Development of Planning Strategies and Identification of Objectives for the Small Business - Coursework Example

Business Start-Up Project. Business Start-Up Project. 1 Vision: 1 Development of planning strategies and identification of objectives for the small business: 2 Small Term Planning: 2 Medium Term Planning: 3 Long Term Planning: 4 Marketing Plans: 5 Target Market and Buyer Behavior: 5 Competitors: 6 Pricing: 6 IMC programs: 7 Operating Plans: 7 Facilities: 8 Staffing Requirements: 8 Types and Level of Services: 9 ICT Program: 10 Reference: 11 Vision: The paper looks into the setting up of a profitable and sustainable small scale business in the country of Australia. The business that is going to be set up will be that of a retailing nature, and will be developed on the basis of small capital investment. There will be no manufacturing involved, but the products (that is clothing, necklaces, accessories, etc) is going to be imported from another country, China where they shall be procured at the whole sale rate. The project aims at setting up a retailing shop or stands at the cultural programs and meets in Victoria, which is rich in various cultural groups and has ethnic diversity. The business will be taking into account the multicultural nature of the society and the project shall try to achieve an integration of customer base through its policies. The paper is going to be developed on these basic themes and through this will try to achieve the objectives of multicultural integration and profitable functioning of the business. Development of planning strategies and identification of objectives for the small business: It has often been observed that there are various reasons that lead to the failure of profitable functioning of businesses in the country. The main reason for this is that the businesses fail to develop long term planning and there is a lack of vision, but they, in the short run function properly. In the following section there shall be a detailed development of the planning process for any small businesses that may be functioning or being set up in the mixed Australian society, focusing mainly on Centre Dynamic Clothing which shall look into the short term goals, medium term goals and long term goals for the businesses to pursue. The objectives will be identified. Small Term Planning: The short term plan is to be adopted for a period of a year or less than a year, where the main objective that the company will be to focus on the diverse cultures that exist in the society and ensure that the products and services provided is able to cater to the various needs of these diverse groups. There has to special focus made on the requirements of all the groups so that no part of the population is alienated or isolated and the organization is able to capture and utilize the market as a whole. The clothing company will have to take into account the current trends that are being followed in the market, the significance of colors in cultures, etc and design clothes according to these needs. The other focus of the organization has to be the need to understand and analyze the expectations of the customers, and what they actually realize. This will help the organization in development of a better quality of services provided and allow for growth. Medium Term Planning: The medium term planning is done for a period of one to three years where the main objectives that a company needs to realize is identify which part or section of the market it is catering to. Centre Dynamic Clothing has to analyze its capabilities and also which part of the market it is most profitable for it to cater to. The company will have to ensure that instead of serving to a wide range of customers; it has a major focus group that it caters to and is able to establish its own place in the market and is able to capture control over a certain section of the market. But along side with these it will also have to keep developing and entering new arenas so that it does not become stagnant organization but continues to expand and evolve. The next objective that the company has to aim to achieve in the medium term is that it should be able to formulate and decide upon the policies and strategic business principles that it is going to follow in the functioning and execution of its activities.(Weller 2008) These have to be decided on the basis of a number of factors and it has to be ensured that the principles and policies that are adopted lead to the most efficient, economic and sustainable use of the available resources which leads to the development of an advanced mode of production. Another important thing that has to be focused upon is that the company has to ensure that it is able to create a logo for it self so as to ensure that it is able to achieve recognition in the market and ensure that there is bran recognition in the market and among customers. Long Term Planning: The long term planning that a company or organization has to develop is the same as those of the medium and large scale companies. The most important focus of the Centre Dynamic Clothing will be to ensure that the company is able to achieve stability and is able to that its functioning continues to be profitable, where it has achieved recognition in the market and has been able to capture a certain part of the customer base and is essential part of the economy .(Weller 2008) The next important objective that is to be pursued by the organization is to ensure that is continues to grow, develop and expand into new markets and is able to expand its customer base and widen its horizon.(Weller 2008) Another focus area that the company will be dealing with in the long run is that it will try to ensure that it is has been able to maintain a high standard of quality and is able to maintain this and develop the quality of the products provided with time. It also aims to simultaneously grow, develop and improve its base of products both quality wise and quantity wise. Marketing Plans: The marketing plan that has to be developed by the organization has to focus on a number of factors. It has to ensure that the company is able to achieve its various objectives and aims and help it realize its goals. (Agriculture, Ecosystems & Environment Volume 60, Issues 2-3). The marketing strategies are important as they help the company in growing and in the development of the its identity in the market and maintain communicative channels with its customers. Target Market and Buyer Behavior: The business plans to target mainly the cultural groups that are in the present in the society such as the native Indians, the Turks, Arabs, Italians, Chinese and other ethnic groups. The project of Centre Dynamic Clothing targets these ethnic groups as they are in majority in the society. This is clearly reflected in the 2006 census of the Australian Bureau of Statistics, which reflects that these groups form almost 45% of the population of the area. The project does not have a specific age group or gender that it targets, as the products that it plans to sell can be utilized by different age groups and due to this it has a large and diverse target market that it can capture. The project plans to target the customer case at the various festival and cultural meets that take place in the county, such as the celebration of the Chinese New Year, the spring festivals and other such events. (Phelps) This is the target market, and the project aims at evolving a customer base through these meets and programs. The project is based on the fact that at these cultural programs and meets the customers are all in a jovial and festive disposition or frame of work, and therefore they are more cordial and likely to buy products from the stalls that are set up. The customer base that is targeted is that which is ready to celebrate and is willing to spend money, thus making them a more attractive customer group who are accessible and equipped to spend money. Competitors: The business is based on retailing of products such as clothing and accessories that are based on cultural basis. The market is rather a large one and there is place for a number of retailers that function in the market. The opportunies for the retailers are enough as the project is small scale and thus the exposure is limited to a certain extent. The consumer base is huge and can easily be exploited by a number of companies and firms. Also, although competition does exist in the market the functioning and management of the business should be able to establish itself easily, as most of the competition is present only in the short term, and there are not many firms that continue in the long run as is clearly reflected by the Holmes’ article where he has clearly stated that half of the small enterprises fail in the first years, while 80% fail in the first 5 years itself. Pricing: The pricing of the products is done on the base of a number of factors, and it takes into account the procurement price, the traveling and storage expense, the importing duties, the other costs and also there is a margin that is maintained for profit. (Asian Development Bank 1996) But the overall pricing that is maintained for the products that are sold is maintained at a comparatively low level than that which is available in the market. This helps in ensuring that the value and demand of the products remains high in thee market and leads to increase in the sales. IMC programs: Integrated marketing communication programs play an important role in the promotion and management of these businesses, as these are based mainly on the customer perceptions. It is only through the adoption of various IMC programs that these small scale organizations are able to establish contact with its customer base and create awareness about itself in the market. (Walter) These programs can be many and varied in nature, and can range from posters, pamphlets and advertisements to announcements in magazines and newspapers and contests, internet ads, radio comments, blogs, etc. Operating Plans: Operating plans are the policies and principles along which the company or the business functions and operates. These help in developing of a more economically viable system that takes into account all the factors that are related to the working and functioning of the organization. There are various aspects that play important role in the establishment of these policies and there are various aspects that are taken into account to ensure sustainable and stable working of the company. Facilities: There are a number of facilities that have to be made avail of to ensure that the operations of the Centre Dynamic Clothing run smoothly and efficiently. There has to be ensured that research and traveling facilities are available to ensure that the market for procurement of resources and products is there. There also has to be made avail of facilities that look into the particulars of traveling, storage and infrastructural facilities to set up the stalls at the meets and the programs. The traveling facilities will take into account the lodging, the areas that have to be researched; the products that are required have to be listed. The storage facilities will have to take into account the bulk of products that have to be stored, the space that will be required, the transporting of these from the storage to the marketing shops, and other such facilities. Staffing Requirements: The staffing requirements of this operation are comparatively less, as a number of activities that are to be executed can be managed by one person and there are others that can be outsourced. The main staff that is required to be employed is for the assessment and the analysis of the Chinese market so that the data that is being utilized by the organization does become out dated and that there is ensured availability of new and more economic sources of products are available. The staff for transporting of these products can be outsourced to companies that specialize in this area. (Business 2001) There shall be required staff for the development and maintaince of the stalls at the cultural meets and programs. The staff that will to be employed to man these stalls should be aware of the various cultural aspects. It is imperative that the employees should be able to communicate to the customers and this will help in the development of a more integrated work force, lead to better employee pool, where employment can be ensured to the young generation who can be trained in people to people communication. There has to be resourceful and efficient management of human resource that is employed. There has to be set up a management system which employs the systematic break up of the work force into managers, the employees and trainees. The system also has to ensure that there is integration between all these so as to develop an advanced staffing set up. Types and Level of Services: Centre Dynamic Clothing can develop and maintain a number of services that will help in provision of better servicing to the customers. These will lead to more growth within and outside the organization and lead to better management of resources. There can be employed the principle of division of labor of the work force, so that there is specialization of labor in the company. There can also be provided by the project a number of services such as exchange of items sold, a system of home delivery can also be developed where the company can deliver the orders to the customer’s homes, there can be made available the facility of credit cards and also trail rooms facilities can be developed. There can be set up variety of displays, a web site can be set up so that the services can be accessed online by the consumers. ICT Program: The last factor that needs to be considered by the project is that there has to be ensured that the company makes use of technology and communication facilities that are available. It has been observed through various studies that have been carried out by the government and Perth University, that although these facilities are easily available almost 80% of the SMEs (small and medium sized enterprises) that are functioning in the country do not make avail of these facilities. (Carr) These facilities lead to better management and there is currently much economic research done on the use and application of ICT for productivity gains yet there is little support for educating the SME market in ways to plan, incorporate and purchase ICT within the particular requirements of their own business. Centre Dynamic Clothing can use the technology that is available to set up a personalized page online, which would allow it greater access to a wider customer base. It could use the communication facilities that are available to set up a postage delivery system that will help in the geographical expansion of its market, and there can be other such facilities that can be developed with the help of the ICT programs that are available. Reference: Agriculture, Ecosystems & Environment Volume 60, Issues 2-3, December 1996, Pages 129-137. Asian Development Bank 1996: Report and Recommendation, accessed on Monday, August 31, 2009 at http://74.125.153.132/search?q=cache:zdibuO6WU3cJ:www.adb.org/Documents/RRPs/SRI/rrp-R8796.pdf+The+pricing+of+the+products+is+done+on+the+base+of+a+number+of+factors,+and+it+takes+into+account+the+procurement+price,+the+traveling+and+storage+expense,+the+importing+duties,+the+other+costs+and+also+there+is+a+margin+that+is+maintained+for+profit&cd=1&hl=en&ct=clnk&gl=in. Business 2001: Joint Ministerial Statement of APEC SME Ministerial Meeting, accessed on Monday, August 31, 2009 at http://english.peopledaily.com.cn/english/200108/30/eng20010830_78884.html. Carr: ICT Policy #2: Encouraging ICT thinking within small business, accessed on Monday, August 31 2009 at http://www.longhaus.com/research/naked-chief-blog-link/Encouraging-ICT-strategy-thinking-within-small-business-.html. Commonwealth of Australia 1995: RENEWING AUSTRALIA'S MANAGERS TO MEET THE CHALLENGES OF THE ASIA-PACIFIC CENTURY Report of the Industry Task Force on Leadership and Management Skills, accessed on Sunday, August 30, 2009 at http://74.125.153.132/search?q=cache:Wc5fQGG45l4J:www.aim.com.au/research/EN_ReportonSkills.pdf+steps+taken+by+small+scale+companies+to+meet+the+demands+of+the+diverse+population+of+australia&cd=1&hl=en&ct=clnk. Holmes, S 1989: Estimating the Small Business Failure Rate: a reappraisal; Journal of Small Business Management; pub Sat, July 1st 1989, accessed on Monday, August 31 2009 at http://www.allbusiness.com/buying-exiting-businesses/exiting-a-business/110076-1.html. Phelps J: Pyramids are tombs, accessed on Monday, August 31, 2009 at http://www.thephelpsgroup.com/pat/. Walter Ong, Orality and Literacy: The Technologizing of the Word (London, UK: Routledge, 1988), in particular Chapter 4. Weller, S.A. (2008). "Are labour markets necessarily ‘local’? Spatiality, segmentation and scale".  Urban Studies, vol. 45, no. 11, pp. 2203-2223. Read More