Integrating Business Analytics into Strategic Planning for Better Performance

The provided content includes a mix of academic and online sources that discuss various aspects of business, entrepreneurship, and accounting. Topics covered include strategic planning, business process re-engineering, writing a business plan, entrepreneurial identity, social capital, R&D investment, corporate venture capital, human resources, and the value of music industry to the UK economy. The content also explores concepts such as legitimate distinctiveness, investor judgments, new venture plausibility, and the role of spousal commitment in work-family conflict. Overall, this diverse collection of sources provides insights into various aspects of business and entrepreneurship.

BUSINESS PLAN

Table of Contents
BUSINESS DETAILS.....................................................................................................................1
Description of products and services...........................................................................................1
INDUSTRY AND MARKET ANALYSIS.....................................................................................2
CUSTOMERS AND VALUE PROPOSITION..............................................................................3
MARKETING STRATEGY...........................................................................................................4
OPERATIONAL PLAN..................................................................................................................5
MANAGEMENT TEAM AND COMPANY STRUCTURE.........................................................6
RESOURCES..................................................................................................................................6
FINANCING...................................................................................................................................7
FINANCIAL PROJECTION...........................................................................................................7
RISK AND STRATEGIC OPTIONS..............................................................................................9
KEY MILESTONES.....................................................................................................................10
REFERENCES..............................................................................................................................11

BUSINESS DETAILS
Description of products and services
The present business idea is based on introduction of new music station where separate
website will be developed with a domain name of Music station. The new venture will provide a
wide platform to all the music composers of UK where it is possible for them to publish demo of
the music and activity such as bidding along with sale of music can be carried out easily
(D'Amico, 2007). New business is totally based on online music composition trading platform
where music composers can easily publish their demo online for bid or sale. Apart from this it is
possible for buyers to bid for the music competition demos (Anderson and Khedair, 2009).
Name of the new business is music station which will employ advanced tools for conducting the
overall operations. Separate category will be introduced with the motive to make process of
bidding, uploading and sale much more convenient. Apart from this the overall website of the
firm will be designed in effective manner which is capable enough of dealing with the issue of
payment etc. For instance if any composer has uploaded music as demo then it is required for
bidder to make instant payment in less period of time (Jones and Jones, 2011). Moreover, one of
the key requirements is that it is must for bidders to get themselves registered on the website and
then only it is possible for them to take part in the bidding process. On the other hand mobile
application has also been introduced through which the website of new business can be accessed
easily and in short period of time.
Key services offered by music station to its target market are as follows:
 Wide trading platform for online music
 Music composers can publish demo of its music
 Buyers can easily bid for the music composition demo
 Sale of music is possible with the help of website
So, these are the main services of the new business through which it is possible for the new
business to accomplish its main goals along with objectives.
Mission and vision of company
Mission: Main mission of the enterprise is to provide appropriate platform in the field of online
music through which composers and bidders can get right platform.
Vision: Main vision of the enterprise is to become leader in the market and expand overall
operations worldwide.
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So, this represents the overall mission along with the vision of the company. This
represents that business enterprise has set appropriate targets through which overall objectives
can be accomplished easily (Martin and Cheung, 2005). Apart from this, vision statement of firm
is indicating that business strongly focuses on expansion and for accomplishing this aim strong
targets have to be set. Apart from this, the present business idea is totally new due to which it is
possible to accomplish overall mission along with vision of the firm in every possible manner.
This can allow business to gain competitive advantage and in turn can assist to grab large
number of opportunities also which are present in the business environment.
Aims and objectives
Main aim of the new business named music station is to provide appropriate online music
composition trading platform to composers who can easily publish their demos online for bid or
sale. Apart from this, company wants to satisfy need of buyers who will bid for the music
composition demos.
Following are the main objectives for the present business which are as follows:
 To develop music station as brand in the market
 To provide appropriate trading platform to composers and bidders
 To expand operations in other countries in near future
 To understand the actual requirement of buyers who are interested in purchasing different
type of music.
So, these are some of the objectives set for the new business and it can be regarded as one of the
main reason due to which business is operating in the market.
INDUSTRY AND MARKET ANALYSIS
Online music trading industry of UK is growing at faster pace and it is providing large
number of opportunities to businesses which are operating in this market. Around £ 3.5 bn
economic contribution of the core UK music industry. Further. The overall growth has been seen
where major share is of musicians, composers, songwriters etc. £1.6 bn from musicians, £ 662
from live music, £ 402 from music publishing, £151 from music representative (Michaels, 2014).
This represents the overall income which is benefitting the entire music industry. UK music has
assessed the overall economic contribution of the music industry in terms of GVA where exports
are the major component. Apart from this, day by day new companies are entering into this
industry with the aim to accomplish this main objectives. Further, the overall rise in revenue
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level in overall music receipts can be traced to individual revenue with the support of musicians,
composers and different type of artists. It has been found that more than 110,000 people are
being hired by UK music industry and this is beneficial for the entire nation.
Further, the industry along with market trend is also changing where new firms are
establishing in the market which provides platform to composers and other type of artist who can
publish demo of the music and through this it is possible for bidders to purchase the right kind of
music. Apart from this, demand for such type of business is increasing at faster pace which is
beneficial for artist and other type of individuals who can choose best music for making film etc.
On the other hand, target market of enterprise is composers, artist, film makers etc who are in
need for different type of music in the market (True value of Music industry to UK economy
revealed., 2013). Company will focus on satisfying their needs in most effective manner by
providing them wide platform in which trading of music can take place easily and in appropriate
manner.
Main competitors of the business enterprise are SPINNUP and feiyr.com who are also
operating in online music industry. These firms provides platform to target market so that they
can easily sell their music (Klatt, Schlaefke and Moeller, 2011). Composers and other type of
artist can upload music and it is possible to distribute music where individual can earn money
with the help of own songs. But on the other hand, services offered by music station are little bit
different where business strongly focuses on trading of music online where bidders can search
for the most appropriate music and can purchase the same.
CUSTOMERS AND VALUE PROPOSITION
Main target market of Music station is composers along with artist, music directors etc
who prefer to purchase music composed by other. Further, mainly firm has to target composers
who will publish their music as demo in the website of company and other parties will bid.
Therefore, company will provide wide platform to both composers along with directors. In short
their overall requirement associated with music can be fulfilled in efficient manner through
which business aims can be accomplished easily and in efficient manner (Clegg and Tan, 2007).
The services rendered to target market will provide value for money experience to them and this
can have positive impact on the business in every possible manner. The main advantage of
purchasing services of firm over competitor is that they are highly differentiated where it is
possible for bidders to choose the music which can be used in making any type of film etc. Apart
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from this, many options are present with individuals who want to purchase music of any type.
So, this will be unique selling proposition of the new business which will have positive impact
on the brand image of the organization (Jones and Penaluna, 2013). Apart from this, online
trading with the help of website of firm will support firm to deal with the sustainability issues
being faced.
MARKETING STRATEGY
In order to operate efficiently in the market different sales targets have been set by firm
which is linked with sale of online music to the target market (Collier, 2004). Further, to enhance
overall performance in the market and accomplishing desired goals along with objectives it is
necessary for music station to develop effective marketing strategies so that target market can
know about the range of services being offered to them. Apart from this, marketing takes into
consideration large number of elements which are price, place, promotion etc.
The main service being delivered by music station to its target market is associated with
online music composition trading platform. This will be beneficial for composers who can easily
publish their demos for bid or sale. Apart from this it is possible for buyers to bid for the music
composition demo (De Clercq, Danis and Dakhli, 2010). This service will provide large number
of benefits to the target market of enterprise and can support in grabbing different type of
opportunities. On the other hand, promotion of entire range of services will be done with the help
of social media marketing where networking sites such as facebook, twitter etc will be employed
for developing awareness in the market. Apart from this, advertising as a source will also be
undertaking for promotion of services and it can act as development tool for the entire business
(McKeever, 2012). Distribution will take place with the help of website being developed by
enterprise and through this it is quite possible to develop stronger relationship with composers
along with bidders who are interested in purchasing overall services of the business (Dahlqvist
and Wiklund, 2012). All these key elements of marketing highlights that it is possible for
business to enhance overall awareness in the market if main stress is on promotion etc. Price is
also regarded as one of the most important element in marketing where music station will set
price for albums high as compared with other companies in the market. This is due to the main
reason that high price will represent that firm is mainly focusing on delivering quality services
which is above expectation level of composers and other type of bidders (Chesbrough, 2010).
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In marketing launch strategy is also crucial where the new business named music station
will be launched in different manner where its unique concept will be highlighted. Further, all
the unique features will be represented in front of composers and bidders through which it is
possible to gain their interest and in turn they can be attracted easily (Carter, 2007). Moreover, it
is well known fact that new business requires large attention due to which it is required to focus
on launch strategy for obtaining large number of benefits. Launch of services will take place with
the help of websites and this will allow business to enhance overall presence in the market.
Moreover, sales tactics is also important where new venture will use different tools so as to
enhance sales volume in the market. Service differentiation is one of the most effective way
through which sale of music can be enhanced easily (Schiraldi and Silva, 2012).
Further, it will provide base to the entire business in accomplishing overall aims along
with objectives. For development of brand all the additional benefits which music station can
provide to its target market will be highlighted and this will allow composers to perceive music
station as a brand in effective manner. Apart from this, for competitive reaction company will try
to indulge into practices of promotion along with service differentiation so that overall
performance in the market can be enhanced (Burke, Fraser and Greene, 2010). Moreover, growth
potential are easily present in the market which business can grab easily as the market of online
music trading is growing at faster pace due to which it is profitable for music station to carry out
operations in this sector and in turn it can act as development tool for the entire firm.
OPERATIONAL PLAN
The overall business will run with the help of own website being developed and services will
be delivered with the help of music station website (Barringer, 2012). The key activities of the
new business are:
 Providing platform to composers and artist so that they can publish demo of their music
for sale
 Buyers will bid for the music composition demos
These two are the two main activities on the basis of which entire business will operate in the
market. Further, activities such as production etc are not part of this business. Apart from this,
there is single owner who will look after all the key activities and no such partnership agreement
is present in between the owners. All the major activities of the new business will be controlled
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by the owner itself and individual will be responsible for carrying out each and every activities of
the business (Wood and McKinley, 2010).
MANAGEMENT TEAM AND COMPANY STRUCTURE
Every venture is required to define effective team and structure which can help in smooth
flow of all operations and activities. The new venture which is Music Station will be managed by
its founder. All the decision making power will be in the hands of its founder. Moreover a
hierarchical structure will be implemented in the new venture. This means that a clear line of
authority and responsibility will be established. The power of resources allocation will be in the
hands of founder of Music Station. Other than this, there will be a proper chain of command
implemented in the entire venture (Werbel and Danes, 2010). This means that all its human
resources wont get confused regarding their roles and responsibilities. Along with this
hierarchical structure will also supports in setting up a clear line of communication in the entire
management. At the initial level there will be two employees working under the founder of
Music Station. Both these employees will have skills related to development and management of
software and website. One website developer and software developer will be hired. These two
people will be responsible for development and maintenance of the website which is Music
Station. In addition to this, they will communicate with the founder directly regarding any kind
of issues and problem (Vaghely and Julien, 2010). An open communication process will be
adopted where both the employees will be free to share their views and idea with the founder.
The venture will hire new people related to field of information technology and marketing as it
will start to grow in the market. During the initial less employees will be kept in order to lower
down the overall cost of operations.
RESOURCES
The new venture will require technical, financial and human resources in order to grow in
the market. The premises will be of the founder only from where he will be going to manage all
the operations and activities. During the initial stage, this idea will support in lowering down the
overall cost of operations (Sahaym, Steensma and Barden, 2010). Once the business will get
established then an office will be set up in main area of London. The premises will have effective
facilities regarding internet and electricity. Majority of the activities of the new venture is going
to be carried out an computers and laptops. Therefore, it can be stated that the major
requirements of machinery includes printer, computers, laptops. These all will help in carrying
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out all the operations and activities of Music Station in effective manner (Jones and Penaluna,
2013). Along with this, the founder will be required to ensure that the internet connection offers
good speed and no breakage of connection in between task and activities. There will be total 3
staff members which includes founder and two software and website developers. Music Station
will utilized resources in effective manner to get the best and desired outputs (Thompson and
MacMillan, 2010).
FINANCING
In the present business named music station founder’s capital is £75000 and through this
amount overall operations of the business will be carried out in effective manner. Further, firm
will obtain loan of £25000 and this will provide support to management in carrying out overall
operations in the market.
Leverage= Owner capital / Bank loan
= 75000 / 25000
= 3
Finance is mainly required for purchasing advanced tools and equipment as business will
totally operate with the help of website and for the same satisfying financial needs is must for
organization (Hildreth, 2004).
FINANCIAL PROJECTION
Particular Amount (£)
Average Selling Price per meal 6.25
Contribution 2.5
Total Fixed cost 9700
Contribution 2.5
Break Even Point = Total fixed
cost/contribution
3880
Average Customer Per Month 310
Number of Month =
13 Months= BEP/Avg. customer
Profit & Loss Projections
Particular
Year 1
(£) Year 2 (£)
Year 3
(£) Year 4 (£) Year 5 (£)
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Sales Revenue
Registration 21600 25920 31104 37325 44790
Music Track 9000 10800 12960 15552 18662
From ads 18000 21600 25920 31104 37325
Total sales revenue 48600 58320 69984 83981 100777
Less: Cost of sales 19440 23328 27994 33592 40311
Gross Margin 29160 34992 41990 50388 60466
Operating Expenditure 0 0
Marketing & Promotion 600 630 662 794 953
Legal & Accounting fees 200 210 221 265 318
Website Maintenance 500 550 605 726 871
General Expenses 1000 1100 1210 1452 1742
Salary & Wages 8000 8400 8820 10584 12701
Utilities 1200 1320 1452 1742 2091
Total Operating
Expenditure 11500 12210 12969 15563 18675
Profit before Interest &
tax 17660 22782 29021 34826 41791
Interest 1700 1360 1020 1224 1469
EBITDA 15960 21422 28001 33602 40322
Tax 3192 4284 5600 6720 8064
Net profit 12768 17138 22401 26881 32258
Cash flow projections
Particulars
Pre-
operating
year (£)
Year 1
(£)
Year 2
(£)
Year 3
(£)
Year 4
(£)
Year 5
(£)
Cash inflow
Opening balance 16000 28768 45906 68307 71722
Sales Revenue 0 48600 58320 69984 83981 100777
Owner's fund 75000 0 0 0 0 0
Bank Loan 25000 0 0 0 0 0
Total cash inflow 100000 64600 87088 115890 152288 172499
Cash outflow
Infrastructure &
Designing 30000 0 0 0 0 0
Assets & equipment 50000 0 0 0 0 0
Marketing & Promotion 1000 600 630 662 695 729
Legal & Accounting fees 300 200 210 221 232 243
Website Maintenance 700 500 550 605 635 667
General Expenses 2000 1000 1100 1210 1331 1464
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Cost of sales 0 19440 23328 27994 33592 40311
Salary & Wages 0 8000 8400 8820 9261 9724
Utilities 0 1200 1320 1452 1597 1757
Interest 0 1700 1360 1020 680 340
Tax 0 3192 4284 5600 6720 8064
Total cash outflow 84000 35832 41182 47583 49962 52460
Closing Balance 16000 28768 45906 68307 71722 75308
Financial assumptions
 It is assumed that growth of business will be increased by 20% per annum (Theeke and
Mitchell, 2008).
 Loan will be taken from Barclays Bank and rate of interest on borrowed money is
charged as 6.8% per year as per bank rate (Need to know how much you could afford to
borrow., 2015).
 Expenses such as marketing and promotion, general expenses and legal and accounting
fees will be increased by 5% as increase in services of business.
 It is also planned that 5% hike will be given in salary and wages of employees on yearly
basis (Kinney and Raiborn, 2010).
 Expenses related to website maintenance and utilities of organization will be increased by
10% as increase in sales of organization.
 As per the tax rates of government, 20% of tax will be charged on profits of the business
(Sole trader tax – a guide for start-ups and the newly self employed., 2015).
RISK AND STRATEGIC OPTIONS
The main risks associated with the firm is linked with competition where it has been
assumed that more companies will enter into the market of online music and this will have
adverse impact on business. Further, this risk can harm efficiency of the business and it is
required for owner to take corrective actions well in advance so as to deal with major risk. Apart
from this, risk such as change in government regulation, technological advancement can also
influence business operations (Kew and Stredwick, 2005). On the other hand, to operate
efficiently in the market it is required for music station to indulge into practices of continuous
monitoring so that risk faced may influence organization operations positively. Further, the
ranges of critical success factors for business are its differentiated services which are not offered
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by other companies in the market. On the other hand, strategic options available with company
are merger, acquisition through which it is possible for music station to operate efficiently (Navis
and Glynn, 2011).
KEY MILESTONES
One of the major factor which will contribute in the success of new venture is its unique
and differentiate services. It has been analyses that there is no such service provider in the
country. Further it will serve as a effective platform for all the music composers for growth and
development (Parker and van Praag, 2012). Other than this, it can be stated that effective
promotion and marketing will be carried out of the website in order to make it more popular. In
further process such as formalization of partnership and issues of shares will also take place as
the business will grow. For future expansion and grow finance will be obtained with the help of
issuing shares. The website will also make efforts to secure its key customers. This will be done
by taking feedback from key customers and making changes related to the same. It will help in
making them more loyal and will also serve as key success factors for the new venture
(Prashantham and Dhanaraj, 2010).
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