PCManufacturers Business Plan
1. Business History 5
1.1 Vision and Mission Statements 5
1.2 Key Initiatives and Objectives 6
1.3 Ownership and Management 6
1.4 Location and Facilities 6
2. Products 7
2.1 Description of Products 7
2.2 Key of the Products and Services 7
2.3 Achievement of the Products provided by the Company 7
2.4 Future Services 8
2.5 Competitive Advantages of the Company 8
3. Market & Sales Analysis Strategy & Plan 9
3.1 Competencies 9
3.2. Customers/ Demographics 10
3.3. Geographic 10
3.4. Demographic 10
3.5. Psychographic /Behavioral Factor 11
4. Market Strategy 11
4.1. Target Market 11
4.2. Analysis of Competitive Position 12
4.3. Pricing Strategy 12
4.4 Promotion Strategy 12
5. Management & Staffing 13
5.1. Organizational Structure 13
5.2. Management Team 13
5.3. Staffing 13
6. Financial Plan 14
6.1 Initial projected cost and financial needs 14
6.2 Description of annual projected cash flow statement 15
6.3 Description of projected cash revenue 15
6.4 Cost of sales 15
6.5 Manufacturing overheads 16
6.6 Income statement 16
6.7 Projected balance sheet 16
PCManufactures is a company that usually specializes in manufacturingcomputers. The company was founded back in 2003. Currently, thecompany is planning to launch another branch in the UAE as well asexpand its business operations to other markets specifically theAfrican market. The location of the business will be in Dubai at AlMankhool. PC manufacturers are both software as well as a computermanufacturing company. Apart of the manufacturing software andcomputers, the company also produces spare computer parts such asmonitors, speakers, hard disks, floppy drives, mouse, and keyboardsamong others.
Asingle individual under a sole proprietorship owns the company. Themanagement will comprise of three individuals including the owner ofthe business.
KeyInitiatives and Objectives
Thefounder is a graduate in computer engineering science from areputable top technology university from the United States. Thefinancing of the organization will be by several sponsors fromdifferent industry sectors. The management is very optimistic andcommitted to the success of the company and is highly motivated bythe global demand for IT products.
Inaddition to offering products, the company is committed to offeringother services such as safety and timely delivery of products thathave been purchased by the clients. Moreover, offering a warranty ofproducts, initial installation of the products purchased by theirclients and after sales services of the products purchased by theirclients.
Inthis industry, the competition is very stiff as each player tries tooutshine the other using innovation. However, PC manufacturers havecontinued to be the market leader due to its innovative products inthe market. If we make a comparison of the PC manufactures productswith its rivals for the last five years, it is evident that thecompany has made tremendous advancements in technology. The founder,as well as the management team of the company, is well skilled andconversant with the information technology world.
Thecompany will sell products at a low pricing, and this will be amarket entry strategy to ensure familiarization of the organizationsproducts. Products will be of the highest quality possible to createa brand name for the organization. Marketing promotion will beconsidered to ensure the organization gain fame among the customersof Dubai.
of Financial Projection
Thesales of the organization are estimated to be $ 200,000 for the firstyear whiles the projected for year two and three are $150,000 and180,000. The sales are then projected to upsurge t above $300,000when consumers get product awareness.
PCmanufacturers will commence operations in January 2016. The businesslocation will be in Dubai, which is a business hub city. Theenterprise will seek to compete with other established computer brandto provide clients with computers and accessories. The enterprisewill use research to achieve innovations and programs to meet themarket needs and stand out amongst other organization offering sameproducts. In the comings days, the company will ensure that itsoperations are expanded across the world, and the establishmentsproducts are embraced worldwide. PC manufacturers will also seek tocome up with new market spaces and unexploited demands throughproducts with unique features.
Vision and Mission Statements
PCmanufacturers have the aim of providing cheap but quality computersand accessories to individuals, and small and large organizations.The company’s mission is to offer unique products that meet thecustomers and market needs. Furthermore, to create a worldwiderecognizable brand that is preferred compared to other companies
Theorganization`s objectives are to have a reduced cost of production sothat we can have cheap products on the market. In addition, theorganizations have a vision of creating unique features in theproduct, which will ensure exploitation of new markets by theorganization. Our products will be customized to be user-friendly andeasy to use. Additionally, the users will have a provision whereproducts will vary in prices, and clients will buy a computer basingon budget and specification. Novelty in the products will be key, andthis will include an extension of all the personal computers.
Key Initiatives and Objectives
Theaim of PC manufacturers in the coming years will be to:
Ensure customers familiarization with companies products
Exceed the cost of manufacture and operation to make profit during the first year of operation
Make considerable revenue during the first year of operation
Utilize wisely the $100,000 savings meant for startup costs and operational cost for PC manufacturers.
Ownership and Management
PCmanufacturers will operate as a sole ownership business. AbdulMohammed the sole proprietor, a computer-engineering graduate, willoversee the operations of the business. In addition, two full-timeemployees, the product manager, and finance officer will add to themanagement team. The product manager role will be to ensure sales arehigh, and the products are of high quality. The finance officerresponsibilities will be to ensure efficient and effective managementof finances and finances policies adopted by the organization.
Location and Facilities
Pcmanufacturers will be located in Al Mankhool and specifically KhaledBin Waleed Street where a premise will be rented. The area is commonwith residential buildings and is cost effective compared to otherareas, which have many offices. Al Mankhool is in the western part ofDubai and has various companies, hotels, and financial institutions.Indeed, the location will be best suited for the computermanufacturing as many people who come from across the globe stays insome of the hotels in the area during their stay in Dubai. Thecontinuous expansion of the business will necessitate for biggerpremises in the future.
2.1Description of Products
Thecompany will provide various electronic products, which will includebut will not be limited to:
2.2Key of the Products and Services
PCmanufacturers will ensure products provided meet the expectations ofthe customers. In addition, the products customization will enable torealize the customer’s specific needs. Technology will ensurequality products from the organization with new and distinctfeatures. The products success will be attached to having models thatmatch with specific groups. For instance, computers for students willhave features suitable for them.
2.3Achievement of the Products provided by the Company
Theenterprise will enforce teamwork to ensure that working together toattain a common goal is part of the organization culture. Plausibly,to achieve success everyone will have to work together to meet theobjectives of the organization.
Thecompany will have an objective of selling its products to the wholeof Dubai city and the entire United Arab Emirates. What`s more, thecompany will expand its products to African countries Europe and willeventually take the competition to the Unites States of America.Moving toward being at the top in terms of innovation will be a focusand coming up with a way to remain at the top will be the challenge.Diversification of services of products will also be a high priority.The organization will seek to venture into wireless applicationprotocol (WAP) but that will be a future consideration. However, thediversification will depend on the market needs and the availabilityof clients. The current area of products offers has will enable thebusiness provide computers and at all times have demands of theproducts. Evidently, the business will continue operations withoutworry on bankruptcy and liquidation process.
2.5Competitive Advantages of the Company
PCmanufacturer’s competitive advantage will be in providing qualityproducts and the latest technology and innovation in the products.Indeed, the organization will focus on research and development of upto date software to ensure that the customers receive latestprograms. The company will also have employees equipped with therelevant expertise that match the required skills to ensure productsare of the high superiority. The management team will also contributelargely to the competitiveness of the organization as the owner hasexperience covered in the area of business. The employment strategiesadoption, which includes internship to top computer-engineeringstudents, will be of advantage to the organization and provision ofquality products. Understanding what the clients require andfulfilling the needs of the markets in the provision of latestcomputers will be an added advantage to the enterprise.
Market & Sales Analysis Strategy & Plan
Theobjectives of the enterprise are to break even and make considerablerevenue that will upsurge yearly all other factors taken intoaccount. The aim is to have a sales output of above $ 200,000 for thefirst year of operation. The organization will be a representation ofmanufacturing businesses not in existence. In the present market, itwill be a representative of new ventures and unexploited new marketdemands. The enterprise will focus on continuous technologies,developing new demands and exploiting undefined markets. Some of PCmanufacturer’s business tactics will be:
Development of unexploited markets through new products
Make considerable sales break even during the first year
Dominate the created new demands that it will have come up with
Embrace technology and ensure availability of new features aligned to the customer demands.
Find new market ventures with a substantial demand for the products
Make the company’s product desirable in a market and hence have loyal customers, which will translate to brand recognition.
Ensure the reduction in manufacturing cost so that the sales price is low, and the incomes are high due to the gap between costs and sales.
Theproprietor of Pc Manufactures has vast knowledge in the areas ofComputer Engineering Computer and engineering science from areputable top technology university from the United States. Indeed,this is an advantage, as he will lead the organization in achievingits objectives. Furthermore, as he continues to unlock the puzzleabout computers and technology through research, he will continue tocome up with new desirable features of computers. Computers andaccessories are his favorites ever since he was young. Additionally, he has had an internship in large manufacturing company like Samsung,and this will enable him to use the work experience gained to ensurethe business compete not only with the small manufacturers but withlarge too. In addition, his continuous study in the areas of thecomputer in school will enable him transfer the theoretical work topractical.
3.2. Customers/ Demographics
Pcmanufacturers have an outline, which enables it to carry out itsbusiness. The profile comprises of:
Pcmanufacturers will be located in Dubai, which has the largestpopulation of all the cities in the United Arab Emirates. Indeed,with time the business will expand to the other seven cities. TheCity being famous for being a business hub, which host many businessindividuals across the world, is the best in the UAE to start abusiness. The business will be located in Al Mankhool andspecifically Khaled Bin Waleed Street. Al Mankhool is west part ofDubai and is a residential area. Nevertheless, there are manyfinancial institutions and hotels. Indeed, the street has more thanseventy hotels, and this will allow guests who come from all over thecontinent to access the computer stores.
Thevast number of the residents of Dubai is business people from acrossthe globe. The city has a population of over two million residents.The majority are the Asian at about 70% while 25% of the populationseems to have an origin from Iran. The rest of the populations arelaborers from across the globe that cannot be clearly beingidentified as with nationalities. The city being a center of businesshas a high demand for computers as every entity in quest ofefficiency has adopted a technology. In addition, there are manyschools in the city and students will form part of the customers.
3.5.Psychographic /Behavioral Factor
Mostbusinesses require reliable computers that are installed with thelatest software. It is essential for organizations to have thepersonal computer, which will ensure effectiveness operations. Withthe day-to-day increase in innovations, many organizations require tokeep up with technology and have up to date technology. Indeed, Pcmanufactures will be offering reliable computers and will have thewarranty for their computers and accessories.
Thecompany will use a low pricing strategy for market penetration, andthis will be possible by having a cost effective manufacturing costs.In addition, the company will have unique products made to suit thecurrent market demands.
Theorganizations have a wide market coverage bearing in mind that we arein the computer usage generation. Primarily, the enterprise willtarget all businesses in Dubai. In addition, there are many schoolsin Dubai, and the establishment will include this as their potentialcustomers. The establishment will have computers with customizedfeatures to suit the schools requirements. Furthermore, the businesswill focus on importers from Africa, Europe, and America, whoperceive commodities from Dubai to be less expensive. Moreover,
4.2. Analysis of Competitive Position
Thebusiness faces immense competition from the rivalry. Indeed, thereare various enterprises dealing with computers and accessories, thebig companies like HP, Samsung, Acer, and Toshiba have vendors in thearea, and we will seek to compete with them. Unequivocally, thecompetition will be high but with the strong marketing strategy, wewill succeed. However, the timeline for success may be long as we arein the inception process but the management is optimistic about thesuccess.
Thepricing of PC manufacturers will depend on the make and model of thecomputers. In addition, other factors such as the features of themachines will be taken into consideration. Furthermore, for theimporters who are not in Dubai and who wish the goods to be sent totheir country will have an additional charge added to their goods.Clearly, this charge will comprise of the shipping charge and anyother relevant fee for instance tax depending on the country.Discounts offers will be to those who purchase on a wholesale basis.In addition, transportation of goods purchased within Dubai will befree.
Theorganization will use newspapers to advertise products, but this willgradually change depending on new strategies adopted. At theinception of a business, we will use local media of communicationsuch as local radios, local television to ensure that the productsare widely known throughout the country. The launch will be on thiscommunication channels including the local newspaper. Brochures withall the companies products will be prepared and will be given topasserby and those who visit the stores. Consideration of word ofmouth advertising will ensure that the customers market thecompanies’ computers due to their quality. There will be a sale ofproducts at a discounted price during holidays and special occasionsto attract a customer. However, this will not be a trend but aone-off promotion.
5.Management & Staffing
Theoverall administrator of the organization will be the proprietor. Ageneral manager who will be employed by the owner will run theorganization operations. The general manager will oversee alloperations and ensure the operation run smoothly. Moreover, therewill be a product manager employed to ensure the organization meetsits objectives of innovative products.
Themanagement will encompass two managers, the general manager, and theproduct manager. In addition, there will be a finance officer. Theofficer will take care of the organization cash and budgets, paymentof employees and all financial roles. Other staff will be employeddepending on their level of expertise and skills that match with thejob to be performed. With time, the management will undertakeseminars in the area of computer management to ensure acquaintancewith the latest models.
Theorganization will have five full-time employees who will include theproduct innovation developer. The proprietor who has computerengineering expertise will assist and direct development of products.Pc manufacturers will employ marketers on a part-time basis to reducethe cost of labor. Likewise, the internship will be offered to topschools graduates in computer engineering, and this will reduce costand enable the students to bring forth new ideas.
6.1Initial projected cost and financial needs
PCmanufacturers’ being a sole proprietor has made an estimate of itscosts to be approximate $190,000 in its first year. The companycomputation clearly indicates that the company during its first yearof operation that it is going to make a profit, decline in the secondyear and then increase again in the third year of operation.
Thegeneral overview of the financial business plan, as well as theprojections, is presented as appendices (see attached document). Theyare listed as shown below
Appendix1: Startup capital budget
Appendix5:Raw material purchase budget
Appendix7:Manufacturing overheads budget
Appendix8:Material disbursement budget
Appendix11:Operating expense budget
6.2Description of annual projected cash flow statement
Thecompany cash flow indicates that the company is in a good financialposition as it records increase in its cash position. The projected cash flow for the three years isattached in Appendix 15.
6.3Description of projected cash revenue
Theprojected cash revenue for the three years is shown as
6.4Cost of sales
Thecost of sales for the three years were
Themanufacturing overheads decreased in the second year and thenincreased in the third year as shown
Thecost of labor that is projected is as shown below
Duringthe first year, the company is expected to report a high net profitof $84,650 but in the second year the profit will go down due toanticipated reducing trading and high operating costs. Third-year theprofit is anticipated to go high again to $77,850.
6.7Projected balance sheet
Thecompany has a sound balance sheet as it is anticipating for anincrease in its total assets from $191,250 in the first year up to$285,750 in the third year. The liabilities are also expected to behigh in the first year but decrease in the second year.