Analysis of Business Strategies of Mahogany Western Wear Company and the Fire Starters Company - Example

Your name School affiliation Date Business plan analysis and evaluation Introduction A business plan is a systematically written statement with a full business goals and objectives that explore across all the relevant information and reasons of attaining those goals. Evaluation and analysis of any organization business plan or idea is worth noting (Smith, 2012), thus, any attempt that touches the elements and features of a business decision-making tool serves as a turning point in the whole business structure. In other terms, it means that, just as there are no two similar businesses or individuals, so it is also similar with the business plans indicating the uniqueness and significant differences. Analysis and evaluation on this business delicate machine therefore it means that, one has to critically and creatively evaluate the key components and features of a business plan of any business organization without eliminating out its critical functions. A business plan is always clear, practical and focused to a specific direction pointing out the present tools, teamwork and the available talents that will be a crucial component towards a business success. However, apart from the principal roles, framework and baseline business point provided by the business plan, the business plan will only be relevant to a particular business and the nature of the people it serves Plunkett, (2013), conversely, suitable individual’s circumstances determine its application. For example, bank business plans mainly focus on finances projection that is relatively realistic while those that focuses on investors mainly targets on market niches and trends (Bartels & Pecht, 2012). Analysis presented in this document is helpful in understanding the analysis and evaluation of Mahogany Western Wear Company’s business plan and the Fire Starters Company’s business plans. Further analysis will also be provided on their comparisons and contrast in terms of their components, features and challenges. Lastly, improvement suggestions, lessons learnt from each plan analysis and evaluation will be provided in the end. Mahogany Western Wear business plan description. Mahogany Western Wear is a clothing business company located at Alameda Rd, Houston. It is a partnership business owned by Chandra miller and Derrick McCoy designed to accessories and western wear apparel. Directed by its objectives and mission of offering quality and all type body wears. Mahogany Western Wears creates a shopping environment that serves the needs of African-American generation of 80% share market, 50% yearly profit margin, 1000 end year customer base, net profit of $75000 and $100000 for the second- and third years respectively after origin (Engle, 2013). Conversely, the business plan targets to carries product advertisement and sales promotion provides personalized customer’s services in conjunction with size assortment of its products to fit their customers and provides continuous review of its products and sales in order to provide inventory level adjustments. To achieve this goal in the project, a well-planned time schedule for daily operation is provided to serve customers’ needs effectively indicated in the company’s summary plan. In other words, it means that, Chandra Miller takes both managerial and administrative role while Derrick McCoy remains a silent partner in the company’s ownership. The company’s start-up summary plan constitutes an incorporation cost that contains a three months revenue inventory, assets, supplementary financing mechanism, long-term liabilities and the owner’s investment clearly shown in the startup summary. On the same note, these resources indicated provide opportunities for the Mahogany Company to define its western wear products illustrating particular product description of all styles and sizes (Plunkett, 2013). The company’s business plan goes further to provides a competitive comparison that will enable the starting company withstand market competition by indicating the methods that will be used to counter completion. Sales literature, sourcing’ technology, future products, market analysis and segregation correctly indicated in the plan. Lastly, before the appendix, the company plan indicate strategy and implementation summary that includes distribution strategies and marketing program as well as sales strategies. The program also provides the managing summary, organizational structure and financial plan with clear projected cash flow and balance sheet. Fire Starters Company’s business plan description. Fire Starters Company is a clothing an online youth-oriented products and clothing located in New York City in the United States, but locally unavailable. The business ownership remains to be Jill Stratton and Bobbi Hanson, directed by its mission it provides radio and internet programs that mainly target the youths of age 11-18 years. The company target small American town customers especially with youth-oriented products and clothing but locally unavailable (Farole, 2011). Fire Starters Company’s start-up summary plan description include; product inventory costs, product promotion campaign in relation to website establishment and how the company will utilize owner’s investments and long-term business loan to fund the company’s business. The company distributes all young oriented products and clothing without giving a product description but gives practical direction to be correctly implemented to achieve its mission. Conversely, the company provides a market summary analysis that includes market segmentation that defines the market trends and structure. On broad aspect, the company’s business plan contains market strategies and implementation summary that guides the company to conducts its business effectively. In other words, it means that, the company’s business plan illustrates vividly the competitive edge and sales forecast that effectively allows the company survives in business competitive market (Smith, 2012). On further analysis of Fire Starters Company business plan description, the plan contains a management summary that gives Jill a daily operational management power while gives Bobbi a buying and marketing responsibilities. In this part, the plan indicates owners’ experiences and skills that will positively influence the business plan. In management, personal plan is included that includes staffing as well as financing plan that constitutes a break-even analysis, projected cash flow and projected balance sheet before the company’s appendix completes the whole company’s business plans Mahogany Western Wear-Fire Starters business plan comparison and contrasting analysis. Executive summary and objectives analysis. Executive summary evaluation and analysis of the two business plans, Mahogany Company’s business plan stands an upper hand to be adequately suitable and realistic than Fire Starters’ plan. This comes out clearly as being concise and not a review of the business plan. In other words, it conveys the market opportunity present in the located area and uniquely compels out all the features of the business identified that will help and at the same time guide in meeting that opportunity present. The executive summary also excites any reader that reads it and makes someone acquire needs to turn to the next page (Wolfe, 2014). In other words, it means that the entrepreneur that wrote it down contained marketing and writing skills from business expected that the Fire Starters business plan lack. In addition to an executive summary, Mahogany’s business plan contains a well-defined objective, mission and the keys to the business success while the Fire Starters Company’s business plan lacks the objectives, and its success keys portray a contradicting business idea. Market opportunity analysis Evaluate and critical analysis of the market opportunity, Mahogany Company’s business plan has growth market potential of at least a significant increase in a percentage per year with a substantial growth potential. Hence, it will realize faster growth and better business result. Evaluation and analysis on business plans exhibits and appendices, Mahogany business, has done the necessary market research required exploring the market and can back up its any claim (Plunkett, 2013). Strategies and implementation analysis Both companies strategic and implementation plans evaluation for capturing its market various relatively according to its service delivery and market structure. This difference does not mean that is more advantaged than the other Companies are. Therefore, it means that each plan must clearly describe and indicates the market problem each company is solving out or the relevant need it meets for its customers. Thus, each company strategies should propose solutions that solve all the customers’ needs. Close examination on the companies’ alignment between problem and solution, Mahogany’s company is well-organized in terms of defining the competitive edge, marketing, pricing, promotion, distribution and marketing program compared to Fire Starters (Engle, 2013). On the same aspect, it is clearly indicated that the Mahogany Company will address all its customers’ needs compared to Fire Starters Company though both companies face different market problems. Business product analysis. This critical evaluation takes into account on company's product prescription. Therefore, the business plan for the Starters company fails to give their products description in terms of the legal structure, technical consideration, uniqueness and special services compared to the Mahogany company though it indicates the products and as well as identifying the business set-up (Farole, 2011). Evaluation and analysis of the Companies’ operational capacity and efficiency within which both the business companies can produce its market product, and quality analysis of the proposed marketing efforts, Mahogany Company has an upper hand to reach its objectives efficiently and quickly. Business environment and competition analysis. Business environment analysis of both the companies especially through competitive analysis, both companies, have similar approaches on identifying the principal competitors, but lack to explore on the competitors strength and weaknesses in terms of quality and customers satisfaction. On the other hand, the Mahogany’s group indicates the competitors positioning whereas the Starters Company fails to show the competitor's positioning. Both the business plan presented by the companies describes the competitive landscape in which their company operates. Therefore, it provides a detailed breakdowns and analysis of their competitors (Bartels & Pecht, 2012). Mahogany company goes further to indicate how it is different and better compared to other competitors in that particular niche that the Starters’ company lacks. Both the companies lack a regulatory environmental plan and fail to include any costs or necessary delays associated with these environmental regulations. Market and industry analysis. Both the companies have a well-elaborated market analysis that identifies the target markets effectively; their business plans also indicate the market potentials for their business adding additional advantage to their operations. On the other hand, the well-elaborated market analysis provided fail to illustrate clearly their customers’ analysis and description. In other words, it means that in the case of change in consumer's preference or emergence of the substitute goods in the market structure both companies will experiences heavy losses or experiences a hard market adoption. On the industry analysis both the company’s business, plans take into consideration of the recent market trends, the current business situation in terms of organization and finances as well as the nature of the industry outlooks (Farole, 2011). It, therefore, means that, it is identified whether the company operates at a micro level or is part of a larger industry. For this case, both the companies qualify to have the required business industry and market analysis. Experience, integrity and management plan analysis. Experience, integrity and passion analysis of each business plan in the executive team that makes the entire management system, Starters company business plan has an upper hand compared to the Mahogany’s business plan. Starters Company means their executive's strengths and expertise in terms of the experience period and previous business achievements (Kendall & Kendall, 2014). Both the companies have an effective management plan to define the management functions of each core owners and assigned responsibilities. Starters company goes a step further to define the staffing management function with clear responsibilities and roles for each staff members, it also indicates and the companies accompany standard business data include their business headquarters and corporate structure. In other words, ' the Company reveals formal and informal experienced staff. Conversely, the market plan principals involved in their business compared to the Mahogany’s business, convey additional advantage in their passion, goals and drive toward business success with their project as a whole. The founders of each company described have heavily invested with their capital into the business, or plan as well as taking part as either silent partners as seen in the Mahogany Company. The company founders are also keeping on running their business as part of the management team. Thus, they have adequate faith to venture into the business project Conversely, apart from roles and responsibilities assigned in the management plan, the staff skills provided by the Starters company. The Company defines their key competences in management system with an explicit provision of the staffing plan and techniques to allow staff growth plans highly recommended than the Mahogany's company. Marketing plan analysis and evaluations. Both the companies define clearly their market objectives, missions and goals indicating all the strategies and technical approaches that will be used to frame their business in the market. In addition to the write goals, it is also clear that, promotional strategies are correctly indicated and are realistic in the nature of the market it serves (Marsh, 2013). Sales forecast assumptions are indicated in both Companies marketing plans that determine their market scores as well as provision of marking projections that guide both organizations working towards reaching their financial and customers target in order to conduct relevant feedback or control measures. Financial plan analysis. On the economic analysis, both business plans provide a list of start-up cost indicating method and strategies that will aid the business commencement. It is also correct to indicate that both companies’ business plans contain a list of capital sources with a clear indication of economic uses. On an evaluation on financial projections such as monthly profits realized, losses incurred and all the cash flow statements for yearly operations, it is correct to say that, both of the company financial projections are promising and realistic. Expounding further on this point, it clearly indicates that both of this companies keenly and contingently overstate their company's business potential in relation to the present market size and market share. Conversely, financial figures in both companies’ business plans are based on the present historical data, on broad aspects; there are some conservative financial figures projections in the Starters Company indicating a limited or dragged profit. To some aspects, Mahogany Company financial projection captures 20 percent market share realization within three years probably an unrealistic financial expectation (Plunkett, 2013). It is worth noting that, both companies projected loss, cash flow statements and annual profits for the first- and third year is clearly indicated with an accurate and correct projected balance sheet provided for the three full years. In addition to a well-balanced sheet, both of the two companies lack to indicate a significant change schedule in the entire business structure to protect their Companies when there are significant changes that affect the cash flow such as staffing changes and capital expenditures. Apart from this critical downfall, financial assumption documents are clear in both groups that include the working capital requirements for both companies. Investment investigation indicates the presence of the returned capital provided by both companies, but fails to meet a good business plan requirements that include exit strategies the critical part of a business plan that allows pulling back of the initial investment out of the company (Plunkett, 2013) In addition to this essential evaluation, realistic valuation of each Companies shares is hard to evaluate and analyze. Evaluation and analysis of the business plan as a whole. Evaluation of the two business plans as a whole document, it is professional in appearance, this means that, utilizes good grammar and correct spelling. The business plan for each company provides a reflection of a real existing world company. For this case, market need provided by both of the Companies is adequate, these means that, the market requirements and the company's products and services being offered are compelling (Wolfe & Wolfe, 2014). Information clarity and research thoroughness of the planned presentation is provided; priorities and close alignment to both of the Companies’ mission and vision are achieved. Thus, the effectiveness of the business implementation processes such as adequacy of resources and the extent to which the optimal customers are effectively engaged. Specific, measurable outcomes initiated by each Company's outputs are generated in both near and middle term goals in relation to a defined timeliness. The management team presented by each group is experienced in terms of business management skills and is committed to achieving the set goals and objectives directly indicated by the financial projects, business profit margins at the end of three years and business investment returns. Financial statements presented by both companies are realistic with achievable financial projections that are realized at the end of each fiscal year (Engle, 2013). Thus, it is worth accepting that both companies each as a single unit have a chance of business success through Mahogany Western Wear company has a chance, any positive value in business is a termed as a success. Mahogany Western Wear Company's strongest components. The strongest parts are the components touching on the company’s business strengths and opportunities; this component includes all the internal positive attributes that the Mahogany's company can control. For example, its key financial resources, effective managerial and market structure as well as uniqueness of its products. Good financial resources provide a realistic financial projection that reach employee's payment trust and abilities of the Company to maintain a constant supply of its products. Its effective market structure provides a suitable competitive environment and ready market to reach its customers, hence attaining its goals and objectives (Smith, 2012). It has a well-defined product description that enables its customers to easily identify their products thereby maintaining their reliable customers. Mahogany Western Wear Company weakest components. Weakest components touch on internal negative attributes of the business plan as well as the external forces that affect the business success. It has reduced managerial planning system as the company contains two co-owners with one being a silent member that affects business decision marking that would influence negatively to the other members. The company lacks exit strategies that make it will enable pull back its investment in the case of loss and unfavorable market conditions. Hence, it exposed loss risks in case of business failure. Detailed information makes it wordy with some grammatical errors thereby ruling out from a good business plan that must always have a good grammar and good in appearance. Fire Starters company strongest components Fire Starters Company strongest points are presence of well-defined and staffing system with experienced personnel in terms of education and credibility that enable it to plan and organize the business professionally. It has better marketing strategies with Internet opportunity for local sales business done online providing a customer service option that differentiate the company from its competitors, and that assist the organization in product promotion. The principal components are briefly described that makes a business plan enough in appearance thus easy to implement Fire Starters company weakest components The company lack product description open up gaps for unfavorable competitions from substitute goods. It has brief component description that enable it leaves out important information such market shares projections, positioning and pricing. On the same note, the company lacks clear business objectives on the target customers, nature of the market structure and useful market strategies results to either unexpected unrealistic loss or profits evidenced by the balance sheet and business plan itself. Suggestions on how the business plans could have been improved. The company’s business plans could have improved by assessing their current business situation using SWOT analysis, benchmarking their business performance against similar business in the market industry as well as analyzing the business market trends for a realistic financial projection Kendall, K. E., & Kendall, J. E. (2014), Further improvements can also be done by setting clear goals that are specific, measurable, achievable, and timely as well as relevant which these business companies lack. In addition to these bright points, establishment of results measurement at each component is needed as well as business exit strategies. Business is planning lessons. A business plan represents a road map or business management tool that provides relevant business details or ideas constituted in the business planning components. It is also clear that; business plan defines all the market plans indicating initial cost as well as business site (Farole, 2011). On the same note, it is clear that an effective and well design business plan leads to a good business performance as well easing the business management system. Business planning is a systematic procedure, and each step is as important as the other is and should not be skipped. Challenges & Lessons learnt Challenges of the business plan include, writing challenges such as grammar, writing styles, project presentation, completion and plan details. In addition to planning to write, challenges, business plan research, assumptions and presented overviews are the main challenges of a relevant and realistic business plan. Lessons learnt from a business plan challenge entails weight logical options out of the available alternatives; it is clear that, to counter this changes an effective business plan should be well grammatical written, complete, real and well presented (Smith, 2012). On the same note, it should indicate realistic financial projection, define the target audience as well as well researched. Demonstrated competencies and extent I could demonstrate competence by establishing business plan focus through developing and communicating goals effectively in order to support the business missions and objectives. This means that, I will alienate each unit goals to fit the business strategies by ensuring everyone understands the business purpose and works towards fulfilling the business mission. On the other hand, I will provides a motivational support that fosters teamwork as well as demonstrate innovation and performance ability for business success. Recommendations I recommend any business plan developed to be simple, understanding and consistent enough to embrace all parts of the project. In a similar perspective, it corrects size; grammar and complete. Proof planned data should be provided with correct, accurate and simple reading for to motivate the reader to turn to the next page (Smith, 2012). I provided an imperative recommendation and advice at the same time that the prognosis provided has to be realistic using the business plan as a working document but not used as a presentational instrument to market any business idea. I also rule out any confidential information to be used in the business planning process. References Smith, T. (2012).Strategic workforce planning Guidance & back-up plans. Scotts Valley, CA: CreateSpace. Farole, T., Akinci, G., & World Bank. (2011). Special economic zones: Progress, emerging challenges, and future directions. Washington, DC: World Bank Plunkett, J. W. (2013). Plunkett's E-Commerce & Internet Business Almanac 2013: E-Commerce & Internet Business Industry Market Research, Statistics, Trends & Leading Companies. Houston: Plunkett Research, Ltd Wolfe, M. G., & Wolfe, M. G. (2014).Fashion marketing & merchandising Engle, J. (2013). How to Open & Operate a Financially Successful Fashion Design Business: With Companion CD-ROM. Marsh, C. (2013). Business and financial models.London: Kogan Page. Kendall, K. E., & Kendall, J. E. (2014).Systems analysis and design. Chartered Management Institute (Great Britain), & Chartered Management Institute (Great Britain). (2014). Managing strategy Bartels, B., Ermel, U., Sandborn, P. A., &Pecht, M. (2012).Strategies to the Prediction, Mitigation and Management of Product Obsolescence. Hoboken: John Wiley & Sons Read More