Business Ethics and Success

The assignment delves into the crucial relationship between business ethics and success. Students are tasked with analyzing various theories and concepts related to ethical conduct in business. The analysis should encompass real-world examples, case studies, and the benefits of ethical practices for organizations.

Business Plan
Term Paper
January, 29th 2018
3500 words
Student name
University

TABLE OF CONTENTS
BUSINESS PLAN SUMMARY.....................................................................................................4
The Business..............................................................................................................................4
The Market................................................................................................................................4
The Future.................................................................................................................................5
The Finance...............................................................................................................................5
Business Details.........................................................................................................................5
Business Premises.....................................................................................................................6
Registration Details..................................................................................................................7
Organization Chat....................................................................................................................7
Management and Ownership...................................................................................................8
Key Personnel...........................................................................................................................8
Products/ Services.....................................................................................................................9
Innovations..............................................................................................................................10
Insurance.................................................................................................................................11
Risk Management...................................................................................................................11
Legal considerations...............................................................................................................11
Operations...............................................................................................................................11
Sustainability Plan..................................................................................................................12
THE MARKET............................................................................................................................13
Market Research.....................................................................................................................13
Market Targets.......................................................................................................................13
Environment...........................................................................................................................14
Customers................................................................................................................................14
SWOT analysis........................................................................................................................14
Competition.............................................................................................................................16
THE FUTURE..............................................................................................................................17
Vision statement......................................................................................................................17
Mission statement...................................................................................................................17
Goals and objectives...............................................................................................................17
Action plan..............................................................................................................................18
THE FINANCES..........................................................................................................................18
2

Key objectives and financial review......................................................................................18
Assumptions............................................................................................................................24
Startup cost.............................................................................................................................24
Balance sheet forecast.............................................................................................................25
Profit and loss forecast...........................................................................................................26
Expected cash flow..................................................................................................................27
Breakeven analysis..................................................................................................................27
SUPPORTING DOCUMENTATION..........................................................................................30
Works cited...............................................................................................................................31
3

BUSINESS PLAN SUMMARY
This is a draw of the proposal business in conclusion. This summary involves business
description, the marketing plans, organization and management and financial plan.
The Business
JORDAN ENTERPRISE is established to offer commodities which are generally
household in Melbourne Australia. These include; tea leaves, soap, wheat flour bread,
cooking fat and many other. It is a sole proprietorship Form of business and Steve
Johnson is the owner.
The business is expected to grow quickly due to availability of steady customers, good
transport and communication network and availability of raw materials within Melbourne
Australia.1
The Market
The major people constituting the market to the proposed business are individual persons,
institutions and Australian government agents.
The business has laid the strategies including sales, promotion, advertisement and
discounts which will help it to compete well in the Australian market.
The following will form the organizational structure of the business and will also have to
attain the entire necessary document like licenses and permits in order to meet legal
requirement. With the help of Australian Business License and Information Services
(ABLIS), the business will ensure that it obtains all the required documents. 2
1 Banks, William. "Make it or die: The secret behind big business today." Harvard
Business Review 6 (2015): 36-71.
2 Banks, William. "Make it or die: The secret behind big business today." Harvard
Business Review 6 (2015): 36-71.
4

The Future
Now and in the future, the business aims at providing high quality good and services with
good packaging and clean environment.
The business also aims at reducing costs of operation and offer fair prices for
commodities and services provided. The policies and regulations are likely to be
government policies and health policies.
The Finance
Jordan Enterprise will be financed by the following, finance from owner’s savings,
contribution from family members and loan from banks. The amount of capital required
by the business at start-up amount is AUD.150, 000.
AUD. 100,000 is to be obtained from proposal savings AUD 20,000 from family
member’s contribution and AUD.30, 000 is to be borrowed from bank loan board as a
long term loan.3
THE BUSINESS
The business will be established just like any other business basically with an intention of
investing back profit. JORDAN ENTERPRISE has the potential of meeting the
expectation and satisfaction of its customers’ needs. The profit from the business will be
used for the expansion of the business.
Business Details
The business name is JORDAN ENTERPRISE which is easy to pronounce and to
remember.
The business shall be identified by a logo shown below.
3 Banks, William. "Make it or die: The secret behind big business today." Harvard
Business Review 6 (2015): 36-71.
5

Business Premises
The intended business will be located in Melbourne city, South Melbourne next to South
Melbourne Market.
The business will start its operation from January 2019 from the proposed site.
South Melbourne Market
Jordan enterprise
The business layout will be as follows:
6
COME AGAIN
JORDAN
ENTERPRISE
THE BEST
TO

Registration Details
The business will operate under the postal address
JORDAN ENTERPRISE
P.O.BOX 325-3000
MELBOURNE AUSTRALIA.
EMAIL: [e-mail]
Organization Chat
The business will be run by a team of professionals who will be responsible for decision
making within the business. The organization chart will include the following people at
the beginning of the business.
The manager
Assistant manager
Financial officer
Operations officer
7
Security officer
ShelvesShelves Shelves
Cashier MANAGER

Head of security
Transport officer
Cashiers
Sale representatives
Cleaners
The owner of the business will manage the business and will recruit other staffs.
The structure below shows the organizational structure of the business;
Management and Ownership
The business will be owned by Steve Johnson who will be a holder of certificate in sales
and marketing. He will also be responsible for the management of the business.
Key Personnel
JORDAN ENTERPRISE will be operated by Steve Johnson who will be 22 years old.
The owner is a holder of certificate in sales and marketing. A part from this he has
intensively studied in rental shops from Melbourne small business enterprise.
He has knowledge in front office management and retail shop management.4
4 Otto, Harkins Dedogo. How to start a business and succeed in the information age
.Walnut Creek, CA: Alta Mira Press, 2015.
8
Manager
CashierDistribution agent
Security officerCleaner

In addition the owner has one year experience and has faced challenges in managing
other people’s business which made have second thought. The manager of the proposed
business is to be the owner himself.
His duties shall be;
 Hiring and firing employees,
 Manage business activities,
 Manage the management information system,
 He is the final decision maker.
Products/ Services
The business will be dealing with household products. The business will be concerned
with selling of items to the general community. The size of the business will be small at
the beginning with promotion and advertisement then the size will increase after 2 years.
Some of the products and their corresponding prices are as listed below.
Item AUD (Price)
Table salt 20 per kg
Washing Powder 200 per kg
Exercise book 20 per kg 80 pages
Bread 30
Maize flour 85 per kg
Wheat flour 100 per kg
Soap 60 per bar
Sugar 100 per kg
9

Tea leaves 150 per kg
Pen 20
Cooking fat 130 per kg
coffee 300 per kg
The business falls under service industry which contributes significantly to the Gross
Domestic Product of Australia.
The business is bound to succeed because of the following factors.
 The business will provide goods with fair competitive price.
 The location of the business will be friendly and attractive.
 The business will be fed with improved transport and communication network
which will boost the prospect of the business.
Innovations
The business will carry out innovative ways of offering the best platform for service
delivery. The long term goals set by the business in order to realize its innovative goals
will include:
 Expansion of the business
 Establishing other branches in other areas.
 Creation of job opportunities
 To buy a motor vehicle for transportation of goods for regular customers within
and outside the area.
The business aims to achieve the following short term goals as well in its innovative area.
- To have proper management
10

- To offer better and quality services to the customers
Insurance
The business will seek for an insurance cover for both its goods and employees. This will
help cushion the business from losses just in case an accident occurs. The business will
seek insurance from the following ABODE CAPITAL in Australia.
Risk Management
In order to avoid risks, the business will use various risk treatment methods such as risk
transfer by hiring law firms within Australia to handle all its legal issues. The business
will also make sure that it avoids venturing into the sale of products that do not move
quickly in order to avoid being caught up in risky financial conditions.
List of potential risks (in order of likelihood) that could impact the business
Risk Likelihood Impact Strategy
Poor management Unlikely High Employ qualified staff
only
Insufficient funding Likely, Medium Seek for loans from
various institutions
Accidents within the
premises
Unlikely Low Ensure that employees are
trained on how to handle
machines within the
premises
Electric faults Unlikely Low Hire qualified technicians
to handle power
department
Legal considerations
The business will hire a group of lawyers on a permanent basis to run its legal operations
from time to time. This will not conflict with the functions of the hired law firms. This
will give a proper safeguard in terms of legal requirements.
Operations
11

The business requires a starting capital of 150,000 which will be obtained as follows.
Personal saving AUD 10,000
Parents and well wishers AUD 20,000
Loan from Bank AUD 30,000
Total AUD 150,000
In total the beginning, the owner intends to use the money as follows.
Task AUD
Registration
License
Electricity
Water metre
Advertisement and promotion
Telephone connection
Stock
Miscellaneous
3000
6000
2000
20,000
16,000
2000
100,000
1000
Total 150,000
Sustainability Plan
The opportunity will be taken due to
-High population of the customers
The proprietor has knowledge and skills towards the intended business
- Improved infrastructure
- Availability of good communication and transport system.
12

The business will contribute some assistance when:
-Student are unable to find areas for industrial attachment
- Give back to the society by sponsoring a few students
The business will perform better than all other businesses located in the area. This is
because the proprietor has acquired all the facilities to run the business.5
The business goals and objectives include the following:
THE MARKET
The business intends to sell its products in the market through its distribution agents and
also direct to the customer. The customers who will buy goods in large quantity will be
offered a free transport. The business intends to offer high quality products. The customer
will be increasing daily since they will be served very well.
Market Research
The business will carry out key market research in order means and ways by which it can
improve its sales. This will be done through the use of certain key marketing objectives in
the proposed business which will be:
(i) To identify and retain customers through application of customers friendly
policies as a means of measuring the business goals.
(ii) To develop and implement strategies in line with dynamic forces in the
business environment so as to ensure appropriate market share.
5 Banahma, Willm. "Organization in business”. “Western Economics Review 6 (2015):
19-31.
13

Market Targets
The business targets expansion and growth of the business. This will increase production
in the market. The owner will take advantage available and compete with other
enterprises. The business will be growing strongly as it expands and minimizes
weaknesses in the enterprise that might cause it to lose customers back to serve as growth
return. This will ensure continuity of the business.
Environment
The business environment is friendly though competitive. The intended business will
enter into operation within a view of growth to achieve its expectations.
Customers
The table below shows the potential customers and their pattern
Potential customers Characteristics Purchasing Time of purchase
schools Good will Large quantity Every Friday at
10.00am
Individuals Good will Medium quantity 6.00am-9.00 am
Students No income Small quantity 7.00am-5.00 am
All the potential customers on the good will created will be expected to receive a
discount on the items they but, that is of 4% will be offered to cash customers.
SWOT analysis
COMPETITOR STRENGTH WEAKNESS OPPORTUNITY THREATS
1 Good
management
Small scale New and rapidly High competition
14

personnel
2 Improve
relationship with
customers
Limited
market
Changing taste of
customers
Foreign
competitor
3 Entrepreneurial
skills
New to the
market
Divinity to a number of
products
Price fluctuation
Market Share
At the beginning of the operation, the business intends to have total customers of 4000
out of 10,000 total populations in the area.
This is represented in the table below.
At the beginning of the business.
Business Number of customer Percentage
Winnie shop 1000 10%
Joseph general store 4200 42%
Peter shop 800 8%
Jordan enterprise 4000 40%
Total 10,000 100%
After one year
Business Number of customers Percentage
Winnie 1500 15%
Joseph general store 1500 15%
15

Peter shop 2000 20%
Jordan enterprise 5000 50%
Total 10000 100%
Competition
The existing enterprises which will highly compete the proposed business are:
WINNIE SHOP, JOSEPH GENERAL STORE and PETER SHOP. Their locations are
near Jordan enterprise and they offer high competition to it.
The competitor businesses are smaller in size compared to JORDAN ENTERPRISE.
Through an organized schedule, promotion, pricing and advertisement, JORDAN
ENTERPRISE is going to compete them out.
The table illustrates the competitors’ analysis.
BUSINESS AGE FORM OF
OWNERAUDI
P
PRODUCTS STAFF ADVERTISE
MENT
WINNIE
SHOP
3 years Partnership Wide variety Lack skills Through radio
JOSEPH
GENERAL
STORE
7 years Partnership Wide variety Not adequate Not advertised
PETER SHOP 4 years Sole
proprietorship
Poor quality Not trained Not advertised
JORDAN New Sole Wide variety Trained and Through T.V.
16

ENTERPRISE proprietorship motivated and Radio
Advertising and Sales
The proposal business will enter into the market through advertisement in Television and
in radio which will make people aware of the existence of the business.
It will also offer services and advice to the customers on new products and how to use
them.6
THE FUTURE
Vision statement
To be a leading global shopping outlet with the best services for all
Mission statement
To serve humanity in the best way possible through sales of genuine products that
safeguard human life.
Goals and objectives
 Expansion of the business to other continents such as Africa and Asia
 Establishing other branches in other areas with in Australia and beyond.
 Creation of job opportunities for Australians and non-Australians
 To buy a motor vehicle for transportation of goods for regular customers within
and outside the area.
Action plan
The business will put into consideration advertisement and promotion so as to have large
share in the market. The intended business will set friendly and reasonable prices to
6 Otto, Harkins Dedogo. How to start a business and succeed in the information age
.Walnut Creek, CA: Alta Mira Press, 2015.
17

ensure that early sales are realized. The business will also plough back profit so as to
aspire business growth.
The price of products will be variable according to the seasons that are when there is high
demand in a product that price will go high and when the demand is low the price will
also decrease.
The business will offer credit facilities to regular customers who purchase large
quantities. The selling price of goods will be at least lower than that of the competitors.7
THE FINANCES
This includes the capital requirements for the business and their usage. The financial
information will be contained in proforma income statement, showing clearly the gains
and losses for the three years. Also there will be a three year analysis of a balance sheet
cash flow and break- even analysis for the proposed business.
Key objectives and financial review
Pre-Operational Costs
The pre-operational cost shall be operated as follows.
Items Cost
Electricity meter
Water meter
2000
1500
7 Otto, Harkins Dedogo. How to start a business and succeed in the information age
.Walnut Creek, CA: Alta Mira Press, 2015.
18

Advertisement and promotion
License
Furniture
Telephone
5000
7000
1000
6000
Total 22500
Working Capital
This is the difference between current assets and current liabilities.
Working capital for the three years that is 2018, 2019 and 2020.
The table below shows the working capital for the three years.
Particulars 2018 2019 20120
Current Assets
Stock
Cash in hand
Cash at bank
Debtor
Total current
assets
Current liabilities
Bank loan
Creditor
80000
100000
50000
30000
260000
30000
60000
100000
100000
300000
40000
620000
-
20000
300000
250000
450000
20000
102000
-
10000
Total liabilities
Working capital
90000
17000
20000
600000
10000
1010000
19

Working capital= current Assets-current liabilities
Pre- operational cost AUD 22500
Working capital: AUD 600000
Employee remunerations
This will be as illustrated in the table below:
Position Number Basic pay(AUD) Allowance (AUD) Gross pay
(AUD)
Manager 1 5000 5000 10000
Cashier 1 4000 2000 6000
Distribution agent 1 3000 1000 4000
Cleaner 1 2000 1000 3000
Security officer 1 3000 500 3500
Pricing Strategy
The intended business will set friendly and reasonable prices to ensure that early sales are
realized. The business will also plough back profit so as to aspire business growth.
The price of products will be variable according to the seasons that are when there is high
demand in a product that price will go high and when the demand is low the price will
also decrease.
The business will offer credit facilities to regular customers who purchase large
quantities. The selling price of goods will be at least lower than that of the competitors.8
8 Otto, Harkins Dedogo. How to start a business and succeed in the information age
.Walnut Creek, CA: Alta Mira Press, 2015.
20

Advertising and Promotion Strategy
The business will put into consideration advertisement and promotion so as to have large
share in the market.
Advertising Strategy
The advertising of the business will be done through the radio and television in order to
make people aware of the business and attract them. Advertisement of the enterprise will
be carried out after six months so as to keep on maintaining and attracting more
customers.
Promotion Strategy
For good promotion of the business there will be free sample of products, window
displays and offering after sales service. Promotion will be done after six months. It will
measure the effectiveness and assessing the amount of goods sold after the promotion.
Sales Tactics
The owner will sell the products direct to the customer. Also the owner will offer package
facilities for those who buy in bulk. The items will be delivered to their destination and a
receipt to be given to ascertain that goods have been paid for. The recruitment of sales
force, that is accountant, salesmen and cleaners will be advertised on the local newspaper
and be trained when they have succeeded an interview. This is to ensure that they are
retained in the organization. They will be given incentives and appreciation. Housing
allowances will be offered to them. Uniform will be offered to them free of charge. On
sales they will be given a commission of 10% on every amount sold above AUDs. 15,000
monthly.
Monthly Material Requirement
21

Material Quantity Unit
cost
Total cost
(AUD)
Source
Wheat flour
Cocoa
Soap
Cooking oil
Sugar
Tea leaves
Fresh milk
Maize flour
Salt
200kg
50kg
20 bars
100kg
200 kg
100 kg
80 packets
100 kg
20 kg
60
40
60
100
80
50
30
60
20
12000
2000
1200
10000
16000
5000
2400
6000
400
Mediterranean wholesales
Mediterranean wholesalers
Mediterranean wholesalers
Mediterranean wholesalers
Mediterranean wholesalers
Mediterranean wholesalers
Mediterranean wholesalers
Mediterranean wholesalers
Mediterranean wholesalers
Mediterranean wholesalers
Total cost 55,000
Monthly Labor Requirement
The expected number of employees in the business is five. They type of work to be done
will be according to their qualification.
The total amount spent on labor every month is AUD. 26,500.
Position Salary (AUD)
Manager 10,000
Cashier 6000
Distribution agent 4000
22

Cleaner 3000
Security officer 3500
Total 26500
Monthly Operational Cost
ITEM COST
Wages and salaries
Advertisement
Electricity bill
Water bill
Stock
Transport
Telephone
26,500
1000
900
500
60,000
2000
3000
Total 93,900
Operation Process
Due to availability of well trained workers high quality facilities and equipment and
conducive working environment. The operation of the business will take place smoothly.
It will involve the purchasing of items from the manufacturer and deliver them into the
enterprise. A pick up will be used to transport commodities of customer from the
business to their destinations.
The operation of the enterprise will be starting from 6.00 am upto 9.00pm evening. A
lunch break for the employees will be in between 1.00 and 2.00 pm.
23

Time Task
6.00 am
1.00 pm-2.00 pm
9.00 pm
Opening time
Lunch break
Closing time
Assumptions
(a) Business sales will be as projected on better, this will enable the business to gain
stability hence realizing profits.
(b) Loan from bank and from other sources will be made available at a appropriate
time.
(c) Safety regulation
(d) The business will ensure every worker is insured and compensated in case of any
risks.
(e) Health regulation
(f) The business will acquire the public health certificate from authorized sources to
improve the business health standards.
Startup cost
In order to effectively start up its operations, the business will require AUD.150, 000.
Jordan Enterprise will be financed by the following, finance from owner’s savings,
contribution from family members and loan from banks.
24

Balance sheet forecast
25

26

Profit and loss forecast
Expected cash flow
Below is the projection of the cash flow for the three years.
EXPECTED CASH FLOW FOR THE YEAR 2018, 2019, 2020
Particulars 2018 2019 2020
Sales 1060000 1370000 1950000
27

Less: purchases
Gross profit
Less: expenses
Net cash
Less: 10% tax
provision
Net profit after tax.
41100
1018900
334650
684250
68425
615825
268500
1101500
473400
628100
62810
565290
468000
1482000
584800
897200
89720
807480
Breakeven analysis
Particulars 2018 2019 2020
Fixed costs
Salaries/wages
Interest on loan 5%
Rent
License
Total Fixed cost
Variable cost
Electricity bill
Water bill
Advertisement and
Promotion
318000
1500
36000
7000
362500
10600
6050
20000
360000
-
36000
8000
404000
27700
14400
30000
480000
-
63000
20000
563,000
16300
7500
27000
28

Purchases
Repair& maintenance
Transport
Total variable costs
41100
-
7000
84750
268500
2000
41300
383900
468000
3000
54000
575800
Breaking even Analysis for the years
2010 2011 2012
B.E.A= Fixed cost B.E.A= Fixed cost B.E.A= Fixed cost
1- Variables cost 1- variable cost 1- variable cost
Sales sales Sales
362500 404000 563000
1- 84750 1-383900 1-575800
1060000 1370000 1950000
= 362500 = 404000 =563000
29

SUPPORTING DOCUMENTATION
Appendix 1
Location
Melbourne Exhibition center
South Melbourne market
Jordan enterprise
30

Source Google Map.
APPENDIX 2
Layout of the business
31
Security officer
ShelvesShelves Shelves
Cashier MANAGER

Works cited
Berger & Fleischmann, Psychology & Marketing. Alta Mira Press, New York 2014.
Alphonso $ Greg, Success in Business: the ultimate guide for business men and women.
Alta Mira Press, New York 2014.
Derrick, William. "Business in the 21st century. “Midwestern Political Review 6 (2014):
2-3.
Banks, Wilson. "Business, markets and profits. “Midwestern Political Review 6 (2015):
2-31.
Davis, Herman. "How to plan for the future of your business. “Midwestern Political
Review 6 (2016): 6-31.
Mark, Johnston Ramsey. How to start a business: a guide for business students
.Walnut Creek, CA: Alta Mira Press, 2005.
Yow, Steve Twin. The history of small business in Australia
Walnut, CA: CRC Press, 2005.
Mark Staves, Hayashi P., Habib, G., & Batista, L. F. (2016). Ethics in business. Penguin
2015
Banks, Johnson. "Capital acquisition and business start up planning. “The European
Markets Review 6 (2011): 20-37.
32