Business Plan: 3block Online Automotive Products and Solution Pvt Ltd Report 2022

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Running head: Business plan report
Business plan
Module Number
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Business plan report
BUSINESS PLAN REPORT
1.1 Name: 3BLOCK ONLINE AUTOMATIVE PRODUCTS AND SOLUTIONS PVT LTD
Location: Bell Avenue, Beverley Park, New South Wales
1.2 Entrepreneur Name: XXXXX
STUDENT ID: XXXXX
Group Name: XXXXX
1.3. This company is an online automotive service providing company which will help customers
using cars to avail services from their home.
1.4. Amount of financial expectation of the company is 17,500 AUD.
1.5. This report will be a confidential one and will be used for business purpose of 3Block
Online Automotive Products and Solution Pvt. Ltd. only
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Business plan report
Executive Summary
2.1. The basic concept of this business is to provide online facilities to car users in Australia in
automotive industry.
2.2. Present business model is a unique one as it utilizes different tools to make predictions about
its affectivity.
2.3. Main entrepreneur in this business is a retired automotive engineer and there are several
other stakeholders.
2.4. Different sources for collecting resources are to be selected by an organization. Management
team needs to evaluate different sources and assess their affectivity. 3Block Online Automotive
Company can take advantage of different government plan for automation sector. Some revenue
can be generated by providing commercials of some other organizations in their website.
Another important source lies within this company (Wibawa et al., 2016). A good amount of
funding can be earned by limiting waste in making products and in the delivery processes. This
can also be beneficial from environmental aspects. This report will be a confidential one and will
be used for business purpose of 3Block Online Automotive Products and Solution Pvt. Ltd. only
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Business plan report
Table of Contents
Introduction.................................................................................................................................. 4
Environmental and Industry Analysis...........................................................................................4
PEST analysis.......................................................................................................................... 4
SWOT Analysis........................................................................................................................ 6
Demand Analysis..................................................................................................................... 7
Porter’s Five Forces................................................................................................................. 8
Description of the Venture........................................................................................................... 9
Mission statement....................................................................................................................9
Core values of the business.....................................................................................................9
Goals and objectives.............................................................................................................. 10
Product/Services offered........................................................................................................12
Location, size of business, personnel, background of entrepreneur and the contribution to
the business........................................................................................................................... 12
Business Model...................................................................................................................... 13
Production Plan......................................................................................................................... 13
Operations Plan......................................................................................................................... 14
Marketing Plan........................................................................................................................... 14
Target market......................................................................................................................... 14
Marketing strategies............................................................................................................... 16
Organizational Plan................................................................................................................... 18
Management structure........................................................................................................... 18
Risk assessment........................................................................................................................ 18
Financial Plan.............................................................................................................................. 1
Conclusion................................................................................................................................... 3
References.................................................................................................................................. 4
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Introduction
With the ramified changes in the economic, it has been evaluated that each and every
organization needs to assess the market factors before undertaking the marketing strategy. This
report reflects the marketing business plan which company needs to undertake to implement the
effective business strategy. This report will be a confidential one and will be used for business
purpose of 3Block Online Automotive Products and Solution Pvt. Ltd. It helps in assessing the
overall business process risks and evaluating the overall business factors which might impacts
the internal and external factors of the organization.
A startup business plan needs a comprehensive business plan to be provided to all its
stakeholders. They can be assured about investing or making themselves connected to a business
on the basis of this plan. Present discussion will focus on different aspects of a proper business
plan of 3Block Online Automotive Products and Solution Pvt. Ltd. This will provide a clear idea
about what challenges can be faced by this company and what way outs they can choose in order
to come out of those challenges. Along with this all other factors are to be discussed with proper
weight age to each section in order to make this business plan an effective one. In this report,
various aspects and business risk of the organization have been assessed which will be helpful in
the sustain market.
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Business plan report
Environmental and Industry Analysis
PEST analysis
This is a useful tool to evaluate different macro-economic factors which can be decisive towards
a company’s performance. This includes political, economic, social and technological aspects of
an area in which an organization is to be implemented.
Political Economic
Political structure of Australia is a
stable one.
Tax rate for automation industry is
27.5%.
GDP of Australian economy shows
little changes in recent times.
Price of car equipment has been
consistent.
Social Technological
People tend to prefer branded goods.
Older people have a preference for
classic car parts.
Young age groups show their
preference for sports cars.
People have been found to prefer
online services.
Most of the customers are used to
with internet facilities.
From this PEST analysis table it can be seen that political background of Australia is preferable
for 3Block Online Automotive Products and Solution Pvt. Ltd. to start up a new business
venture. Stable political scenario and limited tax rates will facilitate this business to grow in a
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Business plan report
smooth manner. Economic factors exhibit that recent GDP can ensure a good run for this present
business whereas consistent nature of price car equipment enhances chances of higher sell of
products. From social factors it can be said that this company has to provide branded products to
their customers who has to vary in their nature. A good range of different products will ensure
that all age groups of customers can make online shopping activities through this company
(Shah, Ball & Netessine, 2016). Technological aspect of present times is also in favor of this
company as people have been reported to be familiar with online services of shopping. So, from
this PEST analysis table it can be said that 3Block Online Automotive Products and Solution Pvt.
Ltd. has a good amount of opportunity to make their business venture a successful one.
SWOT Analysis
This analysis is used for assessment of both internal and external factors of an organization.
Strengths and Weaknesses express the internal factors of an organization whereas Opportunities
and Threats focus on external factors.
Strengths Weaknesses
Lower expense rates.
Speed in operation.
Exciting offers.
Lack of identity in present market.
Inadequacy of resources.
Opportunities Threats
Absence of online services in the
automotive sector.
Marketing conversation.
Newly emerging competitors.
Price wars.
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Collaboration or partnerships.
From this SWOT analysis table it can be seen that this company has more amount of positive
factors both external and external of their organization. Strengths show that this company will
have a price range which is comparatively lower than other companies in this market. At the
same time this company will be efficient in providing services to their customers in a short time
limit. Some exclusive offers will also be given which will make them compatible in comparison
to other companies. Some possible weaknesses have also been identified which says that this
company can suffer from lack of identity in present automation market. According to Lacerda,
Xambre & Alvelos, (2016), this can be overcome by proper marketing plan by the management
of the company. This is an industry which requires high amount of resources to provide proper
services to customers. Presently there may be lack of adequate amount of resources in this
company. From the external parts it can be found that there are several opportunities and threats
for this company. Number of companies providing online automotive services are not very high
presently but it is predicted to be increased in upcoming years. There is opportunity of marketing
conversation; by using this opportunity 3Block Online Automotive Company can make their
business strategies according to their customers’ demands. They can also plan to make some
collaboration with other existing companies in order to reach a higher business growth. Along
with emerging companies there can be a situation of price war resulting in a loss in economic
development. So, it can be said that there is high chances for 3Block Online Automotive
company to achieve a good business position by managing discusses weaknesses and threats.
Therefore, with the implication of the SWOT analysis, it has been observed that if company
wants to create strong brand image in market then it will have to implement the cost leadership
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Business plan report
and product differentiation strategy. Nonetheless, company needs to make core competency by
offering the creative and unique services to clients.
Demand Analysis
Demand analysis is a tool which helps the management of a company to take decisions regarding
sectors like, production, advertising, cost allocation, pricing and many more. A graphical
representation is done on the basis of different factors under consideration (Weyer et al. 2016).
From the inclination of this curve statistics can determine about different steps to be made. From
demand analysis of this company it can be found that there is a good amount of consumers
willing to purchase automotive products online. They want a moderate price range which will
enable them to buy a number of different products at a time. As this analysis shows there is a
potential demand of this company they should focus on making more investments to satisfy this
adequate amount of demand. This demand analysis has shown that company needs to offer
customized products and serviced to clients if it wants to grow in market.
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Business plan report
Figure 1: Demand analysis
(Source: Weyer et al. 2016)
Porter’s Five Forces
Threat of new entrants: There is a little amount of companies in the market who provide online
automotive services but there is a high chance for different companies to shift in online methods
(Dweiri et al. 2016). This creates a good amount of new entrants’ threat which needs to be
assessed by 3Block Online Automotive Company. This porter’s five forces will be useful to
assess the market factors and identify which market strategy would be useful to sustain in
market.
Threat of substitutes: As mentioned earlier there are very few amounts of companies in the
market who give online services to their customers in this automotive industry. So, it can be said
that the amount of threat of substitute is low for 3Block Online Automotive Company.
Bargaining power of buyers: The amount of people taking online automotive facilities is not
very much and they use these facilities for selective purposes. At the same time they are more
focused on quality of products rather than being obsessed with a lower price range (Yoshifumi,
Premkumar & Manzuma-Ndaaba, 2017). This proves that bargaining power of buyers is also
low.
Bargaining power of suppliers: Number of suppliers will also be very limited and they will be
providing similar kind of services. This means that bargaining power of suppliers will also
remain low.
Rivalry among existing companies: Number of companies existing in this market is not very
high and they provide limited amount of diversity. This gives rise to low amount of rivalry
among existing companies.
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From the analysis of porter’s five forces it can be seen that there is a good opportunity for
3Block Online Automotive Company to make their business successful.
Description of the Venture
Mission statement
This company will focus on providing a common platform to different companies that proposes
automotive service, which is easily accessible for customers with minimum internet knowledge.
Core values of the business
Providing online automotive services to people in a reasonable rate and adequate speed.
Focusing on the needs of the customers and making strategy modifications according to
it.
Being honest and integrated in the way of making business.
Including human relationships with stakeholders and key customers.
Building a family like environment.
Being loyal and trying to meet the commitments made.
Create core competency in the product leadership and product differentiation strategy.
Goals and objectives
Objective 1: Making present business a profitable one.
Specific High amount of profit scales within this
company.
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Measurable 10-15% of increment within a month can
be regarded as a good margin of business
profit (Soo, Compston & Doolan, 2016).
Achievable This can be achieved by controlling
customer satisfaction issues.
Relevant Making this business profitable will help it
to grow on a better rate.
Time-bound This can be done within a 6 month time
limit.
Objective 2: Being efficient in customer service and their satisfaction.
Specific This implies for employees in customer
service department.
Measurable Reduction of 20-30% complaint in a
month can be estimated as a key
performance indicator in customer service
efficiency.
Achievable This can be achieved by motivating
employees towards fulfillment of this goal
by explaining its importance.
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Relevant Enhanced customer satisfaction will make
this company to gain competence in the
market.
Time-bound This can be achieved within two months.
Objective 3: Improved amount of business growth.
Specific This implies for the whole business
scenario.
Measurable 25% of growth can be fixed as a moderate
amount to be targeted by a company.
Achievable This can be achieved by eliminating all
the threats resulting inhibition of business
growth (Soo, Compston, & Doolan, 2016).
Relevant A good amount of business growth will
increase the possibility of a better future
regarding 3Block Online Automotive
company.
Time-bound This can be achieved within a year.
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Product/Services offered
A good range of different product or services are to be offered by 3Block Online Automotive
Company which will be efficient enough to attract higher number of customers to this company.
Testing parts and systems if they are working in a proper way.
Identifying problems through using computerized equipment to diagnosis if required.
Different parts of a car which needs to be reassembled or replaced.
Lubricating car engines and other major parts.
Maintenance and care of personal cars.
Implication of new technologies to cars with old models.
Location, size of business, personnel, background of entrepreneur and the contribution to
the business
This company is located in Sydney, Australia. They provide automotive services to the
surrounding area. This can be said to be a small sized business. Number of employees in this
organization is 100 who are divided into different hierarchies. Entrepreneur who has invested in
this company has a background of automation industry as he has been an automation engineer in
different leading organizations of Australia for several years. He has made a major contribution
in making this company successful along with different partners and stakeholders. However, it
has been assessed that if the size of the business customized as per the market demand and
expectation, then it will be helpful for the organization to strengthen is business market and
create unique market image. It is analyzed that company should focus on firstly on the market
share and other factors which might negatively impact the business process of the organization.
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Business plan report
Business Model
Business model is a pre-planned structure which is followed by a company in earning revenue
from a business. 3Block Online Automotive Company has to develop their proper business
model in order to make their business an effective one. The basic focus is to be given on needs
and preferences expressed by customers. A good amount of revenue will be earned if they
provide services according to the demands made by their customers. Commercial advertisements
are also to be used in a proper way which can attract more customers to buy products of 3Block
Online Automotive Company by staying at their home. Different products needs to be assessed
on a daily basis to ensure that they are always up to date and have a competitive advantage over
similar companies in this industry (Morisada, Miwa & Dahana, 2019). 3Block Online
Automotive Company can also plan to take commissions from other companies by selling their
product through their own online portals. Along with these strategies 3Block Online Automotive
Company needs to make a specific cost structure which will give company management a clear
idea about revenue in action. In addition to this, company also should focus on undertaking the
strategic alliance with the other organization so that it could create backward and forward
integration with other market organization.
Production Plan
Production plan is made on the basis of demand evaluated by company management. Demand
plan will try to understand which products are to be made in higher rates (Schöggl, Baumgartner
& Hofer, 2017). Orders from customers, forecast by management and other relevant market
information helps to form a baseline for production plan. This plan illustrates what are the
materials required in a company and what are the other requirements. 3Block Online Automotive
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Company needs to chalk out their production plan in order to make their production system
much more goal oriented. The product plan of the company needs to be more focused on the
market and most of the goods and services offered by company should be market oriented.
Operations Plan
Operation plan stands for in which manner things are operated in a company. 3Block Online
Automotive Company will need different levels of employees to make product reach their target
customers. An employee is to be recruited who will locate different actions made by customers.
He will report that to the authorities. Service provider will get a notification about the booking
that has been made. Individuals who are in store section will be notified by the authority and then
they will dispatch that product (Pavlínek, 2016). The product will reach the customer by different
levels of distributors. Minimum amount of error in operation plan can ensure higher customer
satisfaction. This operational plan will be helpful to assess the internal and external factors of the
business. It will help in assessing which factors should be considered by the organization while
offering its products in market.
Marketing Plan
Target market
A company which is efficient in making business needs to gain proper information about their
customers. In order to make this information more effective customers are divided into multiple
strata which are called customer segments. The basis of this segmentation can be chosen by a
company, but it is generally done on the basis of characteristics like gender, age groups, interests
and consumer behavior. High amount business competition of a given sector makes their
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customer segmentation more crucial. Automotive industry is also a field where competition
remains very high.
3Block Online Automotive Company needs to recognize their potential customers at first in
order to develop their customer segmentation. Potential customers mean consumers who make
use of facilities provided by an organization in a repetitive manner (Ghezzi et al., 2015). This
recognition is important for an organization’s growth as it directly related towards the growth of
a company. In order to develop a proper understanding of their customers 3Block Online
Automotive Company needs to plan a proper database for them. Information can be gathered
from customers by requesting them to participate in several online surveys while they make their
transactions. Some information can be gathered from the choices they make frequently in
website portals of this company.
Figure 2: Customer segmentation process
(Source: Ghezzi et al., 2015)
From customer segmentation statistics of automotive sector it can be seen that online purchasing
of automotive parts has come across a growth during 2017 to 2019. Reports say that an amount
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of 2.5 million people have engaged themselves in purchasing of online automotive parts. Age has
been found to be most decisive in determining customer behavior in this field. Newly designed
automotive parts have been preferred mostly by people ranging from 18 to 55. Some sub sections
can be found within this age range. People from 18 to 30 years have shown a preference for
newly designed parts for sports cars. Middle aged people ranging from 30 to 40 years have taken
facilities for altering their vehicle parts. Classic parts have been chosen by customers who are
more than 40 years of age. This information clearly illustrates differed choice of products among
customers of different age groups.
3Block Online Automotive Company can try to achieve a good amount of customer satisfaction
by providing different offers for customers of different age groups. As present discussion shows
that the automotive industry has customers with different demands they have to plan product
facilities and offers keeping these statistics in mind.
Marketing strategies
3Block Online Automotive Company needs to make use of different commercial strategies in
order to engage a higher amount of customers in their business. Different way outs can be taken
in order to achieve higher business targets. Exciting advertisements can be published in print
media which can directly reach to the readers of those papers. Short commercials can also be
broadcasted through different television channels. Some pamphlets can be distributed to people
using cars directly. This method can be highly effective if individuals are appointed to distribute
pamphlets at traffic signals (Ghoniem & Maddah, 2015). Social media is an efficient platform in
these days to reach a huge number of people at a single time. Online services can be beneficial in
two ways to 3Block Online Automotive Company. Some commercials can be provided to online
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General Manager
Engineering DepartmentManufacturing DepartmentQuality Control DepartmentGeneral Management Department
Sales
Management
General affairs
Management
Human
resource
Management
Accounts
Management
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Business plan report
portals which can reach to people who are already taking facilities of this company. On the other
hand people who are not presently consuming these services or totally unaware of this company
can be reached by using different social media platforms. This method can also be helpful in
another aspect. Social media activities can be accessed from posts provided by this company.
Some other marketing strategies can be useful in this regard which involves direct applicability
of those strategies. That means the usefulness of this strategies can be evolved from responses
given by target customers (Baldassarre et al., 2017). Exciting offers can be used for engaging
more customers by 3Block Online Automotive Company. This company has to provide some
offers which is complete exclusive from other companies in competition.
Organizational Plan
Management structure
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Figure 3: Management structure of 3Block Online Automotive Company
(Source: Researcher)
Risk assessment
3Block Online Automotive Company needs to find out some associated risks in their business
and find out ways which will make this risk factors limited. No business can be considered as
risk free. So companies need to keep risks within some limits. Nonetheless, in the starting of
company, there is need to lower down the inherent risk and control risk. There is need to use the
proper control system if company wants to sustain in market. This internal control system will
properly check what is the issues and problems which company would face in its business
process. This risk assessment helps in evaluating the possible risks which would affect the
business program. However, reducing these risk issues helps in increasing the overall outcomes.
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Figure 4: Risk management strategy
(Source: Tidhar & Eisenhardt, 2019)
There are four steps in this risk management process. They are identification, analysis,
optimization and controlling of risk. These are Major risk associated in this business is
economics associated to this field. A company has to plan its financial structure properly in order
to make risk associated to business very less. Resources allocated to different sectors are to be
divided in a way that proposes minimum amount of risk to an organization (Tidhar & Eisenhardt,
2019). Another important factor is that leading companies in the automotive industry can restrict
business growth of 3Block Online Automotive Company. This can be overcome by providing
online facilities to customers. It is expected that they will be using facilities provided by this
company if they find it to be more reasonable and effective. Making strategies very much
exclusive can lead to some problems also. Other companies following these activities can steal
these strategies and imply to their own company. Then they will not remain exclusive any more.
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This will help company to reduce its business risk and also helps in strengthen the brand image
in market.
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Running head: Business plan report
Financial Plan
Source of funding
Different sources for collecting resources are to be selected by an organization. Management team needs to evaluate different sources
and assess their affectivity. After making this assessment properly they can choose some sources out of those which can be most
helpful. Most of the organization uses baking sector for their source of revenue. 3Block Online Automotive Company needs to find
out which schemes will be most helpful for them if they want to borrow money from a bank. Lower interest rates and higher facilities
are the factors mainly to be analyzed. The company can make some dealership or partnership which can act as a source of funding.
Management team needs to be sure about the pros and cons of this dealership before entering into this. Public funding can also be used
in this regard. 3Block Online Automotive Company can take advantage of different government plan for automation sector. Some
revenue can be generated by providing commercials of some other organizations in their website. Another important source lies within
this company (Wibawa et al., 2016). A good amount of funding can be earned by limiting waste in making products and in the
delivery processes. This can also be beneficial from environmental aspects.
Sales Forecast for 3 years:
2019
Jan
uar
y
Feb
rua
ry
Ma
rch
Apri
l May June July
Aug
ust
Sept
emb
er
Octo
ber
Nov
emb
er
Dece
mbe
r Total
Number
of Units
Sold
200 250 265 285 291 295 299 305 320 345 380 480 3715
Price Per
Unit
$20.
00
$32.
00
$36.
00
$40.
00
$45.
00
$48.
00
$50.
00
$55.
00
$70.
00
$79.
00
$85.
00
$99.
00 -
Total
Sales Amt
$4,0
00.0
0
$8,0
00.0
0
$9,5
40.0
0
$11,
400.
00
$13,
095.
00
$14,
160.
00
$14,
950.
00
$16,
775.
00
$22,
400.
00
$27,
255.
00
$32,
300.
00
$47,
520.
00
$221,
395.0
0
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Business plan report
Percentag
e of Total 0% 1% 1% 1% 2% 2% 2% 2% 3% 3% 4% 6% 27%
2020
Janua
ry
Febru
ary March April May June July August
Septe
mber
Octobe
r
Novem
ber
Decem
ber Total
Number of
Units Sold 220 280 285 310 330 350 380 410 440 470 490 520 4485
Price Per Unit $25.0
0 $35.00 $38.00 $43.00 $48.00 $50.00 $55.00 $60.00 $75.00 $82.00 $88.00 $103.0
0 -
Total Sales
Amt
$5,50
0.00
$9,800
.00
$10,83
0.00
$13,33
0.00
$15,84
0.00
$17,50
0.00
$20,90
0.00
$24,60
0.00
$33,00
0.00
$38,54
0.00
$43,12
0.00
$53,56
0.00
$286,52
0.00
Percentage of
Total 1% 1% 1% 2% 2% 2% 3% 3% 4% 5% 5% 6% 35%
2021
Janua
ry
Febru
ary March April May June July
Augus
t
Septe
mber
Octob
er
Novem
ber
Decem
ber Total
Number of
Units Sold 250 300 305 330 350 370 400 430 470 490 510 540 4745
Price Per Unit $30.0
0 $40.00 $42.00 $46.00 $51.00 $55.00 $60.00 $64.00 $79.00 $86.00 $90.00 $110.0
0 -
Total Sales
Amt
$7,50
0.00
$12,00
0.00
$12,81
0.00
$15,18
0.00
$17,85
0.00
$20,35
0.00
$24,00
0.00
$27,52
0.00
$37,13
0.00
$42,14
0.00
$45,90
0.00
$59,40
0.00
$321,78
0.00
Percentage of
Total 1% 1% 2% 2% 2% 2% 3% 3% 4% 5% 6% 7% 39%
From the above 3 years sales forecast, it can be seen that each year the sales amount has got increased at a higher rate. From 1 st year
the sales has increased by $65125. From 2nd year the amount of sales has increased by $35260.
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Running head: Business plan report
Forecast expenditure for 3 years:
Fixed costs Amount (in AUD)
YEAR 1 YEAR 2 YEAR 3
Wages of employees 57,000 59850 62842.5
Rents to be paid 46,500 48825 51266.25
Amortization payments 29,000 30450 31972.5
Insurance 10,000 10500 11025
Utilizes 16,500 17325 18191.25
Direct materials 25,000 26250 27562.5
Piece Rate labor 14,500 15225 15986.25
Commission 7,000 7350 7717.5
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TOTAL 205500 215775 226563.75
Percentage of cost estimates
Wages of employees
Rents to be paid
Amortization payments
Insurance
Utilizes
Direct materials
Piece Rate labor
Commission
Figure 5: Percentage of fixed and variable costs
(Source: Researcher)
The above table shows the calculation of expenditure that the company has to bear every year
after it is developed. The first 3 years expenditure projection has been shown here. Every year
the percentage of expenditure gets increased by 5%. Thus, it can be seen the expenditure in first
year is less than 2nd year and expenditure is comparative high in 3rd year than first two years.
Conclusion
In this report a business plan was developed for 3Block Online Automotive Products and
Solution Pvt. Ltd which can beneficial for growth of their business. Some major problems which
can be faced by this organization have been discussed along with some possible remedies to
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Business plan report
these through different analytical tools. A value proposition structure was provided which was
unique compared to existing conventional approaches. Customer segmentation showed what can
be done in order to reach more effective business profit. A business model was also provided for
this organization. Later parts discussed about management plan, financial structure, and
operation plan for 3Block Online Automotive Company. It is anlasyed that different sources for
collecting resources are to be selected by an organization. Management team needs to evaluate
different sources and assess their affectivity. After making this assessment properly they can
choose some sources out of those which can be most helpful. It can be concluded that this
company can be a compatible one in the market if they become successful in implementing this
business plan properly. Now in the end, it could be inferred that if company wants to sustain in
market then it will have to create core competency and sell its products and services at least cost.
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Yoshifumi, H., Premkumar, G., & Manzuma-Ndaaba, N. (2017). Measuring Ergonomic
Implementation from the Perspectives of Job Security, Job Stress and Job
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.pdf
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