This business plan discusses the marketing and sales plan, financial feasibility, operational and action plan for Apple iPhone Folding. It also includes Porter's Value Chain Analysis and management of financial records.
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Running Head: Business Plan0 Apple Business Plan 11/14/2018
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Business Plan1 Executive Summary Apple is the most popular and unique electronic brand in the world based in Cupertino, California. Their products range from smartphones to personal computer to the operating system to music players is all of the high quality, simplistic and innovative. It is one of our most growing and most popular products are the Apple iPhone. The Apple iPhone, first initiated on June 29, 2007, was the first cellular phone of its time to use a touchscreen to cooperate with a computer tablet. The mission statement of Apple is mainly about its products and technology and focuses on more factors i.e. fulfill social responsibility of the society, serve to the people and deliver performance and value through technology. Their vision statement is to enhance product quality, innovation, deep collaboration, and product excellence. Their main objective is to become a market leader in the technology market, expand sales to consumers, attain profit and maintain large market share as well as high- profit margin. They should invest in the business as technology is changing rapidly and even the biggest companies in the world. In the following, an effort has been made to discuss the marketing and sales plan, financial feasibility, operational and action plan. Marketing and sales plan Nature of the products and mode of promotion Apple iPhone is the only smartphone that has the only ability and capability to pay and sustain in the market. Apple has numerous innovative features in one phone such as a 5 MP camera with full HD video recording, wireless and 3G technology, video support, sensor and location tracking. In addition, there are new features, which have enhanced the product such as video recognition framework as Siri and iCloud. The hardware is improved to be compatible with new applications being added, presents a package of values for business specialists to regular phone consumer and gaming enthusiasts (Munoz, 2017). The customer segments are students and middle age up to age approximately 50 including both men and woman internationally. The main reason behind reaching a mass population is their innovative features and services that connect with different people. The iPhone product has “something for everybody”. It is noted that young adults are targeted who are willing to pay on such items and enjoy having luxuries as it can hold the interest of consumers by constantly upgrading the technology. They should promote its product through digital
Business Plan2 marketing strategy as it can encourage customers by attractive promotional offers. It utilizes innovative strategies such as online, mobile app, and social media in order to enhance reputation in the market (Hansson and Mattsson, 2017). Customer analysis and pricing policy The customers chosen for the product are the repeat buyers, which are named as loyal Apple users, as well as first-time users who lastly end up being Apple iPhone, loyal customers. They are technology freak customers, which are ready to shell out extra money and replace the older phones with the new phone having the latest technology and features. It will continue to increase expectation and demand to attract consumers as technology is upgrading and smartphones get cheaper, it will provide a great opportunity to induce them. The anticipated sales over the first year would be 878 million which can be lead in the smartphone market. Sales can be increased in festivals such as Diwali in which customers purchase more and advantage can be gained (Giachetti, 2018).They should utilize a market skimming strategy for the iPhone folding with the storage capacity of 64 GB is priced at $1491, which is $100- 200 more than the previous with more technology that is advanced and features. It enhances the product line of generation of iPhone and gains a lot of respect and recognition from customers to drive the sales of the products. It is an improved and upgraded version than the previous iPhone generation, which is profitable for the company (Wagner, 2017). Mode of communication The communication medium to interact and connect with a customer should be paid advertising which would be trade specific for the target audience. It could “Be smart and get the iPhone, a product like no other”. Digital marketing advertising is anticipated to have an immense growth period and they should use Integrated Marketing Communication Strategy as a major source to reach its customers. Market intelligence can be maintained by doing market research to enter into a new market or invest further into the existing market. They should generate revenue by achieving a higher level of awareness of iPhone folding among the targeted users so that market shares are higher in the entire global market can be achieved. They should provide special offers to customers as in Diwali Mega Challenge coupons can be given to them. They should provide a high-level service and suit the customers’ needs and preferences. They should make online advertising by describing the product feature and make customers fall in love with products by being memorable and entertaining. They should advertise on magazines with some beautiful captions to display the
Business Plan3 HD quality with an excellent camera. They should permit customers to imagine and think while wondering what more can iPhone do (Reichhart, 2014). Promotional Strategy The iPhone folding is being distributed through the way of level of two and three channels. In the initial stage, Apple distributes them in its own retail store with many of its other Apple products. Then, they distribute the iPhone folding to other retail stores like Wal-Mart, Amazon, and Flipkart etc. After that, customers are capable to make purchases online through its digital store, Apple.com. This gives customers the ability and capability to buy products online and make purchases digitally. The various combinations of distribution channels enhance the exposure of revenue generation and product sales. The best sort of promotional strategy can be used isproduct placementwhich inducescustomersto buy products effectively. An integrated promotional strategy should be embraced to have an effective promotion for the iPhone. They should especially target one single segment by which they can generate sales and profit from all ages and income status. The only way for Apple to reach to their customers is through their known customers and loyal customers, which can increase sales and profit. They should give emphasis to the brand importantly, which connect to the iPhone groundbreaking advantage and maintain on a regular basis to generate public awareness (Zhou and Gupta, 2018). Key people The business plan should involve the key people who will work in the business are marketing officer, finance officer, and operating officer. These people can help in managing a business, building the brand, and attain profits for the future success. They should advance their business idea, synchronize the department, and work according to that. They should build a network and association, which can give benefit to the organization long-term future success and development. They should capable to promote the products and services effectively and efficiently. They should always deliver good customer service, which will help to generate revenue and sales effectively. Communication and negotiation should be properly done with potential investors, employees, suppliers, and customers. It will reflect the positive image in the minds of the customers. They should motivate and lead the staff that will help to build a good relationship and enhances productivity. They should maintain good networking and effectively manage skills and capabilities to achieve the goals and objectives, which will contribute to the success of the organization. They should collaborate and teamwork to
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Business Plan4 accomplish the objectives and possess the skills and capabilities to promote the product in the market and satisfy the customer needs (Liu, Zhai and Chen, 2018). Financial Feasibility Equity, bank loan, and the financial institution will fund the company, which helps to raise capital through the sales of shares in an organization. Equity financing helps to raise funds to meet the liquidity requirement of an organization. Loans from banks can be opted for stock inventory and providing credit to users. Banks and financial institution deliver financial assistance to the organization at all stages of their life cycle (Du et al., 2018). Break-even analysis fixed cost$28,59,416 variable cost$350 sales price$425 break even units38126 (Duncan and Whittington, 2018) Thebreak-evenanalysisisanimportanttoolofprofitplanningofthenewproduct development in the organization. It helps to determine whether the new product sustains in the market. If sales would be less than 38126 units than the organization suffers losses and if sales are greater than 38126 than profit will be attained by the organization (Whitlow et al., 2014). Further details has been mentioned in Appendix Operational Plan Porter’s Value chain analysis The components of the production process include inputs, which involves raw material, components, and other material needed for the manufacturing of iPhone folding. Then, the next component is the conversion process, which includes operations that converts inputs into outputs. It alsoinvolvessupportingactivitiescomprisesof purchaseof rawmaterial, production planning, testing if iPhone folding product as all parts are properly working, quality control, and storage of material. The last component is output, which involves finished product as the manufacturing and processing have been done of iPhone folding (Burgers, 2016).
Business Plan5 Administrative finance infrastructureLegal, Accounting Human Resource ManagementTraining, staff planning, personnel Product and technology DevelopmentR&D, process design, market testing ProcurementSupplier management, specification, funding Value InboundOperationOutboundSales &Servicingadded logisticslogisticsmarketingless Examples: Supply Examples:Examples:Examples:Examples:cost= Schedules, Quality Maintenance,Delivery ofCustomerEducation andprofit Controland packaging finished goods, management and training, andmargin And Invoicing Market research warranty (Aggarwal et al., 2016) Inbound Logistics The Apple iPhone folding inbound logistics works with thousands of suppliers internationally maintains a highly cultured supply chain management and fulfills the commitment of the customers. Their main aim behind this is to improve economies of scale, maintain a relationship with suppliers and scale of business operations (Khan, Alam and Alam, 2015). Operations Apple iPhone folding operation covers all segments and 123,000 employees, which involves- Support activities Primary activities
Business Plan6 Japan Europe: the Middle East, India, Africa, and other European countries Americas: South and North America Greater China: Hong Kong, Taiwan, and China It also involves the rest of the Asian Pacific: Australian and other countries (Shaw et al., 2016). Outbound Logistics The outbound logistics includes distribution and warehousing of Apple iPhone folding producedandmanufacturedbythecompany.E-commercesalesareprogressively administered by the organization as a massive source in respect of inbound logistics because e-commerce is more cost effective as compared to sales (Funk, 2017). Marketing & Sales Apple iPhone folding sells and promotes its product through its seven sales channels, which involves: Apple iPhone folding retail stores Apple iPhone folding online stores Wholesalers Retailers Direct communication network Third-party association Value-added resellers Servicing They should deliver exceptional quality of customer service during all the three stages, which includes pre-purchase, during the purchase, and post-purchase. The organization should maintain its service centers in major cities around the world where anyone can use its products to become convinced about the quality (Boyd, 2015). Manage Quality The organization is well equipped with the best staff and personnel who guarantee continuous production and manufacturing of quality and unique products. The quality of the iPhone folding is depending upon the value chain. It is imperative that raw material can enhance the
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Business Plan7 quality by meeting market demands and increased production level. The quality can be improvedbyunderstandingthecustomerneedsandpreferencesandmaintains communication with the customers. It is important to meet the demand to enhance the product’s quality perception. The quality is not defined by its tangible features but also by intangible features as the demand is managed and maintained to keep the product more fashionable. They should provide after sales service to users to keep their customers connected and enhance customer satisfaction (Hunsaker and Thomas, 2017). Outsourcing can benefit a new venture in maintaining profitability and success in the long- term. It lowers the cost of production and manufacturing by redesigning the porter’s value chain framework of the organization. The iPhone folding is a unique and innovative device, which has a virtual distribution of data needed to have an outer prescriptive. They need to ensure that raw material and components reach to their final consumers and all the orders are delivered in a timely manner to their customers. Outsourcing can benefit in a manner that it innovate the products and meets and exceed the expectations of the customers. It focuses on customer service and a long mission and vision to achieve success in the organization (Froud et al., 2014).
Business Plan8 Management of financial record The General Data Protection Regulation (GDPR), 2018 is a regulation in EU rules and law on data privacy and protection for all people within the European Union. It also addresses the distribution of personal data outside the European Union. The GDPR primary objective is to provide control to people over their personal data. They need to collect data on individuals in European Union countries and need to comply with strict rules and regulations around safeguarding customer data. It is a code of conduct which let us know the way in which businesses need to protect the data of their customers and clients because any breach of financial and other qualitative data can lead to such issues which can be unhealthy for the organization. As in developing a management information system, it needs to take care of the data protection act. The software’s are not developed which cannot be easily accessible by everyone. They have to build a local network by which data can be protected and maintained. In the future development, privacy is the most effective and important factor which needs to be taken care. It provides privacy laws with each administration and people have small ownership of their online data, which permits the large organization to fulfill the customers’ needs and preferences. It makes it easier for customers to take a proactive role in retaining and getting the correct information (O'Leary, 2015).
Business Plan9 Action plan ActivityTime period (in months) AuthorityObjective of Growth Concerned Department Business plan Initiation 2 monthMarketing Manager Themain objectiveisto maintain profitabilityand enhancethe numberofthe productofthe company.There is an increase of productivityand goodcustomer service, which is aprimarygoal towardssuccess and growth of the company (Hofmannand Rüsch, 2017). Marketing Department Market Feasibility 15 daysResearch manager Themain objective is to do a market research andanalyze whetherthe product is going to sustain in the market.Analyze thedemandand competeinthe market that it is feasibleenough toestimatethe market conditions. Research and development department
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Business Plan10 Financial feasibility 15 daysFinancial Manager Themain objectiveisto decide if the new businesslineor businessventure is possible. They havetolookat theirmarket demographicsto decide if there is actually a market out there for the newproduct (Eickerand Cilliers, 2017). Finance Department The hiring of workforce and experts 1 monthManager of HRThemain objectiveisto hiringhuman specialists for the newproductin managingand maintainingthe mostimportant assetofthe organization, whichcan improveand enhancethe capabilities (Peng and Liang, 2016). Human Resource Department Planning of Budget 2 monthFinancial Manager Themain objectiveisto analyzethe financial requirementfor Finance Department
Business Plan11 thenewproduct and allocationof resourcesina betterand effectivemanner. This can enhance theamountof moneyeach departmentneeds to spend (Blenko et al., 2016). Start of the production process 2 monthHead of the production Themain objectiveisto providethebest qualityand specialty products to each customer.Itis besttoenhance plansto maximize productivityand monitorthe progress to make anecessary evaluation (Mertens, 2018). Production and Manufacturing Department Purchase of Equipment 2 monthProduction manager Themain objectiveisto assemble the tools andmachinery required to make andinnovatethe newproductin theorganization. Itcanimprove inventory control, Production Department
Business Plan12 whichis importantin success. Software Development 2 monthDesigning Experts Themain objectiveisto developsmart technology for the newproductand implement in the productssothat customersget an advanced technology product(Jay, 2017). Information and Technology Department Promotion and Advertisement 2 monthMarketing manager Themain objectiveisto aimedcustomers aboutthe productsand buildsbrand awareness.They shouldawareof the new product to the users at the maximum level. Marketing Department Distribution1 monthSupply Chain Manager Themain objectiveisto distributethe productstothe customerand makethe Supply Chain Department
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Business Plan13 availabilityof the productineach storeandoutlet of the company. Sales1 monthSales managerThemain objectiveisto retainthe customersto inducethe customers to buy the product.They shouldsellthe productonline andofflineto maximizethe saleofthe product (Ebrahimiand Walsh, 2018) Sales Department References Aggarwal, R., Singh, O., Anand, A. and Yadavalli, V.S.S. (2016) Market Expansion Based InnovationDiffusionModelingandOptimalTimingforChangingManagement Strategy.CDQM, An International Journal,19(1), pp.27-35.
Business Plan14 Blenko, D., Waldron, K., Cornelius, J., Nespoli, G. and Lee, D. (2016) ORGANIZATIONAL ANALYSIS: APPLE RETAIL STORES.Journal of Management, 67, pp.45-98. Boyd, S. (2015) REFeasibility: Designing a mobile application for initiating feasibility analysis.Pacific Rim Property Research Journal,21(2), pp.179-196. Burgers, C. (2016) Conceptualizing change in communication through metaphor.Journal of Communication,66(2), pp.250-265. Du, P., Xu, L., Chen, Q. and Tsai, S.B. (2018) Pricing competition on innovative product between innovator and entrant imitator facing strategic customers.International Journal of Production Research,56(5), pp.1806-1824. Duncan, B. and Whittington, M. (2018) Can Forensic Audit Help Address the Cloud Forensic Problem in Light of the Requirements of the Forthcoming European Union General Data Protection Regulation?.CLOUD COMPUTING 2018, 53(5), p.94. Ebrahimi, A. and Walsh, L. (2018) Improving Management Education Outcomes: Why ManagersNeedtoUnderstandInformationTechnologyinToday'sWorld.Ubiquitous Learning: An International Journal,11(1), pp.56-112. Eicker, T. and Cilliers, J.O. (2017) Equipping small business retailers to manage logistical supplychaindrivers: Atheoreticalguideline.Journal of Transport and SupplyChain Management,11(1), pp.1-12. Froud, J., Johal, S., Leaver, A. and Williams, K. (2014) Financialization across the Pacific: Manufacturingcostratios,supplychainsandpower.CriticalPerspectiveson Accounting,25(1), pp.46-57. Funk, J. (2017) Technology change, economic feasibility, and creative destruction: the case of new electronic products and services.Industrial and Corporate Change,27(1), pp.65-82. Giachetti, C. (2018) Explaining Apple’s iPhone Success in the Mobile Phone Industry: The Creation of a New Market Space. InSmartphone Start-ups, 11(6), pp. 9-48. Hansson, I. and Mattsson, L. (2017) Product placement: A study of audience perception on brand recognition and congruence.Journal of management, 56(2), pp. 56-89.
Business Plan15 Hofmann, E. and Rüsch, M. (2017) Industry 4.0 and the current status as well as future prospects on logistics.Computers in Industry,89, pp.23-34. Hunsaker, B.T. and Thomas, D.E. (2017) The Viability Triad: Desirability, Feasibility, and Sustainability as the New Strategic Decision Imperative.Journal of Management,5(2), pp.1- 4. Jay, R. (2017) The transparent human: the new biometrics and the General Data Protection Regulation.Communications Law,22(1), pp.5-10. Khan, U.A., Alam, M.N. and Alam, S. (2015) A critical analysis of internal and external environmentofAppleInc.InternationalJournalofEconomics,Commerceand Management,3(6), pp.955-961. Liu, J., Zhai, X. and Chen, L. (2018) Optimal pricing strategy under trade-in program in the presence of strategic consumers.Omega, 34(6), 78-90. Mertens, D. (2018) Designing the End-of-Use Consumer Experience in a Circular Economy for the Apple iPhone.Journal of Management, 45, pp.211-434. Munoz, J.M. (2017) Executive Perspectives on Global Business Intelligence: Implications on Corporate Management. InGlobal Business Intelligence, 34, pp. 13-22. O'Leary, D.E. (2015) Big data and privacy: Emerging issues.IEEE Intelligent Systems,30(6), pp.92-96. Peng, Y.S. and Liang, I.C. (2016) A dynamic framework for competitor identification: A neglecting role of dominant design.Journal of Business Research,69(5), pp.1898-1903. Reichhart, P. (2014) Identifying factors influencing the customers purchase behaviour due to location–based promotions.International Journal of Mobile Communications,12(6), pp.642- 660. Shaw, H., Ellis, D.A., Kendrick, L.R., Ziegler, F. and Wiseman, R. (2016) Predicting smartphone operating system from personality and individual differences.Cyberpsychology, Behavior, and Social Networking,19(12), pp.727-732.
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Business Plan16 Wagner,T.F.(2017)Promotingtechnologicalinnovations:towardsanintegrationof traditional and social media communication channels. InInternational Conference on Social Computing and Social Media, 67, pp. 256-273. Whitlow, M.L., Drake, E., Tullmann, D., Hoke, G. and Barth, D. (2014) Bringing technology tothebedside:usingsmartphonestoimproveinterprofessionalcommunication.CIN: Computers, Informatics, Nursing,32(7), pp.305-311. Zhou, L. and Gupta, S.M. (2018) Marketing research and life cycle pricing strategies for new and remanufactured products.Journal of Remanufacturing, 23, pp.1-22.
Business Plan17 Appendices Start-up Costing for [Apple iPhone folding] - [2018] START-UP COSTSCost ($)EQUIPMENT/CAPITAL COSTSCost ($) RegistrationsBusiness purchase price$6,92,090 Business name$69,219Start-up capital$34,61,000 Licences$27,687Plant & equipment Permits$1,24,593Computer equipment$1,38,437 Domain names$96,906Computer software$2,76,874 Trade marks/designs/patents$69,219Phones$13,84,400 Accountant fees$96,906Security system$69,220 Rental lease cost (Rent advance/deposit)$1,10,750Office equipment Utility connections & bonds (Electricity, gas, water)$1,10,750Furniture$6,92,200 Phone connection$41,531 Internet connection$83,062 Computer software$96,906 Training$69,219 Wages$27,687 Stock/raw materials$13,844 Insurance Building & contents$7,75,247 Product liability$83,062 Workers compensation$13,844 Business assets$1,24,593 Marketing & advertising$83,062 Total start-up costs$21,18,086 Assumptions: All figures are GST exclusive.$7,41,330 Total equipment/capital costs $28,59,416$67,14,221