Explain Review of the external environment of the Australian market segments.
In order to produce an effective business plan, it has become more important to understand the impact of the external business factors on the concerned organization (Armstrong, 2014). The external environmental factors are the political, social, environmental, technological, legal and economic factor that generates vast impact on the implementation of the industry procedure of the concerned enterprise. PESTLE analysis will help in evaluating the desired impact of these factors on the business process of KLVSH.
The political factors play the most significant role in the establishment of a company within a particular area. Australian is having a liberal-capitalistic democracy in which the different states interfere with the economy through different roles. Moreover, the political factors reflect intervenes of concerned government in the economy of the country (Baker and Hart, 2008). It comprises tax guidelines, excise, manual labor law, job restrictions, ecological law, political constancy and many other factors. Therefore it is imperative for the firm to execute their business process as per the law.
There are certain factors which need to be understood properly like financial expansion rate, different exchange rates, rate of interests as well as the rise rate which critically generates enormous impact on the execution of the business processes of the firm (Belk, Price, and Peñaloza, 2013). The exchange rates affect the desired costs for exporting the materials needed to manufacture the products. The supply and demands of the products needed to be balanced in order to retain the customers within the firm.
These includes factors like growth rate population of the entire country in which the company is going to operate, health consciousness of the customers and career safety. The different types of the trends inside the implementation of the industry progression critically affect the growth and the evaluation of the company method of the enterprise (Craig, 2013). Therefore, the administration squad of the firm needs to generate effectual strategy in order to maintain the desired balance of the company.
Accomplishments of the newest technology critically play the most valuable role in evaluating the preferred growth of the firm and moreover, it also provides the desired competitive advantage over the other companies within the same marketplaces (Dalgic and Yeniceri, 2013). The technical factors also consist of the R & D activity, technology incentives, automation as well as the change in the preferred technology over the certain period of time. The use of the latest and the innovative technologies are of great importance in entering into the preferred market segments.
The environmental factors consist of the change in the weather, climate and these especially affects the functioning of the various industries within the concerned market segments. It is evident for the firm top build up the effective strategies in order to preserve the effectiveness and the competence of the organization.
The legal factors help in establishing the business process of a particular firm within the targeted marketed segments (Ellison, 2007). These consists of the bias law, service law, purchaser law, health as well as safety law and the antitrust law which the company needs to follow in order to successfully enhance the growth of the firm.
Identification of the different levels of the firm is vital as it helps in marketing the respective products to the suitable customers (Entrekin and Scott-Ladd, 2013). There are different types of the people residing within targeted market segments, such as there are people who want an only high quality of the products they do not bother about the prices of the products. On the other hand, there are some customers who look forward to the prices and require low prices of the products and some customers’ wants the best quality of the prices within reasonable price limits. Therefore, identification of the different income levels of the consumers will help in presenting the suitable products as per the satisfactory needs of the customers.
The culture of Australia is primarily a western culture and is influenced by the geographical continent of Australia which includes the diverse input from the aboriginal, Oceania people and the Torres Strait (Fabozzi and Markowitz, 2011). The trends of sunglasses are increasing throughout the entire market segments of Australia and it is very important to understand the different cultures of the people as this will help in presenting the stylish and fashionable sunglasses as per the suitability of the respective customers. A wide variety of the products will help in attracting a large number of the clients towards the firm and finally, this will increase the abundance of the organization. Therefore, the culture performs the most crucial role in enhancing the overall presentation of the firm. The company needs to focus on the indigenous people as this will help in drawing the attention of the new customers towards the firm and will help in raising the output along with the prosperity of the association (Gargouri and Jaziri, 2010).
It is imperative for any of the firms to understand the desired behavior of the customers before making their respective purchase. The understanding of the buying behavior of the customers helps in identifying the actual needs and the satisfaction of the customers which finally helps the respective employees to sell the respective products offered by their firm. Moreover, the employees of the firm need to be trained regarding the factors influencing the decision-making capability of the respective customers as this may result in increasing the selling of the sunglasses offered by the firm to the customers (Gelman and Price, 2014). There are factors such as the color of the sunglasses, designing, quality and the pricing of the products which influences the decision of the consumers.
It refers to the division of the entire market segments as per the needs and the expectations of the customers from the firm. It is imperative to appreciate the wishes of the customer as this will facilitate in providing the preferred products to the particular customers who need it as this will enhance the satisfactions levels of the customers towards the firm (Härtel and Fujimoto, 2010). The customers having the similar kinds of choices and needs should be placed in a particular category as this will help the firm to provide the desired quality of the products as per the choices of the different category. Therefore, the customers with the suitable needs should be targeted first and then they should be assisted with their suitable needs (Jacobs, 2009). Branding of the firm is one of the crucial requirements of the organization as this helps in holding the old clientele as well as it brings out the clientele within the firm.
KLVSH is one of the leading companies dealing in the field of higher quality of sunglasses and it has decided to enter within the Australian market segments to execute its entire business processes (Kotler and Keller, 2012). The quality of the sunglasses and the satisfaction of the customers are on top priority as these will assist to set up the pillar of the companionship inside the Australian marketplace segments. There are some of the well-known companies like Prada and Oakley which are providing the threat to the firm (KresÌŒicÌ and StevanovicÃŒÂ, 2010). Therefore it has become more important for the firm to develop effective strategies in capturing the entire Australian market segments.
The brand image of the firm throughout the UK market segments is one of the strongest points of the firm which will help in executing its business processes throughout the Australian market segments (Lester and Lester, 2007). The company is delivering the best quality of the products; therefore delivering the higher quality of the products having low prices will help in increasing the selling of the sunglasses.
The different choices of the people as wells the requirements of the aboriginal and the Torres Strait might cause weaknesses for the firm in satisfying their needs regarding the designing and quality of the products offered to them. Moreover, the political stability is also a weakness for the firm and this need to be removed as soon as possible.
There are several well-known firms like Prada and Oakley which possess a crucial threat to KLVSH in terms of executing the sunglasses business processes. The rise and the downfall in the exchange rates are considered to be another threat which may hamper the business process of the concerned organization.
The change in the style and the fashion provide the desired opportunity to establish the business processes of KLVSH throughout the different market segments of Australia.
The use of the SMART objectives is of immense importance as this helps in monitoring the execution of the entire business plan for KLVSH. There are some of the basic objectives of the firm entering into Australian market segments:
The SMART objectives will help in executing the entire business plan successfully:
Specific
The objectives need to be specific and dealing with the business purpose only.
Measurable
The objectives should be formed as they can be measured as to evaluate the competence and the success of the firm.
Attainable
The employees including the management should be able to achieve the goals of the firm.
Realistic
It reflects the results of the firm which can be achieved by the respective employees.
Time-bound
The objectives should be time-bound as this will help in improving the eminence of the work done by the entire employees associated with the firm.
Globalization has created the huge impact on the completing of the industry practices of any of the firm throughout the international market segments. It has created both positive as well as the negative effect on the firms operating globally. Branding of the different firms plays the most significant role in enhancing the selling of their products throughout the different market segments globally. Sometimes it has been seen that the desired balance between the demands and the supply of the products are not met up to the mark for the firms operating internationally (Marchington and Wilkinson, 2008). In order to make the customers aware regarding the quality of the services and the products, it is of great importance to get the suitable position between the market segments and this can be easily done by the branding of the firm. Furthermore, it develop into little hard for the Human Resource Department to administer the employees, for the firms operating globally.
The managers execute the most crucial role in evaluating the effective business strategies which help in achieving the desired goals and objectives of the firms. As discussed in the feasibility study regarding the formulation of the strategies for supporting up of the organizations operating globally. Three of the basic strategies have been undertaken in formulating the strategies such as operating strategies, customer driving strategies and the competitive priority (Pakroo and Stewart, 2010). The operating function strategies consist of the desired offerings from the firm as to draw the awareness of the clientele towards the firm. It has been seen that the quality of the different products attracts a large number of the customers towards a particular firm and therefore, KOVSH needs to look forward the wishes of the customers as this will help for assessing the significant enlargement of the firm to a outsized scale (Pinson, 2008). The different firm already existing in the different market segments of Australia needs to be recognized as these will help in understanding the current trends throughout the market segments.
There are different types of the market entry strategies which can be adopted before entering into new market segments. Some of the marketplace entry strategies are exporting, franchise, joint venturing, contract manufacturing, licensing, mergers as well as acquisitions and third country locations. Exporting has been used as traditional means of operating the business processes throughout the foreign market segments. The exporting of the goods throughout the different country is another means of entering in the foreign market segments. In this strategy of business process, no direct manufacturing is needed in the overseas country and this only needed to be the investments in that particular firm (Ramsden, 2006). The types of the exports merely depend on in what ways the pressure is perceived by the different decision-makers. There are certain advantages of using the exporting entry strategies such as manufacturing is home based and it becomes little risky and moreover, it provides the desired opportunity for learning. The next is the franchise system of strategies as this has been used in large numbers by many of the companies. It helps the distribution system to get spread over the wide area of networks by the help of the suppliers in the preferred country. The company establishes as well as executes its entire business process with the help of other companies operating within other market segments (Sensmeier, 2009). The success of the entire business merely depends on the successful strategies adopted by the franchisor and the franchisor uses the desired reputation of the firm in selling the products within the market segments. Licensing is another market entry strategy which allows a company to operate from residing in another country for using the manufacturing, processing and trademark. The process of licensing involves the little amount of involvement and little expenses.
It is crucial for any of the firms to understand the desired importance of global business strategies as they help in extending the barriers of the form throughout the different market segments of different countries. The primary purpose of the international strategies is to look after the need of the customers within different countries and moreover, it sets the new platform for the concerned firms to offer new facilities to the customers going beyond the geographical boundaries (Stern et al., 2009). The primary motive of KLVSH is to provide a high quality of sunglasses to all of the customers throughout the Australian market segments (Varma and Budhwar, 2013). The international business a strategy helps in increasing the profitability of the concerned companies throughout different parts of the world and these companies opts for more profitability and productivity. Most important is to do an effective research on the desired trends through the different market segments of Australia. This research will provide the vast amount of the knowledge regarding the execution of the business process and will help the firm to offer the best quality of sunglasses as per the trends throughout the market segments in order to match the personality of the customers (Stroke: latest treatment options in acute management, 2015). The understanding of the international business strategies is of immense importance for any of the firms as this provides suitable knowledge in the establishment and execution of the business procedure in different countries selected.
BREAK-EVEN ANALYSIS
Month income Break-even $46,214
Hypothesis:
Average Percentage changeable Cost 20%
Estimation of Monthly preset Costs $37,053
|
RATIO ANALYSIS |
||||
|
1st YEAR |
2nd YEAR |
3rd YEAR |
Business Profile |
|
|
Sales expansion |
0.00% |
47.31% |
14.91% |
11.35% |
|
Percent of the whole resources |
||||
|
Another present Assets |
0.00% |
0.00% |
0.00% |
33.22% |
|
Total present Assets |
81.05% |
93.30% |
96.10% |
95.51% |
|
Long-term Assets |
18.95% |
6.70% |
3.90% |
5.39% |
|
TOTAL ASSETS |
100.00% |
100.00% |
100.00% |
100.00% |
|
present Liabilities |
32.90% |
14.89% |
9.22% |
31.96% |
|
Liabilities for Long-term |
0.00% |
0.00% |
0.00% |
18.78% |
|
Full amount Liabilities |
30.90% |
16.89% |
9.44% |
51.74% |
|
NET WORTH |
68.10% |
84.11% |
90.67% |
49.26% |
|
Percentage Sales |
||||
|
Sales |
100.00% |
100.00% |
100.00% |
100.00% |
|
Gross total Margin |
93.00% |
91.00% |
93.00% |
55.89% |
|
Selling, all-purpose & managerial Expenses |
106.23% |
82.47% |
71.32% |
18.06% |
|
promotion Expenses |
0.00% |
0.00% |
0.00% |
4.5 9% |
|
Profit previous to Interest along with Taxes |
-17.23% |
15.04% |
21.22% |
11.81% |
There are three of the most crucial resources that are needed for the successful implementation of the business plan; they are the financial resources, physical resources and the Human Resources. the financial resources are needed to execute the entire business plan as this involves the export as well as the import of the raw materials to the selected country and moreover to run the entire business procedures. The management team needs to take the responsibility in executing the entire business plan with the help of the employees as well as the franchisor residing in Australia. Best qualities of the raw material are needed in order to manufacture the products within the selected country. Adaptation of the suitable market entry strategy is important in order to enter into the different market segments of the preferred nation (Werner, 2014). The monitoring, as well as the controlling department, needs to understand the desired requirements of the business and they should execute the entire process as to accomplish the objectives of the firm.
References
Armstrong, M. (2014). Armstrong’s Handbook of Human Resource Management Practice. London: Kogan Page.
Baker, M. and Hart, S. (2008). The marketing book. Oxford: Butterworth-Heinemann.
Belk, R., Price, L., and Peñaloza, L. (2013). Consumer Culture Theory. United Kingdom: Emerald Group Publishing Limited.
Craig, R. (2013). The Everything guide to starting an online business. Avon, MA: Adams Media.
Dalgic, T., and Yeniceri, T. (2013). Customer-oriented marketing strategy. [New York, N.Y.] (222 East 46th Street, New York, NY 10017): Business Expert Press.
Ellison, P. (2007). PL-3B Lessons from anthropology. Early Human Development, 83, p.S32.
Entrekin, L. and Scott-Ladd, B. (2013). Human Resource Management and Change. Hoboken: Taylor and Francis.
Fabozzi, F., and Markowitz, H. (2011). The theory and practice of investment management. Hoboken, N.J.: John Wiley & Sons.
Gargouri, F., and Jaziri, W. (2010). Ontology theory, management, and design. Hershey, PA: Information Science Reference.
Gelman, A. and Price, P. (2014). Ethics and Statistics: The Commissar for Traffic Presents the Latest Five-Year Plan. CHANCE, 27(2), pp.58-60.
Härtel, C., and Fujimoto, Y. (2010). Human resource management. Frenchs Forest, N.S.W.: Pearson Australia.
Jacobs, C. (2009). Management rewired. New York, N.Y.: Portfolio.
Kotler, P. and Keller, K. (2012). Marketing management. Harlow: Pearson.
KresÌŒicÃŒÂ, N., and StevanovicÃŒÂ, Z. (2010). Groundwater hydrology of springs. Burlington, MA: Butterworth-Heinemann.
Lester, A. and Lester, A. (2007). Project management, planning, and control. Amsterdam: Elsevier/Butterworth-Heinemann.
Marchington, M. and Wilkinson, A. (2008). Human resource management at work. London: Chartered Institute of Personnel and Development.
Pakroo, P., and Stewart, M. (2010). The small business start-up kit. Berkeley, Calif.: Nolo.
Pinson, L. (2008). Anatomy of a business plan. Tustin, CA: Out of Your Mind and Into the Marketplace.
Ramsden, E. (2006). Hall-effect sensors. Amsterdam: Elsevier/Newnes.
Sensmeier, J. (2009). The latest? A shift from operations to outcomes. Nursing Management (Springhouse), &NA;, p.2.
Stern, B., Maclaran, P., Tadajewski, M. and Saren, M. (2009). The SAGE Handbook of Marketing Theory. London: SAGE Publications, Limited.
Stroke: latest treatment options in acute management. (2015). The Pharmaceutical Journal.
Varma, A. and Budhwar, P. (2013). Managing human resources in Asia-Pacific. Hoboken: Routledge, Taylor, and Francis Group.
Werner, J. (2014). Human Resource Development ≠ Human Resource Management: So What Is It?. Human Resource Development Quarterly, 25(2), pp.127-139.
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