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BUSINESS DEVELOPMENT PLAN CHAPTER 1: INTRODUCTION1 1.1 Background of the research 1 1.2 Business opportunity 2 1.3 Business Model 4 1.4 Structure of the work 5 CHAPTER 2: THE BUSINESS OPPORTUNITY 6 CH

   

Added on  2020-10-05

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BUSINESS DEVELOPMENTPLAN

Table of ContentsCHAPTER 1: INTRODUCTION....................................................................................................11.1 Background of the research..............................................................................................11.2 Chosen Scenario...............................................................................................................21.3 The business opportunity..................................................................................................21.3.1 Rationale for the business idea.................................................................................31.3.2 Target Market, Customer and Accessibility.............................................................31.3.3 Business Model.........................................................................................................41.4 Structure of the work........................................................................................................5CHAPTER 2: THE BUSINESS OPPORTUNITY..........................................................................6CHAPTER 3: FEASIBILITY .........................................................................................................83.1 Market Research Methodology........................................................................................83.1.1 Defining the research problem..................................................................................8(a) Problem formulation....................................................................................................9(b) Aim of the current market research..............................................................................93.1.2 Design for the market research.................................................................................93.1.3 Information types and sources that are required.......................................................93.1.4 Proposed methods of data analysis.........................................................................103.1.5 Formulation of findings..........................................................................................123.1.6 Ethics Issues............................................................................................................123.2 Market research to identify business opportunity..........................................................123.2.1 Exploratory research...............................................................................................133.2.2 Market Segmentation..............................................................................................133.2.3 Market Accessibility...............................................................................................153.3 Industry/market analysis.................................................................................................153.4 Organisational feasibility................................................................................................173.5 Financial feasibility........................................................................................................19Estimation of first year's sales.........................................................................................19

Funding requirement for the business proposal...............................................................19Initial year's sales for break-even attainment..................................................................20Sales required for payback in years 2-4...........................................................................22Sales required for Pay-off i.e. excess of 150% ROEI in five years' time........................223.6 Resource sufficiency......................................................................................................22Financial..........................................................................................................................22Technical..........................................................................................................................23Human Availability.........................................................................................................23Physical office.................................................................................................................23Organisational Business relationships.............................................................................23Government approvals.....................................................................................................23CHAPTER 4: STRATEGIC ANALYSIS AND BUSINESS MODEL.........................................244.1 Internal Analysis.............................................................................................................244.2 Sources of competitive advantages................................................................................264.3 Concepts in strategy which could be used......................................................................274.4 Business model...............................................................................................................29CHAPTER 5: BUSINESS PLAN REVIEW.................................................................................315.1 Overall assessment of the business plan.........................................................................315.1.1 Product/Service idea...............................................................................................325.1.2 Legal issues.............................................................................................................325.1.3 Financial requirements............................................................................................335.1.4 Risk Issues..............................................................................................................335.1.5 Marketing matters...................................................................................................345.1.6 Organisational Feasibility.......................................................................................345.1.7 Overall resource sufficiency...................................................................................355.2 Proposed Plan of Action.................................................................................................355.3 Discussion of critical success/failure factors..................................................................36CONCLUSION..............................................................................................................................36REFERENCES..............................................................................................................................37

CHAPTER 1: INTRODUCTIONA Business Development Plan is being considered as a document that deliversinformation related to decisions that are needed to be made based on development strategy(Blackburn, Hart and Wainwright, 2013). Through this, it can be said that an organisation maydirectly grab a good position at marketplace in short period of time frame. Basically a businessdevelopment plan is developed for the purpose of long term success. Specifically, scope of abusiness development plan mainly consist of both sales along with marketing functions becausethey stay connected to each other within an organisation in any industry.In present report, a business development plan is going to be developed for Revolut Ltd.which is coming under financial technology sector of United Kingdom. Company offers a rangeof banking services to the users including pre-paid debit cards, peer to peer payments,cryptocurrency exchange. It is a mobile application that basically supports money spending,withdrawals considering around 120 currencies. With the help of business development plan,Revolut Ltd. Is directly going to attain different business opportunities in specific time frame.1.1 Background of the researchUnited Kingdom's one of the famous Fintech company named as Revolut Ltd. Was foundin the year of 2015 by Nikolay Storonsky and Vlad Yatsenko. It is a mobile application whichoffers offers banking services to its users, and speciality of this Fintech company is that, it offerscryptocurrency exchange as well (Bournaris, Moulogianni and Manos, 2014). However,cryptocurrencies basically kept locked within the mobile application only. That means it cannotbe moved to any other cryptocurrency wallet. Company has already given a range of servicesrelated to finance, to its users but now they are looking forward to improve customer base and orkeep them loyal against the financial services offered by them. Along with this, it can be saidthat cryptocurrency feature has definitely played a part in their growth, and their financialmarketplace of products have also helped hugely in catching eyes of people and made them feelto join Revolut. Marketplace of this industry, gives users access to insurance and credit productsfrom a variety of providers, similar to a feature offered by rivals like Starling. Revolut Ltd. is presently available in Europe with 630 staff members, and is most widelyused in United Kingdom. The firm is looking to expand its presence to the U.S., Canada,Singapore, Hong Kong, Australia and New Zealand within months (Burns and Dewhurst, 2016).1

In this case, a business development plan is going to be formulated for Revolut Ltd. in order togain competitive advantages and to improve existence of the company not only in UnitedKingdom but in other European and others countries as well like Germany, France, United Statesand more. For this purpose, Revolut Ltd. is going to launch commission-free trading services forits users. That means, users of Revolut Ltd. will directly get the opportunity of investing moneyin places where they can get high range of returns on investments.1.2 Chosen ScenarioIn past two years, Revolut Ltd. did not saw a hike in their revenue and profit margins aswell. This made board of directors of the company to bring innovation among its services anddecided to launch commission - free trading services for its users (Casey, Glennerster andMiguel, 2012). With the help of this, board of directors believe that company, customer loyaltycan be attained as the targeted customers (service users) that are looking forward to invest theirmoney in different industries will start using commission - free trading services offered byRevolut Ltd. The basic need of bringing innovation in its services is that, Revolut has alreadydoubled its user count just in few months after it said it had passed the 1 million user mark inNovember 2017. But then also, company's expectation did not meet as Revolut had the idea oftripling the amount of existing users through the services that were offered by the company.This, made the organisation to think upon planning commission-free trading services in order toimprove profit margins and to give competition to its rivals like U.K.'s Trading212 and UnitedStates' organisation like Robinhood.1.3 The business opportunity"For many years, people were not been able to trade or invest among different areas andthis happened because of high fees or high taxation rates on transactions. Focusing on thisscenario, Revolut has kept its focus on making the investments much more cheap, simple andcompletely over a mobile. Nikolay Storonsk, co-founder of Revolut has mentioned that, bringingcommission-free trading service as a value added service or a core service in the existingservices that had been offered by Revolut Ltd. will directly help them in improving customerloyalty, base and reputation as well at international market (Chan and Park, 2015). Along withthis, it is being found that this innovative approach, will also help Revolut Ltd. in cutting outnearly all costs that are typically associated with investments. Apart from this, since trade off isfree. Thus, Revolut Ltd. directly offers both web and mobile trading, the platforms are purposely2

bare bones, and some investors may find the range of trade related securities and account optionslacking. This made Revolut Ltd. to rebuilt its services and to add service like commission-freetrading where users can directly invest a good range of money and can expect high return oninvestment (Chatterjee and Finger, 2014).This can be taken as a business opportunity that would aid Revolut Ltd. in reaching tonew heights where company may give good rivalry to its rivals like Starling, Robinhood,Trading212 and so on. Along with this, it has also been analysed that commission-free tradingservices will also help both clients as well as Revolut Ltd. 1.3.1 Rationale for the business ideaIn present time, most of Fintech companies in all over the world do not offercommission-free trading services to their clients (on mobile application). Therefore, bringing inthis commission-free trading services within Revolut Ltd. would aid them in reaching to new allnew heights. As the company was also looking forward to grab a good position not just indomestic but in international market as well (Croitoru, 2012). Thus, offering financial servicelike commission-free trading will directly start aiding Revolut Ltd. in giving good rivalry to itscompetitors. The basic reason behind implementing this kind of business idea is that, RevolutLtd's customers loyalty will improve with them because, users of their mobile application arelooking forward to invest their money, may easily start investing their money among sharemarket or other commodity markets based on their interests. Through this kind of business idea,Revolut Ltd. will directly start hitting its targets and will gain good reputation at internationalmarketing in a really very short span (Dahlgaard and et. al., 2013).1.3.2 Target Market, Customer and AccessibilityIn present context, where Revolut Ltd. has made modifications among mobile applicationwhere a new service is being added of commission - free trading services. Under this case,company targeted the customers (mobile users) that are looking forward to invest money and arehaving a valid current or brokerage accounts. If the users are not having a brokerage account, theservice offered by Revolut Ltd. would not be able to trade single stocks commission free(Dimitriou, Voskaki and Sartzetaki, 2014).3

On the other hand, mostly, company is also going to target using behavioural approach ofsegmentation, because investment is a factor that cannot be done by every single person. Here,Revolut Ltd. Will directly target customers based on their behaviour through promoting the newservice in different areas from digital market to regional one (Dudin and et. al., 2014). The beststrategy of targeting the investors (targeted users) will be the existing mobile application ofRevolut Ltd. where company will grab the attention of clients that have an intention of investingtheir money among different areas. Along with this, company is also going to offer people thatare having either one of them accounts like individual or retirement based account. This isbasically being done for the promotional based perspectives. Revolut Ltd. Has also given a valueadded service to targeted users with a toll free number where any query regarding eligibility andothers as well (Dunning, 2013).On the other hand, accessibility will only be given to the users that are having currentaccounts or brokerage accounts, because then only mobile application will show them on whichcompany they need to invest, Along with this, Revolut Ltd. As developed this approach, this willaid organisation in gaining or grabbing a good reputation at both European and United Statesmarketplace. 1.3.3 Business ModelThe Business Model Canvas (BMC) is being considered as a graphic representation of anumber of variables that show the values of an organization. A Canvas can be used as aneffective strategy tool when it comes to analyse or evaluate the situation that an existing businessorganisation is having. In present case, Revolut Ltd. has kept its focus on business expansion inUnited States considering commission - free trading as their additional service that they aregoing to offer to targeted customers (Finch, 2013). Away with this, there are some of the keypartners as well that enabled Revolut Ltd. to bring commission - free trading as one of anessential service that could help company in giving good rivalry to competitors among differentcountries like U.S. Along with this, in order to take right decisions so that Revolut Ltd. do notface any sort of issue, a business model canvas has been used which will help in overlooking intothe existing situation of overall business of Revolut Ltd.Under this case, where Revolut Ltd. needs to keep its focus on a range of factors that area part of business model canvas and these are: key partners, key activities, key resources, value4

propositions, customer relationships, channels, customer segments, cost structure and lastlyrevenue streams which will aid in analysing their current position in the market and through this,they can also find out the gap as well in between current and desired position. Through this,Revolut Ltd. could directly make determinations in short span (Frankenberger and et. al., 2013).1.4 Structure of the workConceptual framework is the blueprint for all the activities which are conducted in aresearch (Groves and Hinton, 2013). In this research proposals, investigation using Revolut Ltd.is conducted which is classified into five chapters which are mentioned below:CHAPTER 1 : INTRODUCTION – In this section of work, an understanding about theresearch topic is developed. Introduction refers to the overview and background of the researchwhich provides understanding about the topic (Halme, Lindeman and Linna, 2012). On the otherhand, report has also included a range of information like background of Revolut Ltd., purposeof business plan and so on are some of factors that has been included in this section. Along withthis, business model canvas has also been developed for the purpose of reducing the number ofbarriers and so on.CHAPTER 2 : THE BUSINESS OPPORTUNITY – Under this section, varioussources are analysed in order to build an understanding about desired objective which has beendeveloped by Revolut Ltd. This section is basically enclosed with a range of decisions thatcompany needs to make in order to gain many competitive advantages while using commission -free trading services in their mobile application for users in specific time frame (Harrison, 2012).CHAPTER 3 : FEASIBILITY – This is being considered as another important sectionof present business plan which is used for showing that the developed plan is basicallyapproachable or not. Here, a range of research methods are going to be used so that rightdeterminations could be made (Haven‐Tang and Jones, 2012). This process includes varioustechniques of data collection and research techniques. In this section, discussion about secondaryand primary research is undertaken along with the techniques in order to gather data related tothe business opportunities.CHAPTER 4 : STRATEGIC ANALYSIS AND BUSINESS MODEL – Under thissegment of business plan, a proper strategic analysis is going to take place which will be doneconsidering a business model that will show Revolut Ltd. actual performance. This will directlyaid in making right determinations as per the requirements. Main aim of present plan is to start5

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