Analysis of Two Plans - Business Plan Example

Analysis of Two Business Plans Name Institution Analysis of Two Business Plans Description of the Plans 1. Expert Application Systems, Inc. EASI EASI is a company involved in the system software development in the market growth and development (Ford, Bornstein, Pruitt & Siegel, 2007). The manner in which EASI is designed is indeed environmentally friendly due to the fact it ensures a lot of accuracy and movement of computers across various platforms. Present manufacturers have to meet various standards and regulations fronted by both the government-owned companies and other private sectors (Pinson, 2008). The US, for example, several electronic products needs their listing in the private entities recognized by the Nationally Recognized Testing Laboratories, NRTLs to assess on whether they meet safety standards. In this regard, the certification enables the companies in evading situations or actions that may constitute civil, criminal or private ones. Software that provides guidance to the users in Underwriters Laboratories, UL in matters concerned with safety is the EASI’s original product. As part of the several NRTLs, UL is indeed the biggest self-dependent testing laboratory in the globe. Similarly, its customer base also is indeed forming one of the biggest markets that purchase the EAS’s products (Ford, Bornstein, Pruitt & Siegel, 2007). In consequence, EASI has received an accreditation from UL and at the same; it is underway in the formalization of a joint venture with the UL. If successful, the venture will put EASI in a position to have the remarkable accessibility of the resources that UL owns. Added to this, EASI is underway in the formulation of significant ventures with the EU and CSA (Pinson, 2008). Not forgetting, UL also has intentions of including the EASI’s products within their marketing plan and distribution within their current channels (Ford, Bornstein, Pruitt & Siegel, 2007). Due to this reason, the healthy relationship between EASI and UL for real will be significant when it comes to the competitive advantage that on its own will lead towards the successful operation of the company in the market systems. Such actions here have resulted in the generation of various interests in reliance to EASI's compliance of product safety enhancement. The Market Aspects such as interviews and surveys carried on articles are all a confirmation that companies have the time and ready to spend when it comes to acquisition of UL listing or recognition. As at present, close 95% of products under cover of UL Standard did not attain listing or recognition during the first case of submittal to UL. On the same note, about 50% of succeeding is also what surfaced after the second submittal (Ford, Bornstein, Pruitt & Siegel, 2007). According to complaints from the UL clients, there are confusing standards, not friendly in their nature and also hard to undertake their integration when it comes to product cycle of development. Contrarily, acquisition of UL leads to the issue of competitiveness being a necessity (Ford, Bornstein, Pruitt & Siegel, 2007). From the 592 UL Standards plus other same international standards is indeed a representation of the ever increasing and lucrative opportunities within markets for system software compliance. The product targets of the EASL's UL with a value of $1.5 billion are still not tapped within the global market sales of value worth $248 million according to annual sales dates. The company's initial products had a target of closely 5700 domestic manufacturers and in this case are a representation of the possible total sales with an excess value of $10 million and other $1.7 million sales annually (Ford, Bornstein, Pruitt & Siegel, 2007). The company is indeed in pursuance of an aggressive kind of market strategy that will enable it to establish its strong impact within EASI. Products EASI is currently undertaking the development of its several products meant for the safety industry. The software systems owned by EASI offer easy to use and an efficient guidance based on the process of compliance (Ford, Bornstein, Pruitt & Siegel, 2007). In this regard, the benefits realized through the use of the systems entail higher probabilities of the very first time listing or recognition, expense reduction, the short time spent in reaching the market with the product and improved accessibility to updates. The initial products of EASI, the UL Solutions-1950 have targets on the Underwriters Laboratories Standard since it has a chance of generating biggest user demand and more revenues (Ford, Bornstein, Pruitt & Siegel, 2007). The possible customers for the company are as at present making a review of Alpha that constitutes part of the system. On the same note, many Fortune 500 companies apart from the Underwriters Laboratories have reached an agreement in offering services to the beta sites for UL Solutions-1950 (Ford, Bornstein, Pruitt & Siegel, 2007). For example, customers have had involvement in each development stage process and the same time still continue to offer value feedback in response to the major features that require for integration within the product (Ford, Bornstein, Pruitt & Siegel, 2007). The interaction, in this case, is taking place and input from customers continues to push the development of the company's products (Ford, Bornstein, Pruitt & Siegel, 2007). Likewise, the experience achieved from the EASI personnel has leveraged with object-based systems of expert tools of development towards a creation of high quality; customer focuses products coming with lower costs when compared to those from the conventional software developers. The team of management of EASI is indeed very well balanced when it comes to talents and experience as well as the support they get from the Board of Advisors who also have a lot of experience. On top of this, EASI has it with the wider network that covers all scopes of the business. 2. J. H. Reid Corporation, JHRC JHRC is a company that its incorporation happened in Illinois with the intention of manufacturing chairs popularly known as the “The Chicago LoungeTM.” The company’s mission is to be profitable in the industry of manufacturing of innovative chairs plus offering of job opportunities that stand to generate profit within the city. Regardless of the previous hard times, the company as at present is indeed registering exemplary performance because of the nature of the products that it produces, that have a capability of meeting the market taste and demands. On the other hand, the aim of the business plan development is to accommodate the representation of the JHRC to the potential investors plus assistance in the taping or maximization of profits based on a sale of common stock (Blackwell, 2008). The motive of making sales of the common stock will result in investors attaining close to 15% value of a stock that the company owns. Three years from now, the company aims at ensuring that the investors it has at the moment have the alternative of selling their stock to the company at net worth value of $750,000. On the other hand, $275,000 will be channeled towards the support of an effective operating capital that results of the successful attainment of the three various types of chairs (Ford, Bornstein, Pruitt & Siegel, 2007). The same will also include the financing of the product development and other energies of efforts diverted into marketing. Major Strongest Components of the Plans i) The Market Indeed, as part of a business plan, it is the market that stipulates on how a business venture has plans of carrying out its activities based on the kind of products or services that it engages with its respective customers (Ford, Bornstein, Pruitt & Siegel, 2007). Added to the same, it is through this section that each of these plans tries to convince the readers that indeed the business has potential opportunities in future. ii) Products From the two businesses' plans, this section is of great importance because it provides the description of the goods and services that both businesses engage in altogether (Ford, Bornstein, Pruitt & Siegel, 2007). For example, it is this part that provides for the detailed explanation of the concept of the businesses in association with other aspects or activities such as purchasing, distribution, packaging and distribution. Added to the same, this section presents the discussion of the suppliers, the expected costs and also what every business company offers in the current market. The same also include the mechanics by which the company works against its potential market competitors. Operations Plan JHR has the commitment towards a world class type of manufacturing company. The main objective of this plan is to ensure smooth processes of manufacturing operations the aim of ensuring the maintenance of requirements of capital at the minimum (Blackwell, 2008). The instance of nimbleness ensures that the company remains profitable with very production costs plus also the operations of manufacturing that can sustain the rapid demands based on outsourcing of components. Distinctive Competence JHR is placed in a unique position of making sales of home theaters. With five patents and other pending patents, JHR has the rights of making and marketing the Chicago Lounge. For example, the company has an able team and board of directors with vast of experience. iii) Financial Summary In all the two business plans, this section gives an explanation of the manner by which the business grows and how it generates profits (Ford, Bornstein, Pruitt & Siegel, 2007). In many occasions, either a bank or a lender will demand the financial summaries figures for the purpose of assessing the creditworthiness of the business. The Plans’ Weakest Components i) Table of Contents The contents presented in the table of contents are as well as covered in the whole document. In consequence, their inclusion or omission in the plans has no impact at all. ii) Appendices The added contents at the end of content especially after the reference section constitute the appendices (Ford, Bornstein, Pruitt & Siegel, 2007). Just the same as table of contents, omission or inclusion of appendices has no effect on the operation of the two business plans iii) Adds Appendices are other people’s adverts and as a result does not add value at all the operation of the business plans even added or included. Possible ways in which the plans could have been improved Below are the possible ways to ensure the improvement of the plans i) Ensuring that they are all interesting as possible The manner in which the plans were computed indeed was not that appealing to the potential donors or sponsors (Blackwell, 2008). In this regard, there is the need to develop the story covered by each plan in a manner that is more interesting and appealing for this possible financial supporter to get enticed in the long run. ii) Setting up of realistic goals The plans should have been formulated on clear, understandable and concise goals that they may appear to be realistic. Where it becomes hard for people to grasp the vision or the plan itself, it then there will be no action taken towards its pursuance (Ford, Bornstein, Pruitt, & Siegel, 2007). Added to the same, with the sets of goals in place that are in alignment with the business plan, the business, in this case, will have with it measurable targets that ensure that it remains on track towards its progress or development altogether. iii) Reorganization of sections There is the need to classify the sections based on chapters so that every potential reader could find it easy in understanding them (Ford, Bornstein, Pruitt & Siegel, 2007). Likewise, the concept as covered from each plan requires the comprehensive explanation as a way of further enhancing the understating of the potential reader. Challenges faced and how you overcame them For real, it was not easy for me to interpret the two business plans since there were some challenges that I met though I managed to overcome them successfully. The challenges I met and how to manage to tackle them are as stated below; i) Where to Start Indeed the toughest part of the analysis of the business plan was how to start. I had to stay for long hours while try understand of each of the two business plans so that I could end up with a comprehensive analysis that compares the two businesses effectively ii) Interpretation of the financial information Understanding of the financial information or knowledge that resulted in the difficulty in the understanding covered (Ford, Bornstein, Pruitt & Siegel, 2007).. Due to this reason, it required from me to spend a lot of time in trying to understand the concept that each plan presents. However, through exercising higher levels of patience, I was able overcome the challenges. iii) Knowledge of business demographics Though was hard but important; I found it not easy in establishing the target demographics of each business in a proper manner. I had to establish on the kind people that each company serves, the size of the market, how people reach it and ready to buy the products of the company. However, through simple surveys and data already collected, I found myself able to interpret them and then grasp the idea thus assisting me in compiling my comparisons for the two business altogether. iv) Remaining to be concise Another major challenge I experienced is how to be short and straight to the point when making my comparisons. Like any other business plan, the two business plans were so detailed, yet I had limited space for drawing my valid comparisons and conclusions against them (McKeever, 2002). In this regard, I resorted to only focusing on major headlines so that I could bring the concept back home. Also, I resorted into being concise and focused so that I could achieve my targets of coming up with the valid comparison of the two business plans altogether. Lessons learned about business planning Indeed planning refers to one of the value sections when it comes to management of a business even if it is a large corporation seeking to have plans for expansion or a small firm that has plans of launching a new product (Ford, Bornstein, Pruitt & Siegel, 2007). Always, starting a project is easy, though, minus proper planning, it may not be possible to attain the objectives of the project. At times, it may be possible to reach or attain the goal of the organization, but to some extent, one may end up getting lost after some time (Finch, 2010). An individual that owns a small business may be tempted to assume business planning specifically in situations where it is the same person who manages the business alone. All in all, planning may take a lot of time and for cases of those who run the small business; this time spent in the formulation of plans may as well be diverted in making money. However, the benefits accrued from a good business plan will indeed supersede any temporary loss in earnings. One major fact about business plans is that they stand a chance in the provision of a point of reference for one to make a return on any point in the course of the project (Ford, Bornstein, Pruitt & Siegel, 2007). By just having a grasp on a plan and recognizing on the so far realized progress, in this case, offers motivation to an individual. At this juncture, it may assist an individual in establishing on whether he or she has made drifts from the initial vision and at the same time enabling the person to get once again on track (McKeever, 2002). At the to the same, the formulation of the business plan may also enable one to think more in an analytical manner when compared to the past with respect the industry and the role played by the business. Formulation of business plan also assists in the identification of corrections between several components of the business; the decrease in the cost of a given process with how it will impact on overall margin of the business profits. Meanwhile, it is not possible to overstate the value of business plans (Blackwell, 2008). For instance putting of ideas and concepts on a piece of paper may seem to be invaluable but the process of conduct research and documentation of data concerned with the business’ competitors in the market structure will indeed be of great value in the future. The competencies I believe I may have demonstrated and to what extent I have acquired knowledge in business plan formulation by following the desired or correct formats I became conversant of financial information and as a result able to analyze the financial performance of the company on whether it is operating at a loss or profit References Blackwell, E. (2008). How to prepare a business plan (1st ed.). London: Kogan Page. Finch, B. (2010). How to write a business plan (1st ed.). London: Kogan Page. Ford, B., Bornstein, J., Pruitt, P., & Siegel, E. (2007). The Ernst & Young business plan guide (1st ed.). Hoboken, N.J.: J. Wiley & Sons. Pinson, L. (2008). Anatomy of a business plan (1st ed.). Tustin, CA: Out of Your Mind and Into the Marketplace. McKeever, M. (2002). How to write a business plan (1st ed.). Berkeley, CA: Nolo. Read More