Bakery and JavaNet Business Plans Comparison - Coursework Example

TABLE OF CONTENTS Introduction………………………………………………………………………………………..2 BAKERY BUSINESS PLAN……………………………………………………………………..3 JavaNet Business Plan (Longenecker, 2012)……………………………………………………...3 JavaNet Business Plan (Longenecker, 2012)…………………………………………..………….4 Business environmental analysis……………………………………………………………….....6 Industry and market analysis……………………………………………………………………...6 Management plan and structure analysis………………………………………………………….7 Financial analysis………………………………………………………………………………….8 Evaluation of the business plan as a whole…………………………………………………….....8 Java Net strongest components and justification………………………………………………….9 Java Net weakest components and justification………………………………………………......9 Bakery business strongest components and justification………………………………………..10 Bakery business weakest components and justification…………………………………………10 Suggestions on how the business plans could have been improved……………………………..11 Business is planning lessons……………………………………………………………………..12 Challenges and lesson learnt……………………………………………………………………..12 Demonstrated competence and extent…………………………………………………………...12 Recommendation………………………………………………………………………………...13 References………………………………………………………………………………………..14 ЕNGINЕЕRING MАNАGЕMЕNT Introduction Business plan writing is a process that entails choice of weight logical options out of the possible alternatives. In order to achieve suitable business starting decisions excellently, business plan framework adheres to scientific management operative models to ensure that outcomes are the most appropriate. This essential process is often referred to as a turning point since it proclaims to support the business objectives and goals identified by a particular Company for a business success. In most organizations, a business plan is used as an essential tool that covers all key components of the business, working as a regulatory guide for a particular business. Therefore, it provides business blueprint answering all of the business questions that include the speculated Company details from structure, location, products, management, as well as finances (Bovée&Mescon, 2005). Analysis presented in this document is helpful in understanding the business plan from two identified Companies specifically Bakery Company and Java Net Company business plans. Evaluation and analysis are also provided exploring across contrast and comparison of its key business plan components as well as each Company’s business description. This document further identifies each company’s strongest and weak components, challenges and lessons learnt are also provided, demonstrated competencies and a final recommendation is also provided after analysis. BAKERY BUSINESS PLAN (Duhigg, 2012). http://www.bplans.com/bakery_business_plan/executive_summary_fc.php Jolly's Java and Bakery (JJB) is a southwest Washington located coffee and bakery retail business owned by Mr. Austine Patterson and Mr. David Fields who share their business market skills and experiences as collaborates in the business. The business is designed to market its competitive products especially targeting the middle and higher class within the local market, as well as visitors. Conversely, the partnership business makeup a retail Company that constitute two pastry and six baristas workers offering full and part time daily customer services. The bakery Company provides a wide range of products and services to their reliable customers through a product description that constitutes coffee and espresso bakery products all from imported Columbian coffee beans (Duhigg, 2012). The products are packed in both in high and small quantities to meet the market demand; bakery and pastry produce are always maintained fresh in six to eight batches backup. On the other hand, this product provides rapid growth favored by cool marine in the area of location. Thus, high competitive and visual products and services project approximately 35% Tourist revenue and resident as the business target. The Company’s mission and keys to success of providing high competitive and quality products that also relates to its products pricing enable it to expect $110000 and $100000 own capital and borrowed guarantee rose respectively proving a bulk of financial requirement. In a similar account, this investment provides a financial projection of $491000, $567000 and $655000 as their three consecutive years anticipated sells respectively (Bakery Business, 2012). It is worth noting; the business projected profit raises considerably from $13000 to $46000 at the end of the third year without cash flow unexpected bad result. The Company has service business analysis; buyers and competition patterns guide the business to remain competitive as the same time implements its business goal. In other terms it means that, their sales, management and financial plan is maintained relatively to its projected profits with minimum loss. Hence, their business plan ends with illustrating all its cash flows, as well as an effective balance sheet as an indication for their business success (Bakery Business, 2012). JavaNet Business Plan (Longenecker, 2012). http://www.bplans.com/internet_cafe_business_plan/executive_summary_fc.php Java Net is an internet-oriented entertainment and communication medium locate in Eugene and Oak downtown United States, owned by Cale Bruckner as the business founder. The Company targets the public social, education, entertainment and communication demands globally through an efficient method of internet access and as well as affordable means (Duhigg, 2012).The business incorporates itself as an Oregon Limited Liability Corporation (LLC), privately held corporation to protect the owner and the other three main outside investors namely, Doug Wilson, Luke Walsh and John Underwood from excessive personal liability and taxation. In addition, these investors are also treated as shareholders with an exemption of not more than $12000 personal investment liabilities (JavaNet Business, 2012). Java Net also regarded as an internet café, finances itself from the owner's contributions, shareholders as well as Oregon Economic Development Fund to meet a one-year start operation cost (JavaNet Business,2012)The business utilizes the unique business favorable environment to obtain a self-sufficient state at the end of two years in conjunction to its vision, mission and the keys to success that has an additional advantage providing coffee and bakery items apart from its main products and services. Business risks, company summary that also covers a list of products and services offered ranging from internet base to special beverages and bakery items, as well as the target customers, are also provided in the business plan. The Company’s start-up summary covers start-up requirements especially to cover loss, reach customers and the total start-up expenses (Engle, 2013). The company goes a step further provides reasons for business location identification with a full product description, competitive comparison, and technology and fulfillment strategies. It is worth noting; the company provides room for the future business expansion covering all its market analysis, market target, needs and trends. The business plan constitutes other important components covering business participants, services distribution channels, implementation summary and strategic pyramid. In addition, the business analyses their SWOT analysis and its owner’s management summary, exploring financial plan, business assumption, financial indicators as well as profit and loss projection. The business plan ends with projected balance sheet, business ratios as well as the business appendix (Duhigg, 2012). Business provides their business product prescription in a unique way. In other words, they present their products and services in a different prescription list that is clearly designed. Bakery products description only mentions products being offered, but fails to give a clear quantities and varieties being offered. Further business products flow and consumption, it is clear that Java Net business is likely to explore a larger market through its suitable distribution channels. It is also clear to note that, product technology, future expectation and fulfilment techniques provided by the company provide the business an upper hand to face any market competition (JavaNet Business Plan 2012) Both Companies contains market product competition techniques and mechanisms to face market trends. Business environmental analysis. Both companies have got different approaches on facing the business environment. Bakery business Company identifies their core competitors and utilizes their competitor weakness to create business friendly environment (JavaNet Business, 2012) Java Net business Company attract their customers with special offers in terms of entertainment and beverages that enable outcompete their competitors. On a comparison, analysis has a suitable competition free environment to conduct business, they are both originate from the United States, but Java Net has an upper hand to explore the global market. Industry and market analysis Critical analysis on each Company industrial and market structure, contrasting this two companies is relatively important than comparing them. This is because; each Company occupies a different environment as well as goals and objectives (Longenecker, 2012). Java Net business plan provides customer's analysis connected with product prescription and services. In other terms, it means that Java Net business structure is designed to fit the market industry with current technology that meet their customers demand. Both companies remain vigilant to the market trend in order to respond effectively; they explore the market industry to come up with ways to meet business challenges by studying the market structure. Management plan and structure analysis. Analyzing the each Companies management structure by using systematic scientific approach, both Companies have experienced and skilled personnel that provides management roles and responsibilities. Both Companies are operated and managed by their business owners from a central identified business location. It is also true to analyses and says that, each Company involves outsiders as participants in management planning (Longenecker, 2012) On the same note, it is clear to compare and notify that each Company has got a well-defined management system directed an effective complete business plan. Conversely, the both companies giving chances of employing unqualified staff do not analyze staffing system. Therefore, the business plan presented by Bakery and Java Net Company leave out important information that will reveal their informal and formal management system or indicating how their staff management is done. Java net business presents their management business summary as personnel plan constituting full-time, and part-timers are making up to less than then employed staff to meet global service delivery requirements. On management competence analysis, it is clear to notify that, it is very difficult to determine individual business staff roles and responsibilities competence as well as commitments Bovée, (2005). As a business-oriented point of view, it is easy to determine the company’s competences and members commitments by monitoring their business plan projection, returns and profits. Using assumptive measurement done through technical approach, correct justification can be made to rank Java Net business a step higher than the Bakery business using the possible results out of the alternative evidence. Marketing plan evaluation and analysis. Market objectives, goals and objectives define a marketing plan. Applied business hypothesis, it is easy to compare and contrast each company’s market analysis through scientific approach methods used by each business. Java net business has a well-elaborated business-marketing plan compared to the Bakery business indicated by the details contained in each Company’s business plan. Bakery business lacks some essential components that make a good business plan such as service and product distribution channels and business participant’s involvement that contributes their market decision making (Longenecker, 2012). Financial analysis. Bakery business has a small capital business investment compared to Java Net business. Java business is likely to suffer financial losses compared to Bakery business indicated by their financial assumption which do not always happen. Bakery business has an additional advantage as it explores across it business risks as a plan to avoid unexpected losses. Each Company’s financial projection is realistic, and profit is promising as evidenced by balance an effective presented balance sheet. Market shares and market sizes are well calculated before carrying out financial investments and financial sources. Java Net business achieves this goal through designing the business into a limited liability corporation in order to receive financial protection against financial losses. It is also mathematically clear that, each Company experiences a significant profit, smooth current flow as well as limited loss (Duhigg, 2012). Both companies experience an omission on their staff financial expenses as well as proper expenditures. It is also correct to conclude that each company maintains its financial records correctly though there is no financial exit strategies indicated. Evaluation of the business plan as a whole. In reference to Duhigg (2012),companies’ business plans are realistic, professionally designed, clear to the point though there are challenges that face each Company independently. It is also true to sum up all the challenges and advantages earned each Company to rank Java Net business as a relatively best Company. Java Net strongest components and justification. Java Net business’s strongest components are those that explores across the company’s opportunities and strength that increases their bargaining power to succeed. The company’s business plan is well designed, realistic and systematic to serve them effectively toward business investment. In addition to drawing and writing skills, the Company is equipped with qualified staff that analyses the market environment, competitors as well as strategic and implementation tactics (Plunkett, 2013). It is also true to justify that, and Java net company has an opportunity to utilize their management skills, technology as well as innovation opportunities for business development as part of their strongest components. Java Net weakest components and justification. Java net business plan is detailed with much repetition. However, this format may also be a form of putting some emphasis, but it discourages readers from turning to the next page as the message keep on repeating. Conversely, weakness develops gradually altering a real size requirement for effective working business plan. The business plan lacks an exit strategy that will enable the guarantees and permanent investors to pull back their capital avoiding excessive losses Bovée, C. L., Thill, J. V., &Mescon, M. H. (2005) In addition to this weakest component, the Company relies only on assumptions that do not always happen on their accounts and inventory purchases. This assumption works in conjunction with other weakness to threat the business existence in the long term in case of severe losses. Bakery business strongest components and justification. Bakery company’s strongest components arise from its ability to contain a relatively sizeable realistic business plan. On the same note, this component provides a positive internal attribute for the business to use it to implements it goals and objectives through its well-elaborated managing system, strong finances sources as well as shared business skills and experiences. (Longenecker, 2012) These worthy components provide the bakery Company to monitor and explore all business opportunities available for the business success. Bakery business weakest components and justification. Bakery business weakest components are those that contribute to those factors that create business threats and weakness resulting to business failure or poor planning. The executive component of the bakery business is too brief that lacks to identify easily the business name correctly in relation to the business owner. Thus, this come up clearly through identifying the business as Jolly's Java and Bakery (JJB) business, which contradicts with the business causing major confusion to their reliable customers (Bakery Business, 2012). On further analysis on the Company’s weakest components, the weakness falls on their products prescription. In other words, the company’s business plan lacks to give specific product prescriptions in terms of quantities and varieties. Narrow product analysis provided by the business plan fails to look on the market trends opening up external challenges that may always result to business threats resulting to future business failure. Suggestions on how the business plans could have been improved. The resultant performance of each of the company’s business could have been improved if the companies had checked their working plans effectively. These means that their business plans could have been indicating realistic trends in chances of market preferences. For example, Bakery Company is likely to face stiff competition due to ignoring to identify their competitors as well as looking forward to laying down strategies to deal with competitors. On the same note, their business plan contains a lot of repetition on detailed information that makes it boring to read. The company goes further over to project their finances sending which makes the business plan unrealistic. This mess could be corrected by use of experienced personnel to design their business plan in both realistic projection as well as grammar. Java Net business could have been improved by giving a clear prescription of their products. For example, they aim social, education and communication as their business main objectives but on the business plan they over-emphasis on beverages, which contradicts the whole objectives. Java Net Company can also improve their business by providing a clear location of their business as a business location almost comes at the end of the business plan, which makes it easy to be missed out. Business is planning lessons. A business plan represents a particular Company business picture providing controlled, systematic guidelines. Conversely, a business plan entails a complete researched documented that meets academic qualification of proper punctuation, grammar and spellings. For any business organization to achieve success it should design a realistic business plan containing all the components required (Engle, 2013).It should be scientifically managed covering all systematic strategic planning models and approaches especially through management. In additional lessons, it is also clear that the business team should be skilled and experienced enough to identify the kind of business they are willing to offer, correct business location as well as realistic financial projection should also do correctly. In other words, all business management systems should be designed towards its business success achieved through projected profits and returns. Challenges and lesson learnt Challenges and lessons learnt ranges from the business plan to design itself to the Companies structure in implementing its goals and objectives. In terms of writing challenges, challenges are associated with writing skills techniques especially grammar, punctuation, plan completion, detail content, research done as well as completeness. This challenges results to business plan mistakes denying it to be realistic and correct Bovée, C. L., Thill, J. V., &Mescon, M. H. (2005) Lesson learnt from the business plan are requirements needed to write a good business plan. This guides us to write a good business plan to avoid mistakes and challenges. Strategic business planning challenges are always those that emerge from leadership, ambitions and short-term momentum strategic plan. Lessons learnt are how to make good strategic planning that include consulting external mentors, as well as academic educational skills. Demonstrated competence and extent. Demonstrated competence experienced during business planning analysis is business knowledge in planning and monitoring business tasks and activities to the extent of negotiating the management changes. Elicitation competences are also demonstrated that includes alienating goals and business together as a single unit to provide positive management engineering requirements (Duhigg, 2012).). Communication and enterprise analysis competence are demonstrated through analyzing the business solutions, feasibility studies as well as providing a suitable business undertaking approaches towards achieving business goals. Underlying business competence demonstrated explores across leadership, technical knowledge, communication skill and problem solving skills to high-quality standards. Recommendation It’s recommended that a realistic and good business plan; this business plan should contain all requirements that are needed during the designing period especially punctuation grammar, well researched and complete to encourage readers to continue reading. On the same note, I also recommend a plan to be simple with a well-understood business environment. The management team of the business should indicate full commitment, right people with business skills and experiences. It’s recommend that the business plan to contain all components that entail a business plan including realistic goals, accountability, focus and all financial resources recorded. The business companies should also have and exit strategies and an appendix in the end. Furthermore, confidential information should not be included in writing. References Bakery Business Plan (Duhigg, 2012). http://www.bplans.com/bakery_business_plan/executive_summary_fc.php Engle, J. (2013). How to Open & Operate a Financially Successful Fashion Design Business: With Companion CD-ROM. Duhigg, C. (2012). The power of habit: Why we do what we do in life and business. New York: Random House. Longenecker, J. G. (2012). Small business management: Launching and growing entrepreneurial ventures. Mason, OH: South-Western Cengage Learning. Bovée, C. L., Thill, J. V., &Mescon, M. H. (2005).Excellence in business. Upper Saddle River, NJ: Pearson Prentice Hall Plunkett, J. W. (2013). Plunkett's E-Commerce & Internet. Houston: Plunkett Research, Ltd JavaNet Business Plan 2012.Retrieved on 16th August 2014 from http://www.bplans.com/internet_cafe_business_plan/executive_summary_fc.php Read More