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Business Plan for KC Motors

Institution Affiliations:

KAC Motors will dedicate itself to sales of vintage cars, sportscars, and executive cars made locally or imported from some of themost prominent makers of vehicles. The company’s mission andobjectives will etch on the principle that customer’s contributionto the company is the most significant element. The company willtarget both high-ended and low-ended customers. Furthermore, thecompany plans to ensure stability in the provision of vehicles,services, and after sales services connected to vehicles. Thefollowing is the business plan for the company.

Overview of the company

Since owning, a business premise has proven expensive to most vehiclecompanies across the country KAC Motors plan to rent a businesslocation at location 2133-21320, Westminster Hury. However, thecompany will have a business location from the Registrar ofCompanies. Furthermore, the company has chosen the location becauseof its accessibility to several other retail shops for vehicles. Thecompany will be fully insured by Economical Insurance to ensurebusiness stability and consumer satisfaction. Because of the littleoutdoor space and proximity to other business, the company will havean outdoor display area for 5 cars and indoor display for 10 cars.The company will have a repair agreement with Ying Wah Auto to reducecosts and ensure competent handling of repairs. The company will hanga prominent signage to its entrance to ensure that customers do notpass the business. Furthermore, the signage will serve the purpose ofidentifying and distinguishing the company from other companies. Thecompany’s phone number will be 604-9016693 while its website willbe www.kacmotors.ca.

The company will run solely on the premises of an incorporatedcompany to facilitate local ownership and commit the managingstructure to the public limelight. The company will float its sharesonce the Registrar of Companies incorporates the company. The companywill seek the services of KMPG Accountancy. However, the company willseek the services of Dr. Julius Kay of phone number 604-7123256,address 122-00025 Westminster as the head accountant and Hung Chongof phone number 604-9862354, address 122-42563 Westminster. Thecompany will use the names of KC Motors as its business name. Thecompany does not wish to use any other name.

SWOT analysis

Strengths

The products will be differentiated therefore,creating a niche which will greatly benefit the business. Stonehouseand Houston (2012) state that niche market have an advantage in thatbusiness can gain in-depth knowledge of their market and productimprovement in order to match customer needs is continuous. Althoughthe company will face competition from established firms, itsdecision to deal in high-end cars and target a niche market will giveit a competitive edge. With high skills and a tangible marketingstrategy, the company will manage to offer its products to consumers.

Weaknesses

The company will facehuge competition from the already established companies. In addition,the issue of exchange rates will provide a negative aspect to theoverall performance of the company as it will relay on imports insome cases.

Opportunities

High demand from thehigh-end income earners, which will drive the profit margins

Threats

Competition will actas the most predominant threat to the firm. In addition, the firmwill realize threats from business rules regulating the import andsale of cars. Future business situation may also provide anotherthreat to the company.

Strength:

-Differentiation of products creating a niche

-Diversity of products sold

-Cheap labor

Weaknesses:

-Existence of similar outlets

-Exchange rate fluctuations

Opportunities:

-open outlets in large urban centers

-utilize technology

Threats:

-Competition

-Business environments

Trends:

Trends

External forces and trends considerations

-Legal and regulatory

-Global

-Economic

-Technological

-Innovation

-Social

-Environmental

-Competitive analysis

Internal forces and trends considerations

-Strategy

-Structures

-Processes and systems

-Resources

-Goals

-Strategic capabilities

-Culture

-Technologies

-Innovations

-Intellectual property

-Leadership

Marketing and sales plan

The introduction of the cars from KC Motors heralds a new foundationfor the vehicle fraternity. The introduction of the company will alsocome with new ideas to delineate a proactive marketing strategy.However, the contemporary market will preempt any success of thehigh-end cars if the company fails to achieve the proactive strategy.Consequently, it is intrinsic to appreciate the factors that mayimpinge on the marketing strategy of the company. Externalenvironment is a chief dynamic that may influence the marketingstrategy of the company.

Since marketing strategy is an incessantly evolving dynamic, a firm’sbusiness goals operate as a framework and end objectives for thestrategy. Every company adjusts its marketing strategy according toits set goals thus, KC Motor’s objectives will affect itsmarketing strategy in a significant approach. An inherent focus onits strategic objectives will help the company mold its strategy inan effectual way.

The current market has offered consumers a choice among varied anddifferentiated products. Consumer preferences play a key role inaffecting a firm’s marketing strategy. Since consumer preferenceskeep on changing, the firm will find it essential to alter itsmarketing strategy according to current consumer needs. The firm willfind it practical to modify its marketing strategy according tochanges in economic, social, and political modifications in themarket.

Consumer response and the firm’s budget will have a key role todetermine the firm’s strategy. Any marketing plan depends on themarketing budget set to carry out strategies, plans, and changes to amarketing structures. Besides, consumer response will play astrategic role to determine the success of the strategy: thus, thefirm must tailor its marketing strategy according to consumerreactions.

Operations

The company needs a normal shift in its processes and manufacturingentities. The idea is to nurture modern processes and manufacturingprocesses without misplacing the benefits of engaging otherprocesses. Steep rivalry from rival businesses and the development oftechnological revolution means that the firm need to cultivate newapproaches of operations. Nevertheless, even with the demands formodern methods, the firm must comprehend the significance of eachconventional method of entities and the link with modern methods(Seliger 2012). Excellent business procedures allow companies todecrease the quantity to WIP inventory and rationalize all the phasesof production. In reality, the technique permits companies toprogress on their systems, emphasis on constructing processes, andgenerate based on demand. On the other hand, JIT (Just in Time)allows firms to eradicate surplus and produce excellent products atthe accurate period and at the required standards (Seliger 2012). Inthis regards, the firm will attain a pull system pushed by demand,which result to diminished costs.

Financing

Although the company is an incorporated company, it will start withtwo people who will be the main shareholders. However, afterincorporation the company will float its shares to other people.Chien Cheng of address number 420-9500 Odlin Road, Richmond and phonenumber 778-8812920 will be the main shareholder. The othershareholder of the company will be Chen Hung of address number122-4525, Westminster and phone number 668-2356845. While Chien willcontribute $60,000 of the total budget, Chen will contribute $40,000.The following is the budget for the company.

KC MOTORS BUDGET FOR THE YEAR 2014

Money (US $)

Operating Income

Sales of vehicles

$100,000

Investment

$50,000

Car services

$70,000

Other

$20,000

Aggregate working returns

$240,000

Non-operating proceeds

Interest Incomes

$20,000

Leasing Income

$3,000

Contributions and contributions

$4,000

Additional earnings

$2,000

Aggregate non-operating income

$29,000

Aggregate income

$269,000

Overheads

Operating overheads

Office and legal

$25,000

Promotion

$20,000

Depreciation

$3,000

Subscriptions and payments

$5,000

Office purchases

$12,000

Postage fee

$1,000

Rental

$6,000

Staff expenses

$25,000

Wages and salaries

$60,000

Taxes and licenses

$15,000

Travel and utilities

$16,500

Telephone, web hosting, and insurance

$10,000

Other

$100

Aggregate operating expenses

$238,600

Non-recurring expenses

Software and Hardware

$15,000

Furniture and equipment

$18,000

Other

$2,000

Aggregate non-recurring expenses

$35,000

Aggregate expenses

$253,600

Net income before taxes

$35,400

income tax expense

$20,000

Net income

$15,400

Financial summary for the company

KC MOTORS Financial summary

2016

2015

2014

Dollars in Thousands

Sales and other revenue

$465,000

$400,000

$269,000

Net earnings

$120,000

$80,000

$35,400

Current assets

$40,000

$40,000

$30,000

Net property and other assets

$150,000

$110,000

$80,000

Total assets

$190,000

$150,000

$110,000

current liabilities

$25,000

$15,000

$10,000

Total stockholder`s equity

$165,000

$135,000

$100,000

KC Motors Estimated Cash flows

Available Cash at the start of the month

100,000

&nbsp

&nbsp

CASH INCOMES

&nbsp

Cash Transactions

290,000

Revenues from CR financial records

50,000

Credit or other injections

98,000

AGGREGATE CASH INCOMES

438,000

Aggregate Cash

538,000

&nbsp

&nbsp

MONIES REMUNERATED

&nbsp

Acquisitions (stock)

180,000

salaries (precise drawings)

80,000

Staff expenditures

40,000

External amenities

9,000

Provisions (workplace &amp processes)

12,000

Maintenances &amp upkeep

&nbsp

Promotion

20,000

Car, distribution &amp transport

16,000

Office &amp legal

25,000

Rental

6,000

Phone

1,500

Conveniences

&nbsp

Cover

8,500

Levies

&nbsp

Rates

12,000

Additional expenditures

2,600

Assorted

&nbsp

SUBTOTAL

412,600

Advance sum

&nbsp

Investment acquisition

15,000

Additional startup charges

20,000

Replacement

10,000

Drawings

15,000

AGGREGATE MONIES REMUNERATED

472,600

Position of the firm (end of month)

65,400

&nbsp

&nbsp

NECESSARY WORKING INFORMATIONS

&nbsp

Transactions Capacity (dollars)

290,000

Debtors

40,000

Bad Dues

5,000

Stock available

2,000

Creditors

25,000

Depreciation

3,000

KC Motors

Balance Sheet

December 31, 2014

Assets Liabilities

Cash Creditors

Debtors

Other other

Aggregate Assets 30,000 Aggregate current 10,000

Aggregate long-term assets 80,000 Aggregate long term Liabilities0

Aggregate liabilities 10,000

Stock Holders’ equity 100,000

Aggregate Assets 110,000 Aggregate liability and equity 110,000

The company will acquire purchase cars from manufactures.Furthermore, to supplement the invested money in the company, thecompany will take loans from financial corporations.

Registration and operations

The company will have its own garage and details of D plates asDC12365. Furthermore, the company will have its application to GSTand PST confirmed.

Andrew Shii will be directly responsible for the management and salesof the vehicles. Andrew Shii is licensed by VSA. However, he willcoordinate the operations of the company with the owners, accountant,and the company’s lawyer. The company will not use dealershipservices in its early years. In addition, the company plans to offerwarrant programs for 3 years for every car bought. Furthermore, thecompany will give additional warranties to services and after salesservices. The company will use a marketing strategy of protect andhit whereby the company will recognize corporate customers. Inessence, the company will create a local market of loyal customers,but will look for markets abroad through robust advertising. Thecompany will not use sales contracts with customers to protect boththe company and the customers.

Risk management

The company will have a risk management process that identify andmitigate the different risks that the company may face such asnatural disasters, sexual harassment, and violence among others. Thedivision prevents the threat of workplace violence through takingtough actions on personnel responsible for any form of violence.Personnel are advised to report any form of violence or sexualharassment to their immediate supervisor. Each person has a duty toreport any form of behavioral changes, aggressive speech, or nay formof threats for appropriate action. However, all the guidelines of thecompany provide that personnel follow the chain of command available.The company will provide training to all personnel on how to dealwith workplace violence, and on the available Standard OperatingProcedures. To achieve these mitigating procedures, the divisionaugments on the need for effective communication flow, compliance toall guidelines and procedures, and responsibility. In addition,active bystander intervention process, which encourages people toidentify areas and conditions that may cause sexual harassment andother risks, allows for cultural changes, and prevents victim-blame,is an effective intervention procedure for sexual harassment.

For natural instances there is need to inspect the form of structuresin the area and their strength in withstanding such risks. In caseswhere the situation is inevitable, quick measures should beimplemented. For example, red alert on upcoming earthquakes andhurricanes should be issued. In such a case, there damage will beless severe when the population is prepared. Additionally, peopleneed to be aware of the specific vulnerable locations. On the otherhand, Incident investigations and hazard correction may contribute tothe reduction in the threats of workplace violence.

Targets of the company

A.&nbsp&nbsp&nbsp Shareholder Value or Financial Perspective

Objective

Measure

Target

Initiative

Increase profits by 70% each year for the next 4 years

Net Profits

10% upsurge in year 230% upsurge in year 345% upsurge in year 4

Marketing

Increase market share by 70% each year in 3 years

Number of cars sold

4,000 cars in year 16,500 cars in year 28,000 cars in year 3

Opening new branches

Increase revenue by 100% in 4 years

Revenue

Rise revenue by 30% in year 340% in year 4 60% in year 5

low cost leadership

B. Customer Value Perspective:

Objective

Measure

Target

Initiative

Customer retention

customer turnover

40% increase in customer turnover

improved customer services

Customer satisfaction

Survey data

30% increase in customer satisfaction

improving areas of customer concerns

customer value

customer turnover

25% increase during discount period

discounts and free samples

C. Process or Internal Operations Perspective:

Objective

Measure

Target

Initiative

Process performance

cost of processes

20% decline in first year

Employment involvement in decision making to improve processes

Productivity improvement

customers and employees

20% improvement in productivity

Improve processes

Operations metrics

process costs

10% reduction in cost

Vertical integration

D.

Learning and Growth (Employee) Perspective

Objective

Measure

Target

Initiative

Technological innovation

unique products offered

4 new products in one year

product development, modification, introduction of new products

Employee satisfaction

survey data

20% increase in employee satisfaction

incentives, awards, promotions

Organization capability

number of branches

2 new branches in the first 2 years

horizontal integration

Bibliography

Seliger, G. (2012)&nbspSustainable manufacturing shaping globalvalue creation. Berlin: Springer.

Stonehouse, G. and Houston, B. (2012) Business Strategy. NewYork: McGraw Hill press