Infocom Computer Technologies - Market Feasibility - Case Study Example

BUSINESS NAME: INFOCOM TECHNOLOGIES LTD. NAME: TUTOR: SUBJECT: DATE: 1. Executive Summary The following are the owners of the projected business at Infocom Computer Technologies. It is a partnership type of business in which the following will be involved in the management of the company. OWNERS: Mr. STEPHEN MARKGREGOR, Mr. JONATHAN RYUICHI MURPHY, Mr. TEDDY HOLIKOFF JONES, Mr. ERIC TINDER DREA, MISS HELLEN DOMINIC MASHARIA, MRS. IRENE JESSE TREVOR. statement of purpose To gain profits in sales and to provide basic equipment to our customers to blend in the emerging trends in technology advancement. To utilize idle time. This will also be selling the company name and make it be on top of the competitors. Table of Contents 1.Executive Summary 2 2.Description of the Business 6 3.Products and Services 6 4.Market Feasibility 6 5.Technical Feasibility 8 5.1.Sales Strategy 8 5.2.Distribution Strategy 8 5.3.Technology 8 6.Financial Feasibility 9 INFOCOM TECHNOLOGIES LTD 9 Top Level of Management 10 Board of directors 10 They include the following; Mr. STEPHEN MARKGREGOR, Mr. JONATHAN RYUICHI MURPHY, Mr. TEDDY HOLIKOFF JONES, Mr. ERIC TINDER DREA, MISS HELLEN DOMINIC MASHARIA, MRS. IRENE JESSE TREVOR. 11 The roles of the above board of directors include: 11 The top management is also responsible towards the shareholders for the performance of the enterprise. 11 Middle Level of Management 11 Departmental Managers 11 They head the following three departments respectively: 11 They have the following duties and responsibilities: 12 This department is mandated with raising funds required to run the activities of the company. Companies usually require enough cash and liquidity so as to meet the organization obligations. 12 They also allocate funds in a way that the funds are optimally used. Factors such as the size of the firm and the organizations growth capability, mode of fund transfer and status of assets are usually considered while allocating the funds. 12 The Department is also mandated with planning profits of the company. Profit is very essential for the thriving of the company. Profit planning usually involves good usage of the profit gained by the company. Profit rise is often affected by pricing, economy state and mechanism of supply and demand. 12 The finance managers are also expected to prepare the company’s budgets and the possible forecasts. They rep [ort back to the top executive on the progress in the company. The information is very vital in planning the staffing levels and the assets required by the company. 13 Finance managers provide information to assist the top executives in the company in making strategic decisions. Decisions involving markets and projects usually require more information especially when it comes to capital purchases of the projects. 13 This department is also responsible with the management activities of the company’s cash flow. It ensures that there are adequate funds which will be required in fulfilling the company’s day to day operations. This department encompasses the various credits and collection systems run in the company. This is essential for forecasting the cash needs of the organization in the long term. 13 Finally, the finance department is mandated with understanding the capital markets. Trading of shares is on the stock exchange. A financial manager is mandated with the duty of clearly understanding the capital market. With the knowledge of the capital market, a financial manager can calculate risk which may be involving the shares and debentures which are being traded. 13 Security guards – they will be in charge of the security detail of the company and making sure that there is no threat to the organization as well as the wellbeing of the customers. 15 Cleaners – they will ensure that the business environment is conducive for every one and this will help in attracting more customers. 15 Sales persons – they will be involved in marketing the company products on the actual market and even will be responsible for online marketing and sales. 15 Customer care – these are the persons who will take care of the customer needs and communicate the feedback from the customers to the management 15 The employees will be selected by advertising for the posts on the fields needed, and after they have applied for the vacancy, the shortlisted candidates will be interviewed and well vetted to pick out the best who are suitable for the position applied for. The security personnel will be chosen from the best security firm has a reputation for good performance. 15 The company is also planning of motivating the employees. This will be achieved in different ways which include; firstly, the board will review the salaries of the employees and give a pay rise. Since money is a good motivator, there will be an increase the productivity level of the organization. 15 Secondly, the company also plans on taking the employees on business trips and tech. exposures. This will motivate them and also give them a boost in the business field, for they will be able to interact with other successful persons and learn from them. 15 Thirdly, if the company meets its goals in the specified time and the returns are excellent, it will greatly motivate the employees and increase their morale. This will also be tremendous achieved by winning different awards, also securing important tenders. The company will also motivate other employees by compensating them with severance pay in case of a layoff, or even retirement benefits. 16 With the company’s growth, the organizational structure will change greatly because the company plans on expanding the business by opening branches and this will contribute to employee promotions hence changing the organizational structure. This will also give the employees opportunities in their careers. 16 References 16 2. Description of the Business Ownership This is a start-up partnership business that aims at selling of laptops and computer accessories. The target group of the business is students, IT institutions, banks, hospitals and computer literate persons. The uniqueness of the business is that operations can be carried out through online shopping using the company’s website. The purchases made by the customers can be delivered at their doorstep. Location The company is located in a shopping center in a big showroom that houses a service department and also there is an assembling area as well as the offices for the middle level and lower level managers. There is also a big board room that is used for meetings and conferences. 3. Products and Services The products to be sold are laptops and computer accessories like chargers, batteries, LAN cables and other accessories. There is also the sale of mini-computer server based systems together with other services like training and support and systems maintenance. Some of the benefits of the products being sold are that they are genuine and acquired from the manufacturers. They also have authentic features example; genuine Operating System i.e. Windows, Linux, and even the Macintosh. 4. Market Feasibility The market aimed by the business mainly are the educational institutions especially universities and colleges. This will provide the students and also the lecturers with computers that will enable them to work in the emerging technology. This necessitates for the purchase of computers and computer accessories. The students in the universities and colleges have become majorly the most users of the computers since most of everything they do needs the use of computers (Han, B., et al. 2015). Hence, this provides us with the best market, and our products will sell very well. Pricing strategies The customers will be able to shop either online through our website or everyday low prices or even cash on delivery. They will also visit the company and in this way they can make the best choices of the brand they want. The company also plans on holding tech. Expos at the nearby universities and institutions and this will make it easier for the customers to access the products without any inconvenience. Future Market Strategy The company must be on top of its competitors to ensure that full returns are made and that quality is maintained throughout the trading period. This will also put the company in the forefront and hence win most of the customers’ hence boosting growth. For the customers, there will be discounts granted and also offers made. This will attract the customers and also beat the competitors by luring them to consider purchasing the goods. 5. Technical Feasibility The product will be acquired from the top leading dealers in the market and from abroad which will see the company make fair deals which will amount to greater profits. The company will also house the assembling of the computers, hence making fair deals. Technically, one of the major milestones will be finding the best IT experts who will supervise the assembling process of the computers. 5.1. Sales Strategy The company intends to be making online advertisements on the products and also Ads in some leading websites. This will help raise the sales. By conducting expos. , the organization will be in a good position to market its products, and this will reach a wide range of people. 5.2. Distribution Strategy The distribution channels involve the company acting as whole sellers. That is the company will open its doors for those who want to make bigger orders. The company will also act as chain stores and computer superstores. These are walk-in stores that over services in a large showroom and people can purchase with little problems. The resources required for development include; raw materials that will see the company assemble the computers and also sell the accessories. The resources will also come from the suppliers, and these will be ordered in batches hence cutting fair deals. The company is governed by laws and regulations that are industry based and also the company copyrights and trademark. 5.3. Technology The technology is changing over the time, and there are emerging trades that the company must adopt to stay relevant in the competitive market. These include introducing another product to the market. This may pose a threat to the company for the market for our product can collapse. There is also the challenge of the introduction of better software and computer services that the customers may go for hence posing a major threat to the company. 6. Financial Feasibility The amount of investment is needed will majorly come from the owners of the company. The returns made will be divided in the same proportion as the contribution. The company also plans on receiving grants from well-wishers and those that can sponsor the organization. As the company also establishes its stand, it will also be able to take a loan to expand. Over the time, the company will also lease some of its assets, and this will bring income to the company. The company will work towards bringing the gross margin up to 40%. This will also see to the improvement of both the software and the hardware since they give the best margins. General Assumption The company assumes that the company meets unforeseen changes in the emerging trends in the economy. The company also assumes that there will be no recession in the growth of the company. Projected Balance Sheet INFOCOM TECHNOLOGIES LTD Assets Sh. Non-current assets: Fixed assets Current assets: Stocks Debtors Capital and liabilities: Short term liabilities Accounts payable Accrued wages Income tax Interest payable Long-term liabilities loan Capital accounts: Current accounts: Current liabilities: Bank overdraft Trade creditors Human Resource Feasibility Organizational Plan Top Level of Management Board of directors They include the following; Mr. STEPHEN MARKGREGOR, Mr. JONATHAN RYUICHI MURPHY, Mr. TEDDY HOLIKOFF JONES, Mr. ERIC TINDER DREA, MISS HELLEN DOMINIC MASHARIA, MRS. IRENE JESSE TREVOR. The roles of the above board of directors include: 1. Laying out the objectives and policies of the enterprise. 2. Issuing instructions for preparation of budgets, procedures, required in the department, etc. 3. Preparation of strategic plans & policies for the company. 4. Appointment of the executive for middle level i.e. departmental managers. 5. Controlling and coordinating the activities the departments. The top management is also responsible towards the shareholders for the performance of the enterprise. Middle Level of Management Departmental Managers They head the following three departments respectively: Sales and Marketing Department This department is very essential in the development fo the organization, and they are mandated to perform the following responsibilities so as to streamline the operations of the business: Sales and the marketing managers have the duty to develop strategies for monitoring the annual sales of the organization. The duties include: setting goals for the sales, and also the determination of the profit margin of the products they are offering. The sales manager has the mandate to hire and also to dismiss employees in the sales department. He or she also trains and also monitoring the various operations of the sales department. Sales and marketing managers work for the hand in hand with the department of accounting departments so as to ensure that the credit checks are being completed. The sales and marketing managers are also mandated with the creation of-of the operations which promote the company's products. He or she helps in developing operations involving advertisements, promotions with the help of social media and PR activities. 2. Finance Department. They have the following duties and responsibilities: This department is mandated with raising funds required to run the activities of the company. Companies usually require enough cash and liquidity so as to meet the organization obligations. They also allocate funds in a way that the funds are optimally used. Factors such as the size of the firm and the organizations growth capability, mode of fund transfer and status of assets are usually considered while allocating the funds. The Department is also mandated with planning profits of the company. Profit is very essential for the thriving of the company. Profit planning usually involves good usage of the profit gained by the company. Profit rise is often affected by pricing, economy state and mechanism of supply and demand. The finance managers are also expected to prepare the company’s budgets and the possible forecasts. They rep [ort back to the top executive on the progress in the company. The information is very vital in planning the staffing levels and the assets required by the company. Finance managers provide information to assist the top executives in the company in making strategic decisions. Decisions involving markets and projects usually require more information especially when it comes to capital purchases of the projects. This department is also responsible with the management activities of the company’s cash flow. It ensures that there are adequate funds which will be required in fulfilling the company’s day to day operations. This department encompasses the various credits and collection systems run in the company. This is essential for forecasting the cash needs of the organization in the long term. Finally, the finance department is mandated with understanding the capital markets. Trading of shares is on the stock exchange. A financial manager is mandated with the duty of clearly understanding the capital market. With the knowledge of the capital market, a financial manager can calculate risk which may be involving the shares and debentures which are being traded. 3. Human Resource Department Their roles are specified into the following; Developing HR planning strategies by consideration of short-term and long-term staff requirements Recruitment of employees by the preparation of the required job descriptions and adverts. The Human Resource Department is mandated with filling the vacant positions in the company. In the department there are recruiters and specialist who give recruiting and staffing services for the company. This department advertises and also conducts the preliminary interviews. Shortlisting applicants for the interview with the help of the selection techniques. Advising on pay, promotion, and benefits; administering payroll and maintaining staff records. The HR specialists are mandated with handling issues pertaining compensation and benefits of the employees of the company. An HR manager negotiates on behalf of the employees on issues such as their health coverage rates with the individual insurers. Interpretation and providing advice on employment legislation; develop and implement policies on a variety of workplace issues The department also checks on the employee relations in the company. The HR managers are given the duty to ensure that the employer-employee relation is strong within the organization. They also measure employee job satisfaction. They also resolve disputes which may arise in the line of duty in the workplaces. Analysis of the training needs with the help of line managers; planning and delivering training, including staff inductions. Employers through the HR department provide the essential tools and skills to the employees for the success of the company. The department gives extensive orientation so as to help the new employees to adapt in the new company culture. The HR department gives leadership training for professional; development of the employees. There is a need for professional development opportunities for the staff members which are in search of the promotional opportunities. Support Staff Members. Security guards – they will be in charge of the security detail of the company and making sure that there is no threat to the organization as well as the wellbeing of the customers. Cleaners – they will ensure that the business environment is conducive for every one and this will help in attracting more customers. Sales persons – they will be involved in marketing the company products on the actual market and even will be responsible for online marketing and sales. Customer care – these are the persons who will take care of the customer needs and communicate the feedback from the customers to the management The employees will be selected by advertising for the posts on the fields needed, and after they have applied for the vacancy, the shortlisted candidates will be interviewed and well vetted to pick out the best who are suitable for the position applied for. The security personnel will be chosen from the best security firm has a reputation for good performance. The company is also planning of motivating the employees. This will be achieved in different ways which include; firstly, the board will review the salaries of the employees and give a pay rise. Since money is a good motivator, there will be an increase the productivity level of the organization. Secondly, the company also plans on taking the employees on business trips and tech. exposures. This will motivate them and also give them a boost in the business field, for they will be able to interact with other successful persons and learn from them. Thirdly, if the company meets its goals in the specified time and the returns are excellent, it will greatly motivate the employees and increase their morale. This will also be tremendous achieved by winning different awards, also securing important tenders. The company will also motivate other employees by compensating them with severance pay in case of a layoff, or even retirement benefits. With the company’s growth, the organizational structure will change greatly because the company plans on expanding the business by opening branches and this will contribute to employee promotions hence changing the organizational structure. This will also give the employees opportunities in their careers. References Anderson, R. C., Hilborn, D., & Weersink, A. (2013).Assessing the financial feasibility 51, 85-92. Han, B., Chen, P. Y., Li, Y., Zhou, Q., & Tung, L. (2015). Financial Feasibility:. Complex Systems Design & Management Asia, 152. Kim, I. S. (2013). Market feasibility and policy acceptance pm 349-450. Volery, T., Mueller, S., Oser, F., Naepflin, C., & Rey, N. (2013). Journal of Small Business Management, 51(3), 429-446. Weinstein, A. (2013). Strategic targeting for business and technology firms. Routledge. Read More