

Customers will be given plenty of parking space. The facility will mostly consist of masonry work with some components of glass. Many clients in one section of The Entertainment Village may be interested in viewing what users in other sections are doing. Therefore, most of the centers will be compartmentalized using glass. Clients will not be unnecessarily inconvenienced when accessing the company premises because most of them will actually be coming to that side of the City for a variety of reasons (Schilit 378).

Products and services

This will be an entertainment centre for people of almost all age groups. The leisure activities found in this area will posses characteristics that are suitable to different groups or individuals. Computer technology will assist in monitoring the games, keeping scores as well as providing software for some of the competitions such as the golf simulator and the play-station zone.

The main revenue generator for this facility will be the paint ball as it will cost customers two hundred and fifty dollars in order to use it for one hour. The shooting range and arcade will be the next revenue generating items and these will bring in 150 and 100 dollars per person per hour into the company. The main idea in paint ball and the golf simulator is to get people to compete with one another.

Scores will be noted and conveyed to the participants as they proceed with the games. In the arcade center and the play station zone, customers will be competing with themselves in order to see how far they can go. The most aggressive arena will be bowling because minor competitions will be held for participants. Basically, these are all the entertainment services that will be available.

The projectors for watching matches will also be giving customers a service as they will get to enjoy their preferred matches in a great atmosphere. Most of them will purchase drinks as they watch the competitions. Additionally, the coffee shops and restaurants will be offering food and drinks to clients. Revenues will be generated from the purchase of those items directly. Late night customers or early morning reverends will have something that they can get from The Entertainment Village at all times.

Competitive analysis

The business under analysis will be a success because of the following reasons: The entrepreneurs and managers running this business will have done a thorough research about the industry, trends and many other things that customers look for when they come to an entertainment center such as the one under consideration.

It will probably receive a lot of publicity from the media because of the professionalism accorded in the business. Secondly, the company will strive to provide high quality customer service that would make users comfortable in the environment.

That part of employee training will be thoroughly explained to them prior to the hiring process and during operation of the project. Third, aggressive marketing will take place prior to the commencement of business. All clients will be duly informed about the great things they can do and enjoy at the Entertainment Village through posters, the internet (especially social networking websites), television and radio ads, newspapers and personal selling.

Through these various channels, it is likely that several people will have heard of the entity and will be willing to try it out when it opens. Fourth, the location of the business is excellent. The Entertainment village will be a few miles away from the target consumers. The neighborhoods found around the chosen location are upper and middle class, so most of them will welcome this centre enthusiastically.

Fifth, the affordability of the facility will also contribute towards its success. Since the pricing will be quite reasonable, clients are likely to respond well to the provisions made. Additionally, the safety that will be provided to users will also increase their rate of satisfaction and may cause them to enhance their level of patronage to the facilities (Pinson & Jinnet 99).

Supplies

Most supplies that are used in the leisure industry are usually shipped overnight. In this business, products are not perishable so the orders can be made in advance. This will prevent the last-minute rush that may sometimes compromise on customer service (Abrams 211).

Only the restaurants and the cafes will require immediate daily responses for supplies. In such cases, only the best local vendors will be chosen for this task. Reputable restaurants all around the country will be analyzed so that selection of the most efficient suppliers can be done.

Technology

The Entertainment Village will strive to serve the needs of entertainment consumers, business clients and sports oriented clients through the use of technology. Most of the scoring systems will be recorded and encoded through the use of technology so that managers can concentrate on other tasks.

All gamers have their own experience levels and the software used will be designed to provide each person with challenges that fit their abilities. Most of the games will be handled by a Pentium processor which will then display information on high-resolution screens for all to see. In case new improvements have been made to the current and existing software, then it will be relatively easy to upgrade because most software firms usually leave room to upgrade to better versions without too much stress.

Future products and services

In the fourth year of operation, The Entertainment Village will expand to include even more revenue generating activities. There will be a batting cage as well as a dodge ball court. All these will increase the client base and thus supplement current services and products on offer.

Minor additions in various facilities will include: provision of snack bars in a range of segments like the paintball field area as well as the outdoor shooting range; the introduction of vending machines in enclosed settings like the play station 3 zone and the arcade center. Customers will be allowed to rent lockers through monthly payments and there will also be a nursery where parents can leave their children and attend to the other activities that may be difficult to do in their presence.

Market analysis

It is likely that nearby residents will be coming to the entertainment centre; in addition, the vast and efficient transportation system available will cause customers from different parts of the country to still get a chance to come to the recreational centre.

The demographics of the people who will be interested in the services found at the entertainment village are: middle income earners; predominantly male buyers especially for the golf and shooting range, persons younger than thirty for the gaming services or the play station 3 services. It is likely that most of these people drive their own cars and are people with a reasonable disposable income in their hands (McKeever 48).

Market plan for the target market

In this organization, a designated person will be in charge of public relations as a full time job. She or he will always be responsible for informing the public about upcoming matches, events and competitions. It will be that person’s main responsibility to create new offers. The public relations manager will also be responsible for ensuring that customer service is top notch at the center. Publicity for events will be created through the use of television advertisements.

Catchy models, actors and actresses will be used for these campaigns. Additionally, several radio ads will be used for the same. The internet will be another avenue. Here, email invitations will be sent to individuals; advertisements on specific websites will be placed and a buzz will be created through social networking websites like facebook and twitter. Promotional coupons will be offered from time to time in order to encourage repeat sales from former clients.

There will also be membership provisions in the various types of competitions so that users can have a sense of association to the concerned game. Business to business contacts will also be utilized as these will provide sponsorship opportunities for some of the games.

Print advertisements will also be vital in creating an interest around the services on offer in this organization. Most of the clients may be readers of lifestyle magazines. Special attention will be given to magazines that were designed for the younger generation or sports and racing magazines designed for the same market segment as the Entertainment Village centers around them. Posters will also be placed around different shops and businesses around the city.

The basic message in all the platforms will be to make customers excited about the offerings at the recreational center. They will also be told about the prices and actual activities that will go on. Location and charges may be mentioned in certain platforms like print advertisements. This information will be displayed in an aesthetically pleasing but creative way.

Market trends

In Riyadh, more and more people are opening up to the reality of global patterns and influences. Many of them have more disposable income so they have something to spare in terms of leisure and entertainment. Young people are well exposed to play stations and arcade centers, but few of them have ever been able to get all these services in one place. Additionally, a lot of people are interested in watching football matches in public places.

Many restaurants and pubs already have such kinds of systems in place. The only difference is that none of the businesses available are actually offering every kind of game. Riyadh has so many international visitors who will be familiar with paintball fields and the like. Those who may not be aware of these new trends will be educated and trained by people who are on the ground and ready to work with them.

Market needs

An analysis of the demographics in Riyadh reveals that the population between 16 and 25 years is increasing so this category of people has a need for new entertainment options. More visitors are coming into the country and they would certainly be open to the idea of an entertainment all-in-one centre. Disposable income is also at an increase and will facilitate payment for entertainment services.

Market growth

Since the services available at the institution are new, it is likely that the market potential will only increase after using the services. Diversification of the entertainment industry is occurring at very rapid rates and this will definitely increase market prospects.

Service Business analysis

The Entertainment Village will be competing with other leisure and recreational providers such as pubs, theme parks, cinemas, sports centers and bowling centers.

Competition and buying patterns

Competition in paintball and bowling in Riyadh is virtually nonexistent so this business will have an edge over many entertainment centers. However, a lot of competition exists in the restaurant and coffee business as well as match watching.

Great customer service, proximity to other new and exciting leisure services, a safe and ambient location are the qualities that will make those services at The Entertainment Village stand out. In the bowling and golf industries, competition is mild at best; this project will stand out in golf because a golf simulator will be used instead of an actual golf arena. In bowling, good customer service and top-notch technological devices will be used.

Main competitors

Al Hokair group runs an amusement park and many more outdoor activities; it is a force to be reckoned with. Al-Thumama entertainment has a lot of shopping. Snow World Riyadh has indoor skating, ice sculptures and artificial snow. Universal bowling centre is another important competitor because it offers one of the main services to be found in The Entertainment Village – bowling.

Market segmentation

Segmentation will be based on age. The Entertainment village targets young people between sixteen and thirty for some of the services. They include: the paintball field, arcade center and play station 3 zone. The bowling centre will attract people from other age groups as well. Those between the age of 30-40 maybe interested in watching matches, using the restaurants and pubs and may also do indoor and outdoor shooting range. Bowling may attract people over forty and the same can be said about the golf simulator.

Strategy and implementation

In order to have sound leadership and accomplish effective service provisions, one must ensure that staff members are well motivated and that customer service is meticulous. These are the things that will be emphasized in the Entertainment Village

Competitive edge

The Entertainment village will be a force to reckon with because of:

1. Uniqueness. It will be the first to offer such types of games in one convenient location. The wide selection of activities and recreational services will be sure to attract a diverse range of clients who will be more than happy to spend their expendable income in the facilities.
2. Affordability. The charges will vary from $30 to $250 per hour for any of the services in the recreational centre. This means that most of the customers will easily afford these services without having to strain themselves. Given the demand of the products and their uniqueness, then the selected product range will be quite reasonable.
3. Safety. Some of the activities in The Entertainment Village may be hazardous to people who do not know how to use them. A lot of precautions will be enforced in order to ensure that everyone is safe. Furthermore, personal properties, cars and many more will be promptly protected by the organization in order to enhance its appeal to the masses.

Value proposition

The Entertainment village is a technologically advanced and modern entertainment facility. It will be designed to meet the recreational needs of members of the whole family. Through a safe, affordable, convenient and friendly place, the customers will be more than happy to come back (Abrams 7).

Sales strategy

The services will be sold as a sporting package that requires minimal athletic ability or even strength. Customers will be informed about improved health that will result from the services. Those who will be engaging in indoor gaming services will also be told about the affordability and delightfulness of the games.

Table 2: Sales forecast.

SWOT analysis

Strengths

This business will be the first in the field, so that will give it a first-mover advantage. There is a need for such a facility in Riyadh as the people in that area are looking for new ways of entertaining themselves. Virtually no competition in this industry exists.

Entertainment Village will provide clients with high quality equipments so that services can be satisfactory. The business will combine a series of services so that poor market responses in one area can be mitigated by successes in another. Entertainment village will be located at a prime location that will ensure success. Its affordability will also ensure that the business does well.

Weaknesses

The business has not yet started operating. A lot of things will have to be learnt after the facility opens its doors to the public. Entertainment village will have a relatively short to time to market and publicize itself after completion of the constructions, so this may slow down results.

Opportunities

The Company will focus on continually improving the level of services offered, and this will increase the client base. It is likely that the demand for the services will increase as more people become aware of The Entertainment Village. This business will expand its services and thus reach into untapped market segments. Statistics indicate that there is a relative increase of people between the ages of sixteen and twenty years. All these individuals will be targeted by the business.

Threats

Other entertainment companies might try and copy the concept at The Entertainment Village. There are already a number of businesses that focus on one or two services offered in this business. Some of them are restaurants and bars; others offer facilities for watching matches while a few offer gaming services. This business will deal with such threats by continually improving delivery.

Management summary

The goal of management will be to set high standards in the leisure and recreational industry. Although none of the members have been selected yet, it will be crucial to ensure that they possess the right qualities to match the needs of the organization (McKeever 48).

Organizational structure

The organization will employ a hierarchical structure of 60 employees with one general manager, and eight associate managers who will be in charge of the eight segments of service provisions.

Personnel plan

In the administrative area, the company will have a general manager, an accountant and a public relations coordinator. In the operational sector, the firm will have a bowling manager, a golf simulator manager, a paintball field manager, a play station 3 manager, a match projections manager, a restaurant manager and a shooting range manger.

Other employees that will be in operations include shift leaders, porters, waiters and waitresses, attendants. For facility maintenance, the organization will have a chief engineer, who will be supported by second class and first class mechanics. The total amount spent on salaries will be 120, 000 dollars per year.

Financial plan

Important assumptions

It has been assumed that the team will be taxed at a rate of 25% for the property costs. The business license will cost 0.05 of all the revenue to be earned in food and drink sales and 0.08 percent of bowling, shooting range and all the other gaming sales. It has also been assumed that only four hours in a day will be used for each service sector.

In paintball, it has been assumed that there will twenty players per game per hour. In bowling, shooting range, play station 3, golf simulator and the arcade center, the following number of players will be available per hour: 15, 10, 14, 8 and 30 respectively. Banking interest rates have been assumed to be 10% per year (Pinson & Jinnet 51)

Income statement projections

In the initial year, annual profits will be $4,120,465.5 annually. This will grow to $21, 945,715.5 in the second year. The revenue will be generated from the core business segments offered by the organization. Price per service will not be increased, but it has been estimated that the client base will.

Cash flow projections

After eighteen months, it has been estimated that the company will be operating under a positive cash flow and will be self sustaining. It will strive to have a cash balance of approximately nine months so that it can handle any potential emergencies.

Table 3: Pro forma cash flow.

Break even analysis

All figures are in thousands. The breakeven point occurs in the 2^nd year. It was calculated using the following formula: Fixed costs/ (Selling price per unit less variable costs). All fixed costs were estimated on a monthly basis and so were the variable costs.

Table 4: Business ratios.

Works Cited

Abrams, Rhonda. The successful business plan: secrets and strategies. Chicago: Running ‘R’ Media, 2000. Print.

Kiyosaki, Robert. The ABC’s of writing winning business plans. NY: Business plus, 2009. Print.

McKeever, Mike. How to write a business plan. NJ: NOLO, 2005. Print.

Pinson, Linda & Jinnet, Jerry. Anatomy of a business plan: a step by step guide to starting smart, building the business, and securing your company’s future. NY: Dearborn trade publishers, 1999. Print.

Schilit, Keith. Entrepreneur’s guide to preparing a winning business plan and raising venture capital. NY: Prentice hall, 2010. Print.

Introduction

The business plan analysis below relates to the areas identified in the business plan with room for improvement. The analysis includes the weakness observed in the plan, the rationale, and suggestions for improvement. Covello & Hazelgren (2005) attest that it is crucial to follow certain rules to make a business plan. Without proper presentation, a plan may fail to provide the direction it promises.

Risk Assessment

The section dealing with the assessment of risk requires some improvements. As it stands, it identifies the risks to the business and in some cases predicts their possible impact on the business. The assessment presents all the risks in prose. The entire presentation fits in two small paragraphs. This is incongruent to the average length per section in the business plan. These weaknesses have a number of ramifications.

First, the assessment does not provide for weighted-criteria for the determination of the “seriousness” of the risks. There is no way of knowing which risks have the highest likelihood of happening, and if they happen, there is no way of determining the kind of consequences that will accrue.

Secondly, having a section of the plan significantly shorter than others gives the impression that the section did not receive much attention during the preparation of the plan. Thirdly, while there is no problem with putting down the risks in prose, the nature of the information is such that presenting it in prose only, reduces the efficacy of communicating. This is because the risks are distinct. A reader of the plan does not have a means of appreciating the gravity of each risk.

There are a number of ways to improve the section. One of them is to use a list containing the risks in a numbered or bulleted fashion. This will make each risk stand out and will make it easy for someone looking at the plan to see the distinctness of each risk. This method will not make it possible to add conveniently weighted-criteria. The second method involves tabulation of the risks and providing columns for putting up the weighted-criteria.

To make the presentation of risks more effective, the following format may be useful. First, a paragraph written in prose will introduce the section. Secondly, a general assessment of the risks will take place. Thirdly, there should be a risk-matrix table to display the risks and their probability of happening, and the consequences of such risks.

This is a strong indicator of a “carefully prepared business plan” (DeThomas & Derammelaere, 2008, p. vi.) Finally, a paragraph explaining the risk management strategy will close the section. A sample risk matrix used in project management follows below.

For probability of occurrnce, using a scale of 1-5, assign a value based on the perceived probability of the risk occurring. “1” means improbable, “5” means very probable. On the consequences, “1” represents “inconsequential while “5” means “catastrophic”. Multiplying the two columns provides the relative seriousness of the risk in question.

Strengths and Weaknesses

In the section covering competitive strengths and weaknesses, a table contains the information and bullets make each of the entries distinct. The table assesses the strengths and weaknesses of traditional travel agencies, online travel agencies, and airlines. It deals with the issues that affect the three forms of airline booking services. By using a table, the information takes on an easily readable format and shows the distinctness of each of the issues.

There are three problems with this section. The first problem is that the section does not have an introduction to help a reader understand its significance. It just appears in the plan. The second weakness with it is that there is no synthesis of the information presented. The laying down of facts does not conclude with a paragraph explaining the significance of the information presented.

This leaves the user to determine what the significant is, and what is not. The third problem with the section is that it fails to provide for a concluding section showing the impact of the information on the proposed business.

To improve the section, there is need to include the three sections proposed. The first bit is the analysis of the data presented, to determine its significance to the business planning process. Another way to deal with the shortcomings is to expand the table to include two more columns. The first column will show the impact of the strengths and weaknesses of the competitive industry sectors while the final column will show how the business proposed will avoid the weaknesses and take advantage of the strengths.

From the issues identified above, the best way to deal with the shortcomings of the section will be by having separate paragraphs to address the issues identified. The paragraphs required include one that addresses the need to introduce it to readers so that they are clear about its significance.

The second paragraph for inclusion should come after the table. It should synthesize the issues addressed by determining in broad terms the impact of the strengths and weaknesses of other members of the sector. Finally, the concluding paragraph will address the strategic direction that the business should take to take advantage of the opportunities that the sector presents.

Management Plan

The management plan attempts to provide information on the skills, qualifications, and responsibilities of the management team members. It provides the details of four people, with Kimberly Peters as president.

The rest of the team members are Christa Bentley who will work as the Finance and Accounting Manager, Jack H. Welch who will work as the Public Relations/Information Technology Manager, and Sandrene Bouchet who will take care of Administration as a Manager. There are some lapses and room for improvement in this section of the business plan too.

The first issue is the use of the shortened version of Kimberly’s name, Kim. While the shortened version of the name is easy to read, it sounds informal, which may cause readers to feel that the plan lacks seriousness. The second issue identified is the mention of Kimberly’s birthplace. Unless there is a straightforward legal requirement or a similar condition, this information is not necessary in the plan.

It makes the plan bulky without adding to the critical information required to make the plan compelling, especially if it will go through an approval process. The third issue identified is the use of prose to present Kimberly’s qualifications. The information is harder to read in this form. The fourth issue in the section is the sentence structures chosen to describe the roles and experience of the team members. Some of them can benefit from modification to give them a stronger punch.

The section will benefit a lot from bulleting of the skills. Compared to the current presentation, which is in prose, bulleted lists will provide an easier way for the readers to see the skills each person possesses.

The section will also get a more serious image if the name of the president remains Kimberly. In addition, it makes sense to omit all information relating to places of birth of the management team unless there is a clear business reason to include it. Another part of the section that needs adjustment is the graphic presentation of the organization structure.

It has some discrepancy with the information presented in prose. Sandrene Bouchet title is “manager” in the prose, but in the organization tree, it is “director”. In addition, Christa Bentley’s title is incomplete in the organizational tree. These errors reduce the professional appeal of the plan. Finally, there is room for improving the sentence structures of the information relating to the background and skills of the management team.

Financial Plan

In the financial section, the plan presents three forms. There is a pro-forma income statement showing a three-year summary, a pro-forma income statement for one year presented month by month, and a pro-forma cash flow statement month by month. The second form does not have the relevant explanation below it. Since the pattern used for the rest of the tables follow this pattern, the section will look better if the explanation related to it appears immediately under it.

These proposals will go a long way in improving the appeal of the business plan because “without a convincing business plan, no one will seriously consider your business idea” (Abrams & Kleiner, 2003, p. xiii).

Reference List

Abrams, R., & Kleiner, E. (2003). The Successful Business Plan: Secrets & Strategies. California: The Planning Shop.

Covello, J. A., & Hazelgren, B. J. (2005). Your First Business Plan: A Simple Question-and Answer Format Designed to Help You Write Your Own Plan. Naperville, Illinois: SOurcebooks, Inc.

DeThomas, A., & Derammelaere, S. A. (2008). Writing a Convincing Business Plan. Hauppauge, New York: Barron’s Education Series.

Corporate Objective

Visite Brazil Company has the objective to be a leading provider of best-of-breed adventure and tour services to world tourist market. The company believes in offering the best quality services unmatched by other tour agencies in the industry.

Divisional Objectives

The company embodies a culture of inclusivity that promotes the unity of purpose and teamwork. The core facet of the company is to offer the best environment for staff, customers and suppliers. Through this critical factor, all units endeavor to provide the best service within the provisions of harmonious coexistence.

Marketing Objectives

The company’s emphasis will be underpinned by the need to provide completely specialized services based on the market knowledge of the vacation destination and the services that shall meet the demands of the customers. Visite Brazil company shall rely on the market research undertaken to underscore its market obligations.

Market Forecasts

The company projects that its sales shall increase substantially following the detailed market analysis based on the segment needs. According to Euro Monitor International (2009), the historical estimates indicate that tour needs have been neglected by lack of provision of customer-led services.

Sales estimates anticipate gaining a larger market share compared to its competitors. Using historical figures, the company has projected sales of over $500, 000 for the coming activities in Brazil and its environs. Additionally, Visite Brazil believes that the number of unit services shall increase to about 5,000 single-person unit services and 1000 corporate-based unit services. Profitability of the company would increase to register profits of 65% as a percentage of the total unit sales.

Direction

The company assessment suggests that the industry shall remain competitive in the next four years and later. While these challenges offer pressure for better business approaches, the company believes that its recognition of value and quality through provision of unique services shall aid to push it to an advantaged level (Euro Monitor International, 2009).

Currently, the company’s valuation and strategic market analysis has shown that its ability to beat the market lies in the eventful provision of first-class tour and travel services. Additionally, the company underpins its performance on the nature and quality of its employees in delivering these services.

Rationale

VB believes in respecting the varied cultural needs of its customers. Similarly, the company shall ensure that its service provision conforms to the legal and political legislations. The good relationships shared between the company and the legal bodies will enable its proper functioning without bridge of the provisions of the law.

Program Objective

Pricing

The concept of pricing is a critical component in the general progress of the company. To design the most sustainable pricing model, the company shall rely on the market surveys and research. The researches taken by its marketing team will be essential in modeling a price package that appeals to the economic needs of its customers as well as the cost aspects of the company. These sets of information have proven that pricing shall be undertaken in a differentiated manner (Jeanine, 2010). This is because of the heterogeneous nature of the clientele projected as the target market.

Advertising and Promotion

The promotional strategy depends mainly on making the right information available to the right target customer. The company shall make sure that those who have the budget and appreciate the product know that it exists, and know where to find it.

The marketing team has to convey the sense of quality in every picture, every promotion, and every publication. The company anticipates shaping itself to appear in second-rate catalogs with poor illustrations that make the product look less than it is. They also need to leverage their presence using high-quality catalogs and specialty distributors.

Sales and distribution

Therefore, the service provision of the company shall follow a segmented marketing strategy. This is because the customers that shall be served by our company have varied needs and demands. The marketing unit has prepared inclusive approaches to help in boosting the sales of the business. Individualized and generalized marketing and distribution shall be helpful in meeting the marketing and sales prospects.

Service

The company has received an appointment as an agency for major suppliers of tour vacation packages throughout Brazil. The company is still negotiating for the lucrative alliance and partnership with the leading and major travel tour companies in the region. This plans aim at ensuring that the company affords a wide service portfolio in order to maximize its profits during the festive period of world cup.

Apart from provision of the ordinary services, our company anticipates to differentiate its service offering from the rest of the competitors by promising safety and enjoyable customer service with a lasting experience. Some of the services shall include insurance, service directory, and informational services from both pre and post vacation packages.

The company believes that selling tour related products would have far-reaching influence on the company’s overall profits. In conjunction with other service providers, Visite Brazil projects to offer inclusive services that would render it a one-stop tour agency.

Monitoring and Controls

Secondary Data

In ensuring that the business gets on the right footing, the company has made use of the available historical records and data concerning the tour business. Comparative analysis of the previous sales, costs, profitability, and number of visitors shall serve to benefit the firm in respect of its projections.

Sales reports

To succeed in monitoring its sales and measuring them against the projected sales, our company shall utilize the periodic sales reports in evaluating its progressive movement. All the respective units of the company shall remain committed to market the company’s services and goods to meet the expected goals.

Information Sources

Primary Data

The company has focused on gaining market knowledge in order to approach it from a market-led perspective. This aims at making Visite Brazil a tour agency firm of choice by all the prospective visitors visiting Brazil and other neighboring countries for both football festivities and other recreational activities (Euro Monitor International, 2009) and (Mancini, 2009).

The company shall undertake a market research and surveys in order to demonstrate the need for gaining first-hand information about the customers. The market surveys shall offer the company with requisite data, which shall be analyze. The analysis will aim at achieving themes necessary in explaining the market scenario. Although the secondary, records and data are relevant in informing the company, the survey data shall display the real demographics necessary in developing strategic decisions.

Sales Records

Actual sales reports shall be essential in enabling the sales and marketing department to estimate continuous progress in the company’s profitability and market share. The company estimates that it will achieve an average market share of about 20% of the total tour and travel market.

Specialized Consulting firms

The business of tour agency cannot be approached from a unidirectional perspective. Analysis of the industry reveals the industry needs in tour agency and progress shall rely on the strategic business alliances and partnerships. In order to strategically position the business

Consumer Panel

Contingency Plans and Other Miscellaneous Documents

Contingency Plans

Although Visite Brazil has enacted strategic business plans that will take it through its operations, it believes that the challenges of the contemporary tourism industry. In order to enable Visite to cope with these inherent challenges, the management believes that setting up strategic plans capable of sustaining future uncertainties remain relevant to Visite Company.

Visite Brazil Company is unique in its discovery and utilization of the high quality, executive level tour and travel niche. Therefore, it is possible that with our success and superior services, other well-established tour firms will release a competitive service line.

However, VB focuses specifically on the high-end, technologically integrated aspect of tour services. With this exclusive concentration, VB can continue to focus its resources on producing the best executive level tour and travel services. Another possible challenge would be the emergence of a new company in our niche.

This however, would not constitute a great threat, as their initial market share would be minuscule, allowing us to strategize further for continued success. Finally, and tour and travel company may choose to begin marketing to our target market. This would not be overly threatening because VB products and services are inherently the best available due to the true artisanship and design involved coupled with its well-known excellent customer service (Singh, 2008).

Alternative Strategies

Strategic business positioning demands that affirm develops alternative business models that would help to leverage it in the future. Although there are many other players in the industry, VB believes in its reserved strategies and their ability to offer best alternatives in beating the market.

The primary strategies shall include strategic expansion and differentiation in reaching the target markets and favorably competing (Mancini, 2009). However, the company believes that the application of the price leadership strategy would offer the best fallback means for positioning the business on a more competitive edge. This strategy shall be achieved by customizing the services in order to appeal to the loyalty of the customers (Jeanine, 2010) and (Singh, 2008).

References

Euro Monitor International. (2010). Travel and Tourism in Brazil. Web.

Jeanine, P. (2010). Brazil Wants You Clients. Web.

Mancini, M. (2009). Selling Destinations: Geography for the Travel Professional. New York, NY: Cengage Learning.

Singh, L.K. (2008). Marketing in service industry: airline, travel, tours and hotel. New York, NY: Gyan Publishing House.

Abstract

Most small business owners start and operate their businesses without paying any attention to the importance or necessity of a business plan. They, however, realise the need for it at a later stage in the business especially when they require financial assistance such as a loan from a bank and other financial institutions. A business plan is a detailed outline of the structure of the business and vital activities that go into the operation of the business for its success.

It answers questions such as what are the products of the business. What is the target market of the business? What is the competitive advantage of the business? What costs are incurred to start up the business? What are the strategies of the business in order to remain competitive? What is the structure of management? Who owns the business? (Small Business Administration, 2011). This paper seeks answers for the above questions with special regard to the business of Chad and Kyle.

The Benefits of a Business Plan

It is critical for any business that wishes to survive to have a detailed and updated business plan. This is because a business plan is used to analyze and measure the potential of the business, for instance, by potential investors before investing their money into the business.

Since it outlines all the areas of the business, one can use it to analyse the viability of the business by checking the target market. Hence, this helps in determining the likely market share for the business. The strategies of the business could also imply the direction towards which the business heads (Small Business Administration, 2011).

Secondly, a business plan is a tool for internal business analysis in that it allows the management of the business to set objectives; acts as a reminder of both the objectives and the position of the business. In short, the plan lists the business strategies and ways to achieve them effectively. Therefore, it acts as a map for the management to follow in their quest for success (Harvard Business School, 2011).

Thirdly, a business plan acts as tool for communication. The entrepreneur may have a vision of the business in future. However, the employees and other external stakeholders may not necessarily be in tune with the entrepreneur. Therefore, the business plan is a means for the entrepreneur to communicate the vision or the idea to the employees and the external stakeholders such as the investors (Harvard Business School, 2011).

Fourthly, a business plan is the fundamental tool in forming future or present relationships in the world of business. For instance, the business may want to merge with other businesses and the business plan is vital in explaining the position of the business and its structures, strategies, competitive advantage and its ownership.

This factors influence the nature of the relationship the entrepreneur seeks. For example, in a merger the owners of both businesses must agree on who owns what stake/ percentage of the business. The business plans of the two businesses will enable the definition of such key decisions in the process (Zimmerer, 2010).

Lastly, the business plan enables the business in getting large contracts. This is important as it enables the business to keep growing in aspects such as market share, increased popularity, and increased faith in the business by the relevant customers and obviously increase in revenue and profits (Zimmerer, 2010).

The Structure of the Business Plan

The business plan should consist of the following aspects:

1. Business Description: This involves a summary of the company/business in terms of its products/services, the target market, the executive summary, the ownership of the business the start-up costs and the management summary. It serves to provide an overview of the business for introductory purposes.
2. Market Analysis: It involves an in-depth analysis of the market in which the business will operate. The analysis identifies the target market, the various factors that influence entry into the market, the benefits of targeting the market, the other competitors in the market, their effect on the business, the challenges the business is facing and how to overcome such challenges (Zimmerer, 2010). It also establishes the market share of the business and the prospective future market share of the business in the market. Market analysis enables management to come up with feasible strategies of capturing the desired market share (Sexton & Upton, 1991).
3. Marketing Plan: This involves a detailed plan of action of how the business intends its products and services to get the customers’ attention. It also details efforts of the marketing department in both the present and future.
4. Design and Development Plan: This consists of details about the designing and development of the services offered by the business to meet the expectations of the consumers. It should explain the competitive advantages of the product/services, how the product is used, the risks involved and plans to improve and develop new products (Sexton & Upton, 1991).
5. Manufacturing and Operations Plan: This involves the production aspects of the business in terms of how such factors as the location of the facility enables the business to compete effectively. It should clearly explain the decisions involved in the production process and their effects on the survival and profitability of the business (Timmons, 2004).
6. Management Team: It involves a detailed structure of the management team including the ownership of the business (Timmons, 2004).
7. Financial Analysis: This section gives the economic feasibility of the business. That is, whether the business is economically justified to do what it is doing. It includes break-even analysis and the expected profits in the future.
8. Financial Plan: This provides projected financial section to justify the economic feasibility of the business over time (Timmons, 2004).
9. Proposed Company Financing: This is a detailed account of means through which management has funded the business or expects to fund the business (Zimmerer, 2010).
10. Appendices: It provides all the supporting documents to support the claims made in the business plan for example, supplier agreements, copies of contracts, licenses and references.

The business plan must have a design that suits the expectations of the people or group of people it targets. For instance, in the case of Kyle and Chad, the business plan must be tailored to meet the expectations of the lenders or investors or the bankers. In this case, therefore the business plan must demonstrate the economic viability of the business. It must show the investors that the business has the capability to grow and to capture more market share (Timmons, 2004).

It must also bring to the forefront that the business possesses enough assets such that the bankers know that there exists enough collateral in case of failure to repay a loan. The business plan should also provide evidence that the business generates adequate or more than adequate cash flows to guarantee payment of borrowed funds (Harvard Business School, 2011).

Sources of Finances

For small businesses, the financing options are a bit narrow. This is because the small businesses lack collateral and evidence of sustainability in terms of promising cash flows. However, there are still options such as a bank loan or a loan from other lenders. One could also offer some of the company’s equity for money therefore sharing ownership with the investor (Small Business Administration, 2011).

Tips in Presenting the Business Plan

The business plan should be short, precise and straight to the point. That is, there is no need of giving so many details except where necessary. In addition, it should be neatly typed and bound. The presenter should also be smartly dressed and fluent in his communication skills. He should also clearly make a justification of the financial data for instance, by use of carefully illustrated visual aids.

The business plan should also demonstrate the viability and importance of the product or service providing reasons why the investors should invest in the products. Moreover, the presenter should have prior knowledge of what the audience expects from the presentation. In addition, he should study the reactions of the audience as he makes the presentation and react appropriately (Small Business Administration, 2011).

Conclusion

A business plan is the most fundamental tool that any small and medium business owner can have if he wishes to be successful both in the short-run and in the end (Timmons, 2004). This is because of its application in analysis and planning.

Moreover, it is paramount for communication and as a day-to-day reminder of the actions required to achieve success in the operations of the business (Zimmerer, 2010). Consequently, it is important that Chad and Kyle pay more attention to the development of a solid business plan to ensure they succeed in securing the funds they require for the expansion their business.

References

Harvard Business School. (2011). Entrepreneurship: Business Plans. Web.

Sexton, D. and Upton, B. (1991). Entrepreneurship: Creativity and Growth. New York: McMillan.

Small Business Administration. (2011). Writing a Business Plan. Web.

Timmons, J.A. (2004). New Venture Creation: Entrepreneurship for the 21^st Century. Boston: Irwin/McGraw Hill.

Zimmerer, W. (2010). Effective Small Business Management. Scarborough: Pearson-Prentice Hall.

In business, there are various activities that result from manufacturing to acquiring of the final product. The main objective of an industry is to produce a commodity that will satisfy the consumer’s requirements. For instance, to produce soap it is necessary to perform a certain process to achieve the final product (Nickels, McHugh and McHugh 496). Soap has the ability to clean a surface, thus taken as a basic need for a consumer.

Amalgamation of caustic soda, plant oil or animal fat is a way of making soap. Therefore, the various additives are vital in order to improve the fragrance, color and also the texture of the soap. There are different methods of making soap some taking a number of days, while others take a little time to come up with the final product.

Today the most popular process is the continuous process which quickly gives the company a chance to produce a large set of products within a short period. Kettle process is another method of processing soap although it takes much time to get to the final product.

The various processes that take place during the process include boiling of the raw materials, salting to separate soap from glycerin, addition of caustic solution to remove extra fats, and pitching to separate the neat soap from impurities (Nickels 2008). In addition, an industry aims at making a profit as the byproducts obtained during the soap production, such as glycerin, are used to make drugs and lotions. There are four key steps in soap production. These include Saponification, Glycerin removal, Soap purification and Finishing.

After the company produces the product, it searches for a good market for its good. This means that the management needs to plan for advertisement of the product so as to ensure the consumers are aware of it. Advertisements can be done though various means like media and newspapers depending on the region targeted by the company. Since the company aims at making maximum profit, the management should ensure minimal utilization of revenue in marketing as well as a good distribution of the goods.

The management of the company ought to motivate employees to improve on the productivity, performance as well as the office customs. The motivation requires the management to set an excellent example for the employees and center on workers’ happiness, ensuring that there is the equal sharing of the company’s success among all, including the employees, as well as it is important to give the workers an opportunity to air their grievances (Nickels, McHugh and McHugh 296).

Moreover, the company may opt to promote the workers who show impressive performance in their work and also award those who work hard to achieve the success. Promotions create a better field where the workers compete for various posts.

Payment of investors is another aspect that the management ought to mull over to ensure that the company benefits from selling its goods. There are two categories of arrangement that include debt and equity. Debt method involves the company borrowing revenue from an investor who lends the money at an interest.

In the second method, which is an equity method, the investor lends the company a certain amount, and via an agreement, the investor is entitled to some share in the company’s profits. The deals are normally flexible as the investors understand that the company needs time to pay them back.

In conclusion, the various aspects of production ought to be put into consideration so as to come up with a successful business plan. In addition to this, the management of an industry ought to ensure that workers’ needs are satisfied so as to create the necessary conditions to achieve the success of the industry.

Works Cited

Nickels, William, McHugh, James, and Susan McHugh. Understanding Business. New York: McGraw-Hill. 2008. Print.

The Solutions of Headhunting firm will be located in Riyadh, Saudi Arabia. The company will conduct recruitment activities on behalf of other firms seeking to fill vacant positions. The firm will select suitable, highly qualified candidates capable of performing work duties assigned to them effectively.

The firm will hire a web design and IT company to help it maintain its website and develop an effective database. The firm will ensure that its database is aligned to reputable human resource websites such as Monster.com and other professional websites like LinkedIn.

The key activities which the firm will be doing on behalf of its clients will be: hiring executive staff needed in corporate firms, marketing open job vacancies and interviewing suitable candidates for specific vacant positions. The firm will introduce high quality systems to ensure its internal operations satisfy its clients’ expectations.

The firm intends to partner with human resource websites and job boarders to profile suitable candidates for various vacant positions. This approach will help the firm to reduce the costs it incurs in its operations to achieve greater efficiency. The company will utilise persuasive marketing approaches to make potential employees and employers aware of its services. The company will make its customer services more open to the public through social networking websites.

This will enable it interact directly with potential clients to make them aware of its service offerings. The firm will also rely on word of mouth marketing and existing client referrals to market its services to potential clients. This approach will only be possible if the quality of services offered satisfy clients’ expectations. The firm will only hire candidates with high professional skills and a good reputation.

The firm’s marketing strategy will target to increase the number of job applicants that apply through its website portal. This will help the firm to have a large database of job seekers who are skilled in different disciplines. Therefore, the firm will be in a position to conduct fast recruitment drives to select suitable candidates. The firm will add value to its services by offering low commission rates to clients. There will be a specific team hired to assist customers who seek to understand how the firm’s services work.

This will improve the company’s reputation in the market. The firm will hire sales representatives who will be trained on how to offer personalized services to clients. This will make the company incur more costs because more funds will be needed to cater for salaries and wages. However, the firm will ensure that operational costs incurred add value to its business objectives.

The main costs which the company will incur will be divided as follows:

• Employees’ salaries for sales representatives, recruitment employees and employees who interview selected candidates.
• Marketing strategies intended to make more clients in the market aware of services which the firm offers. These costs will mainly comprise of adverts and other promotional tools.
• The outsourcing of crucial website functions to an external IT company.
• Administrative costs such as travelling and other expenses which employees will incur while performing their duties.

The firm will generate its income from commissions earned from recruiting and hiring suitable candidates on behalf of other organizations. The firm will charge 8-10% commission on annual salaries of candidates who get recruited through it. The firm will also earn income from consultations.

Business Plan

“The Panini King” will provide freshly made Panini’s in a short time with several choices in the type of bread, cheese and meat for the customers. There will also be side–dishes such as chips, dips, and salads.

It is being planned and built by an educated and vastly experienced entrepreneur, Mr. Peter McConkey. Since market conditions in an area can have a significant impact on the profitability of the restaurant (Goodpasture et al), “The Panini King” located in a busy business area will satisfy an unmet demand for fast food do-it yourself (DIY).

The Panini King is not “just another” fast food company rather it will be a unique combination of excellent customized food at value pricing in an entertaining atmosphere. Our studies and experience show that customers

1. want value for everything that it purchases,
2. a clean restaurant,
3. want choices,
4. want useful suggestions, and
5. want quick service – a necessity for any fast food company.

Panini King will do this by providing customized, fresh and tasty sandwiches within a short frame of time. It will also provide customers options in bread, cheeses, and meat in their Panini’s along with a healthy salads, chips, and drinks.

“In 2010, the United States fast food market is forecast to have a value of $57.6 billion, an increase of 12.1% since 2005” (McCarty).This plan is prepared to establish the financial viability of the restaurant and to raise $40,000 in a 7-year term loan to finance the equipment and leasehold improvements. Additional financing required will be provided by the owner.

Objectives

In the first three years of operation the objectives are to make the joint a popular destination for customers, keeping the cost of food under 30% of revenue, keeping labor cost between 25 to 30% of revenue, reaching annual sales volume of 1 million dollars, controlling costs, and hiring professionals such as CPA’s, to keep the business under control.

Mission

The mission of “The Panini King” is to be a premier fast food company. Our guests will not just enjoy their Panini’s but also enjoy the ambience when visiting The Panini King, hoping to give an experience that is as pleasing to the senses as it is to the palate. With its comfortable, conversational surroundings, and quality ingredients, it is easy to see why Panini King would succeed in its mission (Panera Bread, 2009).

Keys to Success

There are key external factors that are outside the control of the owner but can have but are likely to have an impact on business (IBISworld). However, the keys to our success lies in : (1) Creating a friendly and comfortable atmosphere that will set us apart from our competitors. (2) Serving healthy menu selections at unbeatable prices in a clean environment, consistently. (3) Controlling costs and (4) Hiring and retaining the most suitable people for the job.

Company Summary

The identifying characteristics of the Panini King will be Entertaining surroundings, Quality food, Variety, Longer hours, Self-service, and Friendly employees.

Company Ownership

Peter McConkey, the sole proprietor of the Panini King with Bachelors in Science degree from University California with Major in Economy and Minor in Management. Mr. McConkey had his initial experience from family owned business based on which he has launched his own business initiative. He also has experience in distribution and customer relationship and has demonstrated his skills in marketing and advertising.

Start-Up Summary

Panini Joint’s start-up expenses include Restaurant Layout – employees, and professionals to plan leasehold improvements and interior design. Travel – Travel expenses for Mr. Peter to travel to his location of business. Lease Hold Improvement/Equipment – would be installed after the initial planning.

Marketing Strategy

A mix of TV advertisements and distribution of flyers to local businesses will be used to announce the opening of the restaurant. Local radio and print media will also be used to announce the opening of the best and only Panini fast food company in California.

Free Panini’s will offered to the first 100 customers and a novel concept of having Panini’s named after customers who visit the joint the most and place it in a prominent place. The ultimate form of advertising is the word of mouth and this is what we will encourage our loyal customers to do on an ongoing basis.

Sales Strategy

The sales strategy is to provide best customer service to increase repeat customers. Once the sales reaches over $ 400,000 per year we plan to open additional joints in other cities across USA. We intend to franchise the name and the business system across the country and maintain a standardized approach to all centers. This in turn will result in more jobs creation which will be available to young, dynamic and hard-working individuals.

Bibliography

Goodpasture, John et al, Restaurant Market Analysis. University of Wisconsin-Extension, 1994. Web.

IBISworld “Takeaway Food Retailing in Australia”. 2009. Web.

Mccarty, Michael “Fast Food Market Forecast – The Subway Example of Strategic Product Positioning.” Fast Food Market Forecast – The Subway Example of Strategic Product Positioning. 2007. Web.

Panera Bread. The Proof is in the Success (2009). Web.

What Do Customers Want? (2009). Web.

Business planning is one of the most important steps in determining the success and failure of the business. It is more efficient to run a business entity through a blueprint rather than working without any guidance which can be risky as the firm can loose direction and its sense of objectives. Good business planning can guarantee achievement of the objectives and can be modified from time to time to remain relevant.

However, planning errors or mistakes may arise due to some avoidable or unavoidable reasons, which may affect the projected plans of the business even lead to failure of the entity. In case of errors necessary controls should be taken on due time or implemented properly. Nevertheless, some of the business planning errors cannot be erased completely and require careful execution to avoid more adverse outcomes.

Proper implementation of certain controls can somehow compensate for the errors made in business planning. The company can rescind some of the contracts that it had engaged in with other partners although some of the contracts are irrevocable and cannot rescinded them, and the firm must bear the remedies for breaching the contract or just incur the unnecessary costs on the contract depending whichever way is cheaper.

An organization can update its business plan model as a control measure in case an error occurred in the process of planning. The plan can be modified from time to time to remain relevant with the current business times. The company should conduct more research on the issues derailing its operation’s plan and get more informed management team to come up with the updated plan. The updated plan should correspond to the current environmental occurrences and adjust the operations to suit the company’s mission and vision.

The company can wind up if the planning errors made would likely hinder the operation from attaining its operations in the short or medium term. Winding up can be an expensive venture but if it is unavoidable and the eventual outcome of the firm in the long term it is better made at the moment than in the future.

Take an example scenario, whereby a firm had planned on overambitious production target for its products; this was made with an oversight of an increase in demand of the company’s products in the next period. The production targets are been constraint by diminishing demand of the products and an escalation in production costs.

As a result a lot of production costs and production overheads have already been incurred. In the second quarter of the projected period, although the supply of the company products is has increased, the demand for its products is still low. The company needs to control before it is too late.

The company can come up an updated plan for the period as a control measure. The updated cost will put into consideration the prevailing firm’s environmental times and make necessary adjustments to the projections. The plan should focus more on marketing more its products, reducing production and improved internal control systems. However, the updated plan should not short change the firm from its objectives but only serve as a controlling measure.

The company can reallocate the excess resources allocated to the production department to reduce the underutilized resources. The company should focus more on marketing its products rather than production but also ensuring the demand limits are met. The company should renegotiate some its contracts if it possible to suit its operations. Although, in some cases it will be required to pay for remedies for breach of the contract, but if it is the best alternative it ought to do so.

If worse comes to worse and the company cannot carry on its operations normally due to the huge costs already incurred and most likely it cannot go back to profitable operations, it can opt for winding up its business. This can mitigate the costs from accumulating and the decision has to be taken at the earliest instance, if winding up is the eventual outcome. This will halt the firm’s operations and lead to liquidation of the firm.