BUS 240 - Business Plan Evaluation- Toddler Warehouse
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University of Arizona Global Campus
Fundamentals of Innovation & Entrepreneurship (BUS2403)
Added on 2020-03-07
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BUS 240 - Business Plan Evaluation- Toddler Warehouse assignment a business plan is an essential plan of any organization’s strategy. They lay out an important framework for business operation and give direction to a business. Business plans however need to be evaluated carefully before they are implemented. The business plan that will be evaluated in this case if the Toddler Warehouse Facility, which is a childcare and development facility that will take care of children aged 3-5 years old. The business plan will be evaluated in terms of the external environment by looking at political, economic, social, technological, legal, and economic factors.
BUS 240 - Business Plan Evaluation- Toddler Warehouse
University of Arizona Global Campus
Fundamentals of Innovation & Entrepreneurship (BUS2403)
Added on 2020-03-07
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Business Plan Evaluation BUSINESS PLAN EVALUATION-THE TODDLER WAREHOUSEBy NameCourseInstructorInstitutionLocationDate
Business Plan Evaluation Executive SummaryA business plan is an essential plan of any organization’s strategy. They lay out an important frameworkfor business operation and give direction to a business. Business plans however need to be evaluated carefully before they are implemented. This is because in some cases, companies come up with business plans but omit some important areas. It is important that the company look at its business plan in terms of the external environment. This is because a company has no direct control over the external environment yet it directly affects a business. This report evaluates the business plan of The Toddler Warehouse, which is a company that offers daycare services to children aged 2-5 years. It looks at different external factors and whether they have been included by the company in their business plan.
Business Plan Evaluation ContentsExecutive Summary.....................................................................................................................................21.0 Introduction...........................................................................................................................................42.0 External Environment Evaluation..........................................................................................................42.1 Political Evaluation............................................................................................................................42.2 Economic Evaluation..........................................................................................................................62.3 Societal Evaluation.............................................................................................................................82.4 Technological Evaluation...................................................................................................................92.5 Legal Evaluation...............................................................................................................................113.0 Conclusion...........................................................................................................................................124.0 References..........................................................................................................................................125.0 Appendix..............................................................................................................................................13
Business Plan Evaluation Business Plan Evaluation-The Toddler Warehouse1.0 IntroductionBusinesses must evaluate their business plans so that they determine if they have viable plans or not. The business plan that will be evaluated in this case if the Toddler Warehouse Facility, which is a childcare and development facility that will take care of children aged 3-5 years old. The centre will target double-income professionals who are willing to pay to have their children in the best facilities (Eden & Ackerman 2013). The business plan will be evaluated in terms of the external environment by looking at political, economic, social, technological, legal and economic factors. This analysis intends togive any decision-maker an understanding of changes that may occur within a given market as this have a direct influence on marketing and business success. Doing an evaluation of the business plan will help Toddler Warehouse Facility in making better business decisions (Wheelen & Hunger 2017). Informationfrom the evaluation can be used by the business to determine whether expansion decisions can be made or if the focus should be on growing the current business. It will encourage strategic planning and provide necessary data needed to determine how best the business could tailor itself to its target market. Toddler Warehouse Facility will be able to weigh things in an objective balance.2.0 External Environment Evaluation2.1 Political EvaluationThe Australian political environment can affect Toddler Warehouse Facility through government policies, government change and local authority. The Government of Australia has legislation, which is in existence to protect consumers, the community and environment. The rules and regulations also aim to promote fair-trading and competition. The Toddler Warehouse has to put into consideration what rules affect the operation of a daycare facility in Australia. The laws that will directly affect The Toddler
Business Plan Evaluation Warehouse are competition laws, consumer laws, environmental legislation, privacy laws and product liability regulation laws.The Australian competition laws mainly guide businesses on fair trade. The Toddler Warehouse must beaware of regulations under fair trade, which covers issues such as inventory management, selling of theirservices, customer management, effective communication, pricing, payments and invoicing. The business plan has covered these areas through the target market and competition section.The Toddler Warehouse also has to consider Australian government laws on consumers. In this case, theconsumers are the toddlers who are taken to the daycare and their parents who make payments and drop and pick them up. Consumer policy in Australia is developed by the government and states and territories. All consumers in Australia enjoy similar rights and businesses have the same obligations irrespective of the state. The Toddlers Warehouse has considered this law by incorporating into its mission statement the fact that they intend to provide top-level childcare (Mugurel-Alin 2017). The business plan also speaks about how the company considers the attracting and maintaining of customers as important.Environmental legislation in Australia will also affect operations of The Toddler Warehouse. All Australian businesses are expected to play a part in environmental management but different environmental laws apply depending on the type of business being carried out. Federal, State and local authorities jointly administer Australian environmental laws (Slack 2015). The Toddler Warehouse should understand which environmental laws directly affect them and once identified they should be included in the business plan.Australia also has privacy laws, which affect various businesses. The act guides organizations on the coverage of the act and other legislation. It looks at issues such as telecommunications, data matching
Business Plan Evaluation and handling of personal information. The Toddler Warehouse has to include this in the business and outline how customer information will be handled according to the privacy act.As much as The Toddler Warehouse is a service company, provisions of the product liability regulation act have to be taken into consideration. The company has to use products, which are in line with the act. The children will play with toys, have different meals at the centre and in some cases use medicine kits. Parents have to be assured of the safety of anything that their children will take and this will be included in the brochures that will be issued as indicated in the business plan.Any changes that the government makes in the country as pertains to businesses will also affect The Toddler Warehouse (Mugurel-Alin 2017). The company must therefore be up to date with any changes in the Australian business environment and should be able to adjust accordingly so that they do not flout any rules.2.2 Economic EvaluationThe economy of Australia will have a direct impact on the operations of The Toddler Warehouse. Issues like interest rates, child benefit, employment rates, housing prices and general tax will have an impact on business success. Australia has had economic resilience and a sustained growth pattern hence leadingto the provision of a low-risk environment for businesses to operate in. Australia has a diverse market and is a stable and democratic country, which encourages business setups (Khan & Khalique 2014). The country’s economy is also supported by healthy political and economic ties with different continents andwith the European Union.Industry revenue has steadily been increasing hence enabling households to find more room in their budget for childcare. The Toddler Warehouse is specifically targeting parent with a higher income and
Business Plan Evaluation this will be of great benefit to them. The company aims to provide quality daycare services to a specific niche market that will be willing to pay more money for the sake of their children’s development.The demand for childcare in Australia has been growing steadily over the years. The Australian Government fully supports these kinds of businesses and there has been a baby boom, which has contributed to average real growth in revenue over the years. The government regulations have made a requirement for higher staff to child ratios and staff qualifications are likely to increase the cost of wages. This leads to pressure for companies such as The Toddler Warehouse. The company has however included cost of wages in the business plan. This is important as it means the company has a realistic picture of what staff wages will actually cost them.There has been an increase in the population of children aged below 10 years hence having a positive demand for childcare services. Millenials are also keen on careers and this has led to an increase in demand for childcare services especially those in favorable locations. The Toddler Warehouse is targeting such parents who are very busy with their careers but at the same time want quality services that will enhance the development of their children. The business plan covers this in target market and sales plan by outlining target market and how it will be captured.The affordability of homes in Australia and the rent that is paid affects family decisions on home location and affects the budget that families are able to spare on childcare. Childcare is however now regarded as a necessary expense as many parents are both working and some parents are single. Due to this, The Toddler Warehouse will benefit from getting a number of customers who require their services.The business plan under market segmentation explains how double-digit income parents who want sophisticated learning and development for their children have been targeted.
Business Plan Evaluation 2.3 Societal EvaluationThe way a society behaves directly affects businesses (Brown 2014). The culture, which has been developed by the Australian people, will have a direct effect on The Toddler Warehouse and will determine the number of customers, which it will get. Some of the societal issues that will affect the business are lifestyle trends, childcare costs, parenting styles, language barriers and birth rates.The social environment of a child is dictated by where the parents stay and send them to school. It also largely determines whom children form social relationships with and the quality of these social relationships. Many relationships, which are formed by children, are form within their families or neighborhoods. The decisions that parents make therefore directly affect the health and well-being of their children. Children who engage in healthy social relationships perform better academically than the ones who do not. Those who live in environments with residential stability are more likely to perform better. The Toddler Warehouse is targeting middle-class and upper- class parents and these definitely live in residential areas that are stable. These parents are highly concerned about the type of social relationships that their children develop and therefore want the best and are willing to pay for it. Parents in Australia generally encourage healthy social relationships for their children. Early childhood education has a direct influence on the kind of relationships that the child will develop later in life. Children who attend pre-school are less likely to repeat grades in the future. The Toddler Warehouse is providing an environment, which will be conducive for children to develop socially healthy relationships. The business is also targeting children aged 2-5 and this will influence the academic outcome of a children hence will be attractive to parents. The business will also be located in Sydney, which is a largely diverse area. The location is convenient to parents due to the proximity to their areas of work hence making it convenient for them to pick and drop their kids. The Australian society is also largely made up of millenials and many are getting
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