The Business Venture of Dragons Incorporated - Case Study Example

Dragons Inc Business Venture Task: Marketplace Factors The income inferences for service and product disbursers in an electronic market emanate from the risk and cost elements. Essentially, vendors may compete on the basis of a reduced cost producer prospect, or they can participate in competition using a prospect by which they demarcate themselves from other vendors since they are not as risky in the market place (Valrley 2010). Competition based on decreasing purchaser risk expenses, when the purchaser/vendor relationship is levied electronically, can assumedly be a virtual partnership. Thus, the Dragon incorporations may consider this an issue worth of scrutiny. Moreover, the implications from the business process brokers in an electronic market emanates from the risk and prospect elements (Cohen 2010). In various situations, purchasers may be considering remitting payment to their sellers to collect and study marketplace intelligence related to their procurements, or they utilize specific software that serves this purpose. Furthermore, they would disburse payment to someone to practice their specific searches. Additionally, buyers may prospect paying brokers to operate on their behalf. Moreover, implications exist in the case of disbursement affiliations that emanate from the disbursement costs issue. Thus, with increased functionality of affiliations such as shipping corporations, Dragon Inc would be better placed. A critical SWOT Analysis of Dragon Inc Dragons Inc bears various strengths, weaknesses and prospects among threats to its affluence have been critically explicated in the following. Apparently, the income implications for ISPs also emanates from the market and search elements. Moreover, purchases may be willing to remit payment to and ISP from the fraction of finances they inculcate into their savings in an electronic market against a traditional market to obtain or procure entry into the electronic market. Moreover, it is overtly probable for the purchasers to remit payment for entry into systems since they offer much more than only electronic market entry, for instance entertainment (Nayler 2005). The development of ISPs in the recent times succinctly depicts that purchasers or consumers are willing to pay up for these specific services. In addition, the implications from the central and statutory administrations emanate from the tax elements as well as the affiliation income generated through electronic marketing transaction business. Moreover, as more business processes translate from the past markets to the modern electronic markets, it is probable for a pantry proportion of sales tax will be remitted to the administration or government (Linda 2009). Generally, stipulations exist that anticipate the remittance of payment of the sales taxes including interstate commerce, thought collection is not a major quandary. This is specifically probable due to the fact that entry barricades to the markets are reduced, which augments the possibility of an increase in the tally of businesses. Based on an examination of a tally of current instances of electronic markets, and the purchaser and the vendor cost-based disparities between past and modern electronic markets we have pointed out, we construct various underpinnings and conclusions. Initially, we deliberate on various aspects that may restrain the overall development of electronic markets in the oncoming near future. Additionally, we pinpoint some prospects that implicate on the level of force that the electronic markets may instil on industries (Boone 2011). Lack of an established IT system in some dispensations is a barricade to e-commerce involvement by affiliation and purchasers in these areas. In numerous dispensations, purchasers do not possess the equal level of access to the internet and www among others that most consumers from U.S.A. possess (DuBrin 2010). This critical barricade to electronic markets dispersal since if the purchasers wish to involve themselves in the electronic marketplaces, they are physically restrained. Even if access to the services is evident, an additional barricade may be depraved physical telecommunications. Moreover, the augmenting recognition of the pertinence of telecommunications to national and commercial infrastructure has emanated into its degrading to newly established communities. Additionally, computer illiteracy levels associated with the global purchasers that can access IT infrastructure is a critical barricade to the e-commerce and modern markets success. Since lack of intellect regarding computers, or reduced willingness to confer to new technical knowhow, a given fraction of the purchasers are unable to involve themselves in electronic markets. As more youngsters enter computer classes in schools, the fraction of purchasers who potentially may participate in the electronic markets will augment in the near future. Moreover, electronic markets are likely to be perceived normal instead of novel for the oncoming generations (Moschis 2000). Product Management Issues Whenever an affiliation introduces an effectual, innovative and extremely creative plan from product innovation as regards Dragon Inc, it ought to foresee the repercussion scenario, which is effectually referred to as product management of that particular product. In our case, we are looking into an electronic multipurpose heating device under prospect. It ought to, effectually calculate, that whether or not its result scenario is relevantly served. Moreover, the affiliation concerned may later utilize this intelligence with the product fraction targeting prospects to, effectually prioritize, the specific product and its prospects. Additionally, the targeting prospects that come under the management cycle or process makes sure that the affiliation’s product team targets prospects and prioritizes the best available prospects that are pertinent to be outlined properly. Furthermore, in one of the strategies in product management, personnel ought to realize that the lowly served clientele ought to be satiated in the product planning prospects. For execution of this prospect, the producing team of the affiliation should execute a product result scenario for them to pinpoint the product prospects rather than prioritize the lowly served prospects of the product. If the overlapping of the merchandise outcomes, a considerable tally of overlapping is established across the numerous markets and then a harmonized platform for the merchandise requires development so that it serves every single fragment (Stark 2005). Promoting PortaDinna It is consummate to promote PortaDinna in the market to the widespread consumers. Thus, it is pertinent to examine the various factions included. This way, the lowly served result prospects offer maximum tally of the merchandise and sales advantage though it is also pertinent to prospect the short termed and least exigent underserved outcome prospects initially. The explication behind it becomes the consummate extent of revenue and improvement time the most lowly served result requirements. Thus, the short termed prospects ought to be directed in order to tune up the merchandise. Additionally, the time and characteristic market aspects, both ought to be under critical consideration thus, immensely when trying to lay priorities in the innovation prospects and merchandise development. Moreover, the least priced fractions ought to be targeted before the others augment and, thus the prospect of delivering merchandise that will satiate the clientele’s repercussion needs to a greater extent. Furthermore, it ought to have utter care on its disposal while working on the merchandise prospects, affiliation ought to be operating on the stages which are extremely intricate to imitate. Therefore, the prioritization ought to always be ranked on lesser price point’s fractions. Moreover, by fusing the above explicated strategies in the product management for Dragons Inc, the affiliation makes sure that the merchandise development and its prospects are effectually targeted. Market Segmentation Dragons Inc has specifically segmented its market into three proportions. First, family home holders live in the mid to the high end homesteads. In this segment, 70% of the holders have a child with an income of $75000 and they eat out 2.5 times a week. Moreover, 50% of the families gain two incomes with 60% in possession of cable TV. Additionally, approximately 50% have installed internet connections. In addition, the second category consists of single home proprietors comprising of individuals who singly own their premises. Generally, most of them are professionals who consume maximum energy. Their traits include displaying an age bracket from 20 to 50 years, with 80% of them being career people. These people have active internet installations and 90% have cable TV. Moreover, the average income is $65000. This shows that this market segments are workable with regard to Dragons Inc business plan. Dragons Inc competitors include other similar electronic firms that have diverse and excellent innovations surrounding products that serve the same purpose as PortaDinna. These competitors range from the mid level electronic firms to the firmly established affiliations that deal with the same equipments such as those that Dragons Inc and Kith-In-Zinc prospect delving into. Additionally, affiliations that have diversified workforces and capital reinforcements among genius marketing initiatives among others may serve as potential competitors. Cash-flow   Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Cash In                           Beginning Cash $0                         Billable Hours $5,500 $5,500 $8,500 $8,500 $8,500 $8,500 $9,000 $9,000 $9,000 $3,000 $3,000 $4,000 $82,000 Payment for Sub-Contractors $2,750 $2,750 $4,250 $4,250 $4,250 $4,250 $4,500 $4,500 $4,500 $1,500 $1,500 $2,000 $41,000 Payment for Travel $825 $825 $1,275 $1,275 $1,275 $1,275 $1,350 $1,350 $1,350 $450 $450 $600 $12,300 Administrative Fees $413 $413 $638 $638 $638 $638 $675 $675 $675 $225 $225 $300 $6,150 Cash Equity $10,200 - - - - - - - - - - - $10,200 Environmental Grant - - $40,800 - $8,500 - - - $5,000 - - - $54,300 Bridge Loan $40,800 - - - - - - - - - - - $40,800 Commercial Loan $17,000 - - - - - - - - - - - $17,000 Total Cash In $77,588 $9,488 $55,463 $14,663 $23,163 $14,663 $15,525 $15,525 $20,525 $5,175 $5,175 $6,900 $263,850 Cost of Sales                           Sub-Contractor Fees $2,750 $2,750 $4,250 $4,250 $4,250 $4,250 $4,500 $4,500 $4,500 $1,500 $1,500 $2,000 $41,000 Direct Travel $825 $825 $1,275 $1,275 $1,275 $1,275 $1,350 $1,350 $1,350 $450 $450 $600 $12,300 Total Cost $3,575 $3,575 $5,525 $5,525 $5,525 $5,525 $5,850 $5,850 $5,850 $1,950 $1,950 $2,600 $53,300 Gross Revenue $74,013 $5,913 $49,938 $9,138 $17,638 $9,138 $9,675 $9,675 $14,675 $3,225 $3,225 $4,300 $210,550 Cash Out                           Start Up Capital $48,000 - - - - - - - - - - - $48,000 Marketing Activities $7,250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $10,000 Trade Show Participation       $5,000       $5,000         $10,000 Salary $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $50,000 Utilities $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $1,440 Communications $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $2,400 Repairs and Maintenance - - - - - $500 - - - - - - $500 Insurance $2,000 - - - - $2,000 - - - - - - $2,000 Incorporation Expense $360 - - - - - - - - - - - $360 Travel Expense $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $1,800 Leasing Expense $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000 Office Supplies $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200 Bank Charges $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $360 Bridge Loan Repayment - - $40,800 - - - - - - - - - $40,800 Loan Interest $142 $139 $137 $134 $132 $129 $127 $124 $122 $119 $117 $114 $1,536 Principle Payment $289 $292 $294 $297 $299 $302 $304 $307 $309 $312 $315 $317 $3,638 Professional Fees $1000 - $1,000 - - - - - - $1,000 - $1,000 $4,000 Total Cash Out $64,308 $5,948 $47,748 $10,948 $5,948 $8,448 $5,948 $10,948 $5,948 $6,948 $5,948 $6,948 $186,034 Net Cash Flow $9,705 ($35) $2,190 ($1,810) $11,690 $690 $3,727 ($1,273) $8,727 ($3,723) ($2,723) ($2,648) $24,516 Cumulative Cash Flow $9,605 $9,669 $11,859 $10,049 $21,738 $22,428 $26,155 $24,882 $33,610 $29,887 $27,164 $24,516   In spite of Dragon Inc.’s net profit gain of 3.5% on the basis of the $50 million earned within the eventual four factors, Dragon Inc profitability pointers are especially in good state with a characteristic return on operational margins that surpass the industry average. This depicts that the affiliation operates on an overtly competitive industry. The electronic firm industry bears a margin of 3.56% in that period. The affiliations’ working margin of 4.5% surpasses that median of 25%. Dragons Inc bears equity of 22.1% regarding the firm’s earnings in the previous quarters. The affiliation is not indebted to any firm. Within twelve months, it earns $105 million. Thus, Dragons Inc has an innovative system that ensures that profit margins always augment after each quarter. Business Plan and Feasibility Analysis Dragons Inc, affiliation has pinpointed various consummately pertinent factors that shall be overtly instrumental to its sustainability, with regard to the business ventures it has inculcated over time. First, the affiliation aims at establishing and maintaining clientele satiation to the fullest, by 100%. This extends that repeat clients and referrals, such as the Kitch-in-Zinc are consummately pertinent. Moreover, the affiliation prospects into scheming, marketing and selling momentous power fortification products, such as the currently prospected heating merchandise called PortaDinna. Additionally, the business has established and observes stringent financial controls, which are considerably important to their prospects. As regards the affiliations objectives, it aims at developing a beneficial product for entry into the market, and merchandise that are high quality and gainful in the entire market. Additionally, the business aims at inculcating profitability within a short time of introduction of new prospects (Kamel 2006). Additionally, this affiliation, in liaison with other affiliations aims at inducing their business prospects as an embodiment and role model for oncoming future ventures, with all credit being remitted to its innovative personnel and various partners. Thus, the affiliation is always welcoming newer prospective thinking that elicits innovative merchandise and receives a positive response from the entire electronics markets. Furthermore, the mission of Dragons Inc is to ensure innovation, manufacture and marketing of merchandise to the entire global market and ensure maximum clientele satisfaction. Moreover, various controls and management intelligences shall result into the production of competitive electronic home appliances that shall undoubtedly landmark in the entire global market. Useful merchandise and innovative design among client satisfaction is a consummate initiative by this affiliation. Moreover, the affiliation holds various keys to success that critically influence its operations. First, the affiliation would offer every prospective clientele complete satisfaction through its quality of products and service delivery. Moreover, the affiliation aims at designing and marketing only valuable, gainful, meaningful and affordable heating appliances, such as the innovative PortaDinna. Additionally, the firm aims at ensuring effectual HRM practices involved in the recruitment and eventual employment of prospective workforces in its operational areas and stringent in its financial controls (Gorchels 2011). With regard to its budgetary concerns, Dragons Inc shall overtly work handy with other likely minded affiliation, such as Kitch-in-Zinc, to offer more innovative products while dealing with the financial requirements on its disposal. Bibliography Gorchels, L 2011, The Product Managers Handbook 4/E, New York, McGraw-Hill Professional. Varley, R 2010, Retail Product Management: Buying and merchandising, London, Routledge. Linda, G 2009, The Product Managers Handbook 3E, New York, NY: McGraw-Hill Professional. Stark, J 2005, Product Lifecycle Management: 21st Century Paradigm for Product Realisation, London, Springer-Verlag. Cohen, G 2010, 42 Rules of Product Management: Learn the Rules of Product Management from ... Cupertino, Super Star Press. Kamel, S 2006, Business In Developing Countries: Opportunities And Challenges, Hershey, Idea Group Publishers. DuBrin, A 2010, Essentials of Management, Mason, South Western Cengage Learning. Moschis, G 2000, The Maturing Marketplace: Buying Habits of Baby Boomers and Their Parents, Westport, Greenwood Publishing Group. Nayler, P 2005, Marketplace: The Effects on International Business, Burlington, Routledge. Boone, L 2011, Contemporary Marketing, Mason, Cengage Learning. Read More