Business Plan for Visions Retailers Company

Abstract

The current competitive business world has forced most companies to appreciate importance drafting a business plan prior to launching operations. This will assist the company in predicting the future and also deploying appropriate strategies which will counter possible adverse occurrences. Business plans will also assist the company in making the decision on which business to invest where they exists possible alternatives.

Institutions extending loans to such companies have made it mandatory for startups to present a viable business plans prior to being given loans. This has forced most enterprises both in private and public arena to draft business plans not by choice but as a matter of necessity. Drafting a realistic and achievable business plan will possibly consume significant resources and will involve a lot of research in efforts of getting the necessary business environment knowledge. Despite the above challenges, business plan is justifiable as it will save company possible losses as result of adverse occurrences in running business operations and also huge amount of capital base which can be lost when company invest in the wrong business idea.

Different components should be included in design of the best and most realistic business plan. Among the Key component which should be included in a business plan includes, Value Chain Analysis. This will assist the business to evaluate how different activities in company’s operations will be undertaken. The company will there make more accurate on the needed capital and also plan for future adverse conditions.

This is a proposed business plan for the newly formed Visions Retailers Company. Emphasize is put towards how value chain analysis will be utilized in directing different business activities.

Introduction

Vision retail Company will venture into the much concentrated and very competitive household retail business. The venture will however deploy innovative techniques through application of value chain analysis which will boost performance. This will impact on outdoing competitors and consequently win a huge market share. The business will retail all household products through different stores and branches which will strategically be located in different location in the country. This will lay the foundation for future business expansion to other countries worldwide. Business prospects are high as the retailer will harness existing weaknesses in the current competitive market in boosting company’s performance despite the prevailing difficult economic conditions. The Company’s mission is very clear, it targets at meeting consumer needs and preferences while ensuring all employees are fully satisfied in the working environment. This will be costly and consequently, the business will have to ensure all activities add value to business performance.

Goals and Objectives: The goal is to be among the most successful retailers through ensuring continued profitability through reducing non value activities and investing more on activities which add value to the business. Good relations with suppliers will ensure the stocks are delivered in good time and also they are of right quality. Payment will always be made on time to prevent any unnecessary inconveniences.

Value Chain Analysis

Primary Activities:

Vision Retailers will be purchasing goods from large manufacturers who benefits from economies of scale. Vision retailers will consider producing some goods after the company becomes fully stable. Therefore, inbound logistics will include acquiring goods and stocking them for potential sales. The company will utilize strategies such as JIT which will enhance procurement system (Childerhouse & Towill, 2002).

Activities at this level will include proper handling of goods within the company premises to prevent potential damages which may increase abnormal losses and deplete profitability. This will be archived through deploying well staff and implanting security mechanisms within the company to prevent possible frauds and theft mostly to the costly stock items. As the business targets at creating value in all activities, the company will ensure an optimal stock handling system is used which will enhance different inbound logistics activities.

At the operations level, Vision retailers will not only hold stocks, but will also apply effort in adding value to the products. Products will be packaged in attractive manner as opposed to simply supplying them in the same state they acquired. At this stage, the Company will take advantage of its wide knowledge on how consumer’s behavior and market trends in design of very innovative techniques which will gain consumer’s interests. Products will also be tested to ensure that chance of selling default item to customer is minimized. This aligns with company’s mission of providing quality services to all customers.

Outbound activities will involve supplying goods to both wholesalers and final consumers. Globalization has made business environment very competitive and consequently, the company should very innovative (Gorbunova & Moisello, 2008). To boost overall sales while keeping operational costs constant, the company will focus at enhancing service quality through cheaper techniques such as using direct sales persons which will enhance personalized service.

Good communication skills utilized in handling customers will also boost sales (Cohen et al, 2012). Communication will also assist the company in gaining fast hand information about the market. The company will further focus at delivering different products to potential customers directly which cut down supply chain costs which pushes prices upwards. This is due to the fact that consumers are very cautious and want to spend finances in most optimal manner (Alexander & Stone, 2009).  Other activities will involve creating friendly relation with the customers which will possibly bring repeat sales and boost business image.

Marketing is the most important primary activity especially in the current competitive business where companies are deploying very innovative techniques in marketing their products (Kargwel & Inguva, 2012). Disregarding how products are diversified to meet varying consumer needs, marketing remains critical in dictating chances of retail business success or failure. The company appreciates the above reality and consequently will focus more to the marketing level.

Visions retailers will apply diversified and innovative techniques to acquire the much needed marketing information. Utilizing both primary and secondary research systems will be critical in accessing the type of market in which Visions retailers will operate. In the local area in which the company operates, they exists several retailers who mainly retail foodstuffs oriented household products. Similar huge retail outlets like the proposed venture in the country amounts to less than 5 who mainly retail products at exorbitant and exploitative prices, the services are similarly not personalized.

This creates a huge marketing gap which vision retailers will strive to fill. Through introduction of cheaper but high service level to customers the company is set to be the next big Competitor in retail business. Other factors such as use of direct sales person will further boost chances of the Company succeeding.

The company will also utilize the different forms of promotional techniques to boost the above innovative techniques to be deployed in marketing. As a start up venture, the company will use road shows and bill boards to make the venture to be well known in domestic market segment. Such promotion techniques will be intensified in all major cities in the country before extending them to other cities in different geographical segments internationally.  This will be quite expensive campaign, however it is justifiable as it possibly boost sales and improve overall performance by great extent. Other techniques such as retailing products at very low profit margin initially will attract more customers to the business and consequently when the business will adjust prices slightly in future such customers will find it difficult to shift to other suppliers as a result of created customer’s loyalty.

Most companies in retail business rely on TV adverts for advertisements, the company will be innovative enough and use techniques such as internet platforms will be harnessed in making the retailer more popular. This will involve but not limited introduction of online purchase option to potential customers internationally. With such a diversified and innovative marketing platform the company is set to take over a huge market share at both local and international levels. As the entrepreneur, I will strive to ensure more innovative techniques are deployed depending on the ever changing and technologically sophisticated marketing world.

The company will also enhance after sales services which will possibly boost intended marketing objectives. This will involve handling consumer’s complaints in an amicable manner. This will assist the company in boosting service delivery as potential weak points will be identified. Any consumer who raises complain will be handled in a respectful manner. To enhance service delivery, the company will consider giving after sales repairs to all electronic products sold. Incases where the customer experiences difficulties in installation different technological applications, the company will extend free installation service.

Secondary Activities:

At the procurement level, the company will target at securing the best price from different suppliers. This aligns with overall business objective of lowering operational costs while not undermining service level extended to customers. This must be supported by the competent team of managers the company will hire. Visions Retailers will utilize information technology applications in assessing suppliers offering the best prices internally. Price will also be bargained by the company and the supplier to attain fair deal acceptable by both parties without undermining quality of goods delivered.

The company will also take advantage of technological application in enhancing business performance. Technological applications will include online purchase platform. This will be archived through introduction of very reliable E-Commerce application which will allow customers to order and also make payments online. The company will also use internet platforms in marketing different products. Information technology will completely transform Visions Retailers operations and ensure a wider customer and suppliers reach.

Aligning with company mission of ensuring the best working environment to employees, the company will introduce the best and most optimal human resource management strategies. The company appreciates that employees is the most valuable asset to the company (Wen-Hai et al 2012). Consequently, all techniques will be utilized in efforts of creating the best working environment acceptable by all parties. An attractive bonus pay will be extended to employees with exemplary performance. Training will be extended to all employees at no cost with the main aim of boosting workers competence and productivity.

To supplement the above strategies and activities the company will possibly use innovative management strategies which will enhance overall business performance. As the business expands, it will be important for the company to introduce very competent team of management which will mainly focus on implementation of different primary and secondary activities. Well dedicated pool of junior workers will assist in implementing overall activities and policies as directed by management. A Formal organizational structure headed by a competent and experienced board of directors to oversee operations of the company will be deployed to oversee Visions retailers operations. The company will also consider government regulation as it expands operations to different geographical market segments. This is due to the fact that government influence will directly affect Company’s operations (Becker, 2012).

The company will also invest heavily on Firm Infrastructure. Strong Management information system will be introduced which facilitate smooth implementation of all strategies as directed by the management (Wang, et al 2012). To ensure the highest value for money the business will also clearly evaluate tax implication on any investment project undertaken (Hamid et al, 2011). Accounting department will ensure all costs incurred are accurately entered into the books of account. This will make all parties involved in managing the company to be more cautious and ensure highest value for money in all activities implemented.

Conclusion

            Business plan is very effective tool all profit oriented entities should use reduce potential threats due to unexpected happenings. Value chain analysis should be utilized to enhance quality of the business plan. A competent management team should be utilized in ensuring all policies are communicated to staff and implemented as planned.

References

Alexander, W. & Stone, D. (2009, June). US Consumers Spending is Changing. Accessed on Feb

15, 2013 from http://www.mckinseyquarterly.com/How_US_consumer_spending_is_changing_2387

Becker, C. J. (2012). Democratic Accountability and Business Improvement Districts.

Public Performance & Management Review, 36(2), 187-202.

Childerhouse, P. P., & Towill, D. R. (2002). Analysis of the factors affecting real-world

value stream performance. International Journal Of Production Research, 40(15), 3499-3518.

Cohen, L., & Kassis-Henderson, J. (2012). Language use in establishing rapport and

building relations : implications for international teams and management education. Revue Management Et Avenir, (55), 185-207.

Gorbunova, M. L., & Moisello, A. M. (2008). activity based costing and total cost of

ownership for supplier selection. Conference Proceedings: International Conference Of The Faculty Of Economics Sarajevo (ICES), 1-21

Hamid, N., Noor, R., & Zain, M. (2011). factors affecting smes successful utilization of

tax incentives in manufacturing SECTORS. Malaysian Accounting Review, 10(1), 1-16.

Kargwell, S., & Inguva, S. (2012). Factors Influencing the First Generation

Entrepreneurs: An Analytical Study on the Graduates of UAE Universities. International Journal Of Business & Social Science, 3(7), 143-149.

Wang, N., Liang, H., Zhong, W., Xue, Y., & Xiao, J. (2012). Resource Structuring or Capability

Building? An Empirical Study of the Business Value of Information Technology. Journal Of Management Information Systems, 29(2), 325-367.

Wen-Hai, William, C., Feng-Hua, Y., & Chih-Kai, C. (2012). The Study of the Antecedents and

Outcomes of Attitude Toward Organizational Change. Public Personnel Management, 41(4), 597-617.