BAHRM 3 Business Plan Assignment Sample
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Company Overview
Product service
The eco-friendly choice firm will deal in retail market supplying eco-friendly electronics items.
This firm will focus on saving TVs, green LED lights, solar water heater and many more. The objective of this company is to provide the echo friendly electronics products to the customer and set the benchmark in the electronics industry. This business plan will also contribute towards motivating people to use eco-friendly electronics products and awareness towards the current environmental condition. It will also define the core benefit of using eco-friendly products such as saving money and energy, etc.
Eco-friendly choice initially will start the business with 20 employees and EUR 300,000 capital in Ireland and planning to open two stores including the head office. The head office will be established in Dublin and other retail stores in Ashtown city. As, this firm will start it business with echo friendly TV, light and water heater, this business framework can bring the awareness in public that use of normal electronics is harming the environment badly and carbon emission is the major threat to the environment. With the usage of eco-friendly products they can save their money ultimately contributes to energy saving. LED TV reduces the eye diseases like dryness and itching in eyes and lightest will spreads brighter lights with high dilatability. Thus company products will be proven as health conscious as well (Sonnenberg et al., 2018)
Mission and objective
The mission statement of this firm is “Go Green” and promotes the usage of eco-friendly electronics items. This business strategy of this firm will popular the eco-friendly electronics products in the retails market and change the pattern trend of the electronics products. Using LED and lights will come in habit of the public that is beneficial in every aspect. The main objective of this firm:
- To earn a profit while selling delivering the quality products with the eco-friendly
- To fulfill the customer demand for eco-friendly
- This practice develops the understanding in the public to invest in those products those are good for the environment and their health as well. These product lines will better the standard of life and safeguard the environment interest.
Apart from this, this firm will focus on further business expansion including the products range. It will target to open the 5 more stores in Ireland; later on, it would own the manufacturing factories that would secure the market share. Initially, it will start its business in LED TV, LED Lights and solar water heater. It can enlarge the products to other electronics items like Air condition, Geezer and homeware like pressure cooker etc on comparatively at lower costs and eco-friendly feature. Its business expansion generates the employment in local Irish market and firms is projected the annual sales of 500,000 per annum.
Critical Success Factors
In order to start the business various activities are undertaken like, hire workforces, installation of technical products and store rent, advertisement etc. The firm will take a bank loan for the arrangement of initials capital and projected cost. Primarily, it will start the business with Dublin city that is the capital of Ireland and wherein population is 1, 20,142 and it is continuously increasing the since 2005. The company will deeply research the market to fix the business will to find out the key suppliers of products so that it can sell the products by securing the margin costs (Luthra et al., 2015). This is the best location to start the business in order to attack the customers and to build a strong consumer base. The market segment of this firm is eco-friendly electronics item, therefore. The company will hire technical and innovative people in their field. In addition to this, the company will prefer to hire those people who personally use the eco-friendly products so that they can deal with the customers in a better way. Such workforce will help to explain the customer about the technology being used in eco-friendly products and research regarding the requirements of the customers. Similarly, the firm will implement the innovative packaging system and retail advertising strategy for its brand promotion to secure the market share (Evanschitzky et al., 2012). Apart from this, Firm will provide the fair after sale services like home delivery, installation, guaranty & warranty, and free demo to the customer for customer retention to ensure the firm success in future especially in the 6-12 month time period.
Unique Selling Proposition
The company will promote the eco-friendly feature as USP. Eco-friendly products like LED TV and lights and solar water heater are good for customer health and environment. Apart from the echo friendly specialty, there are other features as well. LED TV posses the features like sleek in design, clear picture quality, better view angle and contrast ration that are harmless for the eyes. These LED TVs are durable and easy to maintain and that is what customer demands. It also supplies the LED bulbs and tube lights with the feature of emitting light, better than fluorescent lights and emery sufficient. The best advantage is LED bulbs are that it is energy efficient and converts 95% energy in light and wastes only 5% as heat.
This firm will be operated in accordance with the international environmental protection laws like International Electro-technical Commission (IEC), Consumer Electronics Association (CEA), Federal Energy Regulatory Commission (FERC). The associating with these standards will enhance the firm goodwill and credibility (Kelvin Smith Library, 2018).
SWOT Analysis
Strength: Business location, diverse workforce, eco-friendly products, international environmental standards, and quality products are the strongest factors of the firm. This firm will focus on delivering the products that are suitable to the echo system as this is today’s demand. It will create the awareness at social and industry level for the usage of eco-friendly electronics items. It also supports the “Go Green’ initiative (Maier and Zenovia 2012).
Weakness: This form will start the business with a limited range of product as customer demands for the more varieties. In addition to this, scarcity of funds for innovation and research can be proven as a weakness for the firm.
Opportunities: As this firm will be certified with various international standards it will crease the credibility in the market. It will help the firm to finance and investing activities for further expansion.
Threat: Initially firm will face the intense competition in the market and issue regarding sustainability in terms of market share and customer base and sales. As there is an end number of competitors delivering similar kind of products. Other major challenges are changing in technical and environment safe laws that can affect the firm adversely.
Market Analysis
Research Methods overview
The primary objective of this study is to analyze the market for Eco-friendly choice (retail firm). The researcher will use a primary research type for the business organization where it will prepare a fresh report for the business organization. In concern to this research, the researcher will use both primary and secondary research method for collecting the data (Mackey and Gass, 2015). In addition to this, the researcher will collect secondary data from different sources such as Books, Journals, Articles, Websites, etc. In this, the researcher will find data related to the industry trend, market analysis, competitive analysis, etc. On the other hand, the researcher will also use the primary research by survey through questionnaire method to collect the data for research (Quinlan et al., 2019). In which, a questionnaire will be provided to the different people in the retail firm who provides eco-friendly products to the consumers.
In such case, the researcher will contact the local retail firm in the Irish market to generate the relevant research result. In concern to primary data, it can be said that it collects the specific data related to the research need and the data are controllable according to the needed quality. Similarly, it can also be said that the data and information collected by the researcher himself in the primary research whereas, in secondary data collection, the researcher uses the information collected by another (Charnes et al., 2013). During the research, the researcher will prefer the second method in order to increase the relevancy of the collected primary data. Besides this, it is identified that the mixed method will also be helpful for the researcher to achieve a valid outcome as well as it will effectively analyze the collected data. On the other hand, the reason behind selecting secondary data collection method is that the researcher can get data at lower cost and shorter time because the primary data collection method consumes high cost and time of the researcher. However, it can be said that the primary research includes the limitation cost and time, as well as the secondary method, might provide inappropriate information that can reduce the relevancy of research outcomes (Mackey and Gass, 2015). On the other hand, it can also be said that the primary data collection will consume more time of the researcher where the research will not be completed before January or February.
Industry overview and market trends
Industry overview is an essential tool that presents the competitive position of the company in their market. In addition to this, it also provides the factors that affect the business into their market by this the business owners can identify the threats or opportunities for the success of the business (Micek, 2012). In concern to analyze the retail industry of the Irish market, there is a need for effects that can provide effectiveness in the industry overview. For this, Porter’s five force model is used by the business owner.
Porter’s Five Forces (Competitive Forces Model)
It is a market analysis tool that helps the organization to analyze the competition of the business in the market. There are five forces that are provided by Michael E. Porter to analyse the completion in the industry that are:
- The threat of new entrants– It is identified that the retail market of Ireland is an open market where any business can enter easily. It is because the government policies for the retail sector are more suitable for small organizations as well as it requires less capital. Similarly, the switching cost is also lower than increases the threats for new entrants in the market. In concern to Eco-friendly choice, it can be said that the firm has less threat of entrance in the industry (E. Dobbs, 2014). It is because the Irish government has provided an open entry market to a retail firm.
- The threat of substitutes– The products offering by Eco-friendly choice also has substitute products which are less costly due to having a feature of friendly for the environment. All products offered by the firm are also have more quality standards that can reduce the risk of consumers during the use. But the availability of close substitute which is less costly with the low-quality standard is the substitute products of the business. At the same time, the product differentiation strategy of the business will be helpful to gain a competitive advantage and appreciate the business (Smith, 2013). However, it can be said that the organization has low threats of the substitute product.
- Bargaining power of customers– In the retail sector, the switching cost of the buyers are very which not highly affect the business organization. In addition to this, the availability of existing substitute products increases the bargaining power of the customer. But in quality concern, the customers have low bargaining power. Conversely, it can be said that the bargaining power of customers is moderate in this retail sector.
- Bargaining power of suppliers– The retail sector of the Irish market provides highly differentiated products to the customers due to this the supplier have to provide different material. On the other hand, most of the material in the retail sector is common among the firms that can have equal quality and price. However, it can be said that the bargaining power of supplier is moderate in the retail industry of Ireland.
- Competitive rivalry– The retail industry of the Irish market is growing rapidly in the recent scenario and demanding highly for the eco-friendly products in the market. In this, the sustainable competitive advantage can be gain by Eco-friendly Choice through the innovative idea in the products. In concern to this, the firm will introduce products in the market which are completely environmental friendly (Porter and Heppelmann, 2014). In addition to this, the firm can use both online and offline platform to sell out their products in the market as well as the social media marketing can be used to reduce the level of advertising expenses.
On the basis of above industry analysis or industry overview, it is identified that the retail industry of Irish market is based on the consumer behavior and their expectation. In addition, it can be said that the current trend in the retail sector is focusing on digital strategy and technology. Similarly, the increasing issues related to environmental impact are pushing the consumers and organization to use or invest in the green product & service.
Target market
In regards to the Eco-friendly Choice firm, the business owner will provide the products and services in the Irish market. In concern to this, the firm will target the youngster and educated people both in business and service class people. It is because the youngster and educated people understand about the environmental issues as well as they are more conscious about increasing environmental issues (Łopaciuk and Łoboda, 2013). In addition to this, the green environmental issue will also impact positively on the customers and attract them towards green product or service that provided by the firm.
On the other hand, the firm will segment the market on the basis of income of the people, age group, geographical market, and demographic segmentation. In concern to geographical segmentation, the business will open five stores in the different cities of Ireland that will cover most of the country but after a successful starting of the business, the firm will focus on the other areas of country and open the store through market expansion strategy (Larsen et al., 2012). On the other hand, each store will target approx. 200,000 customers on an annual basis so that the overall target customers will approx 1,000,000 customers annually. It is identified that the growth of the firm in the market is much high because there are few sellers who provide environment-friendly products to the consumers. But, it is identified that the store of Dublin will get high growth as a comparison to others. It is because the population size of Dublin is much high. In each segmentation, the firm will target the customers who are professionally educated and highly conscious about the environmental issues.
Competitive Analysis
Key Competitors
Ireland is raked as the 24th competitive economy in the market. There is tough competition in the Irish electronics market as many companies are providing similar kind of products. There are much manufacturing and supplying the LED TV and lights likewise Group247, Powerline, LED lighting and Eco etc. These companies are comparatively larger in terms of capital, market share, revenue and a variety of products. Apart from LED and TV deliver halogen, compact fluorescent, Halaogen Dichroic etc (Turner e al., 2012). This variety of products will give the tough competition to the firm as it will launch a limited range of products.
In the Irish market, there are some leading retails brands like Samsung, Euronics Ireland and Expert These brands are well established in the retails market and hold a good amount of market share. Samsung is a famous popular brand in Ireland, has a wide range of electronic products like TV, Smartphone’s, tablets and so many home appliances. It holds the 25.82 % market share in the Irish electronics industry. It generated the overall $2.8 billion revenue in 2017. Apart from Samsung, there are two more leading retail brands Euronics Ireland and Expert that dominantly contributes to the Irish retail market. Euronics is basically dealing in Home appliances, consumer electronics, and home entertainment and Expert deals in household appliances and television goods (Beumex, 2018).
The advantage of these products line is these brands are popular in Irish market hence companies need to more focus on brand promotion strategy and advertisement. These products are comparatively available at lower prices on stores located in various cities and these are equipped with high technology attacks the youth. In a comparison of Echo Friendly choice firm, these companies are not so eco-friendly that is an only negative factor.
Echo Friendly choice firm majorly focus on going green initiative and supplying the eco-friendly products. The technique is used for producing the eco-friendly is costly that makes the product expensive and this is the most important factor for customers to buy a product (Tsai, 2012). Expensive products can prove as the biggest factor in the market. Hence this firm will have to provide eco-friendly products at the lower process to strengthen the customer base. In the age of cut-throat competition and brand promotion, it has to invest a good amount of money in order to establish its brand. It has to select the suitable supplier for the markets so that it can deliver the quality products and services so that it can sustain the business successfully.
Competitive Advantage
The Eco-friendly Choice is providing differentiated products in the market that can get the competitive advantage in the market. In order to identify the sustainability, the organization will identify the competitive advantage for the business. In concern to this, Michael Porter has provided four important strategies to achieve a competitive advantage, such as:
- Cost Leadership– The cost leadership strategy focuses that the organization is offering reasonable value to the customers at a lower price. In concern to Eco-friendly Choice, it can be said that the organization will provide costly products to the consumers that will not make the organizational policies attractive (Chkanikova and Lehner, 2015). At the same time, the firm will focus on the highly skilled employees that can increase the overall cost of the business.
- Differentiation– In concern to differentiation strategy, it is identified that the organization has focused on this strategy by focusing on the differentiation of the product in an effective manner. In this, the retail firm will provide innovative products to attract consumers by providing eco-friendly products and services to their consumers.
- Cost focus– In concern to focus strategy, it is identified that the organization has a low scope with a lower cost that provides the competitive advantage to the organization (E. Dobbs, 2014). But in regards to Eco-friendly Choice, the organization is offering products to the consumers at a moderate price that can create the issue for the business.
- Differentiation Focus– In this strategy, a firm focuses on differentiation strategy at the narrow scope of the market. In this, the organization needs to provide a highly differentiated product that can impact on the business profitability. In concern to the Eco-friendly Choice firm, it is identified that the products are not highly differentiated from another competitive firm (Porter and Heppelmann, 2014).
However, it can be concluded that the organization is focusing on the differentiation strategy in order to attract their customers. In this, the firm has the ability to offer high-quality products to sustain in the competitive environment. In addition to this, it can be said that the firm has creative staff members to consistently innovate their product or process. Similarly, the differentiation strategy of Eco-friendly Choice stores will create a culture of continuous improvement with accessing the unique supplier. In the same way, the differentiation strategy will focus on new technologies or systems for the success of business in the future.
Conclusion
From the above project, it can be concluded that this company will face the tough competition in the Irish electronics market. However, it has the strength of diverse workforce and eco-friendly products to reap the market opportunities in the future. By delivering quality products and services it can establish the business at the comparatively lower process as this is the most important factor for the customer while making a purchasing decision. This firm can be promoted with the help of the Go Green initiative. It can also launch the new of products in home appliances and electronics items through innovation to increase its market share.
References
Beumex, 2018. About us. [Online] Available at: https://beaumex.ie/ (Accessed on: 12th December, 2018).
Charnes, A., Cooper, W.W., Lewin, A.Y. and Seiford, L.M. eds., 2013. Data envelopment analysis: Theory, methodology, and applications. Springer Science & Business Media.
Chkanikova, O. and Lehner, M., 2015. Private eco-brands and green market development: towards new forms of sustainability governance in the food retailing. Journal of Cleaner Production, 107, pp.74-84.
- Dobbs, M., 2014. Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45.
Evanschitzky, H., Eisend, M., Calantone, R.J. and Jiang, Y., 2012. Success factors of product innovation: An updated meta‐analysis. Journal of Product Innovation Management, 29, pp.21-37.
Kelvin Smith Library, 2018. USNA 287B- Electrical and Electronic Devices in Our Lives : Industry Regulations. [Online] Available at: https://researchguides.case.edu/c.php?g=17769&p=99816 (Accessed on: 12th December, 2018).
Larsen, P.H., Goldman, C.A. and Satchwell, A., 2012. Evolution of the US energy service company industry: market size and project performance from 1990–2008. Energy Policy, 50, pp.802-820.
Łopaciuk, A. and Łoboda, M., 2013, June. Global beauty industry trends in the 21st century. In Management, knowledge and learning international conference (pp. 19-21).
Luthra, S., Garg, D. and Haleem, A., 2015. Critical success factors of green supply chain management for achieving sustainability in Indian automobile industry. Production Planning & Control, 26(5), pp.339-362.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design. Routledge.
Maier, V. and Zenovia, C.P., 2012. The impact of internal and external environment upon the competitiveness of firms. Managerial Challenges of the Contemporary Society. Proceedings, 4, p.20.
Micek, G., 2012. Competition, Competitive Advantage and Clusters: The Ideas of Michael Porter–Edited by Robert Huggins & Hiro Izushi. Tijdschrift voor economische en sociale geografie, 103(2), pp.250-252.
Porter, M.E. and Heppelmann, J.E., 2014. How smart, connected products are transforming competition. Harvard business review, 92(11), pp.64-88.
Quinlan, C., Babin, B., Carr, J. and Griffin, M., 2019. Business research methods. South Western Cengage.
Smith, M.H., 2013. The natural advantage of nations: business opportunities, innovation and governance in the 21st century. Earthscan.
Sonnenberg, N. C., Erasmus, A. C., & Schreuder, A. (2014). Consumers’ preferences for eco‐friendly appliances in an emerging market context. International journal of consumer studies, 38(5), 559-569.
Tsai, C.C., 2012. A research on selecting criteria for new green product development project: taking Taiwan consumer electronics products as an example. Journal of Cleaner Production, 25, pp.106-115.
Turner, R., Ledwith, A. and Kelly, J., 2012. Project management in small to medium-sized enterprises: Tailoring the practices to the size of company. Management Decision, 50(5), pp.942-957.
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BAHRM 3 Business Plan Assignment
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