Smart Home Business Plan - Assignment Example

Smart Home Business Plan Name Institution Executive summary Smart Home Company provides home based equipment for the homes in United Kingdom. It is currently taking an advantage to capitalize its operations through a large scope of market not based only in United Kingdom. The Indian growing economy has attracted Smart Home Company. It is now the target population for its home based products. The prime purpose of existence of Smart Home Company is to provide quality products that will satisfy the secondary needs of the customers. Because they are currently the only home based providers in UK, they have substantial chance to dominate the UK market. They need to develop some core values like Customer service that encourages allegiance and confidence, frankness and directness and intensification of company’s value that will guide the general mission plan of the company. These values will in turn develop new initiative (idea) that will add value to the company. As identified by the researchers, environmental scanning is very essential in identifying new markets. We have two types of environments; internal and external environment. Apparently, Smart Home Company has appreciated idea by employing diverse teams (sales, marketing and market researchers) to analyze these environments. The scope of the teams will focus on the legal factors affecting the business, products and services offered, brand identity and the preliminary structure (management) of the organization. Introduction/background study Smart Home Company provides customers with essential products for their homes and as well appreciates the concern of the legislative body in devoting both time and attention to the conventional issues that will up-lift the situations of the customers needs. It is one of the fastest growing businesses in UK economy. Its market is barely characterized by corporate strategies with essential training needs to the employees in reception of new technologies to various homes. The company has also appreciated the role played by multilevel network publicizing which has created an advantage in the industry. Therefore they incline to capitalize on the advantage in the market by offering unique products to the customers. In a competitive environment, growth is hypothesized to happen when the threshold of the current administrative expertise has been reached. Therefore, the ultimate option of any other business in the market is to have a comprehensive business plan that will act as a rudder for its venture. However, the management of organizations is merely confronted by factors like economies of scale, lack of financial proficiency, pressure from domestic demands, for instance, employees’ turnover, and poor information delivery A part from the challenges mentioned above, the company has been unable to structure its efforts clearly since it lacks a revolutionized procurement method of home products to the customers in an effective way. Still, it can achieve the main goals through the actions and valid decisions about the future of the business which is already planned. Section I: Business over view The company’s mission The goal of Smart Home Company is to be a leading provider as well as contactor of home based products not only in UK economy, but also within the market of reach. The emphasis of the company will be to provide complete advanced products based on having a comprehensive knowledge in the market. Market research shows that most of the customers are disappointed with the information received from other participant in the market. Their catalogues in this case mismatch with the products they over. By taking advantage of our experience in the industry, the company will organize teams (marketing and sales teams) that will advice as well as direct our customers to the right equipment for the house and get the very best service possible. Other than focusing on the main goal, Smart Home Company has developed six core values that will bond all the employees and later enhance efficiency in work structure of the business. These include; Customer service that encourages allegiance and confidence, Frankness and directness, Intensification of company’s value, Team building by endorsing stable quality of life, Solidarity and commitment, and A ground of creativity, innovativeness and value. These values will show that Smart Home Company was started not only for the rich but also for the typical customer’s home. The new advancement, for instance, Smart Labs, will at great extent provide solutions to simple day-to-day problems at homes. Therefore, value will be realized after the stopper of these problems. a) Development of a new business idea To develop a new business idea in the market, Ajay K. Kohli and Bernard J. Jaworski (1990, pp. 1-3) stated that, one needs to be market oriented. To be market oriented in this case is to have a comprehensive market research that tends to construct, have research propositions and efficient managerial insinuations with potential stakeholders who can translate the plan into a workable strategy. It is very essential to ascertain predictive guidelines in the development of new idea too. (Jacob Goldenberg, Donald R. Lehmann and David Mazursky, 2001, pp. 69-84). Stakeholders are all those people who are involved either directly or indirectly in the running of the business. They can be within the business premises or outside. b) Business base Smart Home Company in this case is will be located along the big street opposite the Central District shopping center of the main cities in UK. The region around the premise should have an adequate space for parking; it is easily accessed since it will be situated alongside the big street of the cities with high traffic. This indicates that any customer can safely travels to the premise of the company at its convenient time. Strategic planning initiatives encourages the expansion of Smart Home Company not only by physical structure but also the range of products offered to the customers both within the region of operations as well as the scheme of new markets. Two theorists John Hagedoorn. (2011) and Jeffrey G. Covin (2009) appreciated the idea of entrepreneurship and growth. New ideas normally progress the company into a great standard in the market. That is why the Smart Home Company is appreciating the idea. Section II: Environmental Scanning (Initial Research) According to Donald C. Hambrick (2006), there should be empirical relationships between internal and external environment of a business. Good scanning of both environments will be a basis of competitive advantage since the gaps have been realized and bridged by the same company. The company will scan both the internal and external environment in order to come up with a viable plan. The following analytical tools will be used; SWOT analysis will examine the internal environment of the business, Porter’s five forces will analyze the industry in which the business is operating from, PESTEL will analyze the external forces that are either directly linked to the business on not while market mix will analyze the products being offered by the company. SWOT analysis: The tool will assess the strength, weakness, opportunity and threat of the company. This will be an internal tool for analysis. PESTEL: The tool will aid much during environmental scanning. The factors that will be accessed include; political-legal, Economic, Socio-cultural, Technological, Environmental and Legal factors. It will involve monitoring, evaluating and dissemination of information both in the external and internal environment to keep people (customers) updated within the corporation. This normally reduces strategic surprises and hence ensures long term survival of the health of an organization. When analyzing the industry in which the business is located, it will be essential to use Porter’s five forces. The tool focuses on the supplier power, threat of new entrants, rivalry within the industry, threat of substitutes and buyer power. Market mix helps to cover all the important aspects during marketing campaign. These essentials includes; product, price, place and promotion. Legal factors PESTEL will analyze legal factor that may perhaps affect the operations in the business. These factors include; unemployment law that will indirectly affect the purchase power of the customers, health and safety laws, for instance, loud noise will not be considered in the homes around Central Business District, product safety laws which protect the customer from being affected by the product acquired and advertising regulations. Advertising regulations may not affect Smart Home Company much since their advertisement are morally upright and will not affect the cognitive thinking of the target group. Products/Services The company currently sells innovated products and equipment for households. The company sells individual products and can as well change the overall appearance of a home to look totally different and smart. These products are offered to United Kingdom residence with no exception of the global customers if at all the logistics will be cost effective to the company and to the customer as well. Due to its loyalty in the market, Smart Home Company has become the new trade agent for the customers. This has been realized since there is an increase in the number of sales despite of no virtual marketing efforts. Definitely, this is quite amazing anyway, but this should be a stepping stone for the long-term maintenance of good performance of the company in the market. In addition, the company offers a comprehensive variety of complementary products that supports the general outlook of a home. The automation products also ensure that total security is enhanced for enjoyable experience with these products. These products include microchip technology and automation products. Brand Identity During brand, the following factors should be brought into consideration; a) features that will bring an emotional value to the customer as compared to other products provided by the competitors, for instance, color. Warm colors are always friendly and human thus it will attract the customers. b) Graphic design use, for instance use of typeface that communicate the information in a straightforward and confident manner (Seagate, 2006). This is essential for the IT department. Section II: Market Research During the present period of strong economic boom, Smart Home Company can capitalize on the range of substantial opportunities in the homemakers industry. Economic and Social factors As mentioned earlier, homemakers industries are among the fastest growing sector in UK economy. The offering of these products are projected to increase to an average rate of 4.1% annually compared to the past years. The common economic situation in United Kingdom cities is very firm. The influx of new firms in the industry has greatly enlarged the prosperity and focus on the growing population as well. From the research, many people in the region are more concerned of making their homes look smart. Therefore, they prefer the current technology since there is more considerate value when it comes to economic analysis. Customers The company needs skilled, cultivated, productive as well as stable employees in its management. Smart Home Company consists of peoples who are deeply involved in the key areas of production. The company has qualified IT and computer engineering professionals, sales and marketing team from a graduate school and competent management that can efficiently handle managerial issues. This is why the company recognizes the reason of keeping the employees equipped with technical skills for high production in the business. From within the population of America, the target of the company is those families with an average income of about £ 20,500 and above, not specifically married (either married or not, with or without children) and at least well educated in order to keep the installation prosper in their homes. Competitors The two competitors of Smart Home Company are Custom Home Builders and Technology Savvy Home Makers both were developed in India but has widened their operations in the UK markets. Both entities are the strongest competitors of Smart Home Company since they have firm customers base and experienced ownership in the market. However, their products are not much advanced while also their location is undesirable with problematic packing and inadequate customer service space. Savvy Home Makers may be a challenging competitor for Smart Home Company because of its prime setting, well developed business as well as extensive training of its employees including the market researchers. The future competition from the analysts shows that Smart Home Company will inhabit a focused position in the home making industry. Although, its operations has not been well diversified within the UK locality, Smart Home Company will have to inaugurate itself as the leader in offering contracts as well as the quality home base products to its customers. In this case therefore, the company will gain an advantage over the others in the market and most likely, Smart Home Company will be a market leader in the industry. Section III: Business Operations It is advisable that the Smart Home Company should have a warehouse facing the main street in the city and is visible with separate entrance. The reason is to have the customer walk around the premise without moving outside. The cost for building the 100 square meters for this initiative will be £ 12, 460 and have £ 6,261 for refurbishing. In addition, £ 2224 will be needed for office furniture and other fittings. The other essential operation activity is communication to and fro with the company. In this case therefore, the telephone lines will be operated 24 hours a day to avoid delays and encourage fast remedy to any situation that arise from the customers. Apparently, this will be operated by the qualified public relation professionals. Normally, as the business grows, there always some risks that is associated with it. They are normally managerial risks and they include: The company may loose touch with the customers since its operations have become more complex. The company may loose customers to other product providers in the market since their welfare may not be well taken care of like before. Since there is an expansion of its operation, the quality of services offered to the customers may diminish if the management is not strict. For the company not to fall into these risks, the all business will be operated from the company’s office where there will be only catalogue that will be presented to the customers to choose from. A big role will be played by IT expert in providing the appropriate advice to the customers regarding which product will best suit their homes considering their budget as well. Once a choice is made by a customer, the company will arrange for delivery services from different suppliers. The two main supplies to Smart Home Company are Samsung and LG (Life is Good). Mostly they supply complementary products such as ovens and refrigerators. But recently, they can offer the full supply needed by the company. For this operation to go through successfully, the company should bring in tools like graphic design software and interior design tools. In this case therefore, three graphic tools are very essential. They include: a) Creative Printing Software: This software designs the products in the catalogue to have a special effect on the customers. b) Presentation Software: Offers manipulation on the special effects of the products to attract the customers during catalogue presentation. c) Web Publishing Software: The software will help the customers as well as information department to easily send and receive information describing the products to be offered or delivered to the customer. Information cycle in the company Information cycle within the company will be based on the quality of market research. The information gathered from the environment describes the industry in this form; employment in the industry indicates that 28% of the employees are concern with the services, for instance sales and marketing, 25% are involved in wholesale and retail, 20% are involved in production while the rest 27% are involved in supply and logistics as well as contact deals. This information is very useful when it comes to analyzing the target customers of the products. Records on Logistics and supplies also are kept so as to identify the efficient way of delivering products to customers and also acquiring products from the supplies. Also, business transactions are safely kept in the database of the company and will be used for future planning of the business. Section IV: Smart Home Organizational Structure (Management team) The company will be managed by the president/CEO who will be the entire organization. There should be marketing team. The team will be directing publicizing campaigns and other related sales issues like branding. Sales manager will be the head of marketing team. The assistant should be there also with a complete qualification from graduate school. A consultant with about 15 years of experience will be there as an instrumental to the success of Smart home Company. The Board of Directors should be appointed since this is a team that directs the business by reviewing mission policy development and change, as well as updating business plan. Conclusion In conclusion, the company should embrace the use of e-learning market and internet usage when it comes to promotion of its products in the market. This will ultimately increase their sales which will make them more competitive. The market research of Smart Home Company shows that the socio-economic status of families is greatly changing. On the other side, competitors, for instance Savvy Home makers are developing new training programs for its employees to enhance a competitive advantage in the market place. This will eventually support the prime setting of the company. The report also describes the information cycle in the market which is very essential. As mentioned, if the company embrace internet e-learning strategy, it will most likely to pass the required insight to a large number of customers not only the potential ones but also those who are captivated by the products produced by Smart Home Company. Reference Ajay K. Kohli & Bernard J. Jaworski. 1990. Market Orientation: The Construct, Research Propositions and Managerial Implications. Journal of Marketing. Vol. 54, pp. 1-3. Donald C. Hambrick. 2006. Environmental Scanning and Organizational Strategy: Strategic Management Journal. Volume 3, Issue 2, pages 159–174. Duane Ireland, Jeffrey G. Covin & Donald F. Kuratko. 2009. Conceptualizing Corporate Entrepreneurship Strategy. Entrepreneurship Theory and Practice. Vol. 33, Issue 1, pp.19–46. Jacob Goldenberg, Donald R. Lehmann & David Mazursky. 2001. The Idea Itself and the Circumstances of its Emergence as Predictors of New Product Success. Journal of Management Science. Vol. 47, No. 1, pp. 69-84. John Hagedoorn. 2011. Innovation and Entrepreneurship: Schumpeter Revisited. Volume 5, Issue 3 pp. 883-896. Michael, E. Porter. 1998. Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free press: ISBN: 0684841487. Seagate. 2006. Brand Identity Standards: Designers Guide. Retrieved from: http://www.seagate.com/docs/pdf/branding/Seagate_brnd_id_stndrds_071306.pdf. DESIGNER’S GUIDE Read More