The Progress of Joes Electric Cigar - Essay Example

? Strategic Plan Number II. Executive Summary Many a time, people have been deluded to think that business or organizational success is solely tied to a large pool of financial resources. However, in as much as financial resources play a pivotal role in securing the success of an organization, other factors are key to entrepreneurial success, with these factors being effective management tools, practices and skills, proper human resources management practices and ethics, effective communication and operational plans and tenable but competitive financial plans. Alongside the plans above, innovativeness helps an organization go a long way in wading through the enchanted floods of market competition, as can be seen in the case of Joe’s Electric Cigar. In the case of Joe’s Electric Cigar, innovativeness is highly essential since electric cigarettes and/ or cigars almost always come in uniform shape, models and designs. Because of this, there is almost nothing organizations that deal in the same merchandise can do to specialize in the market, apart from riding on market forces (of demand and supply) to stay afloat. By being innovative, Joe’s Electric Cigar will be able to come up with unique and customer-friendlier models. This will in turn help the firm realize and maintain its niche in the market, increase its market share and widen the scope of its profitability. By studying the progress of Joe’s Electric Cigar, an analyst also gets the gist on the importance financial goals and preparations. This is because Joe’s Electric Cigar is a fledgling organization with minuscule financial resources, albeit the operations of this firm are financially very demanding. Thus, Joe’s Electric Cigar presents an ideal case study on the essence of management and financial planning as key ingredients to success. III. General Company Description Joe's Electric Cigar is a company that was formed in 2000, with a multipronged purpose: satisfying the needs of the clientele; abating environmental pollution; and assuaging health complications that accompany smoking. While all these multipronged aims of Joe's Electric Cigar (JEC) are geared towards helping smoke addicts quit smoking in a healthier manner, they ensure that the feat is exacted in a healthier and hygienic manner. JEC ensures that it achieves this hydra-headed feat by introducing into the market, an electronic cigarette, a personal vaporizer or an electronic nicotine delivery system. An e-cigarette is an electronic inhaler which simulates and thus acts as a substitute for tobacco smoking. This equipment uses a heating element which vaporizes a liquid solution to release either a flavored vapor, or nicotine. These e-cigarettes are designed like cigarettes, to allow them to mimic conventional smoking implements such as cigars and cigarettes, in their appearance or use. IV. Products and Services JEC has simply specialized in the making and selling of electric cigar, meaning that the products that JEC deals in, and seeks to distribute in the market is solely, the electric cigar. However, the provision of electric cigarette in the market is characterized by an attempt to diversify the brand by including e-cigars, electronic delivery systems and personal vaporizers, alongside the provision of electronic cigarettes. V. Marketing Plan JEC intends to increase its market share and curve itself a niche in the market by introducing and bringing unique merchandise into the market. The introduction and maintenance of e-cigars which have a touch of uniqueness is in turn to be realized through the reinvention of the design of Joe’s electric cigar/ cigarette. This involves remodeling the cartridge so that the sponge which holds the liquid in place is totally eradicated. In light of this, in place of the sponge holder, there is a tank which holds the fluid and connects the atomizer with another tunnel. Some of the ways through which the reinvention of JEC’s e-cigar model helps JEC strengthen its hold in the market are: the eradication of pollution; and the abatement of sooty residue which emanate from the spongy liquid holder. Again, the reinvention of the liquid holder enables users of e-cigars or e-cigarettes to reuse the liquid holder, since a single cartridge can hold several puffs. Users are able to save their money since they can refill the cartridge, through the help of the tank. Alternatively, users of e-cigars can replace the cartridge with another ready-filled one. This will help users save their money, and thereby act as a strong incentive to market penetration. VI. Operational Plan JEC intends to integrate and use principles of job specialization, total rewards system and merit. This plan involves, assigning roles, duties, responsibilities and powers and privileges to specific offices, in a hierarchical manner. In turn, ascent to these offices is to be through the attainment of professional credentials and possession of appropriate skills and talents. Equally, the use of total rewards system is to ensure that JEC personnel are fairly and competitively remunerated and rewarded for showing exemplary performance skills and meeting performance target. Those who sustain performance gaps are to be encouraged and exposed to correctional measures such as workshop drives and training programs. VII. Management and Organization JEC is to be run on a three-tier model, hierarchically. At the top of JEC’s management should be the managerial arm which is also the firm’s executive decision making body. The managerial arm is to be followed by the junior staff, and then the auxiliary staff, respectively. While the placement and the assigning of portfolios to the junior staff must follow merit and job specialization, the auxiliary staff is not to be tied with this restriction. Members of both the junior and auxiliary staffs are to perform under the tutelage of supervisors. Ascending to offices of higher ranks through promotions is to follow the dictates of meritocracy (Samson and Daft, 2012). JEC is to ensure that there is effective flow of communication, hierarchically and horizontally to allow for proper execution of the firm’s policies, vision and objectives. To this effect, modes of communication such as round table meetings, internal memos, telephones, electronic mails and open door policy are to be used to closely knit JEC’s offices horizontally and hierarchically. VIII. Personal Financial Statement JEC intends to use financial capital worth 400,000 US dollars to become the world’s most profitable and growing e-cigar dealer. IX. Startup Expenses and Capitalization JEC is to begin with a capital of 400,000 US dollars. Half of this amount will have been contributed by its shareholders who have decided to invest in the company’s shares, while the remainder will be a bank loan. Plough back profits are to be used to service JEC’s management and operations. X. Financial Plan As already mentioned, JEC is to begin with a capital of 200,000 dollars which the company’s shareholders will have contributed. JEC is to obtain a bank loan totaling 200,000 dollars, to help service its operations. 40% of the profit which will have been accrued annually will be ploughed back to keep the company running, for at least 5 years. The rest are to be used to: service employees’ emoluments; and service the company’s utility bills. In the interval between years 5 and 10 of JEC’s growth, 20% of JEC’s profit is to be used as plough back. The loan is to be serviced in a 5 year payment program. XI. Appendices Although the financial and managerial proposals advanced above are based on personal estimates, yet they have been informed by ideas by scholars such as Samson and Daft (2012). XII. Refining the Plan JEC is to obtain its financial capital from shareholders who will invest 200,000 US dollars in the firm. JEC is to also secure a 200,000 US dollar bank loan, payable in 5 years. 40% of the profits made are to be ploughed back to enable it run itself, for 5 years. Between 5 and 10 years, 20% of the profits are to be ploughed back towards the same effort. After 10 years, the amount of profits to be ploughed back to support the firm’s operations are to be newly drawn, in an annual general meeting with the shareholders. References Samson, D. & Daft, L. R. (2012). Management. New York/ London: Cengage Learning. Read More