Eagle Eye as a New in Dubai - Business Plan Example

Business Plan for New Business in Dubai, United Arab Emirates Contents 0Executive Summary 2 This report provides a company d Eagle Eye with the detailed business plan that is accompanied with financial planning as well. The company is going to be a state of the art library plus a bookshop. The company will also have a set of electronics and music stores where modern musical stuff will be sold. The company will provide the clients with refreshments and as it would be a 24/7 operating facility then no one is going to say goodbye to the customers. They can take their time for choosing their purchases. 2 2.0 Introduction 2 3.0 Business and Revenue Models of Eagle Eye 3 4.0 Value Proposition 5 5.0 Market Opportunity 6 5.1 Target Customer Profile 7 6.0 Market Competition 7 Based on the above diagram, it can be established that the demand of non-grocery items is on the rise and Eagle Eye is going to operate in that particular sector of the market. On the other hand, it will be a provider of multiple solutions under one roof and in this way; the company is going to gain sufficient percentage of the market share. Finally, the company will hold a local label and therefore, it will attract locals a great deal as Arabians will love to do business with their countrymen. 9 7.0 Competitive Advantage 9 8.0 Market Strategy 10 9.0 Organizational Development 12 The organization which is living in the early stages of development intends to create a tall organizational structure in order to incorporate strict command and control systems. The community of UAE is known to be divided into masters and slaves from the beginning of times so it would be madness to allow modern organizational setups to prevail in the society (Grönroos, 1997). There are three distinct divisions and there are three partners as well and each partner will executive each department of the company. The company will have Music Store, A Library and An Electronics Store respectively and a separate sales department which will function jointly under the combine headship of all the partners (Hill & Swanson, 1994). The following hierarchical diagram will elaborate the organizational structure of the newly born company. 12 12 The company intends to offer the employees health and life insurances and with pay packages which will be 10% higher than the average pay scale in the area of Dubai. The log report of each day will be maintained and then it will be reported to the concerned executive. However, the night shift will be organized under the headship of chief accountant. Additionally, the accountant will report the developments of night shifts to concerned executives in the morning. However, each department will have one manager and one employee for each shift in the beginning and as the future of the business unfolds then the sophistication of organizational setup will also grow (Beasley & Frigo, 2011) and the company will be forced to hire more employees and managers if necessary. The company’s structure will shrunk if its departments do not perform adequately in terms of profits. However, the company is in plans to maintain and uphold the basic divisional structure (Elenkov, Judge, & Wright, 2005) due to the importance of presence of various services (Ireland & Hitt, 1999). The human nature is to expand in good times and it reduces when bad days come along. Humans can have wishes to reach at moon and their basic needs can be fulfilled with the simplistic means at the same time and same is the case with organizations (Abdelgawad, Zahra, Svejenova, & Sapienza, 2013), they tend to survive under dire circumstances and they can break up in ideal economic conditions so one never knows what can happen to the company. However, we can plan ahead as much as possible. 13 10.0 Financial Planning 14 11. Management Team 15 12. Conclusion 15 References 17 18 Business Plan for New Business in Dubai, United Arab Emirates 1.0 Executive Summary This report provides a company named Eagle Eye with the detailed business plan that is accompanied with financial planning as well. The company is going to be a state of the art library plus a bookshop. The company will also have a set of electronics and music stores where modern musical stuff will be sold. The company will provide the clients with refreshments and as it would be a 24/7 operating facility then no one is going to say goodbye to the customers. They can take their time for choosing their purchases. 2.0 Introduction The business plans are developed in order to establish a new company. The organizations take birth in order to accomplish something in this world. Managers and entrepreneurs must know why they want to create a newer entity and what they are going to accomplish through it as well. Both of the questions when answered give any organization a sense of direction (Abdelgawad, Zahra, Svejenova, & Sapienza, 2013). The companies have mission and vision statements. In order to guide their employees about the cause for which they are supposed to work in the present via establishing a simple but yet inspirational and understandable phrase or set of phrases to create greatness in the employees. The vision statements on the other hand tell employees about the distant future of the company and they come to know that what the company is becoming into with the passage of time (Beasley & Frigo, 2011). The vision statements are the essence of ensuring long term existence of the companies. An organization is a social entity and therefore, it is made up of people while Social Exchange Theory argues that human relations are based on the principle of reciprocity which involves exchange of favors in a long term perspective between the company and its participants. Humans have a significant urge to develop into better beings and when it comes down to working for a company then financial gains create a backbone of organization-employee relationship and vision statement is going to guide people about knowing their place in the futuristic outlook of the company. The companies have to provide training and development services to their existing employee base in order to cope with changing roles and responsibilities as the future of the company unfolds. Additionally, as a profoundly quoted proverb states that “a life is a process of becoming” and so is the case with organizational life. Organizations have to exert their energies in order to consistently win the hearts and minds of their employees and customers to win an effective organization’s title. The companies have to under-promise and over-perform while keeping their commitments with all of their stakeholders. Management has to tell their employees about strategic changes so that they can feel important part of the club. The new start ups have the luxury of copying practices of Apple and Microsoft. The general idea behind modern organizational philosophy is to create an environment where people can feel at home and they must not stop living. The great management gurus urge the companies to make employees’ stay in the company pleasurable and enjoyable as much as possible. 3.0 Business and Revenue Models of Eagle Eye Selling computers and electronics is not a new thing but the way in which these merchandises can rise to the level of novelty. The employee side can be managed by following leading organizations’ methods (Child, 1972). However, the customer side can also be handled via implementing the way of Starbucks in an electronic and music store. The company should offer the customers with an attractive ambiance rather than a place from where they prefer to hush out at getting the first opportunity to do so. Additionally, Eagle Eye has to use its own name as an inspiration and offer online sales services to the customers where they can interact with people and socialize. The company has to have literature portion and online services can be utilized in order to help people in finding and talking to the artists and writers whose works are available in the online book and music store. The company is needed to maintain a physical presence along with an electronic one as well. The company will also work to provide and install security systems for businesses and homes in the area of Dubai whereas, this department will operate under the department of electronics and technical staff will have the responsibility to install the equipment as well. On the other hand, they have to let the customers use the equipment before sell it to them so that the clients should develop a close friendship with the machine before making it part of his or her life. Products are more like girlfriends or boyfriends and the users have to develop a bond with them. The test stations should be developed where the equipment pieces are assembled in a working condition and all customers need to do is to use them. In retail business, time is of the essence because more time a customer is going to spend in the store, more things he or she is going to buy. Nevertheless, it is advisable for the management to arrange for provision of refreshments to the customers so that they can feel at home (Elenkov, Judge, & Wright, 2005). All of the suggestions are being made in order to help the company in terms of creating a lively atmosphere in the store. As stated earlier that selling electronics is not a new business but vending them in a new way is. It is very important to weigh the value of providing refreshments to the customers as it will allow the company to charge the visitors and in this way, the initial array of revenue can be arranged. Furthermore, all the liveliness will help the sellers and buyers in enjoying the process of doing business with each other. Finally, a conventional library setup will aid the company in the process of attracting book-readers and in this fashion, their stay can be prolonged in the store and which will in turn facilitate purchasing. The company will follow sales, transaction fee, subscription and advertising revenue models simultaneously. The sales will be generated by selling products while advertising revenue can be gathered by marketing other companies and their services on the company’s website while subscription charges will be the result of streaming music, books and movies to online users. 4.0 Value Proposition Eagle eye’s basic and fundamental purpose is to grow into a worldwide ecommerce service provider. The company is supposedly going to work in order to emerge as a competitor in different industries. The company’s opening facility will be a multipurpose building because it will operate as a partial library, a coffee-shop, electronics retailer, online business and bookshop as well. The strategic direction of the company is not yet clear but it will get so with the passage of time (Ireland & Hitt, 1999). However, the company will require applying BCG model in order to determine the most profitable areas of the business and which will fail. Then the management has to disinvest from weak business areas and move the resultant funds to more lucrative pieces of the company. The company will offer customers an enjoyable environment and their stay in the store will be a pleasant one indeed. The consumers in the modern era has developed an instinct which guides them that all of the sales agents are there to snatch their money away and that assessment is true as well. The sales professionals are always looking to score a sale. However, during the process, they suppress consumers’ own needs and wants and therefore, they live to regret the decision after some time. The general idea behind Eagle Eye’s selling strategy is not to rip off the consumers but to develop a win-win model for both seller and buyer. The element of time spent by the customer at a store is critical to selling mechanism of the company. More time will allow the customer to evaluate different aspects of the offering and it will also allow him or her to find out what he or she really wants and in the meanwhile, company’s system will operate for the sole objective of not letting the clients leave and who will dare to leave when there is so much to see such as an online library, a bookshop and an electronics store. The process of product discovery will permit the client in making an informed purchase decision and that is the key value proposition of the company where nobody is going to force the consumers into a purchase decision and they will be free to buy whatever they want to. Moreover, the company’s stores will operate around the clock and they will also remain open for seven days a week. All of the choices that are going to be made by the company will serve only one purpose which is to prolong customer’s stay in the store and eventually he or she will buy something. The freedom of making the independent choice will create loyalty in the customers as well. 5.0 Market Opportunity Dubai is a society that has recently transformed in terms of culture, norms and values (Lemos, Fischer, & Souza, 2012). The traditional Islamic ways are dying out in the state where Americanization and Westernization are significantly taking place with no bounds in sight. The success of MTV in Arabia is important evidence in this regard because nowadays, the channel is broadcasting American music all the time and nobody is raising a voice against a trend which stands opposite to Islamic values. The demand for electronics, computer accessories and music is on the rise and that is a market opportunity which the company is eying at in order to make the most of it. Entrepreneurship does not create market opportunities but capitalizes on them. People of Dubai have a profound societal need to attach themselves to Western image and listening to fast music is an integral part of being a foreigner in the local setting. UAE is a consumer economy at best and therefore, it is only understandable that they are going to purchase items that have a trivial purpose. The company should maintain adequate inventory of headsets and other products like it. However, the company must uphold proper customer recording and relationship management system in order to know the current consumer demands and preferences in the area. Nevertheless, the company has to modify their offerings according to consumer demands in the long run prospective. Additionally, human nature changes with the passage of time and the need for organizational change becomes obvious in these kinds of circumstances. In the light of above argument, the company has to start with a particular mindset and after coming head to head with customer behavior then service providers have to modify their operations and products in accordance with the latest preferences of the market. UAE on the other hand is a service oriented economy and because of this very reason, Eagle Eye has to submerge services with product delivery. The newly establishing company has to bear this in mind that they have to create sufficient customer base prior to going online entirely. Furthermore, the company has to keep a keen eye on finding out what is working and what is not to set out a strategic plan. The company is going to be a service provider more than anything because it will be using cozy environment with a library and music store in order to sell and that is the ultimate purpose of any business in the world but Eagle Eye is going to achieve it in a different and unique manner to say the least. 5.1 Target Customer Profile The store will be targeting all ages in the nation but for starters, the company is going to be targeting youngsters by placing fast and rock music in the store (Turley, 2001) whereas, romantic volumes of books will also be organized to attract the eye of the juniors initially. 6.0 Market Competition The company that is planning to launch with the name of Eagle Eye will be able to create a blue sea environment in the market because its major competitors such as Amazon.com and Good Reads are not operating in Arab and Middle East nations and therefore, the company will face a least possible resistance in terms of getting started. Western companies do not operate in Muslim countries due to the fact that Muslims are notorious for being terrorists and untrustworthy at the same time and doing online business will be fatal for the involved company because people may invade paying their dues. Nonetheless, the company is going to startup as a physical store and then gradually, moves in the direction of becoming an online facility when the time feels right (Gilley, Gilley, & McMillan, 2009). The company is committed to establishing a chain of traditional store so that it can maintain an effective collection system. Additionally, when it comes to ecommerce then the company will avoid giving credit under any circumstances. Students will have the option of availing a 35% off on every item on the offer. The company will not directly compete with any one segment of the market but it will do so with many of them. The consumers are bound to get attracted because they will have three distinct services which they can avail under one roof while visiting Eagle Eye. Other stores in Dubai are engaged in selling the products in a boring way and therefore, the novel store will have the opportunity to sell the same products in a different manner. The nonexistent foreign competition will permit the company is gaining a competitive advantage and the company will also have a first mover advantage to its name once it will enter in an unchartered area of the global market. Following chart signifies the growth in retail sector of UAE. Based on the above diagram, it can be established that the demand of non-grocery items is on the rise and Eagle Eye is going to operate in that particular sector of the market. On the other hand, it will be a provider of multiple solutions under one roof and in this way; the company is going to gain sufficient percentage of the market share. Finally, the company will hold a local label and therefore, it will attract locals a great deal as Arabians will love to do business with their countrymen. 7.0 Competitive Advantage Competitive advantage of Eagle Eye as a company lies in its ability and power to sell in a different fashion. The company is indeed counting on consumers’ need to have their various needs fulfilled in a single store and Eagle eye will house a music store, a library and an electronic retailer (Hill & Swanson, 1994). The consumers will not be forced into a buying decision and that is why, the customers can now own his or her buying decision while purchasing at Eagle Eye. The competitive advantage cannot be derived out of a library or music store because those are immense in number even in the locality of Dubai. However, when all of these facilities are merged together then competing gets complicated for others in the field (Auger, Burke, Devinney, & Louviere, 2003). Furthermore, sales of each department will be expected to compliment those of other departments. The company will create a synergetic link amongst all of the departmental sales and it will become very hardened for other competitors to compete (Baker & Hart, 2007). The replication of eagle eye’s model will not be possible for fellow stores because of its capital intensive nature whereas, if stores copy it then they will become copycats and the consumers will no doubt prefer to purchase from the masters of entirely new set of stores (Calabrese, 2012). The company will be trying to merge the models of Starbucks into selling a different collective of products and services. The consumers need to feel free while shopping and they have to find a best deal for them which takes time and the company is more than happy to offer its clients as sufficient time as they need. The clients can have the luxury of sitting in a library and read and no one is going to stop them from doing that and it is something that is contrary to the practice of other stores. The vision of the company is to differentiate itself from the competitors as much as possible. The cliché goes like this that “being different and unique is going to be easy then following the herd”. The customers will experiment with visiting the new store and by doing that they will be caught into the spell of freedom of choice which the company will have to offer to them. The humans are designed to give everything they will have against living in the moment of total freedom that is what will be offered by the services of Eagle Eye. 8.0 Market Strategy Eagle eye will consider throwing significant dollar amount into marketing activities as a waste of resource rather than anything else. The company will use online and social media marketing in order to get its word across into the market (Dellaert & Benedict, 2005). The company prefers the online marketing as a primary channel for advertising the brand because of its cost effectiveness and it is going to let the company cover substantial number of prospects as well in the blink of an eye. Furthermore, the company is a fresh starter and therefore, it will target to become a cost leader in the industry before trying to incorporate differentiation in its ranks (Fang & Qi, 2011). The Eagle Eye is a believer that quality of the services is the greatest marketer known to the business world and because of this reason, they are counting on occurrence social exchange of social exchange of information about the high standard service quality at Eagle Eye. The company is not willing to risk its financial banks on useless marketing efforts which do not serve any practical purpose and these activities can be managed by using online marketing and advertisements as a primary channel of communicating with the customer base. Main department of the company would be the one which is going to manage the sales and Human Resource Manager will plan to hire people with polite and sophisticated natures who should understand the importance and value of selling products and services politely. The key job of sales is to help the customers in terms of feeling at home and they should not feel that the organization is trying to sell them something and eventually, the store will be able to sell. So the process of sales and selling will be effortless and subtle in nature at Eagle Eye. The customers will have the opportunity to meet likeminded people and that will help the organization regarding creation of loyal customer base and then, reaching to the success a matter of time. However, the essence of organizational leadership is no doubt embedded in the cleanliness of the heart and those who plan and plot in order to rip others of their trusts and belongings end up being ripped off. The company has to create a bond with their customers which should keep them coming back. A returning is the loyal one and that is what modern organizations love to have but fail to create because of their plighted intentions. 9.0 Organizational Development The organization which is living in the early stages of development intends to create a tall organizational structure in order to incorporate strict command and control systems. The community of UAE is known to be divided into masters and slaves from the beginning of times so it would be madness to allow modern organizational setups to prevail in the society (Grönroos, 1997). There are three distinct divisions and there are three partners as well and each partner will executive each department of the company. The company will have Music Store, A Library and An Electronics Store respectively and a separate sales department which will function jointly under the combine headship of all the partners (Hill & Swanson, 1994). The following hierarchical diagram will elaborate the organizational structure of the newly born company. The company intends to offer the employees health and life insurances and with pay packages which will be 10% higher than the average pay scale in the area of Dubai. The log report of each day will be maintained and then it will be reported to the concerned executive. However, the night shift will be organized under the headship of chief accountant. Additionally, the accountant will report the developments of night shifts to concerned executives in the morning. However, each department will have one manager and one employee for each shift in the beginning and as the future of the business unfolds then the sophistication of organizational setup will also grow (Beasley & Frigo, 2011) and the company will be forced to hire more employees and managers if necessary. The company’s structure will shrunk if its departments do not perform adequately in terms of profits. However, the company is in plans to maintain and uphold the basic divisional structure (Elenkov, Judge, & Wright, 2005) due to the importance of presence of various services (Ireland & Hitt, 1999). The human nature is to expand in good times and it reduces when bad days come along. Humans can have wishes to reach at moon and their basic needs can be fulfilled with the simplistic means at the same time and same is the case with organizations (Abdelgawad, Zahra, Svejenova, & Sapienza, 2013), they tend to survive under dire circumstances and they can break up in ideal economic conditions so one never knows what can happen to the company. However, we can plan ahead as much as possible. 10.0 Financial Planning Following is the set of income statements for the next five years that the company is intending to generate. 2015 (,000 $) 2016 2017 2018 2019 Sales 710 800 820 850 845 CGS 500 550 570 590 800 GP 210 350 250 260 45 Accounting 2 7 10 15 18 Ads 1 5 7 11 22 Bank 0.5 1 1.5 2 3 Equipment 20 39 41 33 27 Insurance 2 2 2 2 2 Power 15 17 19 14 21 Maintenance 5 6 7 9 12 Fuel 4 6 8 10 9 Cash at hand 10 10 12 14 16 Printing 0.25 0.50 0.75 0.95 1 Rent 1.5 2 2.5 3.5 4 Wages 20 20 25 27 28.5 Telephone 0.50 1.5 3.5 6 4 Owners’ drawings 0 0 0 0 23 Depreciation 4 7 8 11 12 Others 0 0 0 0 0 Net Profit 124.2 226 110.75 101.55 (157.5) In the light of above table, it can be established that in the fifth year of operations, the company is going to face a loss of substantial number and therefore, the company needs to plan expansion in third and fourth years into more lucrative geographical areas such as Abu Dhabi and Sharjah. The company may consider enhancing advertisement activities in order to boost the sales because otherwise the company is going to go under. 11. Management Team The management team will be made of three partners and the partnership will be governed by the international partnership law whereas, all of the partners are going to be the representatives of the business. All of them will have unlimited liability towards the business. The partners must be computer literate so that they can manage the business of ecommerce. On the other hand, they have to maintain strong communicational ties with each other in order to keep all the partners aware of business’s condition. Furthermore, they have to take the lead in terms of expansion plans otherwise all will be lost along with the efforts of the entrepreneurs who built the empire from the scratch. The survival of the business in all times remained tied with the notion of growth and if any business is not growing then it is busy dying and the same phenomenon is going to happen to Eagle Eye if they do not expand on a timely basis. 12. Conclusion This intensive research paper has been developed in order to help three partners in the process of emerging a new e-business with the title of Eagle Eye. However, the company is going to implement an elementary operational plan of Starbucks that is known to provide its customers with the perfect ambiance in which they can enjoy a cup of tea and they claim that they offer their customers with an enjoyable environment to relax and forget their tensions of life for a while. The same model of selling is going to be used by Eagle in order to sell various products and services. The company will be housing a library along with electronics and music store and therefore, the management is looking to develop a one-stop shop for all electronic needs of the people living in Dubai. Furthermore, human nature loves the idea of getting things in compact packages and Eagle Eye should cater this particular need in order to create a competitive advantage. The company will also create a blue sea by tapping into a market segment which is not being catered by any of the leading players in the global market. The Eagle Eye will not interfere with buying process of the buyers and that will be the novelty which the company is going to offer to the people of Dubai. References Abdelgawad, S., Zahra, S., Svejenova, S., & Sapienza, H. (2013). Strategic Leadership and Entrepreneurial Capability for Game Change. Journal of Leadership and Organizational Studies Vol 20 (4), 394-407. Auger, P., Burke, P., Devinney, T., & Louviere, J. (2003). 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Strategic environmental assessment in tourism planning — Extent of application and quality of documentation. Environmental Impact Assessment Review Vol 36 (1), 1-10. Turley, A. C. (2001). Max Weber and the Sociology of Music. Sociological Forum Vol 16(4), 633-653. Read More