7INDIVIDUAL BUSINESS PLAN
INDIVIDUAL BUSINESS PLAN
The paper aims to develop the Master Plan Business that will be implemented an official dealer of Australian Motor Industries. Therefore, it is appropriate to begin by defining what is or what is means a Business Plan. In this sense, the paper identifies business plan as a management tool that integrates the central normative documents. To be effective it is necessary to collect and analyze all information on the environment, this applies to the internal organization as well as those linked to processes, to structure and other essential elements of the institution itself, since its purpose is to facilitate, and therefore try to make feasible the achievement of the objectives and important goals.
Also, the paper presents a new business plan that begins the process of creating it by analyzing four ideas essential on how to seize an opportunity that presents itself, analyze the environment and make some simple numbers that will determine the feasibility of the project. Assuming this pre-feasibility analysis has a positive result, the company can start the formal process of finding information about the new business. The plan proposes for the enterprise to change market (customers, suppliers analyzing and competitors), a structure of operations and service will be designed. The plan hence raises the organizational strategy without forgetting aspects financial and economic project. Finally, it is important to note that unlike a Project Investment, which is a typical document of economic and financial analysis, this plan has focused on quantitative and engineering aspects, although it contains, and is more focused on strategic issues entrepreneurship as a way to ensure consistency.
Table of Contents
Executive Summary 2
MARKET FEAISIBILITY 4
Market management 5
Rivalry within the industry (current Competition) 5
Threat of New Competitors 5
Bargaining power of suppliers 6
TECHNICAL FEASIBILITY 8
Sale promotion 9
HUMAN FEASIBILITY 10
Organizational and Human Resources Sector structure Composition 10
FINANCIAL FEASIBILITY 11
Summary and Conclusion 13
INDIVIDUAL BUSINESS PLAN
Introduction to the Business Plan
Business planning involves identifying an attractive business opportunity and organizing the necessary resources to bring it into practice, usually taking a financial risk. For the purpose of enhancing the chances of success and minimize the adverse contingencies, the prior way to make the investment designing a business plan that allows financial and economic viability of the project and plans adequately operation of the activity, which must be updated permanently to reflect the effects of changes or modifications not provided initially. To do this, the Business Plan should minimally contain definitions and guides; this is primarily on market issues where the company will be inserted. In this case, strategic definitions of the business, organizational management marketing, operations, customer, management human resources, financial and the possibility of implementing a system planning and management control, generating feedback to order to optimize the entire process (Marks, 2009).
Apparently the greater amount of economic resources and Financial has committed, the greater the need to plan their preparation, implementation, and management, as well happens in the automotive category, given the significant investments and expenditures to be made for this activity (George, 2004). Now in this category of vehicles trading companies depend to some extent on the decisions taken by the terminals as, among other things, to the clearly defined primary zone where they can market their products, allocation of units and the launch of new models and versions. This paper aims to develop the Master Plan Business that should be implemented by an official dealer of AMI brand located in Australia
Part A: MARKETING FEASIBILITY
The paper will begin by analyzing everything related to the marketing management to be carried out by the company to mark the beginning of the marketing concept needed by the Australian Motor Industries .To achieve this, the paper will proceeds to employ a widely used tool for these purposes as is the 5 Forces model of Michael Porter, who argues that five forces determine the consequences of long-term profitability of a market or some this segment primarily. The idea is that the corporation must evaluate its objectives and resources against these five forces governing industrial competition.
Then, this model will be used to describe the environment competitive company that will face when marketing the new compact car (therefore this analysis only considered the car segment low-end, since it is the subject of this business plan):
a) Rivalry within the industry (current Competition)
Competition now within the segment is adamant, and that the market in general and the fleet is in Australia growth, so it is very desirable for different brands to win better positions and market shares. In this sense, the increase in industry sales, which is led by lower-end vehicles, has generated interest from various automakers enter new segments, as it is doing Australian Motor Industries (AMI), which has boosted competition. In the case of the concession, they try to highlight virtues of vehicles and brands they sell, but at the same time use other strategies to differentiate themselves and seduce the customer, as agreements with banks to finance the purchase of units at rates suitable (Abdo, 2016).
b) Threat of New Competitors
The automotive market is one of the engines of growth in our economy, making it one of the sectors that is growing in recent years, which enhances the chances that new players wish to venture and join this business (Marks, 2013). In this sense, not only to brands that never participated it observed in the segment of small cars now begin to analyze this possibility and even now begin to market their units in this niche. However, the traditional brands of this fraction of the market develop and launch new models, to be able to expand the range of products and deals they offer. In recent years there has been entering the car market Chinese origin, reasonable but lower quality of the rest of the supply the Argentine market. To the extent that no significant obstacles are generated to import units, such as that currently exist and is an important barrier to market entry, it is very likely to enter for competing in this segment more units in Southeast Asia, whose main sales pitch is related.
In this regard, it should be noted that the decisions of government turn affect profitability and play a vital role in the creation of barriers to industry revenue. Currently and as commented, non-automatic import barriers and generate licenses important entry barrier. To enter units to the country, one must also export goods, which requires local terminals to allocate much of its production to sales outside our territory, decreasing the local supply (Marks, 2013). For those brands that do not have a plant production in Australia, the situation is even more complicated, so they have chosen to import less and export seek alternatives other sectors of the economy (some of them decided to manufacture and export wines).
c) Bargaining power of suppliers
At this point, the level of attractiveness of the segment could be considered small, because each brand provider is unique, thus limiting the bargaining power of the AMIs. However, for the case of «The AMI» cannot ignore the importance of being one of the largest marketers of the AMI brand in Australia and support direct that the organization receives from the terminal permanently.
In this sector of the economy, virtually all decisions made by the car and the dealership defines particularly in regard to trading volume, area where one can market the product, the purchase price of the units, within payment thereof, suggested retail price, and procedures to follow meet in commercial processes and aftermarket, periodic reports information, etc. In short, it is a monopolistic situation and terminals use their power to impose their conditions and decisions.
The case of the automotive domain can be even stronger when they decide to vertically integrate forward, installing their dealerships own, such as Peugeot, Renault, among others, which often detracts competitiveness of the remaining trading such products on the market. In AMI’s case this has not happened, not is political brand performing by itself selling their units directly to the public, which is beneficial for the concessionary network in our country. However, at present there is a tendency to try to parse the suppliers as an ally than as a competitive force who must compete, trying to build a mutually beneficial relationship and collaboration. In the case of AMI and «The AMI» relationship is viewed from this perspective of exchanging information, receiving ongoing advice (the terminal makes it easy for each AMI a person who exercises the function of the Fieldman). Also, the terminal employee internalizes the operations of the marketing, adviser on trade issues (McCarthy, 2009). Therefore, the anticipated changes in allocations that affect the AMIs is known in advance with that product will have and make commercial or marketing efforts necessary to sell their units), training and conducting courses for employees of dealerships.
Part B: TECHNICAL FEASIBILITY
The market introduction of a new car AMI brand apparently it generates the need for the terminal and different companies that are part of the network of dealerships in the country to give know this novelty, its features, and benefits. While a car from a technical standpoint and benefit can be exquisite, it requires integrated communications plan that to publicize the same and so that it can be recognized by all the target audience to whom the plan goes before mentioned and thus an impressive vehicle demand is generated.
From the need to pursue fully understand the effect maximum of communications that the company makes with the different target audiences, the Integrated Marketing is a discipline that recognizes the benefit to consider a comprehensive plan for combined activities to achieve greater consistency and clarity in its action. From this, then the objectives and activities will be defined communication with their own budgeting, to describe the media strategy that will continue the company finally. This is important to note that most of the decisions and actions carried out in this regard will be the result of agreements between the terminal and different AMIs and expenditures related to the Integral Plan Marketing in all regards institutional issues will be supported for the automotive; trading companies must Product solve local dissemination actions.
Advertising is any paid in impersonal communication which presents and promotes ideas, products or services. The ads are an efficient way to disseminating messages, either to create brand preference or to educate the consumers. However, the objectives of the terminal and the AMIs respect to compact car, about advertising is defined (integrated marketing communications), they can be distinguished in two:
1. Self-Advertising Product
2. Corporate advertising
On the one hand, about the first objective, the aim is to advertise the product and achieve projected sales for this vehicle. To do this, we must highlight the advantages of employing this new model, quality, performance, and comfort.
In this regard, one of the objectives of the advertising activity is achieving once the campaign when it is consulted market target name three compact cars, which one of the above is AMI’s new car. On the other hand, it is an excellent opportunity to advertise corporate, for both the terminal and for «AMI.” In the first cases through institutional advertising, it is intended to attain the public objective and perceive the company as the most innovative automotive pioneer in technological advances and committed all market segments. In the case of «the AMI» with advertising, that seeks potential customers and vehicle users consider the same as concerning the automotive sector, offering a broad range of options that suits the needs of the company (Crawford, 2016).
Sales promotions are marketing activities that provide additional value or incentives for the sales force, distributors or final consumer and thus stimulate immediate sales or short-term. Unlike the purposes of advertising, sales promotion aims to persuade to short-term purchases are made and often get immediate, measurable results. To meet these objectives, the company along with AMIs plans to conduct promotions targeting customers. Such developments will consist mainly of a potential customer all products approaching a dealership official to consult the compact car in 2013 and performs a test drive (Test Drive), will be given a T-shirt from the brand (Abdo, 2016). Obviously, what is being sought here is the proof and the knowledge of the product by the customer. The cost of this action will be supported by the terminal and «The AMI» equally.
Part C: HUMAN FEASIBILITY
Human Resource Management
This section examines those key issues linked to the most important strategic factor that may have an organization such as Human Resources, regarding the plan business here presented. The composition of the organizational structure will be described and specifically the Human Resources sector; this then defines the objectives and strategies related to this area, then the policies will be presented and most important practices relating to it. These should be taken into account for the development of the new business unit, to finally show some issues related to organizational climate.
Organizational and Human Resources Sector structure Composition
The AMI is a company that is led by its management and it is organized by its five sectors: Commercial, After Sales, and Industrial equipment, Administration and Finance, Human Resources. About the organizational structure, one can mention that each area is headed by a Manager. Below them, there a few middle and then the rest is (mostly) the staff, so you could say that being in the presence of a structure organizational flat.
For decision-making, everything related with the definitions of corporate, global strategies and business it is decided at the level of management, which is then agreed with the different managements. Functional strategies are typically defined by the managers of each area themselves, which are then validated by the address to control that relates to other plans business. Therefore, from this perspective, we see that the company is centralized regarding the definition of their strategy.
If different work positions are analyzed, it is found that there professionals, mainly in the sector of Administration and Finance, technical and few unskilled. Now, about Human Resources Sector, one can mention that it has been growing hand the evolution of the company. In the beginning, «The AMI» did not have a particular sector to take charge of managing their staff, so that managers of each area were responsible for performing this function for employees its sector.
Finally, it should be noted that the company has an external study which is in charge of making wage settlements as previously stated.
Part D: FINANCIAL FEASIBILITY
Administrative, accounting and financial management so far have developed how the areas related to commercial aspect (both from the field of marketing and from the aftermarket) should collaborate with the implementation of the business plan proposed to achieve the correct market introduction and marketing the new compact vehicle the AMI brand.
They are taken and actions to be taken from the Administrative Sector of the AMI» for the purpose of supporting the project here presented and thus collaborate with economic, financial and accounting tools with success of the proposal. This section two will be developed and important issues: Generation of financial alternatives to provide a range of possibilities or payment options to customers and facilitate and boost sales of the compact car (both from the point of view from the disposal of the units as it pertains to sector aftermarket) (McCarthy, 2009). Secondly, it focuses on the analysis of the economic and financial viability of the project from the development of accounting and projected financial statements of the new business unit and calculating ratios.
In the segment of low-end vehicles is more usual and substantial percentage of operations carried out with some financing, if compared to luxury class vehicles to be selected by the customers. It is, therefore, a fundamental need for «AMI since it has tools that allows customer potential new auto
At the same time, they should generate financial instruments attract customers to provide services in the company, especially one once you have completed the warranty period of the vehicle, which they should be linked to potential discounts and the possibility of payment dues.
The second objective for the company is creating value for business partners, which means that after implement the proposed plan of activities, the project generates an NPV (Net Present Value) active, minimally considering a horizon time of 14 years. Apparently, the market introduction of the new vehicle AMI aims to increase market share that has the mark within the sector and thus boost sales and profits, not only the terminal but also for its network of dealers.
The AMI as a company is for profit, therefore seeks a return that is appropriate and in accordance for its shareholders. Here, in order from the perspective, last financial is the generation of value for members of the company, so it is it is intended that the project NPV is positive here exposed.
Summary and Conclusion
Launching a new venture is a complex task that usually it requires a significant commitment and dedication. These incorporate a new business unit to a company that already in operation with different characteristics regarding the conditions traditional in which the corporation works. In this case, it might be at times difficult, because you can use resources already available and the already developed skills, often resistance to change and readjustment to new processes may require an outstanding effort.
One of the objectives proposed for the implementation of the New Business Plan detailed here has been to Marketing rethink current policies of the company, to adapt the new niche market in which the company will compete. Thus, it is suggested to move from a strategy of market leader applying firm in the segments where it sells its two products stars to one of challenge and that although a target market will enter unknown until now and where other brands lead (Mead, 2008). The idea of the terminal and its network of dealers are to gain market share to stand at a privileged place within the segment. Thus, it is proposed to implement a Communications Plan Integrated, which will be one of the primary tools that have the company to achieve this goal. From it, they are designed different communication activities, such as advertising in various media, promotion, direct marketing, use of Internet and other interactive media and merchandise. All of which developed effective and efficiently, as described in this paper, will allow reach members potential customers compact car segment and so collaborate strongly with the desire to achieve market share desired, always maintaining the prestige of the brand and the company, which has earned throughout his career in the sector.
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Start-up Expenditures and Expenses Worksheet
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