Resource Management
Executive summary
The key elements contained in this business plan include Company Overview, Product/Service Description, industry and Marketplace Analysis, marketing Strategy, distribution and Sales Strategy, operations Plan, development Plan and Financial Estimates. The first stage in developing the business plan revolves around clear identification of the nature of the business, the types of products and the environment in which the company operates. Exploring the company’s production plan and delivery channels puts trust alongside building good rapport with potential customers. In order to maintain regular contact between target consumers of the company’s products who in this case are school students, teachers and support staffs, an integrated technological approach reveals consumers’ demand and helps in developing a business plan capable of ensuring long term production and service delivery. The company’s customers are motivated by sustainable service delivery in an efficient and effective manner.
Just as mentioned, the business plan should be in a position to withstand uncertainties common to production and industrial performances. In other words, the business plan should take into control instances of industrial performance sustainability through proper decision making and financial allocation. The whole process of developing this business plan incorporates concepts of Triple Bottom Line (TBL) which is an accounting framework built on three dimensions. According to market demands and changes in business operations, the business planners in this case must consider social aspects, environmental challenges and financial constraints within the production systems. Social aspects, business environment and financial issues must be reflected within the proposed business plan through proper budgeting since such aspects form the basis of improved industrial performance and possible expansion in output.
Name of the Business
The business shall operate under the name ‘Macoz Enterprises’. The name is unique and very distinct. The coinage of the name followed strategic plan to enhance business production processes as well as service deliver within Zimbabwean domestic markets alongside gaining competitive advantage among existing manufacturing companies and suppliers of educational material.
Ownership of the business
Just as stated, Macoz enterprise operates as a limited company. The company’s ownership is through shareholders who have full voting rights on issues affecting the company’s operations. The decision process follows close consultation with managers and other important stakeholders. Some of the advantages aligned to the management processes retails around elaborated Company’s Acts and every stakeholder must strictly follow the industrial stipulations. The use of performance guidelines offers management at an individual level and reduces instances of possible conflicts while enhancing production and service delivery. Currently, managerial roles are distributed among shareholders depending on capital contributions. However, this form of governance is projected to change in future in which case shareholders with share responsibilities equally to enhance commitment. In this case, the company projects capital sharing ratio of 1:1 and this will also help in improving shareholders dividends and total earnings. Macoz Company is not looking forward to forming formal cartels and according to current governing laws, the company is credited to first expand in different locations without thinking of possible merge.
Business information
Business type, product and service
The company is specialized in delivery of educational materials such as books, stationeries, periodicals, and other learning materials to concerned learning institutions. The services that will be offered include maintenance of school leaning equipment, printing services school journals, periodicals and exams as well as providing photocopying services. Other than these services, the business will be in a position to provide basic education on basic literacy skills, how to develop and maintain school libraries for purposes of improved learning. As stated by the product and service manager, the company will remain non-discriminative in its delivery methods since the major objective is to expand individual knowledge on the use of library as a research center.
Mission statement
- To providing variety and quality services to the expanding Zimbabwean population. Macoz enterprise will operate with an objective of providing full time learning materials and education service with serious emphasis on quality education.
- To create awareness of the importance of technological advancement in education methods, and through advanced research, allow leaners to build their careers at an early age.
- To generate income in addition to meeting customer’s satisfaction levels. Business history
As a start-up company, there is no traceable history attached to this business. As an owner, I have personal experience dealing with customers and tend to build personal relations with various groups. The business thus will operate exclusive hard to create production history and high matching standards (Abrams, 2003, p.131). The business being a small one will have full administration from me as the manager, two other employees one of whom will be managing the finances and the other employee providing guidance to customers. The financial manager and account in this case have good ethics and skills on issues to do with accounting and money control.
Business location and operation hours
The business is located strategically at approximately 500 metre square in Windhoek City of Zimbabwe. The location of the business remains the regulating factor as far as business activities and productivity is concerned. Other factors remaining constant, the ability to gain recognition include giving priority to the interests and demands of consumers of the products who in this case are students, teachers and subordinate staff. The company’s operations runs from 8.00am to 6.00pm on week days, from 8.00am to 4.00pm on Saturday while on Sunday and during other public holidays, the company remains closed. This aspect of prepared operation gives the company opportunity to start its manufacturing processes while fresh and more organized. The centrality of Macoz Company in the city of Windhoek is important since this provides security to manufacturing alongside ensuring complete service delivery of products to customers. The company managers understand the secrets behind strategic management and proper business location.
PEST and SWOT Analysis
In order to remain active in provision of education materials and services mentioned above, Macoz Company engages in strategic analysis of business environment through PEST and SWOT methods. The use of both PEST and SWOT analysis compare current business situations to the developed production plans and in light of possible competition. As applied by the company, through PEST analysis Macoz is capable of understanding market growth and/or decline while taking a potential position to alleviate performance levels. The PEST analysis take into consideration factor affecting company operations such as political conditions, changes in business cycles or economic conditions, growth in social and technological factors as well as changes in internal controls of the company businesses.
On the other hand, SWOT analysis of company’s performance considers market strengths of the company in light of sources of finance, capital and workforce, weaknesses of a particular production method or product delivery technique, opportunities available for further investments and environmental threats accruing to the company. As mentioned by the company’s product management, the combined application of both PEST and SWOT methods of business analysis provide proper review of current market situations and any possibility of future growth in markets the company serve. Macoz Company widely uses PEST analysis for purposes of positioning, in strategic planning, market planning, and conducting product development and in developing research reports on the market. On the same note, the use of SWOT analysis becomes significant when the company wants to monitor its competitors and develop techniques that will allow an increase in performance.
Revenues and Accounting
Macoz manufacturing Company generate revenues by reliably providing quality learning materials and services such as photocopying and printing which are charged at fair prices to customers. Throughout its transactions, Macoz Company maintains full accounting records which the company uses as a proof of its growth in industrial operations. The financial information is used by the accounting department to prepare complete financial statements. Keeping accounting record requires a format that is generally accepted and very simple to understand. The fact that investors and lenders are the sole financers of the company, the accounting principles must follow the required international standards. In this case, the presented financial information must fully apply the rule of GAAP. This method of accounting is clear and makes it very easy to analyze the financial reports of the business. Liabilities are obligations to the business, which must be paid, in full amount under terms of agreement. Recognizing the roles played by lenders and investors in the business becomes very important. Under the accounting equation Equity = Assets – Liabilities, the company recognizes that its progress is under the influence of lenders and thus any loans borrowed must be repaid promptly and with interests as agreed upon.
Inventory and Supplies
Macoz Company inventories are limited to the functions of the warehouse management office. The company finds the use of properly installed computers, printers, photocopiers, writing pads, photocopying papers important in realizing the proposed company growth. The company is built on in-store purchases and off-store delivery methods. With an objective of enhancing growth, the company replenishes its production processes on regular basis, making changes in performance and allowing innovative approaches within the company’s business environment. Any repair and updates for company’s equipment call for the attention of a specialist who in this case must be a technician or a project developer and must be ready to play with business ethics. Macoz Company employs the services of prompt and efficient suppliers with an aim of meeting customer’s demands. The fact that the company aims at realizing customer’s satisfaction, the supply chain must be regular, timely and cost effective. The main objective in keeping close contact with suppliers is to ensure that the business has sufficiently and effectively installed machines that are able to take the company through various manufacturing processes. Similarly, Macoz require its employees on regular basis to check in and out of the company stores in order to ensure that business equipment remain in good condition for continued delivery of same products and services.
Legality of the Operational Environment
Every company must operate within certain legal framework. Macoz Company complies with the legal requirements of Zimbabwe and work towards maintaining law and order. Therefore, there is need to obtain operating license in order to show high levels of compliance regarding rules and regulations of the country under the department of protective and regulatory services. In essence, the company management is highly trained to protect the company’s goods from imitations and fraud. According to Zimbabwean legal requirements, any company is supposed to be fully registered with the ministry and obtains full certificate of operation. Other than remaining inclined to state rules and regulation, the company has to operate under its own cultures, which are also well formulated and presented to other stakeholders for consideration. The company does not operate under strict and compelling rule but formulate operational principles which are very simple to follow and manageable. Simple and manageable rule are considered vital in creating equilibrium in production and consumption between the company and reliable customers. Every employee must have opportunity to feel as part of the company in order to work efficiently and produce the required level of output. Just as mentioned here, Macoz Company must have contractual agreements and other important legal services, which must be provided by the state law offices.
Current Business Proposal
The urge to develop the proposed business plan by the company followed the increasing demand among learning institutions. As the case stands, Zimbabwe is and more precisely the city of Windhoek has a rising number of populations who include 70000 students, 4000 teachers and 1000 support staffs who need the services of Macoz Company. From the illustrations presented by the company managers, the rising need to access modern learning materials and information delivery follow instantaneous growth in literacy levels. The population of Windhoek is increasing by day and therefore outmatches the existing manufacturing companies. In order to match the existing market demands the proposed business plan will run on a total cost of 30 billion dollars. Owner’s contribution into the business will be 12 billion dollars. The remaining 28 billion dollars will come from loans or from investors. Since the business will be run on a large scale, the need to have financial investors and well-wishers increases. This would mean that 28 billion dollars be obtained from loans which will be repaid in full amounts with agreed interests. The outline of how the finances will be spent on purchasing business equipment for manufacturing is as shown in figure 1.1 below.
| date Particulars Dr. (billion $) Cr. (billion $)
April 02/2014 Bank 12 Capital 12 To record $12 billion set for business operation and purchase of business equipment April 05/2014 Bank 28 Loan account 28 To record $28 billion received as loan to finance some of the business processes April 07/2014 Purchases 13 Bank 13 To record $13 billion used in purchase of business equipment April 12/2014 Building 10 Bank 13 To record $10 billion used to acquire new building. The payment is to run for a period of 3 months N/B: the remaining amount will be used for other minor expenses like acquiring license, making the first payment to employees, maintaining the company in good operational condition and in other miscellaneous expenses. |
This is cost estimate provides the basic information of currency conversion ratio and is formally written and represented according to GAAP guidelines. The mini budget is financial information that Macoz Company can use to raise funds form willing investors and other organizations inclined towards improving quality of education in Zimbabwe, Windhoek city. The business plan is proposed to last for three years with successful intervention at every stage of involvement.
Market Analysis
Macoz Company is expected to grow rapidly and expand its services through proper diversification by recognizing the roles played by other market players like individual households and other commercial developments. Macoz Company targets students in higher learning institutions, students in lower levels of learning, the working population who apply for tertiary programs, organizations and other interested parties within a 3-mile radius of the proposed business center location. Other than the mentioned groups, the services will remain open to anyone at any time within the working duration. This becomes important in building good work relationships with various clients and most importantly keeping the customers coming back for the same or for other related services.
Several constraining factors are inclined to the operation of the Macoz Company. The most recognized factors include high levels of competition which poses threat as far as the level of returns are concerned, ever changing technologies and regular transformations in communication and research industries which significantly affect consumers will to purchase books and various learning materials. This will require regular update of the services and equipment used which is a cost to the business. Previous analysis of the market situation revealed the following information concerning the proposed services and the actions of potential competitors.
| Comparative Competitors Analysis | ||||||
| Service rating | Quality | Price | Service | Location | Marketing program | |
| Learning activities | Good | Good | Fair | Good | Strategic | High |
| Research and communication | Fair | Good | Fair | Good | Strategic | High |
With the following information at hand, one would argue that the business environment is highly competitive and thus require properly evaluated strategies that would ensure high levels of competition. As observed from the above data, certain gaps still exist as far as service delivery is concerned. The existing gaps are the reasons for such an investment plan by Macoz manufacturing company with the main objective of providing high standard services at relatively lower costs in an efficient and convenient way (Pinson, 2008, p. 112). Windhoek population needs to remain relevant to the changes in literacy requirements, global education systems. The provided reading and research materials must give the surrounding community opportunity to transect into various learning environment without fallout in individual results. The use of different learning materials and resourceful information should be aimed at improving education levels of Zimbabwe. Macoz Company should therefore work within the proposed production plan to ensure proper allocation of funds towards manufacturing of books, periodicals, learning articles and other relevant materials to serve the increasing population.
Contingency and Risk Management
If the business prospers in future, there will be need to hire contractors, take large projects and allow for good investment decisions in order to expand and diversify on production and service delivery. One of the risk management strategies in place is to allow a merge with trusted companies with similar objectives with and aim of consolidating funds to improve levels of education in Zimbabwe alongside making huge profits.
Marketing Strategy
The market strategy in this case incorporates the use of o social media, billboards and print media to reach consumers of the company products. As at present individuals who already consider the proposed business idea as important for Zimbabwean population have stated spreading news and informing every citizen about the concerns of Macoz Company. One would say that the response has been quite positive given the fact that the business aims at promoting diversification in education alongside allowing the society to learn and to become well informed over current issues (Karlson & O’Rourke, 2009, p. 91). Advertising remains significant in the history of the business and would help in capturing the attention of a larger portion of the Zimbabwean market. Regular contact with customers will also help in maintaining accurate business relationship alongside fulfilling the production goals of the company. Promotional plan will include giving bonus purchases to regular customers and allowing a discount to customers making large purchases. The business will be strategically located and therefore methods of sales will be on the basis of cash delivery. This will regulate instances of defaults in payment and possible collapse of the business.
Management
System management
As a Limited Company, shareholders are charged with full responsibility of ensuring that the business environment is safe for manufacturing and that the overall company operations run smoothly. This aspect will take into consideration the control of company assets and finances. Regular recruitments over the entire period of production will enhance performance and delivery of goods and services to customers. Zimbabwean population must therefore remain objective in their purchases to ensure that Macoz Company delivers the most required products. This might come through making earlier orders or allowing the company to design products according to the interest of customers. On issues of finances the company must take control by employing highly qualified accountant who will be responsible for accounting and recordkeeping while. On a second note, Macoz Company must have direct contact with customers. The need to intersect through various markets requires a second player who will perform the marketing and sales function. Significantly, the second player directly administers the services as required by the customer and monitors how customers respond to the company products (Rogoff, 2010, p. 65). The organization of work and specification of area of control will prevent conflict within the business and ensures that the duties assigned to every participant are perfectly accomplished.
HR management plan
The HR management plan revolves around strategic recruitment, training and deployment. Areas considers important by the company HR management include production department, marketing and sales department. The criteria used in employment include high professionalism in areas of manufacturing, ability to work as a team with other company employees, explorative skills in industrial research and application of good communication skills while dealing with clients. In order to improve industrial performance, the HR management applies different motivational approaches to influence employees’ production efforts. The company uses both financial and non-financial approaches to boost company’s manufacturing standards. Under financial motivation approach, the HR team in connection with Remuneration department ensures that the wages paid to employees matches the number of hours employees allocate to constant manufacturing of educational materials and in distribution of the products to the targeted customers. In connection to wages, the HR team has a plan of motivating employees through gifts and prizes. This is more specific to employees whose efforts towards the company’s growth can be measured.
Significantly, the HR management applies motivational techniques such as job promotion, employees retraining and job update, put in place safety measures within the business environment and ensuring that every worker has insurance cover. The use of non-financial motivational approaches gives employees opportunity to work as with no fear since their lives are rightfully protected.
Operations plan
The company’s operation plan considers the interest of different categories of stakeholders ranging from consumers of the manufactured goods, employees, investors, and the interest of the government and the needs of the surrounding community. Concerning the interest of consumers, the proposed business plan should be in a position to meet the interest of consumers through prompt delivery of educational materials. If Macoz manufacturing company is in a position of meeting educational demands of Zimbabwean population through proper investment in manufacturing, the company will be considered as the first to have revolutionized education system in Zimbabwe. After the products are manufactured, the distribution system will follow from different warehouses, retail shops, bookshops and finally to consumers of the products. This channel of distribution will help in eliminating crowding within the main company. On the part of investors, improved production processes will results into high returns thus good payment to investors.
Providing educational materials and services is advantageous to the entire community of Windhoek and Zimbabwe. The operation plan is to include the whole Windhoek population in the distribution process through share learning and researches. The business plan should include every little resource identified, which could be human or capital to make advancement in every challenging situation.
Technology Plan
The business plan will also take into consideration the use of modern technologies in the production process, at the distribution stage and in making communication with customers. Given the changes in production technology, Macoz Company plans to change the entire production system and incorporate the use of computers and computer application. The company must keep proper records of its finances in secure way for proof of proper budgeting and expenses in different business operations. The use of computer in storage of information is proven to be highly secured. Such information can only be accessed by intended users who are specific operators or departmental heads. The company must also make significant changes in means of communication within and outside the business environment. The use of computer networks to reach employees within the company, consumers and investors require high investment in ICT. The company’s proposed budget aims at meeting some of those expenses and giving opportunity to proper information deliver across diversities. The need to include technology in production comes with high costs just as mentioned and the company’s proposed budget must be in a position to meet such costs.
Integration of technology in Macoz manufacturing company closely follows global production needs, which are regulated by increasing demand of consumers. Since education materials are supposed to be used in learning and researches, the company must ensure that final products reaching markets and consumers give credit to changing business conditions.
Basis
This business plan and financial information rest upon the interest of investors and lenders who must understand the details of the business and possibility loan repayment. Using the GAAP accounting technique is according to the Zimbabwean Loans Regulatory department. The body argues that the recorded business financial report must be according to international standards and give accurate estimates of proposed financial information. Without this information, the body assumes that the loan request if a form of fraud to existing financial institutions and an act of fraud is punishable by law.
Assumptions
One of the important assumptions made in this case is that the business will operate as a manufacturing Limited Company with personal contact to consumers without franchising. Having looked at the components of the business equipment, the regulatory body has full control of the initiated processes and will accept the principles of operation. On this basis, the business will be in a position to pick up and make payments to the acquired loans and respective interests.
Detailed financial forecast
Macoz Manufacturing Company
Proposed income Statement
Average annual report for a 3 year budget
|
Sales Less: sales returns and allowances Net Sales Purchases Freight-in Purchases Returns and allowances Cost of services offered Gross Profit Operating expenses: Store Supplies Expenses Store salaries expenses Advertisement expenses Rents expenses Insurance expenses Utilizes expenses Office supplies expenses Depreciation expenses- store equipment Depreciation expenses- office equipment Income tax expenses Total expenses Net Profit
|
$
|
$
433,912 (11,250)
221,185 10078 (30,238)
464 107,550 18,200 14,400 2,800 18,760 814 1,800
1,850 510 |
$
422,662
(201,033) 221,629
(167148) 54,481 |
Macoz Manufacturing Company
Proposed balance sheet
Average annual report for a 3 year budget
Assets $ $ $
Current Assets
Cash 32,000
Notes Receivable 10,000
Accounts receivable 276,000
Prepaid rents 1,600
Prepaid insurance 4,800
Merchandize inventory 145,000
Sales supplies 1,280
Office supplies 440
Short term investment 33,000
Deposits for future advertising 3,680
Total Current Assets 507,800
Fixed assets
Building not in use 49, 600
Land 23,400
Delivery equipment 41,200
Ac. Depreciation on delivery equipment (28,400) 12,800
Trademark 4,000
Total fixed assets 89,800
Net Assets 597,600
Liabilities
Current liabilities
Accounts payable 114,600
Salaries Payable 5,200
Interest payable 840
Income taxes payable 910
Long term liability
Long-term notes payable 80,000
Total liabilities (201550)
Owner’s Equity
Common stock 140,300
Retained earnings 255,750 396,050
Policy Statement and Right Of Protection
This information remains confidential as an asset to the proposed business. This is a personal creation and imitation of any part of this business plan is punishable by state law. The conviction and jurisdictional protection is arguable in the courts of law.
Conclusion
The proposed business plan should be realistic, measurable, adaptable and sustainable. Sustainability aspect of a business plan is mentioned variedly since it gives investors opportunity to approve or reject the entire proposal. In cases where the business plan is unclears investors tend to think in line of fraudulent. Macoz business planners must therefore understand the importance of applying the concept of TBL while developing the both the budget and the performance plan. At the extreme end, the proposed business plan takes into account some of the current issues affecting global economic development and thus becomes realistic and viable but only if the company is in a position to convert the print document plan into actual activities. The company management must understand that this is a proposed business plan for the company and runs through a period of 3 years within which further adjustments will be necessary for the next production periods. The company’s investors and financers will only accept the next business proposal if the proposed 3 years budget has made significant impacts in the life of stakeholders.