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Business Plan - Research Paper Example

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Summary
 This essay consists of a detailed analysis of the environment, industry and the company itself to back the business plan with a firm ground of analysis. This project is an effort to make a business plan for an Australian solar water heater manufacturer XYZ…
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Business Plan
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Business Plan

Download file to see previous pages... Goal setting is an integral part of a business plan. This helps to have a clear idea of the objectives of the company and assists to formulate its strategies in alignment with the goals set. Following are the goals which would be phased in this business plan.
“The economic structure of an industry is not an accident. Its complexities are the result of long-term social trends and economic forces” (Ehmke, Fulton & Akridge, n.d). The industry analysis will determine the competitive rules and strategies which are required to be formulated by the business. Learning about the industry structure will offer essential insight into the business strategy.
Michael Porter has identified five forces which are widely used to evaluate the industry structure. The five forces, together, determine the profit potential of an industry by putting an impact on the costs, prices and necessary investment for a business. Stronger forces are mostly associated with a more challenging environment. The industry analysis identifies and evaluates the significant structural factors for competitive success. In the following section, an industry has been carried out to understand the key factors in solar water heater industry.
In the solar water heater industry, there are a large number of suppliers. The organization would establish its production houses in India, where the production cost would be quite low than that in Australia. In this industry, the bargaining power of the suppliers is quite low as the companies do not have to incur any switching cost while changing their suppliers. The concentration of the solar water heater industry is not quite intensive. As a result, suppliers cannot have much power over the manufacturers.
The products are mainly made for the rural areas, where the concentration of the buyers is moderate to high.   ...Download file to see next pagesRead More
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