IT Shoes Business Plan - PowerPoint Presentation Example

IT Shoes Business Plan. IT Shoes is a business that sells high quality shoes in Paris, Lyon market. The organisation is commonly known for supplying and selling high quality shoes that have different styles and colours. Despite selling finished products, IT Shoes business is as well popularly known for supplying high quality materials which is used to manufacture high quality shoes. The company’s shoes sizes ranges from 5 to 10. The IT Shoes company long term plan is to become the world leader in the supply of ladies shoes. The company current popularity and increased sales and profitability is to a great extent brought about by its reputation in offering convenient means of selling its shoes to local customers. Therefore, to become the world leaders in the contemporary multifaceted global market, the company ought to have an effective business plan which incorporates views and options of all players. Moreover, based on the available financial statistics, the business requires some external financial assistance to facilitate its long term development plan. Moreover, the level of the company market competition is relatively low compared to other global markets (Sutherland 12).The subsequent essay therefore offers and effective IT shoes business. It Shoes Mission and Vision Mission To become world leaders in ladies shoes industry Vision To have well known reputation in producing high quality shoes products Strategy To use all the available means to become the world leader in lady’s shoes sales It Shoes Business Plan The IT Shoes business long term mission The IT Shoes business intends to be the world leaders in ladies shoes. The company also intends to develop a good reputation in providing convenient means of selling goods through all marketing means including online marketing. Moreover, to effectively compete in modern market, the organisation ought to develop a good reputation for reliable delivery in local and international market. The organisation as well has a vision of becoming overall shoes dealers in European market. Products The company long term plan is to be in a position of providing convenient, trustworthy, and safe means of selling its products in local and global markets. A part from its current variety, the IT Shoes Company also plans to increase its variety by including other several emerging types of shoes. In the next five years, the IT Shoes Company is therefore planning to increase the variety of fashionable shoes, widen the variety of its shoes styles and colours, increase the quality of shoes which is used to manufactures shoes, as well as selling half size shoes (Reuters 26). Expected Annual Sales and Profit for the year Sales $ 500,000 Expenses $ 450000 Profit $ 50000 Form of Payment IT Shoes business is planning to avail all forms of payment including EFTPOS and cash. The aim of this plan is to enable the company’s customers to purchase their products in large quantity at any time. On the other hand, the company is planning to ensure that, it fully abides by the existing regulations in their plans to introduce new payment mechanisms. At present, the IT Shoes Company relies on several forms of payments including cheques, money orders, master cards and visa. Key Partners The main aims of the involvement of partners in the business plan is to enable the company reduce its operation cost and increased the general profitability. Being the main targeted market areas, IT Shoes company key partners are night clubs and bars. Night clubs and bars help the IT Shoes business to effectively market its products to its potential customers. On the other hand, vending machine providers are also the major partners of the company. In its plan, IT Shoes plans to distribute readymade products to its products to new markets areas. Value Proposition and Customer Relationship At present, the IT Shoes Company has successfully identified the existing value addiction gap in shoes industry. In its operations and marketing strategy, the IT Shoes Company has relied on contemporary and high technology oriented distribution and marketing mechanisms. The identification of the most effective distribution system has enabled the company to effectively distribute its products to customers at any time and at any place. However, to cope with modern complexity in local and international market, the company is planning to develop systematic mechanism that will help the company to redesign its products to coincide with emerging customers’ needs and demands. The It Shoes Customers Segment The IT Shoes company main customers are girls and young women. Most of the company products are therefore designed for young girls and middle class women. This section of the population is in most cases very busy and active in their daily activities especially during day time. Moreover, most young ladies do not have adequate resources to cater for expensive shoes. In addition, part from targeting young girls the other main target entails students from high learning institutions and high schools. Therefore, to attract and retain these customers, the company is planning to manufacture cheaper shoes to be sold to students at relative low prices. Moreover, the company is also planning to start selling its products in higher learning institutions. The It Shoes Company Main Resources and Distribution Channels The IT Shoes company present resources include: human resources, monetary as well as physical resources. Moreover, the company have several vending machines in its business operations, several plants to manufacture readymade products, professional marketers, channel partners as well as shoes designers. However, taking into account the current market demand, the company is planning to access night bars and clubs through vending machines. In this case, night bars and clubs are expected to serve as distribution channels while vending machine will serve as physical distribution medium (Fleming 12). Operational Plans Marketing and Sale Plan The IT Shoes Company intends to identify the most effective means of reaching its customers by undertaking intensive researches to identify the emerging customers’ needs and demands. The company is planning to provide customers with what they need. Financial Plan The IT Shoes Company plans to grow financially by bringing together internally generated cash and debt and equity investments. Due to high cost of establishing new markets and development of new infrastructures, the company intends to relies on loans from financial partners Projected Resources and Its Use Sources Amount Available resources $ 20 million Borrowed resources $ 40 million Total $ 60 million Cost Structures Compared to other companies, the IT Shoes Company operating cost is relative low. However, based on the previous organisation financial statement, the initial operation cost was relatively high. But due to the introduction of modern technology, the cost has significantly reduced. Therefore, to effectively prosper in modern market, the business requires high amount of investment. This is due to the fact that, the distribution process and products is investment-attractive. Moreover, the operation of this company requires high amount of budget due to high promotion cost as well as significant of educating customers. Moreover, the company is also planning to use the existing distribution and manufacturing centres Manufacturing Plan In the new three years, the IT Shoes Company intended to increase its current manufacturing level from 400 shoes per day to 1000 shoes per day. This will be necessitated by increasing the number of manufacturing plants as well as increase its market. The company should as well target international markets. IT Shoes Company Revenue Stream Within the next three years, the demands of the company’s products are expected to rise significantly. Sales in night bars and clubs are as well expected to rise considerably. This is due o the fact that, the night club customers have high income and fashion consumption trend. Moreover, to meet the demand of the ever-increasing night club customers the IT Shoes Company is also planning to increase its distribution in night bars and clubs (Dietl 7). Implementation The IT Shoes Company intends to use technical team to implement the plan. The team will incorporate the organisation employees and other external experts. The company also plans to implement the plan in three years period. Period Activity First year Expanding market Second year Expanding production plants Third year Developing infrastructures Conclusion Contemporary local and global market as well as businesses require effective and practical business plan. Therefore, to flourish in modern market, IT Shoes Company ought to develop a competitive business plan. With the effective implementation of the above plan, the company has a high possibility of meeting its long term plan. Work cited Dietl, “Ballerinas from the Vending Machine.” GDS online, No Date. Web. 17th December, 2012.. Fleming, Olivia. “Femail.” Daily mail, 2012. Web. 17th December, 2012. . Reuters. “New machine offers relief for high heel disco misery.” Reuters, 2010. 17th December, 2012, 2012. . Sutherland, Steve P. “Vending Machine Business Start up Costs.” EzineArticles, 2012. 17th December, 2012. < http://ezinearticles.com/?Vending-Machine-Business-Start-Up- Costs&id=4110041>. Read More