Question description

 

Strategic Business Analysis Proposal

GUIDELINES

• Select a company and conduct its strategic business analysis (name of your start-up company)
• Your company analysis should be based on start-up business
• Following the directions below and submit the assignment in one document by 5:30 p.m. on Sunday, CT.

I. RATIONALE

• Describe fully the offers of your products/services in terms of quality (high/medium)
• Provide your start-up’s mission statement
• Explain why your products/services will be well received; and the role of marketing to its continued success and future profitability

II EXECUTIVE SUMMARY

Explain if your business/company is global products/services provider or serving both global consumer markets as well as global business organizations. Be advised that to succeed in developing a profitable business, your business venture will focus on two competitive advantages. For example, they can be quality and flexibility driven or efficiency. If you select quality, demonstrate that the demand for quality of your products/services is higher than supply (show evidence). Continue to say that your business venture’s pursuit of quality coupled with the flexibility will allow it to exploit this market opportunity. Mention that your business venture’s owner(s) and/or founder(s) relentless pursuit of quality, extensive background in (discuss their experiences) and Sheer passion will propel your business into profitability.

III CURRENT MARKETING SITUATION

Target Markets

1. Individual Consumers: Discuss the characteristics of your individual consumers and why you believe your products/services will meet their needs with great satisfaction. Explain what they appreciate and which social-economic class (demographic) they are coming from. Explain with confidence that they will have access to your offers anywhere they can find your products.
2. Business Consumers (if any): Identify the business organizations that will be more interested in your offers. Discuss the benefit of your year-round customers’ benefits such as getting a better price but must have long-term contracts with your company. Explain how your products will be delivered to your business consumers.

IV MARKET TRENDS

1. Supply: Explain ideas by saying that the increase in supply has reinforced demand within the last years. For example, you can say that many producers have moved to produce other goods/services due to increasing demand and higher margins.
2. Sales: Discuss the fact that sales of your products/services are forecasted to grow at 9% per year, much more than any other similar products.
3. Demands: Explain what is driving the demand for your products/services (tastes or preference?) Continue to explain that consumers are learning to appreciate the more sophisticated taste or preference of the products. Be very innovative while discussing your demands.

V. COMPETITION

Say that your company faces different types of competitors. Assess entirely your major competitors in the industry and their market shares. Discuss each competitor’s strengths and competitive advantages.

VI. SWOT ANALYSIS

Conduct the SWOT analysis of your company in terms of your:

• Strengths
• Weaknesses
• Opportunities
• And threats

Be very specific by describing each situation with full sentences.

Strengths Flexibility to meet unmet needs High-quality product offerings that exceed competitors’ offerings on price, quality and service Higher than industry margins due to production efficiencies	Weaknesses Business Venture lacks brand equity Limited marketing budget to develop brand awareness Decreased degree of flexibility when near full production
Opportunities Growing market with a significant percentage of the target market still not aware of your venture’s existence Ability to develop long-term commercial contracts which should lower production costs	Threats Out-of-state, already-established competitor that makes customer service and flexibility its selling point

VII OBJECTIVES

The main objective is to position (your company’s name) as the finest producer of goods/services in its area, commanding 25% of market share within five years with the following marketing and financial objectives.

1. Marketing Objectives:
   • Maintain positive, steady growth each month
   • Increase the number of new consumers who will become long-term customers
   • Generate brand equity at consumers markets as well as within the product/services industry markets
2. Financial Objectives
   • Realize 3% increase in gross profit margin every year

VIII Marketing Strategy

Product: Provide a wide choice of high-quality products /services

Pricing: Explain how price will be set. Be specific (bulk price versus retail price). Mention that all products will be priced competitively with respect to true substitutes.

Promotion: Explain that a mixture of advertisements and networking will be used to increase visibility for your company (name your company).

Distribution: Identify clearly where customers will find and purchase your products/services- if you are selling to business organizations, explain how your product will be delivered to them.

IX ACTION PROGRAMS

Create consumers awareness platform regarding services offered, develop the customer base, and work toward building customer loyalty. For example increase number of transactions per client; increase number of business organizations’ accounts and generate repeat business

Communicate the message that (name of your company) is the finest producer of high-end products/services to its target markets.

Place advertisements solely for (name of your company) in both the international print media as well as in the internet media.

Communicate the message to other industry members through networking with owners and managers.

X FINANCIAL PROJECTION TABLE

Â	FY2010	FY2011	FY2012	FY2013
Sales Forecast	Â	Â	Â	Â
Individual Customers	$19,944	38,899	51,212	71,212
Business Organizations	51,428	72,545	78,998	88,998
Total	71,372	111,444	130,210	160,210
Direct Costs of Sales	Â	Â	Â	Â
Individual Customers	2,393	4,668	6,145	8,145
Business Organizations	6,171	8,705	9,480	14,480
Subtotal Direct costs of Sales	8,564	13,373	15,625	22,625
Marketing expense Budget Advertising	1,100	1,100	1,000	850
Other	1,050	1,050	1,000	850
Total Sales & Marketing Expense	2,150	2,150	2,000	1,700
Marketing Budget % of Sales	3.01%	1.93%	1.54%	1.06%

XI CONTROLS

Explain that your company’s performance will be monitored through the following parameters:

• Revenue: Monthly and Annual
• Expense: Monthly and Annual
• Repeat Business
• Customer Satisfaction

Explain/discuss clearly the 4 aforementioned subheadings