Analyzing Market Situation and Financial Statements for Optometry Business: Accounting Capstone

Running head: ACCOUNTING CAPSTONE
Accounting Capstone
Name of the Student:
Name of the University:
Author’s Note

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ACCOUNTING CAPSTONE
Executive Summary
The main purpose of this assessment is to analyse the market situation for the business which is
at the initial stages of planning. The assessment covers the business of optometrist which would
be providing optical solutions to the customers and also state the vision and mission of the
customers of the business. The assessment would also be including operation, management,
administration and financing part of the business. The management would also be following a
low-cost business model for the purpose of enhancing the revenue of the business. The
assessment would be forecasting the start up expenses of the business and also forecast the
financial statements of the intended business.

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ACCOUNTING CAPSTONE
Table of Contents
Business proposal, research and analysis........................................................................................4
Operations......................................................................................................................................10
Product Description and Uniqueness.........................................................................................10
Customer Satisfaction Survey....................................................................................................10
Customer Billing process and Accounting................................................................................11
Sales Techniques and Incentive.................................................................................................11
Marketing Practices...................................................................................................................11
Warranties and health requirements..........................................................................................11
Suppliers and Credit Options.....................................................................................................12
Pricing and Costing Strategies...................................................................................................12
Business Location......................................................................................................................13
HR Policies and Rewards and recognitions of employees........................................................13
Analysis of Mission and Vision and costs of the business........................................................14
ATO and Other Regulations......................................................................................................14
Administration...............................................................................................................................14
Business Location and Rental Requirements............................................................................14
Utilities and IT facilities............................................................................................................15
Staff Types and Roles................................................................................................................15
HR policies................................................................................................................................16

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ACCOUNTING CAPSTONE
Process and Activity Analysis...................................................................................................16
Advertisement and Promotion...................................................................................................16
Accounting system.....................................................................................................................17
Management..................................................................................................................................17
Business Registration.................................................................................................................17
Management hierarchy..............................................................................................................17
Strategic Tools which is used by the business...........................................................................17
Risk Assessment........................................................................................................................18
Financial........................................................................................................................................18
What if Analysis and Sensitivity Analysis................................................................................21
Start Up Expenses......................................................................................................................23
Breakeven Analysis...................................................................................................................24
Financial Analysis.....................................................................................................................24
Reference.......................................................................................................................................27

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ACCOUNTING CAPSTONE
Business proposal, research and analysis
Vision
The main vision of the business is aimed at fulfilling the requirements of clients by
offering exclusive and best in-house lenses produced by proposed business named Clear Vision
Optical. The vision the business is aimed at delivering the best services to the customers by
making the best use of state of art technology thereby fulfilling the needs of the clients.
Mission statement
Clear Vision Optical aims at becoming one of the global leaders in providing pioneering
optical solution at an affordable price.
Description of idea
The main idea for Clear Vision Optical will be based on operating at low profit and low
risk margin owned by Mr. Silvia Presley who has more than 15 years of experience as a licensed
optician. It needs to be understood that the business considers patient requirement with highest
priority. The initial opening of the business will be consisting of one store located in suburb of
Merrylands in Sydney. The business will aim at opening more shops in the next five year. The
exclusive right for the store will be given to Lucas Murray. The overall idea of the store will be
based on keeping moderate to high end optical items. In addition to this, it will also include
introduction of well-known brands such as Versace, Ray ban and Gucci. The overall expected
sale is seen to increase significantly over the next two years from its operation (Kim 2018).
Industry analysis, trends, growth opportunities

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ACCOUNTING CAPSTONE
The optical market in Sydney is expected to have a steady growth in 2019. The main
sales will be driven by ageing population and the growth will be driven by vision correction,
marketing campaigns and launching of new products of leading brands. In addition to this, the
optical market will also comprise of several number of people with myopia and presbyopia. The
overall balance of myopia for the people in Sydney is expected to significantly increase
compared to the last decade. This is mainly due to increased use of electronic devices and less
time spent in outdoors. The most notable global competitor for the brand can be identified with
Luxotica which is a leading seller of sunglasses and other eyewear products (Kiely and Slater
2015).
As per the depictions of the industry it can be clearly inferred that 75% of the optical
stores in Sydney are owned independently. The overall anticipation of such a market is depicted
to be positive in the next five years thereby supported with favourable demographic trends.
Economic and regulatory environment (and assessment of any barriers to industry entry)
The economic and regulatory environment of doing business in Sydney is comprised of
business regulations which is designed to ensure fair competition, integrity and sufficient
protection for the relevant parties. The applicable regulatory environment for social business in
Sydney will be based on Australian intellectual property laws, Australian business and
environmental laws, financial reporting in Australia and Australian business and Australian
export and import laws (Gibson 2016).
Competitor and market analyses- Target market, competitors
As per the report of IBIS world can be clearly inferred that the optometry and optical
dispensing industry has been contending with a tough competition in the last five years. Several