Business Plan Assignment - (Solution)

BUSINESS DEVELOPMENT
REPORT & RESEARCH
REFLECTION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Background.................................................................................................................................1
Rationale.....................................................................................................................................1
Vision..........................................................................................................................................1
Mission........................................................................................................................................1
Aims and Objectives...................................................................................................................1
Design and stricture of report......................................................................................................2
Relevant model and business sources used.................................................................................2
Actionable assumptions..............................................................................................................3
Timescale....................................................................................................................................3
BUSINESS CONCEPT...................................................................................................................3
Product and Services...................................................................................................................4
Facilities and services.................................................................................................................9
Target market..............................................................................................................................9
Value Added.............................................................................................................................10
Specific Features.......................................................................................................................10
Management..............................................................................................................................11
Window of Opportunity............................................................................................................11
FEASIBILITY RESEARCH.........................................................................................................11
Feasibility research plan............................................................................................................11
research methodology...............................................................................................................12
Key areas of feasibility research are as follows-.......................................................................13
Feasibility of Product/services..................................................................................................13
Feasibility of industry of gold, silver and diamond..................................................................15
Growth and Scope of Gems and Jewellery Industry in India....................................................16
Competitors analysis.................................................................................................................17
Organisational analysis.............................................................................................................18
Feasibility of market analysis...................................................................................................19

Feasibility of financial analysis.................................................................................................20
Ambitions Vs Ability................................................................................................................22
BUSINESS MODEL.....................................................................................................................24
Core strategy.............................................................................................................................24
The business mission................................................................................................................26
Product and Market scope.........................................................................................................27
Value proposition......................................................................................................................27
Customer segmentation.............................................................................................................27
Channel.....................................................................................................................................28
Customer relationship...............................................................................................................28
Revenue stream.........................................................................................................................28
Key activities.............................................................................................................................28
Key resources............................................................................................................................29
Key partners..............................................................................................................................29
Cost structure............................................................................................................................29
BUSINESS PLAN.........................................................................................................................29
Jewellery business in Mumbai (India)......................................................................................30
Project planning development stages.......................................................................................30
Structure of the jewellery shop along with the interior design.................................................31
Marketing plan..........................................................................................................................32
Collaborative marketing strategies............................................................................................33
Online marketing.......................................................................................................................34
Management team.....................................................................................................................34
Risk assessment.........................................................................................................................39
Operating process......................................................................................................................40
FINANCIAL PLAN.......................................................................................................................40
Set-up capital.............................................................................................................................40
Projected cash flow for 1st year................................................................................................41
Projected profit and loss statement...........................................................................................46
Critical success factor of Astera business.................................................................................49

PART 2 - RESEARCH REFLECTION REPORT........................................................................51
REFERENCES..............................................................................................................................53

INTRODUCTION
Background
In recent era, there have been increase in the demand of the gold, silver and diamonds by
different people and mostly by the people of India because in that country there are more people
that are attracted towards the gold, silver and diamond ornaments than the people of any other
country. the present report is about the establishment of the wholesale and retail showroom
which will be focusing on gold, silver and diamond. The aim of Astera showroom is to provide
the gold, silver and diamond ornaments in Mumbai which is based in India. The showroom will
purchase the gold ornaments from Mumbai. The Indian gold , silver and diamond market is
attractive because there are large number of people which have interest in purchasing gold
ornaments so, choosing the Indian market is the best option for this business.
Rationale
Astera will provide customization of vintage ornaments which is new concepts and will
help in the business development in the Mumbai market by attracting the customers to buy gold,
silver and diamond at the affordable prices with the high quality and with customization. The
main reason for choosing this business is growth and profitability involved in this industry is
more than that of other industries. There will be proper planning and formulation of strategies for
the establishment of this business. The Astera is a new concept because it will provide the
customization of ornaments as per the demands of customers.
Vision
Aiming to establish the wholesale and retail showroom of gold, silver and diamond in
Mumbai to gain high market share.
Mission
 To provide the customers with best experience at showroom
 To provide unique vintage ornaments to gain competitive advantage
 To enhance the brand image of show room to attract potential customers
 To provide high quality gold, silver and diamond to customers
Aims and Objectives
Aim : To establish a business to penetrate the gold, silver and diamond market in Mumbai : The
study on India
Objectives :
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 To outline the improvement in sales when penetrating in the Indian market.
 To get competitive advantage by providing vintage ornaments designs.
 To outline the challenges which come across when penetrating in Mumbai market
 To outline the scope of customize vintage ornaments in Mumbai market
Design and stricture of report
The report is divided into four categories which consist of the followings :
 Concept of business : It will include the concept of business with its products and
services and the facilities provided by the Astera showroom to its customers to improve
their customers experience.
 Feasibility Research : This study is carried out in order to identify the feasibility on the
basis of perspective of market, organisational resources, services, financial resources.
 Business model development : It is the business model which will be chosen as part of
business strategy (Hakansson, 2015). The research outcome which will be determined
will include the concept of business.
 Business plan : The business plan will include the execution of various stages which
will be followed for implementation of business model.
Relevant model and business sources used
In the present research , the porter fiver forces model will be used in order to identify the
market and industry feasibility to understand the market for gold, silver and diamond in India for
the establishment of wholesale and retail showroom. Porter fiver forces model is the effective
way of understanding the industry and the impact it will have on the new business. The business
sources which will be used to gather the information will consist of the followings :
 Primary sources : It is the source in which the in formation is gathered first hand by
interacting face to face with people to identify the information. In this study, the primary
information will be collected through use of questionnaire in order to get the information
required for establishment to the business in Mumbai.
 Secondary sources: It is the form of in formation which is collected from the published
sources and it consist of books, journals, articles and online sources. In the present
research, the information which will collected through this source will be use of books,
articles, journals and online sources.
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Actionable assumptions
In Order to identify the gain value of the project there are various assumptions which are
formed for The Astera showroom. They are as follows :
The revenue of the business will be different in the different period due to variation in the gold,
silver and diamond prices in India. there will be seasonal fluctuation and not the basis of
financial year.
Timescale
Timescale is used to identify the time required to study on this project and identify the
strength and weakness related to the project. The first step to understand the market of the gold ,
silver and diamond in Mumbai to understand about the industry and the market. It assist in
identifying the risk involved in completion of this project. It is required to identify the risk of
business success and failure along with the reason to understand the strength and weakness. In
this study, it will first frame the aims and objectives on the basis on the business plan. It will
identify the location for the showroom and funding required for the operations. It will require 2
weeks for market research. for the successful completion of the project it is required to have time
allocation for the activities which will be carried out for the establishment of the Astera
showroom in Mumbai.
BUSINESS CONCEPT
Astera showroom will provide ornaments of gold, silver and diamonds with
customization. The interior of the showroom will be based on them of vintage that means it will
have the vintage showroom design to provide information to customers about the vintage
ornaments which are being provided by the showroom. Moreover, this showroom will be located
in Mumbai as it is the biggest city of India is the most famous and attractive marketplace for the
gold, silver and diamonds. The showroom will provide customized ornaments which will assist
in attracting more people towards the showroom (Venter and Goede, 2018). Moreover, the
showroom will charge lower prices than the other firms involved in this industry to penetrate the
market with the high quality of gold, silver and diamonds. The main concept of the business is to
provide the vintage ornaments to the people to enhance their experience and provide them with
attractive and unique design made up of gold silver and diamonds. Also, the business will have
extra outlet that will buy old gold and silver and melt it into gold blocks by adding some other
metals to make it pure gold and silver.
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Product and Services
The Astera Showroom will provide different products made up of gold, silver and
diamonds. It will provide rings, bangles, necklace chains and other ornaments made up up of
gold, silver and diamonds. The gold ornaments will be charged at 9.16 and 9.25 silver
ornaments. the following are the various products and services which will be provided at Astera
Showroom.
Bangles
It is an ornament which is worn round in the arms. they are traditionally called as rigid
bracelets which is mostly wore by the Indian W omen on daily basis or mostly on occasions. The
bangles of the Astera will be made up of gold with unique designs to attract the customers
towards the showroom.
 Plain gold Bangles : It is the product which will be provided by The Astera for the
women that wants to purchase the daily use bangles with the high quality and attractive
look. They are plain bangles with no design.
 Gold plated twin peacock design bracelet : It is made up of highly polished gold rings
and three rows of pearl will provide its appeal and shine. It is fashionable and can be
provided as gift item to the close person. It will give beautiful look to the women.
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Illustration 1: Gold bangles
( Source : Gold bangles, 2016)