How Strategic Entrepreneurship And Institutional?
Entrepreneurship refers to get a new idea of a business plan and introduce the same in the market with own risk. Basically, an entrepreneur is a person who is ready to take risks. It is necessary to take risk for earning profits. In this report, I have compared two business plans and different things that are included in the same. One case study is Blueprints Business plan Pty Ltd and the other one is Coffeehouse Business Plan. There are different strategies, marketing techniques and resource usage involved in different business plan (Barrow, 2016). It clearly defines the main goals, mission and vision of the organization that helps in reaching the goal as soon as possible. It also helps in the review of the activities undertaken to improve the process. These two organizations has different mission and have different target customer segment but both of them has a good business plan that can make them successful in future.
The main business idea of Blueprints Business plan Pty Ltd is to provide management consulting services to the small and medium enterprises in Sydney and Australia. Their main focus is delivering attractive business plans as well as different trainings related to management skills. They have a plan to employ only one person as a full time employee. On the other hand Coffeehouse Business Plan has a target to provide different types of coffee drinks, tea, cocoa, juice, smoothies to the customers. They are planning to copy Starbucks in the positive attributes (Bilgin, 2007). They are trying to target the mix segment of customers in the market that helps in the proper running of business in each and every season. They are planning to hire the required staff that can be sufficient in the process of preparing the coffee and serve them to the customers (Trends and Issues of the Coffee Industry of Ifugao: an Empirical Analysis, 2016).
Blueprints Business plan Pty Ltd has their main mission statement as to provide business solutions, business education and management advice to the small and medium enterprises. They want to be the best business plan provider in the whole market of Sydney. They want to provide full customer satisfaction to the customers so that they can get successful in creating a strong customer base. Their strategies are-
Clients- They wants to see their clients successful in the market by achieving their goals and objectives.
Community- They understands that by helping people to achieve business targets, they can contribute to the society in terms of job creation, economic development and the distribution of wealth (Bjørnskov and Foss, 2013).
Employees- They thinks that in order to achieve goals and objectives, an organization needs a good human resource that is full of knowledge and education. They provide a good working environment to their employees, and provide an open environment to improve their business skills and encourage getting new ideas. They also provide rewards and recognition to motivate the employees.
Owners- If Company runs successfully and achieves all the organizational goals then they can earn a good return on the investments and the efforts of the owners for a long-time period.
Coffeehouse Business Plan wants to become a choice for the people who live around the outlet, who come to visit the city, who travel daily on the same rote and the students. They want to provide high quality coffee to the customers and create themselves a big coffeehouse that can earn a good profit and get a good rate of return for all the investors. They also think good of the society by providing charitable services to the local community. They also support the farmers that are involved in the production of the coffee by using organic and sustainable production techniques.
Blueprints Business plan Pty Ltd has a short term objective to employ one full time employee on a salary of A$42 000 p.a. (gross) to handle all the operations and create a profit of at least A$2000 to make future investment. The long term profit of the organization is to create a very big consultancy that has a staff of 5 people and they are responsible to deliver services related to business planning. They have a target to buy their own building also. They have also decided an exit strategy for future in that they have decided that if any of the founder between the three wants to liquidate the business in future then they will do so. Coffeehouse Business Plan has an objective to create sales of $600,000 for the first fiscal year and $1 million in the third fiscal year(Schaufelberger, 2009). They have a target to achieve a net profit margin of 15% in the first year and to increase the same to 30% in the third fiscal year (Stokes, Wilson and Mador, 2010). They want to part actively in the community and provide a reinvestment on continuous basis in community activities the work for local charities and for the youth organizations.
Blueprints Business plan Pty Ltd has basically two markets in which they can target the customers- small business managers to whom the company can provide assistance to create a marketing plan and SME support agencies to which they can teach the management skills (Contents: European Financial Management 3/2017, 2017). There is a huge number of SME’s available in Sydney and they are approximately 200000 in numbers. They have a plan to undertake a research that can help them to know the exact demand in the market for their business plans. They will also use promotional strategies like Yellow page listing, telephonic, testimonials, networking and websites (Financial management, 2013). The products they are providing are the business plans to the small and medium size enterprises that contain 10 to 100 employees. They want to operate in the Sydney’s metropolitan area. They are also planning to provide education related to business management to increase the knowledge of the managers. They have a plan to create the books and sell them in the market that can provide business education and different methods for successful implementation of the plan. Initially, they will start a home based business that does not take a huge investment. It is related to directly dealing with the clients. For promoting and advertisement purpose they have decided few methods that can be proved as successful in the industry. Advertisement and promotion activities are necessary for the company as they do not have their own space. The promotional tools are-
They have a plan to opt ICT strategy also that is superior to the social media strategy. They will create an internet website that will contain all the information about the services they provide to the customers. They have created a search option also, so that consumers can easily search the type of service they want. They will also use social media to connect with the customers and can engage into two way conversation It is the best way to understand the needs off the customers and to direct connect to them. They can also maintain the existing relationship on social media. They will create as software that can help in video streaming to develop some important information for in house that helps in educate the market about the services they offer. They will also engage in hardware so as to utilize smartphones and pc’s to use the same for internal communication while someone is out of office with the client. They will charge a very basic and low amount from the customers to create a consumer base and promotional activities. They will charge A$120 per hour. This is almost similar to the price that other service provider charge from the customers (Nunn and McGuire, 2010).
Coffeehouse Business Plan has divided its target customers into five segments.
They have a very potential customer segment and they all are not interring- related to each other. The main benefit of having a mix customer segment is that their sales can never get down in the market. Due to this, they need not to depend on a single customer base as some customers may come according to the season but the other are always there (Entrepreneurship in Family Firms, Business Families, and Family Business Groups, 2015). Their marketing is strategy is not like the strategy of Blueprints Business Plan as they do not need to opt for some serious marketing tools. They can promote themselves using social media and a big hoarding before the outlet. They have a plan to provide a huge variety of the products like tea, coffee, beverages, water, juice, pastries, soft drinks and gift items. They have created a very attractive and fascinating menu to impress the customers. They created a big focus on providing a big variety of products. There was an economic crash in the past years and companies are creating losses. But the love for coffee remains the same for the people of America. According to them, the best strategy that can work for them is the word of mouth. They are majorly wanted to do no advertising and no marketing. They know that they can get known in the market without any advertisement. The coffee industry is proved as a very sale oriented in the American market. They have strong public relations that can help them in promoting the products in some articles or blogs. They have created a website that contains all the information about the types of beverages they sell. They have uploaded the products on the website like gift items, coffee beans and furnishing so that customers can directly buy these products from the websites. They can earn a good amount of revenue by this (Financial management, 2014).
In Blueprints Business plan Pty Ltd , majorly all tasks related to training, consulting, marketing and public inquiries are done by the managing director. The target is to hire two trainers that can provide assistance in delivering the training program(Du Plessis, Strydom and Jooste, 2012). They both will be responsible to report the director. So, there will be total three people who will handle all the operations-
Managing Director- He will be responsible for business consultancy majorly. He will provide all the planning and mentoring the clients. He will be responsible for the marketing activities of the business. They will contribute in the strategic development of the firm. Salary for the MD will be approximately A$42 000 per annum in Year 1, rising to A$50 000 by the end of Year 2. Managing Director of the organization will be Jessie Jones.
Consultant- He will be responsible for the planning and management consultancy. He will work for the clients and helps in office management. His Salary would be A$45 000 per annum and he should be able to deal with the people and possess a business background
Consultant- The consultant will be responsible for all the training activities and he has to deliver all the training courses and prepare for the same too (Iacobucci, 2018). The salary for this person would be A$45 000 per annum. He must possess the business background and qualifications related to trainings. He should be capable of conducting training activities and effective training sessions.
In Coffeehouse Business Plan, there is a full-fledged team that will work for the organizational goals and help in proceed with all the operations. It will managed by Ned Powers- Sebastiane and Victor Lubitsch. They will get assistance from the outside support team. They will have a big staff and there should be a proper payroll system for that.
In Coffeehouse Business Plan Pty Ltd are expecting a sales growth of minimum 15% on annual basis, good margins and a good amount of cash flow like 20%-25%. They want the marketing to be remaining below around 5% of the sales. They want to reinvest the amount of profits into the financial markets or real estate to earn more profits. They will use NPV method to forecast the maximum returns they can get with minimum risks (Pinson, 2014).
In Blueprints Business plan Pty Ltd, all the expenses are calculated according to the market research and the manager should know all the costs. They have a plan to get all the revenues paid in a period of one month. All the prices and cost has to be increase in the next year. They have a forecast to get high future profits and they will invest their revenues in getting a property to maintain an office for themselves. They are planning to extend the number of employees in near future to provide more effective business solution to the clients. They will also spend an amount on the website that can be considered as a good marketing method (Argenti, 2009).
Conclusions
It has been concluded that both the business plans have their own advantages and disadvantages. They are both different organization with different product and services. The financial, marketing and operations requirement of both the organization are quite different. Blueprints Business plan has involved in providing the business plans and management business studies that does not needs a proper space and a big staff but still according to me, they should at least create a space for them instead on running in house to create an impact on the customers. They have a plan to get three employees only inclusion the managing director. They can hire some more people who can manage the place and attend the clients. They can invite the clients to their office for providing services to them. Coffeehouse Business Plan has a good business plan too but these is some lacking in the marketing plan because they should promote their taste by providing testers or some inaugural offers so that people can come and taste the drink they want to. The financial strategy of the company is strong enough to get the accomplishment of goals and objectives. They will have a good staff that can easily handle the staff and can attend them in an effective way. That can ultimately leads to employee satisfaction.
References
Argenti, P. (2009). Strategic corporate communication. New York: McGraw-Hill.
Barrow, C. (2016). Business plan workbook. [Place of publication not identified]: Kogan Page Stylus.
Bilgin, K. (2007). Performance Management for Public Personnel: Multi-Analysis Approach toward Personnel. Public Personnel Management, 36(2), pp.93-113.
Bjørnskov, C. and Foss, N. (2013). How Strategic Entrepreneurship and The Institutional Context Drive Economic Growth. Strategic Entrepreneurship Journal, 7(1), pp.50-69.
Contents: European Financial Management 3/2017. (2017). European Financial Management, 23(3), pp.355-355.
Du Plessis, P., Strydom, J. and Jooste, C. (2012). Marketing management. Cape Town: Juta.
Entrepreneurship in Family Firms, Business Families, and Family Business Groups. (2015). Journal of Small Business Management, 53(4), pp.1290-1290.
Financial management. (2013). London: BPP Learning Media Ltd.
Financial management. (2014). London: BPP Learning Media Ltd.
Iacobucci, D. (2018). Marketing management. Boston, MA: Cengage Learning.
LaPlaca, P. (2008). Industrial marketing management. Industrial Marketing Management, 37(1), pp.1-2.
Nunn, L. and McGuire, B. (2010). The Importance Of A Good Business Plan. Journal of Business & Economics Research (JBER), 8(2).
Pion, L. (2014). Anatomy of a business plan. Tustin, CA: Out of Your Mind and Into the Marketplace
Rapid Training Development. (2010). John Wiley & Sons.
Schaufelberger, J. (2009). Construction business management. Upper Saddle River, N.J.: Prentice Hall.
Stokes, D., Wilson, N. and Mador, M. (2010). Entrepreneurship. Hampshire, UK ; Australia: South-Western/Cengage Learning EMEA.
Teece, D. (2010). Business Models, Business Strategy and Innovation. Long Range Planning, 43(2-3), pp.172-194.
Trends and Issues of the Coffee Industry of Ifugao: an Empirical Analysis. (2016). International Journal of Science and Research (IJSR), 5(6), pp.2518-2521.
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