Three Business Plans Comparison

The right circumstances in any business environment

The right circumstances in any business environment include external factors that companies can harness to give them a competitive advantage (Brooks, Heffner, and Henderson 2014, p. 23). Therefore, it is important for companies to identify and evaluate the available opportunities that are of critical importance to improve their market share and financial performance.

True Taste’s potential

With an increasing number of tourists in need of hospitality services, True Taste has great potential. As Australia’s economy grows, people’s purchasing power will increase, allowing more people to eat out at the True Taste Hotel (Hassan, Salim, and Bloch, 2015. pp.62-77). The digital technology is available for the hotel to utilize given that people have less time to queue such that they prefer online ordering and home deliveries. Also, young adults with no family responsibilities prefer eating outside regularly where they interact with peers and have fun (Heath, 2016 p. 199).

Opportunities for Second Design

On the other hand, Second Design has a great opportunity in adopting technology such that it will increase sales. Blogging is a chance that can be utilized to offer professional assistance to potential customers (Lv, Huang, Li, and Zhang, 2017 p. 229). Also, Second Design has access external client data that can be used to offer products that meet specific needs of the customers.

Syed Farm’s opportunities

Syed Farm has great opportunities that go beyond the online like True Taste and Second Design. The increased urbanization means that the demand for fresh farms products is increasing and there are fewer people to produce. The fertile alluvial soils and favorable climate will result in optimum production in that large farm reducing the cost of production significantly. The market testing techniques are excellent as it is in providing the free samples of quality products that possibility of purchase increases. Also, the questionnaires in the test marketing approach is incredible as it offers vital information that Syed farm can use for decision-making.

Marketing and Sales Strategy

The sales and marketing strategy revolves around the four Ps of the marketing mix as noted by Khan (2014 p. 95). While Syed Farm aims at high-quality farm produce, the Second Design is not limited to a particular product but rather various kinds of clothes targeting different demographics. Notably, Syed farm offers agricultural products in large quantities to increase the economies of scale and strive at meeting the available local demand. True Taste products are limited to modern dishes and major Australian cuisines which are prepared by well trained and exceptional staff.

Price strategies

The other aspect of the marketing strategy is the price. For Syed Farm, the prices are subsidized and below those of the competitors given that is there is a possibility of finding capable investors who will assist in the reduction of the cost of production as noted by Liu, Zhang, and Tang, (2015 p. 397). For Second Design, prices vary depending on whether a purchase is made or a customer would like to hire a commodity. For hiring, the minimum price is $8 because any price lower than that will result in losses. For True Taste, prices will vary between $1 to $99 per item depending on the cost of purchase and preparation. For instance, exquisite cuisines will be sold relatively higher than the regular Australian dishes.

Location

The location of Syed Farm is strategic given that Central Village of California is surrounded by many residential apartments that will form the majority of the customers. No losses are wastages anticipated as the market is readily available and demand is consistent. Second Design is located in New Castle Australia where the warehouse and retail shops are located. However, customers can access the store online through the website. The location of True Taste is in Sydney Australia which offers an ambient and conducive environment for entertainment, family outing, meeting or accommodation.

Promotion strategies

Syed farm promotes its commodities through placing adverts in local channels as well as printing posters and giving them to customers when they purchase products. Second Design uses direct marketing, public relations as well as advertising. True Taste option of promotion is adverts on their website, roadshows, television programs and billboards.

Operational Strategy

Syed Farm operational strategy involves how activities will be carried out on a daily basis and who is responsible and accountable for the success of the farm activities. The overall manager will be the foreman who will report directly to the business owners. He/she will be assisted assistant supervisors who will be in charge of various sections like the poultry, bee-keeping department, vegetable section, cattle section, cereals section and flower section. Under the assistant foremen will be the administration staff who will ensure daily activities are carried out. The foreman should have market price estimates and quality of required products to ensure the quality of farm produce remains uncompromised. Also, employees will be motivated in monetary terms like end-year bonuses and salary increment on merit and non-monetarily through leave days and sick off (Harunavamwe, and Kanengoni, 2013 p.3929).

Second Design operational strategy

Second Hand Design has the position of the managing director as the key decision maker of the firm. He foresees the strategic goals, but other people under him actualize the operational activities that result in the attainment of the long-term goals. People working under him involve four fashion designers, sketch artists, and the marketing personnel. The legal and financial department also work under the MD to ensure compliance with the set laws and financial sustainability of the company. Second Design will source products from reliable online markets particularly Alibaba and Amazon. Additionally, local suppliers will be selected carefully from available shopkeepers, merchants, and tailors to maintain the brand name.

True Taste operational strategy

True Taste believes in the ability to empower individuals to be able to make decisions within their area of management for consistency and high productivity. As such, the executive officer is the General Manager and working directly under him is the managers in the customer service department, kitchen and beverage department, and operations department. The operational strategy will also involve sourcing fresh products from reliable suppliers and outsourcing services from professionals like content writers or chefs for specific cuisines as suggested by Magelssen, Sanchez, and Damanpour, 2015, p.17468). Notably, True Taste will utilize transparent human resource process and policies that enhance creativity, excellence and promote equality.

Financial Plans for Syed Farm

For Syed Farm, the required capital is between $450,000 and $600,000 to be used to acquire the machinery, inventory, pay legal fees and insurance as well as the working capital. The possible ways to raise capital will be soliciting investors who give their money for shares in the farm, crowdsourcing, bank loans with reasonable rates and payback period. Although crowdsourcing can assist entrepreneurs to get free funding and hedge them from risks, it can be risky given that the business idea can be known by competitors who can implement the strategy affecting the business negatively as suggested by Chirputkar, Saxena, and Tarkas (2015 p.116). As such, crowdsourcing will be used sparingly. It is estimated that the farm will make profits consistently and by the end of the third year, the net worth will be about $ 39,675.

Financial Plans for Second Design

Second Design will require $42,000 as the initial capital to fund the activities like getting materials, setting up the website, legal fees and inventory fees. The primary source will be the managing director who will give $26,000 for shares in the company, fashion designers will contribute $8000, and the rest will be acquired from friends and family or a business partner. It is estimated that for the first three years, the gross margin will be about 60% which is reasonable enough for the sustainability of the company.

Financial Plans for True Taste

It is estimated that True Taste will require a capital outlay of about $ 148,000. The restaurant owner will contribute $ 10,000 from his savings, obtain $ 28,000 from venture capitalists and the remaining $ 100,000 from a bank loan of with reasonable rates and payable within five years. True Taste is planning to partner with venture capitalists like Sherbrooke and Winklevoss. The estimated net worth after three years is $96,630 which is incredible given that the first three years are vital for the sustainability of the business.

Recommendations for Syed Farm

The business plan takes a very traditional approach such that no concrete details are provided about how modern technology will be utilized to minimize costs, carry out managerial products or allow timely delivery of products to clients.

Also, one of the ways of sustainability is a corporate social responsibility that is lacking in this business plan. If it can be utilized, it can be used as a marketing tool as well as one for improving the lives of people in surrounding areas.

Finally, the business plan should have explained how mutual and symbiotic relationship can exist in the farm to reduce costs. For instance, waste products from poultry and livestock could be used as manure and animals would feed or plant residues.

Recommendations for Second Design

The opportunities available are neither concrete nor specific. As such, it would be essential to write about specific opportunities available for the company like people’s desire to look unique and different without substantial investment financially.

The promotion aspect of the marketing strategy should also be particular and not just state advertising and direct marketing. It is important to explain how the location is ideal for attaining competitive advantage.

The chain of command needs to be clear and precise and possibly use an organogram.

Recommendations for True Taste

The rewarding system of motivating employees includes the financial aspect alone. It should also incorporate non-monetary ways of motivating employees.

Company tax which is normally 30% is not included in the financial statement. It should be considered as it forms a central part of compliance and expenses.

Bibliography

Brooks, G., Heffner, A. and Henderson, D., 2014. A SWOT analysis of competitive knowledge from social media for a small start-up business. The Review of Business Information Systems (Online), 18(1), p.23.

Chirputkar, A.V., Saxena, S. and Tarkas, J., 2015. Crowd Funding as a Tool of Business Transformation to Micro Enterprises in India-A Conceptual Framework. Indian Journal of Science and Technology, 8(S4), pp.115-125.

Harunavamwe, M. and Kanengoni, H., 2013. The impact of monetary and non-monetary rewards on motivation among lower level employees in selected retail shops. African Journal of Business Management, 7(38), p.3929.

Hassan, K., Salim, R. and Bloch, H., 2015. Demographic transition and the real exchange rate in Australia: An empirical investigation. New Zealand Economic Papers, 49(1), pp.62-77.

Heath, S., 2016. Young, free and single?. Routledge Handbook of Youth and Young Adulthood, p.199.

Khan, M.T., 2014. The concept of’marketing mix’and its elements (a conceptual review paper). International journal of information, business and management, 6(2), p.95.

Liu, G., Zhang, J. and Tang, W., 2015. Joint dynamic pricing and investment strategy for perishable foods with price-quality dependent demand. Annals of Operations Research, 226(1), pp.397-416.

Lv, Z., Huang, J., Li, Y. and Zhang, J., 2017. Usage and Performance of Enterprise Micro-Blogging. Handbook of Research on Technology Adoption, Social Policy, and Global Integration, p.229.

Magelssen, C., Sanchez, F. and Damanpour, F., 2015, January. Learning from Outsourcing: The Effects of Outsourcing Strategy on Organizational Efficiency. In Academy of Management Proceedings (Vol. 2015, No. 1, p. 17468). Academy of Management.

Rauch, A. and Hatak, I. (2016), “A meta-analysis of different HR-enhancing practices and performance of small and medium sized firms”, Journal of Business Venturing, Vol. 31 No. 5, pp. 485-504