Engineering Management - Up and Go and Gradesavers - Case Study Example

Engineering Management Student’s Name Institution of Affiliation Table of Contents Table of Contents 2 Outline 3 Executive Summary 4 Introduction 5 Up and Go Description 5 Grade Savers Description 5 Discussion 5 Strongest areas for the business plans 5 Up and Go 5 Gradesavers 6 Weakest components for the business plans 7 Up and Go 7 Gradesavers 8 Suggestions for improving the business plans 9 Up and Go 9 Gradesavers 10 Challenges faced and means of overcoming 10 Five lesson statement on business planning 11 Competencies developed 12 Conclusion 12 References 13 Outline Title “Engineering Management” 1. Executive summary 2. Introduction a. Up and Go brief description b. Gradesavers brief description 3. Strongest areas for the business plans i. Up and Go a. Product uniqueness b. Addresses needs that have not yet been utilized in the market c. Innovativeness of product ii. Gradesavers a. Well laid out vision and mission statement b. Patenting of competitive advantage c. External environment analysis 4. Weakest components for the business plans i. Up and Go a. Challenges in marketing campaign b. Inefficient industry target strategy c. Competitive environment not well laid out ii. Gradesavers a. Segmentation strategy not clearly brought forth b. Inefficient resources in gathering appropriate facilities c. Difficulties in managing supplier relationships 5. Suggestions for improving the business plans i. Up and Go a. Researching on appropriate marketing strategies b. Linking with other industry players c. Introducing competitive pricing and marketing strategies ii. Gradesavers a. Laying foundation for targeting and segmenting the market b. Seeking for sufficient funds to help purchase all needed facilities c. Devise ways for managing relationship with suppliers 6. Challenges faced and means of overcoming a. Lacks of sufficient strategies for coping with competition b. Insufficient information regarding needs of clients c. Threat of regulations by the government 7. Five lesson statement on business planning a. Clarification of purpose and direction b. Define what the business is all about c. Give out factors for growth over time d. Helps to attract highly qualified personnel e. Makes it possible for a firm to acquire financing 8. Competencies developed a. Outlining of the business plan to show how an enterprise is progressing b. Understand needs of clients c. Indicate various ways of attaining competitive advantage d. Identify opportunities for growth and success 9. Conclusion a. Business planning helps an enterprise to stay organized Executive Summary The “Up and Go” and Gradesavers are two distinct companies that have implemented diverse business plans. In the case of “Up and Go,” it portrays strengths in product uniqueness, addressing the needs, which have not been adequately met in the market, and in introducing innovative products. For Gradesavers, it strengths target a well laid out vision and mission statement, patenting of competitive advantage and in analysing the external environment. With respect to weakest components, “Up and Go” encounters challenges in marketing campaign, inefficiency in targeting the industry, and failing to lay out the competitive environment. For Gradesavers, it witnesses challenges in terms of segmenting, inefficiency in gathering sufficient facilities, and in managing the relationship for suppliers. To be successful in the marketplace, it is appropriate to implement comprehensive business plans to help them identify their weak areas, and undertake their operations efficiently. Introduction Up and Go Description The “Up and Go” walker was conceived in 2013 as a major design project for the Elite team in Softcom’s engineering product design group. The members of the Elite team served as professionals in Mechanical Engineering at Softcom. When presented with the idea of designing a home devise, the team members identified the need for those people with stability and leg strength issues to be offered with assistance in case they fell and were unable to wake up or when rising from their seats. “Up and Go” will be a limited liability company. The ownership of the company is at the moment divided among the original team of 15 professional team members (Bplans, 2014). Grade Savers Description Gradesavers is a tutoring institution that was established by a young entrepreneur who did not have sufficient understanding on course materials. The founder established the enterprise to tutor students in cafes as well as his apartment that is based in Montreal. As word regarding the institution spread, he started offering various tutorials at his flat. He added more space to teach a larger number of clients as demand rose. Based on the love that the entrepreneur had for teaching, he acquired a 4,000 square foot that is situated at the heart of Montreal. Today, Gradesavers serves as one of the widely known tutoring company in Montreal (Hanna, 2012). Discussion Strongest areas for the business plans Up and Go The “Up and Go” product is an innovative and aesthetically pleasing home device that can allow users to get up when they fall or from a seat. Most of the people who use such home devices are the elderly since they have muscle weaknesses. When rising from the position that they have fallen or from a seat, they tend to grab anything that is within their reach so as to get extra support. This is a dangerous process, and it can make people to fall and experience injuries (Bplans, 2014). Since the “Up and Go” Device has been introduced in the market afresh, the marketing for the device will lay emphasis on an awareness campaign, which will educate the members of the public about its existence and the benefits that it can offer to the clients. SO as to keep the costs of operating low, we shall take advantage of the free as well as cheap marketing channels. Early marketing will allow us to introduce the “Up and Go” Device and the benefits the public will realize once they use it (Bplans, 2014). The “Up and Go” Device will be marketed as being a lifestyle product that makes users to regain their independence. It is a pleasant mobility aid that allows users to walk as well as guarantees them safety while trying to get up from the ground, chairs, sofas, or toilets without the need to seek for assistance from other individuals. Unlike most of the products that are prevalent in the market today, such as toilet rails, lift chairs, and lifting cushions, “Up and Go” Device will guarantee independence and safety (Bplans, 2014). Gradesavers The mission for Gradesavers Tutoring is to ensure that students get access to adequate and satisfying tutoring services. The company adopts a minimum as well as innovative approach to allow it adopt a mode of teaching that is capable of allowing students to abide with the subject matter which they need to master. By embarking on a focused and personalized teaching initiative, the company ensures that the students develop the appropriate tools that can enable them to realize ongoing success in their particular field of study (Entrepreneur magazine, 2012). There are a large number of companies that offer tutoring services in Montreal, though the market has not been well established in Ottawa. Based on the competitive advantage that Gradesavers has realized in Montreal and Toronto, the company will offer targeted and specialized services in the Ottawa market. Since the Ottawa competitive environment has not been well-established, the company will offer targeted and specialized tutoring services (Entrepreneur magazine, 2012). Competition poses a significant threat to the operations of Gradesavers, and can make its operations to fall significantly. Before starting its operations, the company evaluated the competitive pressure that is prevalent in the market, to know the strategies that it should adopt to either cope with the competition or eliminate them. Technology is the second major issue that the Gradesavers emphasizes on while engaging in tutoring activities in Ottawa. Today, technology is one of the major drivers for education, especially in the case of international students (Wong & Kaiyu, 2013). Weakest components for the business plans Up and Go The initial marketing will be challenging since it will be directed towards residents of nursing homes. Interviews with patients in nursing homes will be conducted, and if one person from a nursing home likes the device, the company hopes that others will follow. The company anticipates that a high percentage of assistive device users in nursing home will give them initial sales. However, this is just a projection and it may not allow the company to focus their marketing towards their overall strategies (Stephenson, 2008). In the industry, there are two major manufacturer types that pose problems for “Up and Go.” The first type is large and a brand name that is widely recognized, such as Medline and Invacare. They offer a wide range of durable medical devices and equipment. Their distribution network is strong, and they usually embark on shipping most of the supplies to their retailers. Since the revenues that they generate result from the sales that they make across a variety of products, they tend to offer discounts for their retailers to entice them to distribute to multiple lines of the products (Nkambou & Mizoguchi, 2010). Since the dominant market players are in possession of abundant distribution network and legal resources to allow them to navigate the national landscape of medical equipment, it will be cumbersome for “Up and Go” to embark on initiatives that will help them to partner with a major manufacturer while launching the “Up and Go” Device. It should first patent to be able to design additional materials, such as more prototypes and videos for demonstration, which they can use to approach manufacturers in the market (Mintzer, 2009). Gradesavers The market segment for Gradesavers tutoring will mostly target graduate and undergraduate students. In the case of graduate students, the company will emphasize on non-qualitative and international students. Non-qualitative students are those seeking for tutoring programs that are fail to be quantitative. These comprise of courses such as marketing, international management, economics and organizational behaviour. Though these subjects are not as highly demanded like the quantitative reviews, such as finance, calculus, accounting, business algebra, and statistics (McKinney, 2003). There are different facilities that Gradesavers needs to implement in order to make the learning atmosphere of the students to be appealing to them, but lacks sufficient resources. He is unable to seek for sufficient funding that will cater for all the facilities that they need. In this case, Gradesavers should ensure that the funds are sufficient to cater for lecture halls, administration blocks, adequate parking, well equipped laboratory, computers, technicians, athletic facilities, and accessibility for disability (Stephen, Kang, & LaPlante, 2007). The CEO of Gradesavers lacks appropriate skills that will allow him to plan, manage and interact with his suppliers in a strategic manner, and maximize the value of the relationships that he has with them. He has also failed to hire professionals who can assist him in determining the activities that he should undertake with a particular group of suppliers, plan and execute the interactions in a coordinated manner (Zenios, Makower, & Yock, 2010). Suggestions for improving the business plans Up and Go For an enterprise to succeed in the marketplace, it should consider the issue of marketing. Without appropriate marketing techniques, clients would not be aware that a particular product exists in the market, thus meaning that the company would not make sufficient sales. Different locations and demographics demand diverse marketing practices that are appealing to them. For Up and Go business, the products that it manufactures and sells are mostly meant for old people, especially those who are chronically ill. In this case, the most appealing mode of marketing would be word of mouth, use of radio, and TVs, since they are the ones that are easily accessible to those people (Zenios, Makower, & Yock, 2010). A company cannot survive well while operating in the market alone. It needs to link with other industry players for it to devise effective marketing and pricing strategies for its products. For “Up and Go” company, it should join efforts with health institutions and nursing homes, since these are the areas where they can find their potential clients. They can join efforts with them to be given an opportunity to sell their products to patients (Hanna, 2012). Gradesavers Market targeting and segmentation is a vital issue for a start-up business to consider if it wants to succeed in the marketplace. Different clients in the market have diverse educational needs and preferences. In the case of Gradesavers, it is appropriate for the executives of the institution to understand that students have diverse learning needs, and their learning potential is different. Here, they should divide students according to their learning needs and the course they are taking in the institution (Hanna, 2012). Without sufficient funds, it is not possible for an enterprise to cater for all the needs of its clients adequately. For instance, in the case of Gradesavers, insufficient funding means that the firm cannot cater for the financial needs of its staff appropriately. This would make them to lose motivation while working for the enterprise, thereby delivering poor learning materials to students. Also, the company would be incapable of providing sufficient learning facilities to the students (Stephenson, 2008). Suppliers play an essential role in determining whether a business will succeed in the marketplace. Poor relationships with suppliers means that an enterprise cannot secure quality facilities and services from them. Here, it is appropriate for Gradesavers to develop positive relationships with its suppliers so that they can provide them with the facilities and services that need in a timely manner, and in high quality (Stephen, Kang, & LaPlante, 2007). Challenges faced and means of overcoming Competition is a major threat facing many business start-ups in today’s business environment, and “Up and Go” and Gradesavers are no exception. The areas that these companies want to specialize in have other players who have been in the market for some time. This issue has posed challenges to these firms with respect to market penetration. To succeed in the market, these businesses should analyse the strategies that their competitors have adopted in the market for them to understand the nature of the market and the appropriate pricing strategies (Entrepreneur magazine, 2012). Lack of sufficient information pertaining to clients’ needs also faces both “Up and Go” and Gradesavers. They are not yet aware of the diverse needs of clients in their areas of operation. In this case, they should invest in research and development to help them identify their potential clients, and the products and services that are appealing to their needs. Additionally, the government has significant influence pertaining to the ways in which businesses undertake their operations. In this case, it is appropriate for “Up and Go’ and Gradesavers to ensure that they gain sufficient understanding of the business laws and regulations that influence their practices to help them run efficiently in the market (Stephen, Kang, & LaPlante, 2007). Five lesson statement on business planning In the case of both “Up and Go” and Gradesavers, it is true that business planning helps them to succeed in the marketplace. For instance, business planning helps to clarify both the direction and purpose to help them identify the practices that they should adopt for them to drive their operations forward. Also, as they undertake their operations, they are able to know that they are all about and their potential, and hence make it possible for them to adapt to their area of operation over time (Nkambou & Mizoguchi, 2010). The staff members of an enterprise determine whether it will realize growth in future or fail. By developing a comprehensive and realistic business plan, firms are capable of attracting top-rated executives who would drive the productivity of the enterprise forward. This is aided by the capability of an enterprise to obtain financing from a reliable source. Since a business gains an understanding of its structure through the business plan, it is able refer to it and determine whether it is in line with respect to meeting its goals and objectives (Nkambou & Mizoguchi, 2010). Competencies developed After the evaluation of “Up and Go” and Gradesavers business plans, one of the major competencies demonstrated is the ability to outline the plan to help understand where a business has come from and the manner in which it is progressing. Secondly, the plans have revealed that it is essential to consider the needs of clients since they serve as the driving forces in an enterprise. Thirdly, the plans have revealed that competitive advantage help a business to adopt strategies, which allow it to cope with the competitive pressure in the business environment (Stephenson, 2008). Conclusion The “Up and Go” and Gradesavers business plans have revealed that planning helps an enterprise to stay organized in its activities. For instance, “Up and Go” faces challenges pertaining to developing relevant marketing campaign, inability to target the industry, and failure to lay out the competitive environment appropriately. In the case of Gradesavers, it has failed to bring forth its segmentation strategy clearly, lacks sufficient resources to acquire resources, and is incapable of managing the supplier relationships appropriately. In this case, both “Up and Go” and Gradesavers should develop comprehensive business plans to help them identify their weak areas and adopt strategies that can help them to undertake their operations efficiently. References Bplans. (2014). Medical Equipment Business Plan. Retrieved from http://www.bplans.com/medical_equipment_business_plan/executive_summary_fc.php Entrepreneurmagazine. (2012). Tutoring and Test Prep: Entrepreneur Magazine's Step-By-Step Startup Guide. New York: Entrepreneur Press. Hanna, C. A. (2012). Bright Idea Tutoring: A Business Plan and Overview of the Secondary Education Market. Pomona: California State Polytechnic University Press. McKinney, A. (2003). Real Business Plans & Marketing Tools: Including Samples to Use in Starting, Growing, Marketing, and Selling Your Business. London: PREP Publishing. Mintzer, R. (2009). Start Your Own Tutoring and Test Prep Business: Your Step-by-Step Guide to Success. New York: Entrepreneur Press. Nkambou, R., & Mizoguchi, R. (2010). Advances in Intelligent Tutoring Systems. New York: Springer Science & Business Media. Stephen, K., Kang, T., & LaPlante, M. (2007). Mobility Device use in the United States. San Francisco: Institute of Health and Aging. Stephenson, J. (2008). Ultimate Homebased Business Handbook. New York: Entrepreneur Press. Wong, J., & Kaiyu, R. T. (2013). Handbook of Medical Device Regulatory Affairs in Asia. New York: CRC Press. Zenios, S., Makower, J., & Yock, P. (2010). Biodesign: The Process of Innovating Medical Technologies. Cambridge: Cambridge University Press. Read More