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Business Plan
Business Plan
Business Plan
BUSINESS PLAN
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR AWARD OF MASTER OF BUSINESS ADMINISTRATION (MBA) TWO YEAR FULL TIME PROGRAMME AT
Submitted to:
Prof. Sharad Kamra
Submitted by:
Harshit Jain Vivek Panwar Deepak khardia
1.4 Company Ownership Androids Computers ltd. is a privately held proprietorship owned by its founder, Vivek panwar. The company intends to eventually expand into a franchise, when it will re-register as a limited liability company. 1.5 Location Androids Computers ltd. will focus on one major shopping center: NAI SADAK MARKET, which is a dynamic lifestyle complex located in JODHPURs upscale Grassland area, and offers a total of 610,000 square feet of mixed-use space. The outdoor mall also includes a movie theater, hotel, restaurants, and second-floor commercial office space. 1.6 Financial Overview Initial working capital requirements will be 50 lakh , which will consist of owners capital and a business line of credit from a financial institution. 1.7 Effective Date of Business We will open for business on October 1, 2011. We project healthy revenues by the end of the first year, and expect to triple that by the end of 2013.
Industry Analysis
2.1 Description of Industry The personal computer industry is a vast and rapidly growing market. With very few, if any, businesses offering our services, there is little or no competition in the custom computer niche. However, we will have to compete on some level with off-the-shelf retailers. Personal computer sales have been expanding since the 1980s, and further growth in the industry is almost guaranteed. 2.2 Trends Older baby boomers are beginning to buy computers, especially for basic functions such as banking and emailing. In addition, gaming is becoming very popular among the younger generation. 2.3 Strategic Opportunities Off the shelf computers do not meet the needs for these groups. Androids Computers ltd. will take advantage of these unmet needs while redefining the standards of computer retailing.
y y
The number of uses for computers is so vast, and because they make nearly any process more efficient (for both businesses and consumers), that number will continue to grow. Consequently, the need for specialized computers is significant, and will continue to grow. 3.2 Market Potential The number of uses for computers is so vast, and because they make nearly any process more efficient (for both businesses and consumers), that number will continue to grow. Consequently, the need for specialized computers is significant, and will also continue to grow. 3.3 Current Patterns With technology in computers advancing at such a high rate, the computer retail business is prospering. Baby boomers and elders continue to enter into the age of computing. As hardware capabilities develop, so does software and games. Businesses and corporations are finding more and more uses for computers every day.
3.4 Sensitivities Each of the following are sensitive factors pertaining to the industry, which could potentially affect the buying behavior of consumers: y y y Technological advances Increased capabilities and functionality New ideas
Competition
4.1 Main Competitors 1. Computer Renaissance: o Strengths: Matured franchise. Recognized company name. Personal customer service. o Weaknesses: Too many hats. Uncompetitive prices. 2. Best Buy: o Strengths: Convenience. Competitive prices. Name recognition. National marketing. Financial resources. o Weaknesses: Sales staff lacks knowledge and experience. Impersonal. Understaffed. Poor customer service. 3. Internet Retailers: o Strengths: Competitive prices. Convenience. o Weaknesses: Lack of personal service. Product intangibility. Little or no technical support. Inconvenient to return or repair. Cost and inconvenience of shipping. 4.2 Potential Future Competitors y y Copycats National retailers potentially offering customization services.
4.3 Entry Barriers y y y y Attracting qualified and personable employees to provide the best service Need for start-up capital Saturated market Obtaining reliable suppliers
5.1 Key Message Androids Computers ltd. will give each customer a personally tailored computer based on their particular needs. 5.2 Message Delivery We will deliver our message through a combination of advertising, promotional events, and community involvement:
1.
Advertising will consist of a combination of print, radio, and television. Channeling appropriate media outlets will help to maximize exposure to our target customer base.
2.
Promotional EventsWe will engage in promotional activities with the goal of increasing our visibility and attracting new customers. Initial ideas of promotional activities include hosting allnight gaming tournaments and sponsoring or participation in technology expos.
3.
Community InvolvementWe will become members of the Chamber of Commerce, participating in its networking functions.
5.3 Sales Strategy The main goal of Androids Computers ltd. is to make the customer feel comfortable shopping for and purchasing a custom computer. A needs-based analysis can then be made based on their specifications. Once the customer knows what they want, a plan can be made to fit their budget.
Operations 6.1 Business Facilities The business will be located at NAI SADAK MARKET and will lease approximately 2,000 square feet of retail space and wholsale trade. 6.2 Production Plan We will have a wide assortment of computer parts and accessories in inventory in order to build a specialized computer of any number of configurations. Keeping a large inventory will allow larger availability of parts and accessories for shoppers, and will allow the needs of the customer to be met by ensuring the availability of the necessary parts to build a specialized computer in a timely manner. The aim for Androids Computers ltd. is to discover a customers needs, and then determine the right computer for the customer. The computer specifications and detailed price summary is then put on paper and explained for the customer, who will then be able to adjust specifications and details of the purchase according to their budget. Once the customer decides on the right configuration, a technician will build the computer instantly, in the store. Building the computer, installing software, and testing should take around an hour, so the customer may choose to enjoy Lakeside Villages many shops, restaurants, cafs, or ice-creameries while they wait. Accessories will also be sold in the store including monitors to make Androids Computers ltd. a source for a broad range of computer shoppers. 6.3 Workforce Plan Our staff will consist of the Owner/Manager, an Assistant Manager/Technician, and a part-time Assistant Manager. Duties and Responsibilities of Employees: 1. Owner/Manager: Run and manage the business and facility while assisting customers. 2. Assistant Manager/Technician: Building custom ordered computers and assisting the manager with various tasks. 3. Part-time Assistant Manager: When all employees are present, the part-time assistant manager will be responsible for helping the manager maintain the store and assist customers, or other various tasks. In the absence of a technician, the part-time assistant manager will be solely responsible for covering the responsibilities of the manager while the manager covers the responsibilities of the technician. The parttime assistant manager will also undertake the same responsibilities in the absence of the manager. 4. Service Head: we will provide a one year service warranty with our products. As the after sales service is the key thing in todays competitive environment. So we will appoint a service head to take care of service operations.
Six years of experience in computer building and repair Two years employment at Computer Renaissance High School Graduate Minor knowledge in business management and accounting systems
7.2 Recruiting Employees will be sought after based on the following criteria: y y y y IT Certified Extensive Experience and Knowledge in Managerial Concepts and Sales Skill Employee History and Reputation
An interview will be conducted to determine the applicants ability to work well with others, judge his or her attitude, competence, and friendliness, as well as how well he or she is with customers. 7.3 Compensation & Incentives Plans Bonuses will be offered based on employee performance and overall production goals. Managers will be salaried. Other employees will be paid on an hourly basis. To recruit and retain superior staff, compensation will need to be very competitive. As of now, our current financial status precludes us from offering any employee incentives, however as the business grows and more employees are hired, we intend on providing basic benefits such as retirement plans and group health insurance.
Long-term Development
8.1 Long-term Goals Our primary goal is to develop and grow into a franchise by the end of 2012. We also aim to become a nationally accredited company with a widely known name, be recognized as a well-managed business with the best customer service and satisfaction, and ultimately be a profitable and prosperous competitor in the industry.
8.2 Potential Negative Results y y y Not achieving anticipated sales results Not being able to meet consumer needs Not being able to compete in the market
8.3 Strategy y y y y y y Instill into the company the importance of high quality customer relationships Profit as a business Make plans to expand Effective marketing strategies Appealing business appearance (name, logo, colors, building and interior) Build a strong, positive reputation with customers and the community
Financials 9.1 Accounting System We plan to utilize QuickBooks as our primary accounting software. Our inventory records will be accounted for using QuickBooks as well.
5000000
350000
9000000
400000 240000 700000 225000
12000000
480000 374000 1000000 375000
office
875000 4125000
1565000 7435000
2229000 9771000
9.3 Financial Assumptions Revenue: y y Will average 4 computer sales per day at rs. 10000 each, increasing to an average of 10 computer sales per day at $700 each by 2013 Will sell an average of Rs 4000 of accessories per day in 20011, an average of 11000 rs of accessories in 2012.
Gross Margin: y Rent: y Rent will be Rs. 30000 per square foot with an annual 10% escalation Gross margin will average 35% for the sale of computers and accessories
Utilities: