Overview of Fordwell Golf Club and Its Retail Pro-Shop - Assignment Example

?Business Plan Table of Contents Table of Contents 2 Overview of Fordwell Golf Club and Its Retail Pro-Shop 3 Business Case 4 SWOT Analysis of Fordwell Golf Club 5 Future Objectives 7 Staffs and Skills Requirements 8 Promotion 10 Projections 11 Income Statements 11 Projected Cash Flow 13 Forecasted Cash Flow 14 Conclusion 15 References 16 Overview of Fordwell Golf Club and Its Retail Pro-Shop Fordwell Golf Club is a clandestine associated club which was developed in the year of 1935. The club is located in one of the colonised areas of Midlands with excellent transportation network. The region comprises of venerable population with high passion for golf. Moreover, the brand image of ‘Fordwell Golf Club’ is quite high as compared to other competitors in the nearby area. All other competing clubs apart from ‘Fordwell Golf Club’ also offer varied Pro Shop components along with the game of golf. Thus, it facilitates in enhancing customer satisfaction and reliability which is highly essential in order to sustain in this competitive environment. However, the professionals of ‘Fordwell Golf Club’ have only provided high attentions towards advancement in the facilities of the club thereby ignoring the Pro Shop retail part of this industry. As a result, it hindered the total revenue as well as customer satisfaction thereby hampering the brand image of the club among others. Thus, it is extremely essential to augment the retailing business along with golf as it would supplement the entire prosperity and effectiveness of club (The Professional Golfers Association Limited, 2011). Apart from these, improvement of Pro Shop business would also support and improve the coaching and training sessions of golf, which would be highly beneficial for the club. The training courses include varied modern amenities such as ‘cSwing system’ and Casio camera thereby enhancing the growth and consistency of its clients. It would also help to enhance the total number of members of golf club thereby improving the position in the region of Midlands. Thus, it would also facilitate in enhancing the total revenue, corporate image and constancy of the clients of ‘Fordwell Golf Club’ among others. Therefore, in order to achieve the vision of ‘Fordwell Golf Club’ i.e. to ‘amplify its recent profit by two times’, it is essential to renovate the Pro Shop segment of the club (The Professional Golfers Association Limited, 2011). Business Case ‘Fordwell Golf Club’ is one of the renewed clubs in the region of Midlands. In order to examine the demand of retail golf outfits in the region of Midlands, it is essential to perform a market research analysis, which is one of the significant market strategies adopted at the initial stages of any business (Nagle & Hogan, 2009). The market analysis helps to attain a clear idea about the demand of the products and its target clients. Target Clients of Retail Segment Source: (McKinley, 2002). Thus, from the above provided figure, it can be evidently revealed that the demands of retail golf outfits is quite high both within male and female genders of the society. Therefore, it can be affirmed that the idea of introduction of retail segment of ‘Fordwell Golf Club’ would be extremely beneficial for its future growth and prospects (McKinley, 2002). In order to position its retail segment, ‘Fordwell Golf Club’ could target millions of golfers both male, female youth and juniors as shown above. The infrastructure and renovation cost of retail workshops would also include ?20,000 along with certain trained and qualified assistants as well. In addition, the retail Pro Shop would include varied products such as bags, cloths, trolleys, wedges, headwear, irons, putters and shoes among others according to the tastes and the preferences of the end-users which would cost around ?10,000. Moreover, the retail Pro Shop division would also include a custom fit and repair centre for the players clubs according to the demand of clients at a reasonable cost (i.e. ?150 per head) for the club members. In addition, this facility would be also available for the temporary or visiting players at a cost of ?200 per head. Apart from these, the retail outlet for golfers can be introduced and promoted at the time of golf events in order to create awareness among the targeted clients. It can also promote the varied products in its personal website in order to increase the awareness of customers, which would incur approximately ?2,000. Hence, in order to fulfil this objective, ‘Fordwell Golf Club’ might require an estimated loan of ? 90,000. SWOT Analysis of Fordwell Golf Club ‘Fordwell Golf Club’ is a reputed golf club in the region of Midlands with approximately 550 golfers and an additional 170 social associates among others in the market. Moreover, the subscription charged from the permanent clients is also quite reasonable, which acts as one of the strengths of ‘Fordwell Golf Club’. In addition, the amount charged to the visitors for playing along with the permanent members is estimated to be ?24 which is rather less as compared to others. In addition, the facility of discounts for groups consisting of 25 members also sounds quite attractive and it enhances the distinctiveness of ‘Fordwell Golf Club’. Apart from these, ‘Fordwell Golf Club’ also offers quality training courses and huge playing yard which are quite beneficial. Hence, these factors augment the corporate image and market share as well as sustainability in the long run. On the contrary, one of the significant weaknesses of ‘Fordwell Golf Club’ is lack of concentration in retail outfit segment. Therefore, the introduction of retail outfit shop for the golfers would help to increase the number of clients thereby improving the profitability of the club (The Professional Golfers Association Limited, n.d.). Moreover, it would also enhance the position of ‘Fordwell Golf Club’ among others in the market. Besides, opportunities, there are certain underlying threats as well. As there exists large number of competitors in Midlands area such as Queen Mary’s Private Members’ Club, Brooklyn Grove Golf Club, and Box Hill GC among others, in order to retain its market share, ‘Fordwell Golf Club’ could also introduce varied new training courses along with retail outfit division. Moreover, varied new training courses are offered by the competing firms at a reasonable price which is rather attractive. Thus, ‘Fordwell Golf Club’ could attempt to offer new facilities and courses to draw new clients in order to enhance its market share (The Professional Golfers Association Limited, 2011). Hence, it can be avowed that this analysis would facilitate in identifying and reducing the underlining drawbacks thereby altering them into future strengths in order to enhance the growth and effectiveness of the brand. Future Objectives ‘Fordwell Golf Club’ is a renowned golf club of Midlands’ area. Moreover, the eminence of the industry of golf varies considerably from one country or continent in the globe to the others. The rising passion of golf in a number of developing as well as developed countries of the world has resulted in economic development of financial scenario of the organisations as well as the regions. Thus, it can be affirmed in order to enhance the position and corporate image, it is necessary for ‘Fordwell Golf Club’ to offer varied innovative courses to attract new clients. Furthermore, a prime future objective would be to enhance total profit of ‘Fordwell Golf Club’ to two times its current revenue along with increasing customer satisfaction and consistency. In addition, by offering varied new training and vocational courses, ‘Fordwell Golf Club’ can also increase its client base among others in the market. The vocational courses would be mainly offered for those candidates who desire to take up golf as their career aim with professional qualified trainers. Moreover, the ‘vocational training’ courses would be offered to candidates of varied age – groups ranging from (7-15 years, 15-30 years and above) with reasonable fees. Thus, in order to achieve the above described objectives, ‘Fordwell Golf Club’ could attempt to promote its extensive series of amenities through golf campaigns and website among others in order to enhance its market share and revenue. Apart from these objectives, ‘Fordwell Golf Club’ could also include large number of brands in its retail Pro Shop including bags, cloths, gloves, golf balls, head wear, irons, putters, shoes, trolley hires, wedges and woods of modern types and exciting colours from Srixon, Ram, Dunlop Sport and Yonex among others in order to attract new customers. In addition, the retail outlet would include a stock of 200 pieces of each item for the use of clients, which would improve customer satisfaction. Moreover, in order to offer pleasing services, the stock levels of retail merchandises would also be maintained in an appropriate system. Apart from these, in order to offer excellent and prompt services to customers, stock levels of the merchandises would be maintained properly and would be monitored to prevent it from reaching below 20 pieces. Hence, to maintain a proper level of stock, an experienced inventory manager would also be appointed in the retail outlet of ‘Fordwell Golf Club’. Thus, it can be affirmed that the above described objectives of ‘Fordwell Golf Club’ can be attained only through high concentration and commitment. Staffs and Skills Requirements In this era of globalisation and industrialisation, it is extremely essential to offer varied innovative products in order to satisfy the altering needs and desires of the customers. It is necessary to sustain in the market in the long run. Thus, in order to retain the market share and brand image of an organisation, it is essential to include skilled and talented professionals. The term ‘skill’ is defined as that underlining knowledge of an individual which is necessary for performing any operation in order to achieve desired results. Thus, skilled employees or workers are the fundamental components of any business or enterprise. Therefore, retail outlet would include an experienced inventory manager in order to maintain appropriate stock records. Apart from this, the skill of ‘visual merchandising’ is also essential for a store or inventory manager along with basic knowledge of golf in order to enhance the sales of the retail outlet. Along with these, a reliable unit would be utilised for the measurement of the quantities of products in order to simplify the tracking system of the retail outlet. In addition, software concepts such Microsoft Excel and Power Point are also necessary along with practical decision makings. It would facilitate in offering reliable and actionable outcomes. Moreover, in order to maintain apposite communication of information, web or intranet skills are also essential for appropriate maintenance of inventory records (Brainbech, n.d.). Thus, the approximated salary requirement for these types of individuals would be ?5,000. Furthermore, apart from inventory manager, an accountant is also necessary for efficient operation of retail pro-outlet. Thus, the accountant is required to be well-versed with the book-keeping techniques in order to maintain operations in an efficient and effective style (Brainbech, 2011). The salary of an accountant with experience of 5-10 years would be around ?4,000 annually. In addition, the retail outlet would also include the facility of internet services in order to provide online reports to its owner as well as applications for the purchase of new products. Moreover, innovative teaching programs would also be provided to all its employees in order to enhance the skills and knowledge of its staffs. Hence, in order to improve the profitability of the retail outlet, special accounting software packages would also be implemented for the betterment of the business. Besides it would incur major investments as well. The entire budget would amount to ?29, 000. Moreover, apart from staff, a modern infrastructure with advanced amenities is also essential to attract new customers which would enhance the total sales of retail outlet. The renovation cost would amount to approximately ?20,000. Hence, it can be avowed that the above described aspects are valid for efficient operation of a retail golf merchandise outlet. Therefore, it would facilitate in enhancement of the brand image and profitability of the retail outlet. Moreover, it would also improve the growth prospects of retail outlet thereby augmenting the sustainability in long run among others in the market. Promotion Promotion is one of the significant parts of marketing mix. It is a tool utilised by a manager in order to create awareness and increase demand of products in the market among others. There are varied types of promotional practices such as ‘personal selling’, ‘advertising’, ‘sales promotion’, ‘direct marketing’, and ‘publicity’. Promotional plan includes the techniques selected to carry out the endorsement along with necessary budget. The promotional campaign refers to a sequence of advertisement ideas that is utilised to provide a uniform message which formulates an integrated advertising communique. Promotional campaigns emerge in diverse media in an explicit time period. The prime intention of any promotional plan is to enhance sales along with brand awareness, positioning, distinctiveness and improvement of corporate image of an organisation. The most decisive part of formulating an advertisement campaign is to determine a title thesis which helps to establish the other types of promotional communications. Personal selling practice can be used to sell the products of the retail outlet of golfers. In this type of process, an individual sales person is recruited for the selling of the products. The budget required would be approximately ?1,000. Apart from this, sales promotion is the other important method used for the promotion of products. This method is utilised for a specific period of time for stimulation of market demand with the help of contests and events along with distribution of coupons and product samples among others. The estimated amount required may be ?1,000. Direct marketing can also be utilised for the promotion of retail products used by golfers. Direct marketing promotion would include an estimated amount of ?1,000. Apart from this, promotion of the retail products can also be done through varied forms of advertising such as print media (news papers), magazines, televisions and online media among others. The estimated amount required might amount to ?1,000. Moreover, publicity is the other vital mode of promotion utilised by a manager. In this type of promotional method, sponsorship of the products takes place through varied events, surveys, exhibitions in order to magnetize the attentions of clients thereby enhancing the awareness in market. Publicity of retail products would amount to nearly ?1,000. Thus, it can be identified that at the initial stages of introduction of any product, extensive promotion is essential in order to formulate consciousness and alertness among the targeted clients of the market. Therefore, the entire budget required for the promotion of retail products would include ?5,000 approximately. HHHence, it can be affirmed that with the help of promotional strategies, a particular product can be positioned in this competitive market. Projections Income Statements The table depicted below highlights the projected income statements for the following three years i.e. 2013, 2014, 2015 after execution of the strategies. Profit and Loss Account (Approx.) 2013 (Approx.) 2014 (Approx.) 2015 (Approx.) Sales of Pro Shop ? 70,000 ? 80,000 ? 100,000 Direct Cost of Sales ? 45,000 ? 50,000 ? 60,000 Others ? 0 ? 0 ? 0 Total Cost of Sales ? 10,000 ? 12,000 ? 15,000 Gross Margin ? 25,000 ? 30,000 ? 40,000 Gross Margin (in %) 35.00 % 37.50 % 40.00% Expenses: Payroll of Experienced Individual And Accountant ? 9,000 ? 10,000 ? 11,000 Sales and Promotional Expense ? 5,000 ? 4,000 ? 3,000 Infrastructure Cost ? 20,000 ? 25,000 ? 30,000 Other Expenses (Professional Tax) ? 5,000 ? 6,000 ? 7,000 Total Operating Expenses ? 39,000 ? 45,000 ? 51,000 Net Profit (Total Sales - Total Operating Expense) ? 31,000 ? 35,000 ? 49,000 Source: (Palo Alto Software, Inc., 2002). Projected Cash Flow The projected cash flow is presented below in a graphical representation. This diagrammatic presentation provides an apparent idea about the projected sales and expenditure in the first year and in the next two consecutive years of retail Pro Shop of Fordwell Golf Club in Midlands. It would be beneficial in the long run thereby enhancing the business profit. Figure 1 Source: (Palo Alto Software, Inc., 2002). Forecasted Cash Flow Proforma Cash Flow of Pro Shop (Approx) 2013 2014 2015 Total Sales ? 70,000 ? 80,000 ? 100,000 Additional Cash Received Sales from Current Assets (Approx) ? 3,000 ? 5,000 ?7,000 Long-term Liabilities (approx) ? 2,000 ? 1,000 ? 1,000 Subtotal Cash Received ? 75,000 ? 86000 ? 108000 Total Expenditure ?39,000 ?45000 ?51000 Projected Cash Flow ? 36000 ? 41000 ? 57000 Source: (Palo Alto Software, Inc., 2002). Thus, from the above table, it can be evidently stated that the projected cash flow of the Pro Shop in the first year would be approximately ?36,000 and in the next consecutive years it might be ?41,000 and ?57,000. This is possible only with approximate sales of ?70,000 in the first year and ?80,000, and ?100,000 in the next two years. Moreover, the projected profit in the first year would amount to about ?31,000 and in the next two years it might be ?35,000 and ?49,000. Thus, it can be affirmed from the above described analysis that the projected profit would be rather beneficial for Fordwell Golf Club. Therefore, it is extremely essential to provide high concentration on the introduction of the pro-retail shop in the club in order to enhance the total revenue of Fordwell Golf Club. Conclusion Conclusively, it can be avowed that in order to improve the corporate image and position of Fordwell Golf Club, it is extremely essential to introduce the retail outlet within the area of the club. This would enhance the sustainability of Fordwell Golf Club among others in the market of Midlands. Moreover, the introduction of pro-retail shop would also enhance the total revenue of Fordwell Golf Club which might be highly beneficial in the long run. This profit can be utilised for the renovation of the club along with modern training courses and equipments among others in the market. Thus, the introduction of retail shop would also facilitate to increase the number of members of the club thereby improving the distinctiveness in the market of Midlands. Moreover, extreme promotion of retail pro-shop products would also attract more new customers in the Fordwell Golf Club thereby improving the profitability. Therefore, introduction of retail pro-shop is one of the significant strategies which would prove beneficial for both, the club as well as for the shop. References Brainbech, 2011. Strategy: Skill Inventory Management. Tracking Your Changing Skills Inventory: Why It’s Now Possible, And What It Means For Your Organization. [Online] Available at: http://www.brainbench.com/pdf/stg_skillsinvmgnt.pdf [Accessed February 27, 2012]. Brainbech, No Date. Four Essential Components For Skills Inventory Management. Objective Metrics Are The Missing Link. [Online] Available at: http://www.brainbench.com/pdf/skillsinventory.pdf [Accessed February 27, 2012]. McKinley, M., 2002. Marketing Alignment: Breakthrough Strategies for Growth and Profitability. Wheatmark, Inc. Nagle, T. T. & Hogan, J. E., 2009. The Strategy and Tactics of Pricing. Pearson Education India. Palo Alto Software, Inc., 2002. Mike’s Trucking. Mike’s Trucking Service-Sample Plan. [Online] Available at: http://www.paloalto.com/sampleplans/BPP7/enu/Live/mikestrucking_Live.pdf [Accessed February 27, 2012]. The Professional Golfers Association Limited, 2011. Managing a Golf Business. Fordwell Golf Club. Read More