Types of these characteristics include * High cost associated with its set up * Difficulty with funding * Slow growth in sales * Difficulty in attraction customers and employees Each characteristic must be analyses to a throughout extent to ensure an effective and efficient establishment stage. The establishment options which Gibbon Sportswear must consider into action are either to set up a business starting from scratch, buying an existing business or, buying an successful franchise.
However, after taking significant time to ensure the recommended choice of establishment was precise, Gibbon Sportswear had decided to start from scratch which involved many advantages. These encompass: * Unique and fresh on competitive advantage * Creative freedom and control of internal influences * Unlimited liability SOOT analysis The Strengths of a business are the assets and resources that provide it with a competitive advantage or benefit.
Strengths: * Assets and resources provide competitive advantage and benefits * Staff are well trained and loyal to their work ethics * Location is National, amongst all retail stores and shopping centers, also obtains own outlets * Gains a solid Net profit every year and limits liabilities * Business has a solid foundation of goals personally( employee) and business goals which are motivated and inspired to be achieved Weaknesses: * A weak Brand name * No online shopping availability Skill shortages as many employees are first time, but initial Mentors who have worked for a 3 month period or more, will help teach them the work ethic of what is required Opportunities: * Market growth due to unique advertising * Social and lifestyle change. Our products are developed and created to make the consumer feel new and updated) * Local events Threats: * Competitive price pressure ( them reassuring their pricing to steal away consumers) * Higher input prices * New rules or regulations * High interest rates Classification of a business: The classification of Gibbon’s Sportswear are outlined and illustrated amongst here categories. Size of a business The size of a business determines the magnitude of the actual business, and the Gibbon industries is classified as a Medium business enterprise Location: The location of the business can either be local, national or global. However This Business is secret into the National aspect. Industry The industry of the business is categorized within the tertiary stage as it sells goods to the society.
Choice of Legal Structure: In reconciling a choice of Legal structure, after a careful consideration of the size of the business (Medium), ownership/Control (two owners, and my brother) ND Finance requirements, the recommended and precise choice was to be a partnership. Vision and Goals Within our business, when setting goals it is important to make sure they are specific, measurable, achievable/realistic and timely. Goals which are incorporated include: * To gain an extra 10% in sales over the next financial year * To ensure members of staff are motivated and inspired within 1 month of joining * Efficiency within the business to increase productivity. Employees to improve their closing ratio from original per cent to an extra 15% There is only one specific Vision which our business enquires to see in the future.
It follows to be: ‘Our business is developing into a well-known customized sportswear facility, and it is our job for all consumers to feel like they have got their moneys worth from every purchase’. 2. Marketing Plan Identification of target market: We believe effective marketing is best achieved by being customer-orientated, which is to always see the world through the eyes of our customers. To identify our target market we must go through a process of market segmentation which is where the total market is subdivided into groups of people who share one or more common characteristics. From this we are enabled to increase sales and refits by having a better understanding of target customers.
There are many main characteristics which are used to segment a market, but we believe, that the more appropriate segments which will more accurately point out our target market are: * Age- Our age range is between 13-50 which enables us to provide a wide range of sportswear for all athletes * Gender- As our business imports products in both male and female sportswear , it enables for more consumers and a different perception of clothing to be taken place * Income- Our income targets are being held between healthy and k incomes. This is because our business does import real materials and , quality products which our customers are ensured to be satisfied with. * Lifestyle- obviously if people who interact in everyday activities sporting wise, or physically our shop is dedicated to them. As this process is complete it enables a target market.
This means scarce resources such as time, labor and money, can be focused more efficiently and effectively. Marketing Strategies: Our company takes our marketing strategies very seriously, as it is our source of advertisement, therefore if we can conduct a good reputation, then sales ND revenue will increase while enlarging our net profit. Marketing strategies are actions undertaken to achieve the marketing goals of the business. Taking this into consideration, the Marketing mix is to be recognized, which consist of Product, Price, Promotion and Place, which our businesses use to effectively market. Product: Consumers are influenced by intangible benefits.
Therefore product includes: Design: The designs of our products are to greatest quality any sportswear could be. To market our design we input the latest fashion updated with the latest technology for the best beneficial results. Packaging: When purchasing n item from our Retailing stores it can come in a number of variety of ways. If it is clothing such as Singlet, muscle tops swimsuits etc… , It will come inside a plastic bag which is not creative but is easier to carry around. If the type of item is a shoe, helmet or any other accessories, the item will come in a box shaped around the item for a perfect fit. This enables better quality of assurance and safety and is able to be transported from one place to another with ease.
Price: Price can consist of many methods, however for Gibbon Industries being a new business it would be suitable to choose the Cost plus Margin. This is method is for the owner to set a cost for a desired profit. Cost Plus margin is used when starting a new business or entering a new product into the market. Promotion: Promotion is the methods used by a business to inform, persuade and remind consumers about its products. The Gibbon’s Sportswear business has concentrated its reputation and further ongoing sales to be achieved within the promotion sector. The strategies we are mainly based on are 2 promotion strategies and one Selling strategy 1) Advertising: Advertising is our number one way of promoting our business.
We have decided to advertise through TV immemorial, newspapers, catalogues and billboards, as we believe these items are the most seen every day by consumers. An example of a TV commercial would be getting a popular successful sportsman such as Michael Jordan, to critically explain why he believes our store is the place to go for a particular product (e. G. , basketball shoes, balls etc. ). Again we advertise many different commercials with different athletes representing different items within our store, even though our expenses will rise; we believe our profit and revenue will rise immensely. 2) Sponsorships: Sponsorships are the key for recognition of our equines and it will gain significant reputation.
We decided to have our Logo on a NOR team jersey, and FALL team to cover peoples sports tastes over Australia , as these sports are very popular. The one selling strategy which we know will have a great success includes: Money back Offers: This quality of business promotion will ensure loyalty of our consumers. Our main offer is that if you can buy it cheaper elsewhere then we will beat it by 15%. This will enable customers to purchase from our store knowing they will never get this type of quality material anywhere else for a cheaper price. Place( distribution): The distribution of our products are in the order of; Producer to Wholesaler to Retailer to Consumer. The Producer of our products is from factories in America and China which provide quality materials and service.
The wholesaler then buys these products from the direct source of where it comes from (the factories). From this point the wholesaler sells these products to the retailer for a cheaper price. We believe this is the right method to obtain, as we can buy the items for a cheaper price and sell it at a Cost plus margin to gain a significant profit. 3. Finance Plan Sources of Finance: Finance is crucially important in any business and a business owner and manager; it is a must to understand that Poor Financial management is the most common reason for business failure. Every business must have a very good understanding of their Current financial position, which Gibbon’s Sportswear attributes.
Knowing your businesses current position means they need to comprehend: * How much revenue our business makes * What are our costs * What are our Profits * What is our cash position For future purposes business need to analyses their future financial position and to accomplish this businesses must have a budget or forecast. Gibbon’s Sportswear has sourced Finance from certain mechanisms which would help detain our strong financial position. Coming from a wealthy family, we were able to input a significant Equity into the business ($5000). However more money was needed to help establish this business therefore we borrowed money from the bank at a total worth of ($1 0000). This was enough to originate the business to set a solid foundation. Recommendation of Financial forecast: There are three types of financial statements that all business should produce in order to have a good interpretation if the financial position of their business.
These include: * Income Statement * Balance Sheet * Cash Flow Statement However, as all of these are essentially important, the Income statement is our business main focus as it is a ‘Summary of categories of income and expenditure resulting in a net profit or loss over a period of time An income statement has been made, to show our position of financial status for the finished year. INCOME STATEMENT Sales/Revenue $800,000 * COGS $250,000 Gross profit: $550,000 * Expenses * Borrowing money from bank * Wages = $6,250 * Electricity = $5,000 * Mortgage = $200,000 * Interest = $2000 * Equipment = $30,000 Net Profit: $296,750 From the last financial year, Gibbon’s sportswear has been major successful through its promotion campaigns and sales to have a significant profit.
Our expenses are limited allowing for more income which means more Profit. Due to cheap buys from the wholesaler, our COGS were able to be low increasing our Gross profit for more effectiveness of the Income Statement. 4. Human Resources The strategic role of Human resources is the owner’s ability to manage and control employees, to ensure they are working effectively and efficiently in their delegated task. With the help of Motivational and collaborative strategies, employees will gain a sense of loyalty and become more productive in achieving personal and business goals. Processes are also important in the role of Human Resources and they include Acquisition, Maintenance, Development and Separation.
These ensure the quality relationship with the business and its employees. Acquisition: This section of Human Resources is about the employees themselves and the business current and future staffing needs. In reconciling Gibbon’s Sportswear team, we decided to plan who we needed and their task within the business. This operation is called Job analysis. Within our Recruitment stage we were trying to mind the right people who have the ability to sell these high quality sports clothes and a decent background on sports itself. Internal and external recruitment would be needed. Our successful motto to ensure the right employee for the job is Slow to hire, quick to fire’.
Maintenance: Once we have selected an employee to work in our business, it is important for our staff and business environment is respectable so the employee feels welcome, loyal and motivated. In order to sustain motivation throughout the business, new employees and existing employees all desire recognition of their productive efforts. In this case, our business gives out awards such as employee of the month, and salesmen/her of the year, rise in wages, to encourage everyone to work effectively and efficiently. While the employee joins the business it is required for us to ignite a contract establishing a legally binding agreement between us and the employee. It contains: * Payment of work * Provision of work * Duty of care Within our restrictions it is a must for the employee to . Obey lawful and reasonable demands * Use skill and care * Act in good faith to other workers and to the business ethic Training and Development: Although rewards provide productiveness, another way of maintaining a satisfied work place is to provide training and development. Training is about ensuring people have the right skills to do their delegated job effectively. Development is about giving people the skills to do another job within the workforce in case of an unexpected issue or event which requires a step up. There is a negative side to this analysis if these are not incorporated by the business manager. It can be highly De-motivating to feel that an employee cannot do your job effectively.
This is why Gibbon’s Sportswear, has complex planning to ensure employees are not feeling out of place. The overall aim, in which Gibbon’s Sportswear is to incorporates these techniques, is to improve long term change in employee’s skills, knowledge, attitudes and behaviors in order to improve work performance, to increase the businesses competitive advantage. 5. Operations Description of the production process: Our businesses operation is to sell high quality sportswear to any kind of athlete who wants to have the latest technology of sportswear clothing. The production process consists of three key elements which our business must go through to produce et final good.
They include : * Inputs * Processes ( transformation/value add) * Outputs The inputs in which our business incorporates, are capital, money, labor, materials and information. The material aspect of this process is our machinery and sources which help make and define our athletic sportswear. Information can be either intellectual or intangible capital, and we use databases to know what has left the store and what we need to keep in stock for the future. It also allows us to analyses which item is selling the most therefore we can process more of that product into the business. Labor within our business is the hysterical intellectual contribution of human work employees.
Time is the most important factor of our business as without the management of time things will be done less effectively, items will be rushed into making and people won’t know where to go at a certain time. After the Input process comes the transformation process, which is a value add process whereby the inputs are transformed into finished or intermediate products. As we are an athletic business, we want our stock to be finished completely to save time and efficiency. Outputs refer to the finished goods and services which have been transformed through the value add recess. Our business must be responsible for the production process as to not only control and monitor the movement from inputs to outputs, but must also ensure that the process is linked with the three other key business functions.
Quality Management program: Quality management is the strategy in which we use to make sure that our product meets the customers’ expectations. In order for our business to ensure the quality is managed in order to maintain a competitive advantage, we follow three simple rules: * Minimize waste and defects * Conform to standard * Reduce variation in final output The approach to quality management that our business takes is the ‘total quality management’. This is a commitment to excellence that emphasizes continual improvement in all aspects of the business. Its aim is to create defect free production process and to ensure customer focus is the key, as is the involvement of employee’s. 6.
Monitoring and evaluation plan Analyses an approach to monitoring and evaluating a business plan: An approach to monitoring and evaluating a business plan is to organism with the head staff and important employees at least once every month to have a business meeting, cussing where the business is at, our goals and where we want our future to be. To monitor our business plan financially, an income statement will allow the business to see its position of finance and if it’s maintaining the businesses profit goals. To evaluate a business plan it is important to cover every aspect there is to the business. It is vitally important to assess the strengths and weaknesses and, to act upon these weaknesses to gain a successful competitive advantage.