Business Development Plan for MG3 Motor Garage

This business development plan discusses the key aspects of MG3 Motor Garage, a small scale business focused on providing repair and regular car service. It includes an analysis of the market, environmental factors, internal capabilities, and development opportunities. The plan outlines objectives, strategies, and recommendations for the organization.

Business Development Plan
MG3 Motor Garage

Executive Summary
MG3 Motor Garage is a small scale business focused on providing repair and regular car service
to consumers. The organisation has 5 employees and is planning to expand its business further in
Sunshine Coast Queensland. It has significant competition in the market and hence is focused on
penetrating the market based on cost focus. It has an initial financial allotment of AUD 1 million
and wants to open a new outlet by the end of this year. The present study is a complete and
cohesive discussion of the business plan of the organisation that has discussed the key aspects of
business.

Table of Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Background of the business and the market.................................................................................................5
Environmental Analysis..............................................................................................................................5
PESTEL Analysis........................................................................................................................................6
Internal Analysis......................................................................................................................................7
Development Opportunity and Goals..........................................................................................................8
Business Development Plan........................................................................................................................8
Conclusion and Recommendations............................................................................................................10
References.................................................................................................................................................11

Introduction
The small and medium scale industry has become a strong backbone for the growth and
development of an economy. In developed countries it has contributed significantly to the
progress of the economy and in developing nations it has helped to build a strong economy
hence, it could be said that small scale businesses form an important part of the global economy
as well. There has been significant research on the growth and development of small scale
business in the world and many countries have encouraged the formation of small scale industry
and Australia is one of them. The development of the small scale business have been a boon to
the country as it contributes around 3% to the total GDP of the country and also stands to be an
important sector in relation to providing employment in the country (Wirtz et al., 2016). Hence,
the concept of developing small business is extremely important. The present study would
discuss the key aspects involved in developing a small business and would take an opportunity to
put forward a cohesive business development plan.

Background of the business and the market
MG3 Motor Garage is a small business venture providing automobile repair services to the
consumers across Sunshine. The organisation is small in terms of strength with only 5 employees
but is an important player in the market. The owner Mr. Paul is an experienced person and has
worked in different automobile shops and organisations in the technical team before opening his
own workshop. The organisation has so far, been effective but in order to expand or flourish the
organisation it is extremely important to keep in mind certain key aspects out of which analysing
the market is an essential one. Paul competes with some small scale organisations providing the
same service with some big names in the market and hence, it becomes important for Paul to
understand the market and the possible trends regarding automobile service. Sunshine Coast is a
moderately big city in Queensland, Australia and the number of domestic and commercial cars is
high in this area which clearly provides an excellent opportunity to the organisation MG3 Motor
Garage to serve the consumers, but it is important to note that the competition is also high with at
least 10 renowned car repair services operating in the market. Hence, it is extremely important
for the organisation to develop a strong strategy which would help to get a strong hold over the
car repair market in this area (Charles, Schmidheiny and Watts, 2017). Queensland is a big
territory in Australia and hence, the market is considerably large but it is important to understand
that local consumers would visit the organisation and there would be lower percentage of flying
customers hence, the strategy has to be local consumer centered that would provide upper hand
in the market. The car repair service segment in Sunshine is moderately big and the area of
Sunshine Coast forms an important part of that. From the market analysis it is clear that the
market competition is high but with different offering the organisation would be able to attract
consumers (Burns, 2016). Hence, for that the organisation needs to further its understanding with
the help of external and internal analysis.
Environmental Analysis
The environmental analysis helps an organisation to analyse the external and internal factors
which could impede or enhance the growth and development of an organisation. It is essential for
every organisation to implement effective external and internal environmental analysis which
would help to develop strategies accordingly and plan business development in the best possible
manner. The external analysis involves analysing the different external factors which is best done

with the help of the PESTEL factors and the internal analysis involves analysing the key internal
capabilities and involvement of stakeholders. MG3 Motor Garage will need to implement
environmental analysis to develop the business development plan in the best possible manner.
PESTEL Analysis
The PESTEL analysis stands for political, economic, social, technological, environmental and
legal factor analysis.
Political: Australia is a politically stable country thus; it is less likely that political factors would
affect business. However, political unrest or instability would increase uncertainty in business.
Political decisions might affect the business. For instance, increase in resource and materials
would affect the business to a large extent hence, it is important for the organisation to follow
any political change thoroughly to make amends in the business (Charles, Schmidheiny and
Watts, 2017).
Economic: Economic policies of the government largely affect business. For instance, if inflation
increases the spending power of people will decrease showing the reluctance. On the other hand
it is also important to note certain fiscal decisions like increase in business tax or income tax
would largely affect sales and purchase of services. Hence, this would definitely need to be kept
in mind while making business decisions and plans. Demand and supply is one of the major
economic risks that affect the business. In this era of high competition there are number of
organisations providing same service and hence this aspect should effectively reflect on the
business plan.
Social: Social risks need to be effectively managed by an organisation like a car repair.
Especially for a small scale business like MG3 has to focus on social factors. Australia has
ageing population and since MG3 would need specialist employees it is important the
organisation doesn’t look forward to getting young employees rather looks for experience. It is
important to have fit employees which mean health and fitness is a major factor for the
organisation and payment for the employees to provide effective service to people. The
Australian consumers are ethical consumers and hence, payment and health should always be at
the helm of strategy making for an organisation (Burns, 2016).

Technological: Technology is one of the most important factors that help an organisation to
differentiate from other competitors. Hence, it is important for the organisation to emphasise on
technology. The organisation needs to have hi-tech tools and also form of online marketing
which is an excellent way of getting closer to the consumers. Thus, a small venture like MG3
needs to take technological aspects as an important business opportunity.
Environmental: Environmental factors tend to be one of the major concerns for automobile
organisations. Car repair companies release significant environmental pollutants which have to
be effectively addressed as well as waste management stands to be an important factor. Hence, it
is important that MG3 takes responsibility for their job and contribute to the sustainable
development of the environment.
Legal: There are certain legal aspects which the organisation has to follow. For instance, in order
to set up an organisation and to recruit people there are some key legal aspects which have to be
followed and as a small business venture MG3 Motor Garage has to follow them (Burns and
Dewhurst, 2016).
Internal Analysis
Customers: They are the core stakeholder of the organisation and want the service to effective at
an affordable rate. The area of Sunshine Coast is competitive in terms of car repair and service
hence, it is important for the organisation to analyse the demand and supply services accordingly
with specific focus.
Supplier: the suppliers stand to be important stakeholder for the organisation because without
effective supplies and materials it wouldn’t be able to provide effective services to the
consumers. Due to high competition suppliers have high bargaining power and hence it is
important to have a strong relationship with the suppliers to provide services effectively (Chang,
2016).
Competitors: Competitors are high in this area hence, the organisation has to differentiate either
based on cost focus or service orientation or else capturing marketing share would be tough for
the organisation (Julien, 2018).

Government: Government plays an important role in managing small scale industry and
contributes to the growth and development of these organisations by reducing income tax and
service tax for them which helps to increase the profit of the organisations (Westerman and
Bonnet, 2015).
Apart from that resources and capabilities of the organisation plays an important role in effective
service provision. The core capability of the organisation involves experienced staffs and
effective customer service. The customer relationship management is effective for the
organisation which is likely to provide upper hand in the market. The safety of the workers have
to be maintained as discussed and hence the organisation has developed intercoms to
communicate effectively and complete technical system and take steps to maintain risk register
which helps to identify risks effectively and address them. The organisation has planned to invest
AUD 1 million to continue with the operations and address all the obligations effectively
(Taneja, Pryor and Hayek, 2016).
Development Opportunity and Goals
The organisation has significant development opportunities. The main goal of the organisation is
to become most visited care repair business in its local area of Sunshine. In order to do that the
organisation would need to communicate effectively with the consumers and hence this is where
development opportunities would come into the picture (Storey, 2016). The organisation doesn’t
have a website which would be an extremely effective strategy to start off with. It would also be
effective for the organisation to have a strong blog for the organisation which would help to
communicate with the consumers. Develop a strong marketing strategy which contributes to the
creation of awareness in the market. In the local area there’s very few spraying and decorating
service and the organisation could encash on that. Apart from that the organisation could also
specialise on certain services developing a strong hold over the market (Weber, Geneste and
Connell, 2015).
Business Development Plan
Business Mission: To become the leading car repair organisation in Sunshine through affordable
and effective service provision.
Objectives

 To increase the revenue of the organisation by 20%.
 To open another outlet by the end of November 2019.
 To recruit 5 more employees by the end of September 2019.
Company strategy
The organisation will emphasise on cost focus to compete in the market with the other
companies in the local area. Its targeted market is domestic and commercial car owners of
Sunshine cost. It will also emphasise on providing services in visits that would largely help the
organisation to make sure consumers are served effectively (Hatten, 2015).
Marketing Strategy
The marketing strategy will be kept simple by the organisation even in this high competition
market. The organisation will develop a strong interactive website which would be connected to
the official number at the workshop which would help to provide services effectively. Apart
from that service reminder strategy would be effective to communicate with consumers. It will
implement a promotional mix which would involve usage of customised service in cars and
provide discount and freebies to the consumers which would help to attract consumers in the best
possible manner (Kossyva, Sarri and Georgolpoulos, 2015).
Control
The control will be implemented on the strategy with the help of regular analysis of the strategy.
The business strategy will be analysed every 3 months based on Key Performance Indicators
which helps to measure the performance of the organisation effectively. It will also help the
organisation to perform the operations in the best possible manner.
Finance
The initial investment including the key devices and technical system development at the facility
is AUD 1 million. This would be regularly analysed and investment will increase with time
(Cortimiglia, Ghezzi and Frank, 2016)

Conclusion and Recommendations
Small business as discussed is the backbone of every economy and hence it is extremely
important to encourage small business development. In the present case MG3 Motor Garage is
focused on launching its operation with five employees and an investment of 1 million to operate
effectively. It could be said that even though the company faces competition in the market it is
likely to be able to encash on the market condition with the help of a cost focused strategy that
would help the organisation to implement its penetrative business development model in the best
possible manner. However, there are certain recommendations which could be made to the
organisation:
 Implementation of an HR department for smooth running of the back office work.
 Regular analysis of the financial budget to allocate financial resources in the best possible
manner.
 Development of overall performance analysis tool which helps to effectively manage the
business.
 Implementation of a separate social media marketing model to reach consumers in a
better way.
 Regular analysis of the services and accordingly coming up with new services (Kourdi,
2015).

References
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Charles Jr, O.H., Schmidheiny, S. and Watts, P., 2017. Walking the talk: The business case for
sustainable development. Routledge.
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making nexus: evidence from a cross‐industry mixed‐methods study. R&D Management, 46(3),
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Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kossyva, D., Sarri, K. and Georgolpoulos, N., 2015. Co-opetition: a business strategy for SMEs
in times of economic crisis. South-Eastern Europe Journal of Economics, 12(1).
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Storey, D.J., 2016. Understanding the small business sector. Routledge.
Taneja, S., Pryor, M.G. and Hayek, M., 2016. Leaping innovation barriers to small business
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Weber, P., Geneste, L.A. and Connell, J., 2015. Small business growth: strategic goals and
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Westerman, G. and Bonnet, D., 2015. Revamping your business through digital
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Wirtz, B.W., Pistoia, A., Ullrich, S. and Göttel, V., 2016. Business models: Origin, development
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