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BUMGT5928 Strategic Enterprise Planning

Published : 14-Sep,2021  |  Views : 10

Question:

How do you plan to enter the market How do you intend to attract customers How and why will this work The vision statement briefly outlines your future plan for the business. It should state clearly what your overall goals for the business are.What are your short & long term goals What activities will you undertake to meet them.

Briefly outline how much profit you intend on making in a particular timeframe. How much money will you need up-front Where will you obtain these funds What portion will you be seeking from other sources How much of your own money are you contributing towards the business.

Answer:

The name of business that is proposed in India will be Motorbike restoration and customization and the business will be carried out through being a sole trader.  In the business Motorbike restoration and customization are starting a new bike modification company in which it will be modifying bikes. The customer will come to it and ask it about these are the things that he needs in his bike like it may be modification in engine, design modification or any other modification. In starting of the business, it will be just doing designing and assembly part in our company and manufacturing part will be outsourced.

Later on as our business expands, then the manufacturing will be done in our company. The company will be modifying them. It can be selling some of the parts are starting the business in India. Business location of the new company will be in Delhi, India. The business was initially commenced on November, 2015 in Australia. Business owner of the company is Mike Nikelson sold his bikes business for opening a custom bike business focused on modifying bikes in India (Barton, 2016). The owner has an experience of 5 years in running a bikes shop business within Australia. The products and services offered by Motorbike restoration and customization Company are described under:

  • Restoration and customary services-The company will give a wide scope of modifications in a motorbike running from essential adjustments, for example, paint, composites and headlamps to more perplexing and basic alteration that incorporates yet not restricted to altering the motor details and streamlined parts of the vehicle. Likewise, it will be giving helping aids to clients which are not ordinarily given in a motorbike. This can incorporate sun based boards to make a cross breed motorbike which keeps running on both solar power and fuel, a GPS highlight to enable the rider to explore effortlessly. In future, if the innovation allows, a self-ruling driving knowledge can likewise be added to help the drivers of exhaustion. This would not supplant a driver however it will be adequate to give a guide if there should be an occurrence of fatigue.
  • Parts-Parts for the most part considers things or materials that are vital to proper function of the bike. In addition to that, parts are presented with advantages and serve as extra charge other than administration expenses. Parts, as crank sets, pedals, tires, derailleur or brakes, are certain vital parts along with customization accessories. Other accessories for instance spokes, headsets, chains, base sections, links and link lodgings are the maintenance, however these might be sold to bikers who like to modify their bikes on their own (Yu & Wiklund, 2015).

1.2. The Market

Target Market

  • The college students are Motorbike restoration and customization Company’s fundamental target market. There is a huge market for motorbike modification in India as there are a great deal of bike aficionados. In the wake of doing some underlying exploration, New Delhi would be the ideal place for the start up as it has promptly accessible extra parts, shabby work, high populace and sufficient rivalry. (Béland, 2014).
  • College workers are another prime target market

Marketing Strategy

Motorbike restoration and customization have selected a business location in the primary close off grounds in a business territory including the college Bookstore, a private book shop, bank, bistros, cafés and mainstream watering gaps is perfect. The company gets consistent, day by day visual introduction. Students and staff will throng the walkway outside the company’s entryway and it can receive the rewards. The company’s closest rival is right around a mile away. For the student consumer who is in a rush to reach college, Motorbike restoration and customization is the quick answer for their necessities (Burlingham, 2016).

After that initially stopping ticket, Motorbike restoration and customization Company is the principal bikes shop that is observed by any prospective consumer. Motorbike restoration and customization Company is strategically placed when a biker gets a punctured tire while transportation. Moreover, the company’s marketing strategy looks to streamline its leverage of prime area. Motorbike restoration and customization Company needs college population to consider it to remain their bikes shop, even its name indicates, Motorbike restoration and customization. The company’s marketing strategy needs them to ensure it to be an aspect of every day encounter and a shop they can focus on for brisk repair and support benefit.

1.3. The Future

Vision of Motorbike restoration and customization ike Company is to delight target clients through innovative services according to client prerequisite.

Business objectives set by Motorbike restoration and customization Company is explained under:

  • Keep on providing the high caliber of offers and administrations that Motorbike restoration and customization is known for.
  • Deal with a seamless transfer of possession.
  • Maintain a fiscally solid business along with maintaining the trust and support of other individuals in help of business purchase (Vogel, 2016).
  • Repay start-up advance provided by relatives in first year.
  • Accomplish yearly and monthly deals equivalent to or superior to earlier year within previous owner.

1.4. The Finances

INITIAL INVESTMENT:-

Particulars

Amount ?

Business Registration Charges

? 80

Domain Name & Logo Registration Charges

? 60.00

License for Operation

? 2,100.00

Solicitor's Fees

? 5,000.00

Security Deposit for Rented Premises

? 27,000.00

Outsourcing Cost

? 50,000.00

Equipment

? 35,000.00

Furniture & Fixtures

? 60,000.00

Office Equipment

? 35,000.00

Purchase of Supplies

? 8,000.00

Security Deposit for Electricity

? 2,000.00

Telecommunication

? 900.00

Software Installation

? 250.00

Advertisement & Promotion

? 6,000.00

Stationery Items

? 1,000.00

Other Misc. Expenses

? 300.00

2.1. Business Details

The products and services offered by Motorbike restoration and customization Company are described under:

  • Restoration and customary services-The company will give a wide scope of modifications in a motorbike running from essential adjustments, for example, paint, composites and headlamps to more perplexing and basic alteration that incorporates yet not restricted to altering the motor details and streamlined parts of the vehicle. Likewise, it will be giving helping aids to clients which are not ordinarily given in a motorbike. This can incorporate sun based boards to make a cross breed motorbike which keeps running on both solar power and fuel, a GPS highlight to enable the rider to explore effortlessly. In future, if the innovation allows, a self-ruling driving knowledge can likewise be added to help the drivers of exhaustion. This would not supplant a driver however it will be adequate to give a guide if there should be an occurrence of fatigue.
  • Bike Accessories-The Company will offer great range of accessories. PC speedometers, bumpers, Locks, payload racks, headlights, agreeable seats, protective caps, panniers/knapsacks/errand person packs, water bottles, bike stockpiling racks, kid seats and trailers, and auto rooftop rack frameworks all fall in this classification.
  • Parts-Parts for the most part includes pieces or materials vital for efficient working of bike. In several instances, parts are introduced with advantages and are considered as additional charge other than the administration expenses. Moreover, crank sets, pedals, tires, derailleur or brakes serve as vital parts and modify accessories (Chang, 2017). Others, for example, headsets, base sections, chains, spokes, links, and link lodgings are entirely maintenance, however some might be purchased by bikers who like to modify and design bikes on their own (Cantamessa & Montagna, 2016).

2.2. Registration Details

The name of the business that is proposed in India will be Motorbike restoration and customization and the business will be carried out through being a sole trader. The Australian Business Number for the new company will be 12345678912. Business location of the new company will be in Delhi, India. The business was initially commenced on November, 2015 in Australia. Business owner of the company is Mike Nikelson sold his bikes business for opening a custom bike business focused on modifying bikes in India (England, 2015). The company is registered for goods and services tax on 5th March, 2017. The licenses and permits that is acquired by Motorbike restoration and customization Company to operate business in India includes fire department permit, sign permit, health department permits and country permits along with state licenses.

2.3. Business Premises

Motorbike restoration and customization Company will initiate its business in Delhi, India, a noteworthy city on the east/west Interstate. Delhi is additionally home to the principle university grounds. Outside diversion is exceptionally prevalent in the range; there are bike inviting nation streets prompting parks and lakes, and a broad exhibit of mountain biking trails for adventurous people. Situated in main close off grounds, Motorbike restoration and customization is in a head area to be the real provider of broad range of modifications in a motorbike ranging from basic modifications such as paint, alloys and headlamps to more complex and detailed modification that includes but not limited to modifying the engine specifications and aerodynamic aspects of the vehicle, embellishments, and repair administrations to college students and staff (Cichosz, 2013).

The commitment of these individuals will be as per the following:

  • Managing chief:he will be the leader of the organization and just answer to the directorate. He is accountable for taking care of the business and he is in charge of getting new contracts and strategizes how the organization can develop and regulate item improvement.
  • Managers:there will be 2 chiefs in this firm, one for building office and other for showcasing office. The building administrator will direct the creation procedure beginning from the arranging stage as far as possible up to the last quality check. He will direct the continuous work and guarantee that it is up to the norms set by the organization. Showcasing administrator would be responsible for client relations and item advancement. He will be creating thoughts on the most proficient method to publicize the item to achieve mass stream media.
  • Human resource:human resource office is in charge of guaranteeing that legitimate set of principles is followed in each bureau of the association. On the off chance that any representative has any protest with respect to the conduct of another worker or in the event that he feels that shamefulness has been done to him, it is the obligation of human asset division to investigate the issue.
  • Engineering:Engineering is fundamentally separated into 3 sections to be specific planning, creation and painting. As the organization develops, more staff can be enlisted to perform different operations once we have sufficiently accomplished money to do as such.
  • Marketing:Marketing group is in charge of contributing thoughts regarding how we can dispatch the item broadly or comprehensively and how best to promote our item. Showcasing office is likewise in charge of dealing with online networking pages, occasions, organization site and any capacities for the firm.

2.5. Management and Ownership

The owner has an experience of 5 years in running a bikes shop business within Australia. The present Chief Executive Officer, Hub Freewheeler, is purchasing University Cycle Works, and will deal with the business. Center has a B.S. degree in Economics and a M.A. in Comparative Literature. His enthusiasm however has dependably been cycling. He initially worked at his nearby bicycle shop when he was in school. Following quite a long while attempting to discover appropriate work in his degree field, Hub surrendered pursuing the fabrication of these fields and chose to work with something considerable, and came back to his energetic pleasure in bikes.

2.6. Key Personnel

Members

Allocated work

Sachin gautam

Developing concept and idea

Getting up all the necessary information about the business

What products to be offered

Baljeetkaur

Key challenges faced

How to compete in the market.

How to gain competitive advantage over rivalry companies

Ramandeepchahal

SWOT analysis of the company

Minimizing the weaknesses and threats

Snehdeepkaur

All the necessary flowcharts

GANTT chart

2.7. Products/Services

The products and services offered by Motorbike restoration and customization Company are described under:

  • Restoration and customary services-The company will give a wide scope of modifications in a motorbike running from essential adjustments, for example, paint, composites and headlamps to more perplexing and basic alteration that incorporates yet not restricted to altering the motor details and streamlined parts of the vehicle. Likewise, it will be giving helping aids to clients which are not ordinarily given in a motorbike. This can incorporate sun based boards to make a cross breed motorbike which keeps running on both solar power and fuel, a GPS highlight to enable the rider to explore effortlessly. In future, if the innovation allows, a self-ruling driving knowledge can likewise be added to help the drivers of exhaustion. This would not supplant a driver however it will be adequate to give a guide if there should be an occurrence of fatigue.
  • Bike Accessories-The Company will offer a range of accessories. Locks, bumpers, PC speedometers, payload racks, headlights, agreeable seats, water bottles, panniers/knapsacks/errand person packs, protective caps, kid seats and trailers, bike stockpiling racks, and auto rooftop rack structure comes within this classification (Thomas et al., 2014).

Services those will be offered by Motorbike restoration and customization are explained under:

  • Free 30-day/100-mile tune up with each new bike sold.
  • Brisk repairs for punctured tires, punctured wheels, brake links, and so on.
  • Booked tune-ups, substitution of every bearing surface, repacking of greases, and changes of derailleur and slowing mechanisms
  • Establishment of all embellishments
  • Approved guarantee repairs on the bikes
  • Custom wheel building

2.8. Insurance

These are certain insurance types that Motorbike restoration and customization Business must have to have a sustainable business. These are explained under:

  • Professional liability insurance
  • Property insurance
  • Workers' compensation insurance
  • Home-based businesses
  • Product liability insurance
  • Vehicle insurance
  • Business interruption insurance

2.9. Risk Management

Motorbike restoration and customization can help ensure your organization by recognizing those risks and finding a way to moderate them. Motorbike restoration and customization Company will take a look at five business risks and how one can help keep the company in a strategic position. In case of fire and other unexpected occasions management of risks can constrain powerless organizations to make great profits.

2.10. Legal Considerations

The legal considerations of Motorbike restoration and customization Company includes to ensure that the new business in India will select the right business structure, consider several obligations such as new business licenses and maintaining intellectual property documents such as its trademark, copyright along with the unique procedures it will follow in manufacturing of bikes

The owner will likewise ensure that the operation design will likewise incorporate setting up a strategy articulation that will mean to guarantee the correct conduct of the workers. This announcement will incorporate tuning in to the requirements of the clients going to the store to furnish them with greatest fulfillment.

The costs brought about for everyday activities and incomes earned will be recorded with respect to the accountant. The working hours of the salon will begin from 8:00 a.m. in the morning until 8:00 p.m. at night. The representatives should land at the middle 30 minutes before the opening of the store. This would give them some an opportunity to plan themselves and take briefings to convey most extreme value to the consumers

Sustainability advantage alludes to a business picking up preference over an adversary industry which helps in acquiring more benefits. Conducting a SWOT investigation can enable to break down a business methodology and can assist in selecting a particular technique to attain a sustainability advantage.

In India, in spite of the fact that there is part of organizations or sort of organizations however the most ideal approach to increase sustainability advantage over competitor organizations can offer lower cost goods. As the company knows that it can bring down the cost of any item, the quality dependably gets influenced however in our business quality will be the need which will assume an imperative part in the foundation of a brand. Development can be a factor for the business to increase sustainability advantage over contenders as abnormal state of inventiveness will be found in the business.

3.1. Market Research

The target market segment for Motorbike restoration and customization has been gathered from carrying out questionnaire survey. From the survey it is gathered that for University, bikes usage is high among the college students. Considering the same the college staff, nearby business workers, and, alongside each other bike shop around the local area, the more noteworthy Delhi populace and are taken into account (Piramuthu & Zhou, 2016).

It was gathered from the survey that the local market is affected by absence of parking. Bike transportation is deemed prudent and in addition effective in the college neighborhood. Some portion of market is cost obliged and other aspect is snared on most recent prevailing fashion, frame style, number of riggings, or depicted picture. For whatever length of time that new students arrive every year at the State University at Delhi, Motorbike restoration and customization market fragment development is guaranteed (Turner & Assistant Director, 2014).

3.2. Market Targets

Sales target of Motorbike restoration and customization Company is explained below:

  • Money Growth: To attain sales of ?10 million in the following 10 years.
  • Money Growth: To increase income by 10% every year through selling doubles the quantity of products each year.
  • Money Efficiency: To diminish costs by 5%.
  • Money Efficiency: To increase net profit by 10% every year.
  • Customers: Increase sales to existing clients (Ruan, Hang & Wang, 2014).
  • Customers: Increase consumer retention.
  • Customers: Achieve and maintain remarkable consumer service.
  • Customers: Develop and use a consumer database.
  • New Customers: Introduce remaining items within another market.

3.3. Industry Analysis

PESTEL Analysis

  • Political- Politically, vehicle business has extraordinarily profit by the Indian legislature. The administration has developed bodies that support Motorbike restoration and customization business for carrying out innovative work. Such bodies consider to maintain a checking framework for the car business.
  • Economical- Devoid of financial development, India might not have capability to draw in remote speculators in vehicle business. It is along these lines essential for nation to deal with such development as it might impact all assembling ventures.
  • Social- India is quick turning into a Motorbike restoration and customization industry center point as a result of its vast populace. This develops clamoring market for producers. The tastes of consumers might shift yet makers observe quick offering vehicles and develop fitting outlines.
  • Technological- The management is helping in innovative work to make sure that the two makers and buyers are upbeat and are focused on putting resources into Motorbike restoration and customization business.
  • Environmental- Natural variables have impacted Motorbike restoration and customization industry within India as the speculators are selecting to fabricate ecological benevolent vehicles. These include vehicles that energizes less and produce less vapor.
  • Legal- Legal components have assumed a part in the current development of the Indian Motorbike restoration and customization industry. This is on account of the business is to a great degree boosted with speculators being given 100% remote direct venture pass.

Porters Generic Strategies of Motorbike Restoration and Customization Company

  • Cost Leadership: Getting involved within wide cross-area of market by offering items or administrations at reduced cost. This requires being supplier of the items or management. Considering this technique requires persistent, excellent focuses on diminishing costs without considering item highlights and management that purchasers deem to be important.
  • Differentiation: Engaging a broad cross-area of market by offering highlights that makes consumers willing paying for premium costs, e.g., unrivaled innovation, quality, eminence, extraordinary highlights, benefit, accommodation.
  • Cost Focus: The business is new as well as has inconspicuous assets and organization might not have capability to have an extensive piece of aggregate market.
  • Differentiation Focus: This strategy might get appealing in this business as this have assortments in purchaser requirements that makes disconnection normal and in which substantial quantities of purchasers are delicate to cost and esteem.

Market Growth

The majority of Motorbike restoration and customization Company’s market development is customary registration of students from State University in Delhi. While general market numbers are different based on augmentations, typically fewer than 10%, the market has profit of around 22-26% yearly (Nakamura & Abe, 2014). In a more drawn out time period the number of students along with college workers develops and recoils with monetary changes and with population socioeconomics. For following three years Motorbike restoration and customization anticipate a moderate however unfaltering development within general college population and continue to develop Delhi as an attractive place to live.

Market Needs

Motorbike restoration and customization Company’s Target market has a few needs which it endeavors to meet:

  • Quality bikes at a few value focuses.
  • Different styles and sizes of bikes, inclining vigorously toward styles most well known with student segment

Market Trends

Trends in the bike modification and restoration business typically keep going for a period. Some of them was:

  • 1960s - Big surge on 10 speeds.
  • 1970s – Unique bike modification accessories ended up noticeably well known (Swamidass, 2016).
  • 1990s - Huge development of mountain bike modifications
  • 1990s - The supposed yet overstated passing of "street bikes" and the unfulfilled prediction of a blast in the pair showcase.

3.4. Company Customers

The college students are Motorbike restoration and customization Company’s major target consumers. There is a huge market for motorbike modification in India as there are a great deal of bike aficionados. In the wake of doing some underlying exploration, New Delhi would be the ideal place for the start up as it has promptly accessible extra parts, shabby work, high populace and sufficient rivalry.

  • They are generally students and there is 25% turnover.
  • The absence parking spot near college range and simplicity of bikes portability all through Delhi inspire them to utilize bikes with their desired modifications and restorations. Athletic interests consider it and close-by zones for use of mountain and trail bikes give an awesome place to ride with their modified bikes.
  • There is demand for retro Cruiser bikes modifications and advanced cruiser-style bikes with innovative riggings, strong brakes and so forth among the school students (Mullins, 2013).

College workers are another prime target market.

  • Little development and turnover, yet in general, the group is entirely steady.
  • Will drive by bike.
  • They need well established, agreeable bikes and range of accessories.

3.5. SWOT Analysis

Strengths

Efficient bike restoration and customization

Effective internal combustion engine producer

One of the most efficient bike restoration and customization

Efficient research and development

Technologically advanced bikes

Product portfolio

Weaknesses

High prices and costs

Requires products for a range of consumers

 

Opportunities

Increasing number of restoration and customization facilities

Expansion within the developing nations

Electric along with alternative fuel bikes customization

Expansion of product ranges

Threats

Increasing competition in India

Increasing fuel prices in India

Increasing transportation as well as other costs

3.6. Company Competitors

Putting aside the rebate retail chains, Motorbike restoration and customization has the following direct competitors:

  • Local multi-brandish store at nearby megamall
  • Statewide stores of bike restoration and customization shops which that initiated as Schwinn-just shops, however required to go up against distinct brands and items (McKeever, 2016).
  • Used bikes store that ensured fine business notoriety, has business entirely in used bikes
  • Nearby, incorporating the most seasoned shop around the local area
  • Nearby multi-area chain, that has spent significant time in opening shops in little neighborhood shopping centers in ranges of new lodging advancement.
  • A few bike support shops offering painting and other support services

3.7. Advertising and Sales

The advertising strategy of "Economy value bike restoration and customization" Motorbike restoration and customization is centered on attaining gigantic buyer portion through utilizing best special and promoting instruments. It was assembled that informal exchange will fill in as the best publicizing strategy for this business (Jones & Penaluna, 2013). The buyers will likewise be requested referrals and reward the customers alongside reduced and free administrations in view of the quantity of shoppers the business picks up. A few limited time rebates on the bike restoration and customization services.

Promotional Offers

  • Deliver first magnificence benefit for nothing or a trial
  • Referral Agenda: Free administrations interestingly guests

Special projects of the business will likewise incorporate presenting a lottery through which fortunate victors going by Motorbike restoration and customization will pick up a free trek or get-away (Lowry, Furth & Hadden-Loh, 2016).Vision of Motorbike restoration and customization Company is to delight target clients through innovative services according to client prerequisite.

Motorbike restoration and customization Company’s main mission is to be consumer focused, which characterizes company’s purpose in order to fulfill clients' needs. It focuses on offering greater adaptability to the organization to tap into new product segment without the need to change its statement of purpose (Jafari et al., 2015). In any case, Alone Bike Company’s main goal is a poor specialized apparatus and gives little data to organization's partners of what is the Motorbike restoration and customization Company’s 'explanation behind being' in the business.

4.3. Goals/Objectives

Business objectives set by Motorbike restoration and customization Company are explained under:

  • Keep on providing the high caliber of offers and administrations that Motorbike restoration and customization is known for.
  • Deal with a seamless transfer of possession.
  • Reimburse the start-up advance provided by relatives in the first year.
  • Accomplish monthly and yearly deals equivalent to or superior to the earlier year under the previous owner.

5.1. Key Objectives and Financial Review

Certain major objectives have been set for attaining increased profits for Motorbike restoration and customization Company at the end of each financial year and these are explained under:

The initial earnings will be gathered from the recently going by people and later on, it will issue enrollment cards to create loyal clients or increased revenue margin (Gabler et al., 2017).

  • The credit will be paid at 2.47% rate of interest on the amount of ? 230,000.
  • The sales will be expanded by 1.5% every month after outsourcing painting and assembling operations.
  • The tax rate is assumed as 11%, since it is the standard corporate tax rate in India
  • Within the initial three months, the clients anticipated that would purchase bikes and related accessories from the company will be 600 (Freyburger, 2013).
  • It is assumed that the Indian economy is required to ascend after some time and consequently, there will be no effect of inflation on the business

5.3. Start up Costs 

INITIAL INVESTMENT:-

Particulars

Amount ?

Business Registration Charges

? 80

Domain Name & Logo Registration Charges

? 60.00

License for Operation

? 2,100.00

Solicitor's Fees

? 5,000.00

Security Deposit for Rented Premises

? 27,000.00

Outsourcing Cost

? 50,000.00

Equipment

? 35,000.00

Furniture & Fixtures

? 60,000.00

Office Equipment

? 35,000.00

Purchase of Supplies

? 8,000.00

Security Deposit for Electricity

? 2,000.00

Telecommunication

? 900.00

Software Installation

? 250.00

Advertisement & Promotion

? 6,000.00

Stationery Items

? 1,000.00

Other Misc. Expenses

? 300.00

5.4. Balance Sheet Forecast

PROJECTED BALANCE SHEET for 3 years:-

 

1st Year

2nd Year

3rd Year

Particulars

Amount ?

Amount ?

Amount ?

Cash in Hand

? 214,849.63

? 444,862.14

? 603,436.47

Closing Stock of Suplies

? 524.61

? 406.69

? 446.26

Security Deposit for Premises

? 27,000.00

? 27,000.00

? 27,000.00

Total Current Assets

? 242,374.24

? 472,268.83

? 630,882.73

Less : Accumulated Depreciation

? 26,250.00

? 10,279.72

-? 6,250.00

Less : Accumulated Depreciation

? 51,000.00

? 47,947.20

? 33,000.00

Less : Accumulated Depreciation

? 33,250.00

? 31,500.00

? 29,750.00

Total Non-Current Assets

? 110,500.00

? 89,726.92

? 56,500.00

TOTAL ASSETS

? 352,874.24

? 561,995.76

? 687,382.73

Accounts Payable

? 874.35

? 1,016.74

? 1,115.64

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