Discuss About The Strategic Intention Financial Support MSMES.
Business planning is the most essential and initial part of any business irrespective of their size, scope, marketing position and other determinants. At the initial stage of the business, every organisation has to analyse their market environment, their capabilities, potential competitors and consumer behaviour (Palia, 2014).). By this research, a business organisation can plan their investment, market operation, organisational operation and other factions along with financial estimation. Therefore, a business plan can be defined as a group of activities, estimations and planning that can help to identify the most profitable approach for a particular operational market (Brace, 2018).
This context is focused on the business plans of two start-up business organisations namely Business Solutions Consulting and Blueprint Business planning Pty Ltd. Business Solutions Consulting is a US-based start-up company, and on the other hand Blueprint Business planning Pty Ltd is an Australia based start-up company. In this report, both of these companies’ potential market and operational backgrounds have been compared with appropriate evidence and justification. The planned marketing strategies of these two are compared concerning their operational market. The licensing, business operation and authenticities of these companies have also been compared. Finally, the financial plans of these businesses have been compared and analysed with appropriate shreds of evidence and justifications.
The purpose of this report is to understand and identify the differences between two business plan depending on their internal and external environments and potential opportunities. Every section of the business plans of these to start-up companies have been compared to identify most appropriate approach, practice and technique to develop a successful business plan.
The business operation and marketing plan of any business depends on its operational history, mission, vision, goals, and objectives. These five parts of the business organisation define the company’s background and overall motive in the business. In this current context, both Business Solutions Consulting and Blueprint Business planning Pty Ltd are operating in the same segment of business operation dealing with clients for advising them about their business plan (Cotton & Falvey, (2012). Both of these companies have similar business aims and intentions. The main goal of Blueprint Business Planning Pty Ltd is to establish a small proprietary limited company and be specialised in management and consulting for start-up businesses of regional and national level industries. Similarly, Business Solution Consultancy intends to operate the market as a business consultancy firm.
The BBP company is starting their business in Sydney and other cities within the state of New South Wales, Australia. On the other hand, the company BSC is starting up their majority of the business in US. There are some operational differences between BSC and BBP company. BBP is more focused on business planning, management skills, training and development, sales and other parts of their client’s business. However, BSC intended to guide for all the necessary services such as Financial Planning, Marketing, Human resource management, Development and even IT services. Moreover, there are some minor differences in their business background and operations. However, the similarities between them are much more noticeable though they are situated in two different parts of the globe (Ward, 2016). Additionally, it is also noticeable that the starting revenue of BBP is much higher than BSC. On the other hand, BSC lacks some initial operational and managerial personnel.
Marketing is one of the major parts of any business operation which can lead the business organisation to its optimum potentialities. Marketing is a group of operation that deals with the operational industry and consumer fields (Stutely, 2012). The marketing strategies and tactics vary from business to business depending on their industry position and portfolio. Being start-up company, the marketing objectives of both of these companies are built targeting on making a business structure, market growth and market reputation. Due to their market situation is different, there are some noticeable amount of distinguishes within their marketing operation suitable for their corresponding markets (Schaper et al., 2014).
BBP is a small sized company which market is limited to the small to medium sized firms which have 10 to 100 employees. On the other hand, the US market segment is highly fragmented. However, BSC is also focussing initially on startup business having five year’s goals to achieve larger clients. The basic difference of marketing strategy of this companies is, BBP is preparing to handle specific experienced client within the Australian market, where BSC is completely focusing on very novice start-up companies. Both of this strategies are well managed from their aspects. Because of highly fragmented market BSC has less opportunity to target a larger segment of clients. However, BBP has a comparatively simple market condition that can allow initial access to larger client segments (McKeever, 2016). Being start-up company, both of this companies have narrow opportunity to gain consumer attention.
BBP is more focused on those clients who need more planning and manpower or human resource related support for their business. Therefore, for making their marketing plan BBP is making their Human Resource Consultant stronger than competitors. On the other hand, BSC is planning to provide more service-oriented advice for their client, especially IT and other operational facilities. However, both of these companies have some strengths as well as weaknesses in their marketing plans. They have considerably low amount of competitors that can add extra survival capability to these firms. On the other hand, both of these companies if prioritising their consumer base as their marketing strategy (Finch, 2016). This can cause secondary distress in next phase of business operation, more specifically after one or two years. Apart from that BBP is planning to build their market in the central metropolitan area of Sydney. However, BSC is planning to develop their market across the regional border. The competitors of BSC is KPMG LLP, Ernst & Young LLP, Deloitte & Touche LLP, PricewaterhouseCoopers LLP, and Andersen Consulting. On the other hand, the competitors’ count of BBP is significantly high that is 5000 new start-up and novice business consultant organisations.
For effective implementation of the market plan, BBP is focusing on their training and development programs. Through these multi-threaded training and development of manpower of clients, they can build strong market reorganisation for themselves as an HRM specialising company. However, the main focus of BSC is providing practical advice with corresponding services. For this specialisation, this company has a prospect to be specialised facilities and service adviser in their operating market (Kwong, Thompson & Cheung, 2012). Positioning is the most related business strategy with the specialisation strategy in a functional market where clients have their string bargaining power to regulate the external environment of any business. For placement purposes, BBP does not have any preferable position in their market. However, BSC has their strategic position for having a dominant consumer base including various leading and even multinational companies.
Pricing is another most important parts of any market strategy where the organisation has the power to maintain their profitability aligned with the demand. Switching between initial return on investment and collective profit after a specific period is the major concern for choosing profitable pricing strategy. BBP is planning for their initial cost arrangement excluding any additional and taxation related outflow. Instead, they are building their price range depending on their basic investment and estimated profits. On the other hand, BSC is focussing on its overall cost price balance. In this way, they are trying to increase their initial cash in hand rather than focusing on long-term business benefit.
Both of this selected companies have their distinct market plan with having associated advantages and disadvantages concerning their potentiality to increase the profit margin in the first year as well as within next three financial years (Fernández-Guerrero, Revuelto-Taboada & Simón-Moya, 2012). In spite of having a high number of competitors in a cosmopolitan market, BBP can inherit the unique marketing strategy of BSC to some extent, by involving more narrow range market entry rather than penetrating in a diverse market.
A business operation defines the legislative and licence agreements for the functionality and authorisation of a business organisation. Additionally, the internal practices and approach related to organisational structure, human resource, development of service or product are also considered as the operation part of a business organisation. BBP is currently operating with one employee named Jessie Jones, and BSC is planning to operate with five different specialised subsidiaries (Sørensen, 2012). One of the major differences in these two companies is BBP is a Proprietary Limited licence with Australian Business Registration number, and BSC is an SME group regulating by more than one business identities. BBP has three operating shareholders namely Stephen Molloy shareholder of 40%, Jessie Jones shareholder of 40% and Andrew St John shareholder of 20%. This personnel are the major directorial identities of the overall business operation and authorisation.
Andrew B. Christiansen holds the maximum shares of BSC while having Devid E. Fields as the marketing and business communication operator identity. The initial investment was done by the CEO of this company named Andrew; however, the company has the further plan to incorporate other additional investment from other sources within next three to four years (Sasongko & Anantadjaya, 2014). On the other hand, BBP has better-organised work structure plan including consulting, training, service board, marketing, business communication, administration and other operational departments. According to the business plan of BBP the managing director regulates the business planning, monitoring, occasional training, marketing research, administrative service and strategic development. The consultant department will deal with the business communication, client handling, operational implementations and other market and consumer level operations. The consultancy department will focus on the training and development part and its effectiveness (Mullins, 2012). However, managing director has more decision making power and monitoring privilege. The company also has their critical risk and contingency plan concerning the community of local area and their workforce management. The company has also disclosed about their software purchasing plan. However there with no internal exposition in the business and operational plan of BSC. BSC is more concerned about their financial operation and future profitability.
By comparing the business plans of both of the companies that BBP is more focusing on their organisational structure and execution of their business operation, while BSC is focusing more on their financial planning and profit growth (Jasra et al., 2012). The excessive focus on financial operation and lack of determined organisation structure can cause operational dilemmas within next few years. This discrepancy can cause unexpected breakdown of overall profitability of the company. Moreover, in order to develop a successful business planning BSC has to focus more on their organisational structure instead of focussing only on financial development. On the other hand, BBP has some disputes in their market plan regarding their client support planning. They have minimum information about how they sell their services to their clients in a competitive market environment (Anantadjaya & Mulawarman, 2012).
A financial plan is the soul of any business plan execution that helps the business organisation to estimate their future profit margin along with their current assets and capital in hand (Brettel, Strese & Flatten, 2012). The financial plan will help the company to change their market plan evaluation in order increase their profit significantly. According to the financial plan of BBP, the company has strong initial assets as well as operating capital that can help to invest more than their competitors within the market segment. On the other hand, due to lack of initial investors BSC has marginal amount of operating capital to invest. In spite of having low initial operational capital BSC is not seeking for high profit at the initial stage of their business (Mullins, 2013). However, BBP is more concerned about preserving a certain amount of capital as permanent assets.
Figure1: Financial Forecast of Blueprint Business planning Pty Ltd.
Source: (Schaper et al., 2014)
Switching between initial return on investment and collective profit after a specific period is the major concern for choosing profitable pricing strategy. BBP is trying to retain their estimated profit margin within a year, without investing more than the operational venture needed for start-up. On the other hand, BSC is planning to retain their invested venture as well as meeting their estimated target of profit having a stable cash flow ratio (Ferrari, Morone & Tartiu, 2016). In their financial forecast BSC estimated more than three times revenue growth at the end of three years of business. However, BBP is planning to maintain a stable revenue growth by increase its potential demands within clients segments. BBP is planning for their initial cost arrangement excluding any additional and taxation related outflow. Instead, they are building their price range depending on their basic investment and estimated profits (Pilskalns, 2010). On the other hand, BSC is focussing on its overall cost price balance.
Figure2: Financial analysis of Business Solutions Consulting
Source: (Palia, 2014)
BBP is planning for their initial cost arrangement excluding any additional and taxation related outflow. Instead, they are building their price range depending on their basic investment and estimated profits. Being a participant in a highly fragmented business market BSC could get more stable business growth by implementing the financial expansion plan as BBP. Similarly, BBP also needs to gain more static assets growth by increasing their gross margin significantly. On the other hand, BSC is focussing on its overall cost price balance. In this way, they are trying to increase their initial cash in hand rather than focusing on long-term business benefit. However, both of these strategies have some distinct advantages and disadvantages (Anantadjaya, 2013). In this way, they are trying to increase their initial cash in hand rather than focusing on long-term business benefit.
Conclusion:
From the above discussion, it can be stated that at the initial stage of the business every organisation has to analyse their market environment, their capabilities, potential competitors and consumer behaviour. Apart from that, both of these companies’ have their potential market and operational backgrounds that regulates their choice of business strategies and implementation. From the beginning of this paper, it was clear that both Business Solutions Consulting and Blueprint Business planning Pty Ltd are operating in the same segment of business operation dealing with clients for advising them about their business plan. Apart from that, Business Solution Consultancy intends to operate within the local and international market as a business consultancy firm. However, BSC wants to make their business limited to the local and regional areas.
The basic difference of marketing strategy of these companies is BBP is preparing to handle experienced client within the Australian market, where BSC is entirely focusing on very novice start-up companies. However, from the above analysis, it can be said that both of these companies have some strengths as well as weaknesses in their marketing plans. For both of these companies, pricing is another most important parts of their market strategy where they have the power to maintain their profitability aligned with the demand. From the above analysis of business strategies, it can be stated that BBP can inherit the unique marketing strategy of BSC to some extent, by involving more narrow range market entry rather than penetrating in a diverse market. However, BSC wants to make their business limited to the local and regional areas. On the other hand, both business organisations are seeking for business experience to deal with a more extensive range of clients from both national and international business, manufacturing, treading and other industries.
References:
Anantadjaya, S. (2013). Entrepreneurs vs. Business Plans: A study of Practicality and Usefulness.
Anantadjaya, S. P., & Mulawarman, S. (2012). Influencing Factors on Project Overrun: Is it Intrapreneurship?.
Brace, I. (2018). Questionnaire design: How to plan, structure and write survey material for effective market research. Kogan Page Publishers.
Brettel, M., Strese, S., & Flatten, T. C. (2012). Improving the performance of business models with relationship marketing efforts–An entrepreneurial perspective. European Management Journal, 30(2), 85-98.
Cotton, D., & Falvey, D. (2012). Market Leader Upper Intermediate: Business English Course Book. Pearson education.
Fernández-Guerrero, R., Revuelto-Taboada, L., & Simón-Moya, V. (2012). The business plan as a project: an evaluation of its predictive capability for business success. The Service Industries Journal, 32(15), 2399-2420.
Ferrari, A., Morone, P., & Tartiu, V. E. (2016). Tackling Uncertainty through Business Plan Analysis—A Case Study on Citrus Waste Valorisation in the South of Italy. Agriculture, 6(1), 5.
Finch, B. (2016). How to write a business plan. Kogan Page Publishers.
Jasra, J. M., Hunjra, A. I., Rehman, A. U., Azam, R. I., & Khan, M. A. (2012). Determinants of business success of small and medium enterprises.
Kwong, C. C., Thompson, P., & Cheung, C. W. (2012). The effectiveness of social business plan competitions in developing social and civic awareness and participation. Academy of Management Learning & Education, 11(3), 324-348.
McKeever, M. (2016). How to write a business plan. Nolo.
Mullins, J. (2012). The new business road test: What entrepreneurs and executives should do before writing a business plan. Pearson UK.
Mullins, J. (2013). Can we teach entrepreneurship?. London Business School Review, 17(4), 13-17.
Palia, A. P. (2014). Checking Financial Balance of Target Brand Portfolio With The Strategic Market Plan Cash Flow Package. Developments in Business Simulation and Experiential Learning, 37.
Pilskalns, O. (2010). An entrepreneurial approach to project-based courses. Computer Science Education, 19(3), 193-204.
Sasongko, I., & Anantadjaya, S. (2014). Strategic Intention & Financial Support on MSMEs: An Investigative Study in Australian Creative Industry.
Schaper, M. T., Volery, T., Weber, P. C., & Gibson, B. (2014). Entrepreneurship and small business.
Sørensen, H. E. (2012). Business Development: a market-oriented perspective. John Wiley & Sons Ltd.
Stutely, R. (2012). The definitive business plan: the fast track to intelligent planning for executives and entrepreneurs. Pearson UK.
Ward, J. (2016). Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. Springer.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download