The Always Young Centre's Strategic Business Plan - Case Study Example

ALWAYS YOUNG STRATEGIC BUSINESS PLAN Content Outline 1.0 Business Overview/Executive Summary 2.0 Business Description Mission statement Company vision Culture 2.1 General description of the business 2.2 Industry background 2.3 Goals and potential of the business and milestones 2.4 Uniqueness of product or service 3.0 Marketing 3.1 Research and analysis 3.1.1 Target market identified 3.1.2 Market size and trends 3.1.3 Competition 3.1.4 Estimated market share 3.2 Marketing Plan 3.2.1 Market strategy – sales and distribution 3.2.2 Pricing 3.2.3 Advertising and promotions 4.0 Operations 4.1 Identify location: advantages - Main office is in Brisbane CBD 4.2 Specific operational procedures 4.3 Personnel needs and uses 4.4 Proximity to supplies 5.0 Management 5.1 Management team – key personnel 5.2 Legal structure – stock agreement, employment agreements, ownership 5.3 Broad of directors, advisors, consultants 6.0 Financial 6.1 Financial forecast 6.1.1 Profit and loss 6.1.2 Cash flow 6.1.3 Break – even analysis 6.1.4 Cost controls 6.1.5 Budgeting plans 7.0 Critical Risks 7.1 Potential problems 7.2 Obstacles and risks 7.3 Alternative courses of action 8.0 Conclusion 9.0 Appendix and Bibliography CHAPTER ONE INTRODUCTION The dynamics of living have had global impacts. The number of elderly persons has been increasing with the increase in life expectancy. Globally, the demographics of age change have been changing, with countries recording reducing birth rates and lower death rates, hence resulting to people that are more elderly. According to the United Nations estimates, the number of persons between the ages of 0-14 years constitutes 26.3 of all the persons in the world. Persons aged between 15-64 years represent 65.9% of the population. The persons aged 65 years and over make up 7.9% of the population. In Australia, according to Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, the percentage of persons aged between 0-4 years constitute 6.3 percent, Percentage aged 5-14 years make up 12.6 percent of the population. Percentage of persons aged between 15-24 years make up 13.6 percent, and 48.1 percent of the citizens are aged between 25 and 60 years. The Percentage of persons aged 60 or over years is 19.5 percent, those aged 65 years of over is 13.9 percent while those aged over that 80 percent are 3.9 percent. The elderly therefore make up a substantial percentage of Australian population. Considering that the birth rates and life expectancy are increasing the percentage of elderly persons is projected to rise gradually. The development of social facilities in the country has not been as dynamic as the changes in population; consequently, the elderly persons have been secluded to a live of loneliness. The elderly persons are relatively less active physically; therefore, they tend to have relatively fewer friends. Moreover, the limited number of social amenities has condemned the persons to living in seclusion and solitude. Always young is a revolutionary business that offers entertainment based social services to the elderly persons in Australia. The business in modelled on customer consciousness concept, where the individualised needs of the customers are considered, and services tailored to suit every client. The role played by the elderly as a potential economic market has been appreciated by several studies and supported by authors such as ( Bigne, Aldas-Manzano, Ku¨ ster & Vila 2008) who are of the opinion that in the twenty first century, the elderly consumers has been characterized as new marketing approach referred to as a “Mature Market”. Executive Summary Executive Summary The Always Young centre is aimed at serving the elderly, with a strategic objective of gaining thirty percent market share, three years after its inception. The company which intents to begin operations in the year 2011, shall be located in Brisbane, Queensland state in Australia. The centre shall focus on dynamism in offering customer oriented products and services, for the elderly customers and at all times shall be responsive to the needs of the customer. It is intended to provide the residents of Queensland and surrounding areas superior elderly people’s entertainment and related services. The prevailing entertainment prices in the town provide an opportunity for the centre to attain break-even point within one year of operation. To gain strategic competitive advantage and mitigate against risks the firm shall employ an array of techniques such as having minimal overhead costs, aggressive marketing, online payment options and employing multi-skilled staff. Other strategies are utilizing Enterprise Resource Planning computerization to centralize and management operations, quality differentiated products and services to suit the specific needs of different customers, having community involvement services, having a wide selection of products and services, strategic location and building excellent customer base. This shall all ensure that Always Young entertainment centre becomes an enigma in the entertainment field in Australia, and a favourite destination for the elderly. The services shall be offered to meet the ever increasing demand for entertainment services in Australia, moreover the centre shall stand to gain from the fact that personal expenditures on entertainment has been increasing after the financial meltdown. The centre shall be marketed and geared as an elderly citizen’s entertainment centre, therefore shall offer the elderly persons a fully equipped meeting centre as well as a recreational travelling. CHAPTER TWO BUSINESS DESCRIPTION 2. 0 Business Mission Statement The mission statement of the Always Young centre shall be to provide the highest form of entertainment to the elderly Australian citizens in the Australian state of Queensland and surrounding states, in order to foster the social living status of the elderly. Company vision The vision of Always Young centre is to be the leading organization, offering customised recreational services and facilities to the elderly. Always Young aims to be the first choice of all elderly persons seeking recreation as well as a meeting point. Corporate Culture The culture of Always Young Company is influenced by several issues such as the industry in which the company operates geographical location, the type and age of clients. The Always Young corporate culture provides a clear corporate vision, enhanced by the company’s values while being consistent with the strategic goals of the organization. The organizations culture is dynamic and adoptable to changing business environment while respecting valued and fair treatment of the employees and the customers. The organization shall implement an inclusive culture that respects and understands the personage differences of the employees and customers, and offering services reflects and responds to the diverse range of customer needs. The business shall ensure integrity and diversity. 2.1 Business Description The outlet name is “Always Young” which targets elderly persons as its customers. The objective of the business is to provide the elderly varied recreational options. The firm shall have a meeting point at Brisbane CBD area, where the elderly can meet, interact and participate in various social activities. The location of the meeting point shall also serve as the firms headquarters. To ensure that the organization achieves its strategic objectives, the business functionalities shall be modelled to have the firm serve as a small agency also similar to travel agency as specifically provided ongoing events and tours. The agency shall be responsible for facilitation and the management of travel by the clients to several places such as shopping tour in the city, a movie night at cinema, and a day trip to Gold Coast or Sunshine Coast or picnic at Southbank. The strategic plan and arrangement of activities of the firm shall be such that each time there is a different leisure entertainment and activities for elderly group to participate. Membership to the firm is by subscription. The target populace are the residents of several cities in Australia, as well as persons living in surrounding areas. 2.2 Industry background There are several entertainment sports in Brisbane, and the entire county.  Valley Special Entertainment Precinct has been preserved Brisbane City Council as an entertainment precinct, the valley that offers various means of entertainment can serve as a destination for the elderly. In addition, Brisbane Entertainment Centre in Boondall provides a destination for entertainment through concerts. In addition, Brisbane Convention & Exhibition Centre adjacent to the South Bank Parklands provides a means to entertainment through concerts. The entertainment industry in the area also includes the Bridge to Brisbane fun run that has become a major annual charity event for Brisbane. Moreover, there are several destinations, which serve as entertainment spots such as Roma Street Parkland, South Bank Parklands, Lone Pine Koala Sanctuary, the City Botanic Gardens, Brisbane Forest Park and Portside Wharf. Other favourite tourist destinations, where the elderly may be taken include Brisbane Botanic Gardens, the suburb of Mount Coot-tha forest. The entertainment and care of the elderly in Australia is governed by several legal and regulatory provisions. A comprehensive coverage of aged care support and services is outlined at chapter six of Australian Institute of Health and Welfare, Australia's Welfare 2001. The Aged Care in Australia through the Commonwealth Department of Health and Ageing offers an overview of the aged care system in Australia. The past statistical reports on ageing are contained in the Productivity Commission, Report on Government Services 2003, which in addition provides comprehensive data on aged care services across Australia. Most of the reposts however, provide little information for the provision of entertainment services to the elderly. The Seniors Portal site for consumers, professionals and community members in the Commonwealth Government, provides suggestive content on entertainment of the elderly through online search for care related government and agency information services and policies. 2.3 Goals and potential of the business and milestones The goals of the business are to achieve a break-even point within the first twelve months of operation. The business also has the aim of being the market leader in the provision of recreational services for the elderly. Strategically, the business envisions positioning itself in upward trend in profit generation, such that by the third year, investors can purchase shares of the company. There is immense potential in offering recreational services to the elderly. The field has not been saturated, since most of the entertainment service providers offer generalised services to the citizens without focusing specifically on the elderly. In addition, the company shall offer customised services, depending on the requirements of every individual client. Furthermore, with more people attaining the age of fifty years, there is immense potential for the business to prosper. Furthermore, the limited competition in the provision of the services to the elderly is a basis for achieving a break-even point. The customer focused strategic approach is also a strong foundation for growth. The business has to undergo several milestones before it can be said to be successful. Primarily, the concept of provision of recreational services to the elderly on an agency basis is a revolutionary concept to the people of Brisbane and the surrounding areas. Resistance to change is bound to impact on the performance of the business, where the elderly may not be ready to be entertained. Moreover, considering that the business shall be dealing with elderly people who tend to have more age related health problems, the company shall be required to seek several legal and regulatory documents. 2.4 Uniqueness of product or service There are several attributes, which separates the products offered by Always Young to what is offered by other competitors. The services are professionally customised to suit every member considering their unique attributes. An important feature also is that the customers shall be picked from their areas of residences, and taken to different places every time. In addition, apart from the recreational facilities and entertainment, the customers are provided interactive forums where they can interact and enhance their social relationships. The clients shall also be offered additional services such as guidance and counselling in case they have challenges as well as annual parties and special event, which shall be held for all the members in one location for them to share their experiences. CHAPTER THREE MARKETING Marketing which is an important concept in every business undertaking shall be given due consideration by the management. The business envisions attaining a substantial market share by the end of the first year; it is for this reason that the business shall adopt an aggressive strategic approach. The marketing strategy, shall utilize different marketing approaches, but shall consider the Word-of-mouth and reference marketing, where clients shall refer their friends to other persons. The incentive program for referrals shall be based on rewarding members who recruit other persons. New members shall enjoy introductory gifts, such as discounted services. This shall only be possible by offering excellent services to the customers. The management shall not run major newspaper ad campaign in the first year, but shall have advertorials in FM stations and weekly specials. 3.1 Research and analysis The marketing research and analysis shall encompass different aspects of the growth of the organization. This shall include several things such as promotion as well as advertising. In addition, the analysis shall cover different aspects such as organizational new business/product development, sales marketing, organizational culture and positioning, promotion, Public relations and the entire sales functions. The market is critically analysed to determine the suitability and the possibility of growth in investing in the sector, as well as to decide what the organization shall sell, when, where, how, to whom and how the organization shall sale. Market research is aimed at collecting relevant information towards the strategic progression of the organization. The relevant information to be collected in market research includes competitor activities, strengths, weaknesses, products, services, prices, sales methods. Data concerning prices and values, and customer perceptions in elderly service provision, demographic issues and trends, products and services, mix, values and trends, customer perceptions, needs, preferences, buying patterns, and trends as well as future regulatory and legal effects. 3.1.1 Target market identified The identified target market consists of all the persons aged more than years residing in the state of Queensland in Australia and Its environs. The target members are persons with capacity to pay the annual subscription fee and any other charges that may be levied for services offered. The targets are elderly persons of both genders who are willing and ready to take part in various recreational activities. 3.1.2 Market size and trends The population of Queensland has experienced growth in the past decade. Consequently, the number of elderly persons has been increasing hence enhancing the market size. 3.1.3 Competition There are several competitors in the field of provision of entertainment services to the elderly. The organization intents to use various means such as affordable cost, customer centric service delivery and wide array of services to attain strategic competitive advantage and get substantial market share. There are two main competitors to the Always Young -Retire village Retire village has several strengths which requires critical analysis by the organization. Retire village has several integrated villages for the elderly in several states in the country. Furthermore, the village has been in business for long; therefore have an edge in branding .Retire village in addition have immense capital in terms of resources, and strong online presence. The village however has some weaknesses; they do not offer customised services to suit every client. Furthermore, there services are relatively expensive, and they do not offer shuttle services to clients. Tricare Club is also a competitor. The club has several home care for the aged. This includes Mt Gravatt Retirement Village in Mount Gravatt, Compton Gardens Retirement Village, Aspley, and other competitors such as Archbishop Duhig Court Hostel, Holland Park. The advantage of the club is that they offer comprehensive services including boarding services for the aged, they also have shuttle services. However, their weakness is that they are not recreational centred, they are expensive and tend to limit the areas of visitation by the elderly. 3.1.4 Estimated market share Using the strategy of referential marketing combined with aforementioned marketing techniques, the market share is envisioned to grow at the rate of 10 percent every year, for the first three years. Cumulatively therefore, the market share by the end of the third year shall be 30 percent. This can be graphically represented as below Figure five estimated market share, Always Young Company for a three-year period 3.2 Marketing Plan The company shall implement a comprehensive phased marketing plan, intentioned to aid the organization in the strategic achievement of its objectives. 3.2.1 Market strategy – sales and distribution The marketing strategy shall utilise word of mouth referral as the primary marketing tool. This shall be done in phases. The first phase shall be creating a referral target market(s), in this case, the company shall identify potential clients who can serve as referral agents, and be offered special rates. The second phase shall be identifying the ideal referral customers, and then the organization shall then create and communicate the company’s core referral message, which is centred on the company’s objectives and corporate culture. The company shall then design a referral education system, to be used to systematically educate the clients or any other persons who shall refer others. The company shall then outline the referral lead offer and system, which are the compensations and offers for persons who refer others, such as discounted services. The lead offer and system shall dynamically change depending on the market situation. The company shall then develop a referral conversion strategy, after which they shall identify and implement a follow up strategy. The company shall also advertise it s services through posters, brochures and in publications targeting the elderly persons. 3.2.2 Pricing The services shall be competitively priced, depending on the prevailing economic conditions and the competition environment. Clients shall choose the membership subscription they desire, and this shall determine the price. Annual membership fee shall be twenty dollars, while half-yearly fee shall be fifteen dollars. Members who desire quarterly and temporary membership shall pay ten dollars. 3.2.3 Advertising and promotion The company’s services shall be advertised in the internet, in local radio stations and in the print media. 4.0 Operations The chapter outlines how the operations of the company. The operations shall be focused on enabling the elderly persons to enjoy life, and be entertained. 4.1 Identify location The main office of the company shall be located in the Central Business District of Brisbane. The location of the business is meant to offer several strategic advantages, being the headquarters of Queensland State. The city is also the most populous city in the Australian state. The economy of the city is strong and the state has several attractive sites that the elderly people can visit. The state also has a strong social background. Locating the business in the CBD is aimed at ensuring that most customers are able to reach the firm. 4.2 Specific operational procedures The operation of the company shall begin with the customers registering on the 4.3 Personnel needs and uses 4.4 Proximity to supplies Read More