Business Plan for NOVASK: Manufacturing Umbrellas with Stick

This business plan outlines the development plans, market analysis, and marketing strategy for NOVASK, a company manufacturing umbrellas with a stick. It includes objectives, mission and vision, unique selling points, SWOT analysis, and PESTEL analysis.

BUSINESS PLAN

TABLE OF CONTENTS
I Executive summary.......................................................................................................................1
II OVERVIEW OF BUSINESS IDEA............................................................................................1
Company Legal structure and owner..........................................................................................1
2.1 Objectives..............................................................................................................................2
2.2 Mission & Vision..................................................................................................................2
2.3 Values....................................................................................................................................3
2.4 Critical Success Factors........................................................................................................3
2.5 Products and services............................................................................................................3
III DEVELOPMENT PLANS.........................................................................................................4
3.1 Operational Plan....................................................................................................................4
3.2 Management Team................................................................................................................5
IV MARKET ANALYSIS...............................................................................................................6
4.1 Competitor Analysis..............................................................................................................6
4.2 Unique Selling Point.............................................................................................................7
4.3 SWOT Analysis....................................................................................................................7
4.4 PESTEL Analysis..................................................................................................................8
4.5 Porter Five Forces Model......................................................................................................9
V MARKETING PLAN................................................................................................................11
5.1 Target Market......................................................................................................................11
5.2 Marketing Strategy..............................................................................................................13
5.3 Marketing Mix....................................................................................................................14
VI FINANCIAL ANALYSIS........................................................................................................15
6.1 Financial aspects.................................................................................................................15
REFERENCES..............................................................................................................................19
APPENDICES...............................................................................................................................22

I Executive summary
Business plan is work as a beneficial tool under which every activity get planned properly and in relation to this all
operations get done in an appropriate manner. This factor includes a business plan which represent an organisational
development and growth related activities which are concerned with every level of managers. Overview of business idea has
been presented by preparing mission, vision, objectives and with critical success factors a perfect plan get developed. Companies
name is NOVASK with an innovative business idea of manufacturing an umbrella with stick that can provides support to hold
while walking in rain. Along with this, operational plan will enable in making the things corrective in manner through budgetary
format. Details and unique features of product are also described below along with unique selling point. For operating
efficiently, company need to analyse its internal as well as external environment in which it is operating and evolving. For this
purpose SWOT Analysis, Pestle analysis and Porter's five Forces model has been explained. Financial plan is helpful in examine
all finance and fund related things and requirement of business. For this perspective, various sources have to get determine
properly in which diverse sources of fund get identify. Cash flow statement present about inflow and outflow of a company on
the basis of which proper actions and suggestions get underpin.
II OVERVIEW OF BUSINESS IDEA
Company Legal structure and owner
NOVASK
Legal structure of NOVASK is Private Limited under Partnership. The company is owned and managed by Kevin
Nooreki and Elle Anderson. They came up with an innovative idea of a new concept in a market by creating a new 2 in 1
product i.e. an umbrella with a stick as per the needs of different segments of customers. The company was started in year 2010
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with just 6 employees. This innovative idea first strike into the mind of Elle Anderson who was at the age of 52 then, when she
realised the need of having a stick and umbrella at the same time while waking in rain. Mind captured the idea and then design
was developed.
2.1 Objectives
Following are the objectives of NOVASK:
 To become the best umbrella selling organisation in UK.
 To maintain a rich tradition of manufacturing and services.
 To have the most contended and satisfied customers in the umbrella industry.
 To meet the needs and expectations of customers and employees as well.
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 Strive to achieve excellence in manufacturing of quality stick umbrellas through loyal, committed and dedicated
workforce (Amatucci and Grimm, 2011).
 To double the market share till 2020.
 To attain a minimum profit of 30% along with a minimum sales volume of 100,000 units in a year.
2.2 Mission & Vision
“Company is creating products which are based on user understanding and keep their needs in heart”. This mission
statement of a company clearly signifies that they identify various users needs and requirement and deliver great experience
about investigation. This is helpful in enhancing area network of an association through which targets get ascertain in an
effective manner. Thus, they are providing results on user centred because, number of customers are related to different
segments.
2.3 Values
NOVASK understand only thing which is just to provide best services as an organisation can. Thus, on the basis of this
thing, several core values of an association are as follow:
 Maintain their focus on customers needs and continuously improving product, services and technologies (Authority,
2016).
 Formulate vision on the basis of customer feedback and then implement plan to ascertain them properly.
 Motivate employees and appreciate them towards creative thinking.
 Innovating and improving technologies for libraries so that user experience get improved in an appropriate framework.
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2.4 Critical Success Factors
Behind the success of NOVASK various sort of things play an important role which support them in long term context.
Thus, essential factors behind success of NOVASK are described as follows:
 Using new and innovative technique through which chances of ascertaining objectives are high (Barringer, 2012).
 Focus on customer needs and requirements rather than price and cost incur on them
 Execute operations in partnership not individual which increase number of sale of stick umbrella online
 Major target of a company is to increase target market by 20%
 Entering in contract with two different online retail store to increase market
2.5 Products and services
(STICK UMBRELLA)
 They have innovated a simple umbrellas by adding a stick on it.
 This idea came from the need of having an umbrella when it rains and at the same time need of having a stick to hold on
in order to not to slip on the road.
 Main feature of the stick umbrella is that when the wet umbrella is closed it turns into form of stick without making a
person wet.
 It contains two buttons. One is green coloured button and another is red coloured button.
 When green one is pressed, it opens umbrella and when red one is pressed it opens stick.
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 Another special feature of the product is that the length of stick can be adjusted as per the height of customer.
 This product can also be used as a safety object in order to defend oneself even when it is closed ( Barrow, Barrow and
Brown, 2012).
 Price of per unit Stick umbrella would be £90.
 Price of per unit stick umbrella is high as compared to normal umbrellas available in the market. This will be a
competitive disadvantage for company.
III DEVELOPMENT PLANS
3.1 Operational Plan
It helps the organisation to get clear picture of their task and responsibilities to in order achieve strategic objective of the
business. It consists of various activities and budget plan for each part of the firm (Beheshti, Meek and Kaufman, 2012). They
focus on utilising the resources effectively and efficiently. Following are the elements of operation plan:
Location: NOVASK is required to find the place which is easy to reach and convenient for its customer. However, being a start-
up business, there low availability of resources and hence, company is mostly focusing on online stores for which only a small
office will be based in Manchester England. Services offered will include online services, free home delivery services, payment
through wallet and cash on delivery services along with one year warranty of product and extra 10% discount on bulk orders.
Stock & Equipment
 Company will keep only finished goods which will be imported from manufacturing unit established in China.
 Average value of stock presented in the organisation for 3 months period will be £1300.
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 NOVASK can maintain their stock level by keeping the record of every single transaction so as to know behaviour of
their clients. They can maintain lead time by analysing the pattern of their clients actions.
Legal Environment: Policies related to government rules and regulatory comes under this. Organisation is required to take
license or permit for special zone of building (Bérard and et. al., 2013). They are required to update the trademark, copyright or
patent if required so as not to adhere the law of the economy.
Manufacturer (china)
Company has established manufacturing unit in China as there is low cost of production and high availability of
workforce (Blackwell, 2011). Raw material is imported form other countries and then it is processed and assembled in China
(refer appendix 1)
3.2 Management Team
This includes personnel who will manage day to day operations of business along with the impact of their experiences,
skills and attitudes towards the improvement of business. The cited firm also need to create an ancilliary plan for business if any
of the key personnel leaves or incapacitated.
Currently there are 50 employees working in the company. Hence, organisational chart for the company will be:
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Following hierarchy need to be used by NOVASK for efficient working of operations. However following departments
must be present for professional and advisory support to the company:
 Board of directors
 Mentors and key advisors
 Management advisory board
 Accountant team
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 Banker
IV MARKET ANALYSIS
4.1 Competitor Analysis
This involves identification of potential competitors in the matket along with evaluating their strategies in order to
determine their weaknesses and strengths in relation to company's own product and services (Blascovich, 2013). However,
umbrella producing industry is small in UK, due to this it provides a large scope for new enterants in market. Thus, business
have to identify all of them and take appropriate step for such sort of rivalries in business. Major Competitors for NOVASK as
identified are: James Smith &Sons Umbrella: Headquarters of James Smith & Sons is based in London, UK. It is working since 1830.
its was also featured in episode four of the BBC's 2015 production of Agatha Christie's Partners in Crime.
 FOX Umbrella: Headquarters of Fox Umbrella company is based in London UK. It is a potential copmpetitor of
NOVASK as it provides services ranging from online store, customised umbrella's, etc. (Refer Appendix 6)
4.2 Unique Selling Point
It includes those factors that differentiates a product from its competing products such as high quality, low cost, unique
features, etc. (Bridge and Hegarty, 2013) This could be created by considering a thought of what features does product need to
be entails that competitors does not have. Through USP, company can promise with clear benefits to customers that other
competitors does not provide. This will also enable them in attracting more customers.
 However, Unique selling point of NOVASK is special design of umbrella with two buttons along with the feature
of switching to stick from umbrella without getting wet.
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 Product will be available in different colours and design.
 Stick would be adjustable as per the hieght of customer and can be detached also to be used during seasons other
than rainy.
 Unique selling point also helps company to create position of its product in market.
4.3 SWOT Analysis
Market analysis is a major concern for an organisation which enable in ascertaining all goals and objectives properly
(Bryman and Bell, 2015). Chances of making the business appropriate is high in nature through which maximum outcome would
be gain. NOVASK limited have to determine about all strength and weakness of their own along with number of opportunities
which are prescribed in market world. Moreover, it is essential for managers to analyse threats as well so that competitive
advantage would be gain properly. Below is a SWOT analysis which get evaluated all things properly by ascertaining pros and
cons of business enterprise.
Strength: Strength are considered as all advantages which are gaining by an organisation in order to maximise their revenue and
profit (England, 2015).
Weakness: Every business suffer several limitations which are inappropriate for business concern. Thus, management have to
analyse all weakness properly and take beneficial decision in such relation
Opportunities: This industry is all about new and small number of firms involving into this business concern.
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Threats: Every business have a fear of something new and things which are inappropriate in context as well. A major risk for
business is fear of more and more number of substitute which restrict in operation of activities in a proper framework. (Refer
Appendix 2)
4.4 PESTEL Analysis
For evaluating various situation of market, it is essential to identify various factors which made a vast impact on an
association performance. Whenever an organisation is going to incorporate business in new market world, an organisation have
to organise a PESTEL under which various sort of information get determine properly (Finch, 2013). On the basis of this basic
evaluation of market, management will go to ascertain objectives properly:
Political factors: This includes those political factors that can have significant impact upon the smooth functioning of business
activities such as policies, type of government, political changes to government and global influences.
Economic Factors: This includes economic factors such as growth of economy, employment rates, monitory policy, change in
exchange rate, inflation rate, etc.
Social factors: Company need to look after its social and corporate governance responsibilities which includes demographic
influences, lifestyle factors, providing more employment opportunities, using of eco-friendly material in order to protect
environment, etc.
Technological factors: These are the factors that have significant impacts to any industry. Technology is changing with the
changing environment and increasing needs and expectations of customers and clients (Gately and Cunningham, 2014).
Company need to cope up with the changing technology so that better services can be provided to their customers as per their
needs and requirements.
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Environmental factors: This includes those factors that are surrounded by the company and can affect effectual working of its
operations such as geographical location, weather, climate, global changes in climate etc.
Legal factors: Legal factors that can affect company includes various laws and regulations of an economy in which the company
is operating that a company need to adhere to. These can significantly impact the smooth running of business. Some other legal
factors are taxation policies, employment laws, and other industry regulations.
In order to assess own capabilities and market capabilities, macro environmental analysis along with companies own strengths
and weakness analysis has been conducted which includes PESTLE analysis, porter five forces model and SWOT analysis.
(Refer appendix 4)
4.5 Porter Five Forces Model
Another major thing which can be used to analyse the market situation is porter five forces analysis under which five
major determinants get evaluated and on the basis of them proper actions get derive properly (Porter's five forces model. 2017).
NOVASK are going to incorporate business in new market world where they want to increase number of customers as well as
cope up working with two other associations as well. Hence, on the basis of this consent, managers identify a major factor which
is porter five forces analysis which provide suitable outcome from the project:
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Illustration 1: Porter's Five Forces Model
(Haight, 2011)
 Threat of a new entry: There are many umbrella and sticks manufacturing organisations in china who also impots their
material from different countries may be ata cheaper rate as they are more experienced then cited companay. Hence, in
such industry chances of introducing many new companies into this is quite difficult. Thus, management of NOVASK
identify that threat of new entry is low.
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 Bargaining power of suppliers: Company is mainly operating through online stores therefore it does not have to deal
with more suppliers as it has not yet started making available its products in physical market area (James and
Gudmundsson, 2012). Thus, NOVASK determine that bargaining power of suppliers is less. Hence, power of switching
the cost is loss which facilitate more appropriate working. Bargaining power of customers: A major thing which directly made a vast impact on offerings of lower price rate
products is bargaining power of buyers. It is essential for an organisation to determine all substitute in present market
world and take appropriate steps on the customer satisfaction. More number of alternatives increase chances of more
bargaining by users. NOVASK bargaining power with their buyers is high as there are more available umbrella and stick
providing organisations in UK. Threat of substitute: For every business organisation threat of substitute is more in nature which directly affect
profitability of an organisation (Jones and Penaluna, 2013). Management have to identify the number of substitutes
which are present against goods ad services. Moreover, many other organisations are already working in this sector
whom have good market share as well. Thus, chances of generating more revenue is less in nature.
 Competitive rivalry: A major thing which reduce attractiveness of industry is competitive rivalry. Business is suffering
from heavy competitive rivalry which is not appropriate for business consent. Management have to take appropriate steps
which enable them in taking strategic decision and judgements as well. (Refer Appendix 3)
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V MARKETING PLAN
5.1 Target Market
Target market refers to a particular group or segment of customers to whom product or service is aimed to be sold. Under
target market, marketing efforts are concentrated to few of the key market segments (Lee, 2011). These are determined on the
basis of needs and desires of customers that closely match to the features of offered products and services. By determining the
target customers, company can increase its sales volume along with determining the best price of its products and services.
Having a target market provides focus of all the marketing activities of an organisation. Segmentation of market can be done on
following basis:
Demographic Segmentation:
This is the most important criteria or method for identifying target market (Liñán, Rodríguez-Cohard and Rueda-Cantuche,
2011). Demographic segmentation can be done on the basis of following measurable statistics:
 Income level
 Marital status
 Age
 Gender
 Education
 Religion
 race
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NOVASK, for the purpose of determining target market, can segment total market on the basis of age such as:
Below 10 year: For this segment, short sized umbrellas with cartoon characteristics can be produced to attract children.
Company also need to look after use of high quality material that cannot harm children.
Above 10 years and upto 16 years: for this segment of customers, length of umbrellas need to be increased and can be
produced in different coulours and designs. These are the least target segment customers for NOVASK.
Above 16 years and upto 45 years: This segment usdusally does not prefer umbrella that too along with sticks and also does
not focus on design and colours. However, these do focus upon the quality of product.
Above 45 years: For NOVASK this segment is the most targret market. Because these often feel to have need of stick while
walking in the rain. Company need to make marketing policies to attract more and mre customers form this segment.
Geographic Segmentation:
Under this, market is segmented on the basis of geographic location (Marketing, 2011) for example:
 City
 Locality
 State
 Country
 Postal code
 Area Code
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 Region
Psychographic Segmentation:
Under this segmentation, market is divided on the basis of socio-economic class, lifestyle preferences and personality. As per the
UK national Readership survey social class can be classified into following categories as explained in Appendix 5.
5.2 Marketing Strategy
It is an overall game plan of a business in order to reach maximum market and turning them into customers of their
offered products and services (Mattar, 2013). Marketing startaegy of the company contains key marketing messages, value
propositions, information regarding target customers and other high level elements. It produces a market plan that provides lay
out about timing and types of marketing activities that a company is going to use in future to attract more customers by
promoting its product and services.
Value proposition: This refers to an innovation or attractive feature of a product that is intended to attract more customers.
Value proposition of NOVASK is an umbrella with two coloured buttons so that customer can switch to umbrella or stick at any
time with just a click of button.
Marketing Message: A brilliant marketing message helps company in attracting customer more easily. Marketing Message for
NOVASK is “Shelter with Care”.
Further, NOVASK can use following marketing strategies to attract its target customers:
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Partner with allies: Having marketing parteners provide umber of benefits to company. When a firm is collaborated with
someone else it is tend to provide more better content. These partners reduces time of seeking to cutomers and also helps in
knowing their needs and expectations.
Determine Peers: It is essential gor a company to determine what its perr companies are upto along with the special features of
their products and services and prices (Maurya, 2012).
Customer Interaction: It is important for a business to create a space where customers can interact with them. This will enable
them in knowing what customers are expecting from the compsny and what other changes can be maade in products and services
which will improve their efficiency.
Experimenting new platforms and Channels: Management of the company need to try new platforms for the promotion of their
products and services on regular basis. This will enable them in getting toward new customers.
Envolving employees: envolving more employees in regular operations of business will create a space for employee
communication. More innovative ideas can be provided by employees to improve products and services.
5.3 Marketing Mix
Marketing mix is the set of marketing tools which help the firms to seek its objectives in the market. It is used by the
company to promote its product and services (McKeever, 2016). This helps NOVASK to identify and define the issues which
affects the marketing of its products. It assists the managers to formulate effective marketing strategy.
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Product: Product is an item which is actually being sold into the market. The key product of NOVASK is Stick Umbrella which
is manufactured in different colours and designs along with normal umbrella and stick. The company also provides sub
components of product such as extra stick to increase the height of umbrella. The company uses effective strategy to sell their
products into the market.
Price: Price is the value charged by a firm for its product. It is beneficial for NOVASK to set low prices for their product order
to take maximum advantage and sustain in the market. The demand of the product is more, if the prices are low.
Promotion: All those activities which is done to promote any product and service into the market place. NOVASK used
different promotional tools such as advertisement, media etc. for marketing their product.
Place: Place is the area of the target market where company sell its product. Internet is the best place for the company to sell its
product (Migliori and et. al., 2014). By this, the company may able to reach large no. of customers all over the world. Currently
company is selling its product on mainly two online retail stores that are Amazon and Ebay.
VI FINANCIAL ANALYSIS
6.1 Financial aspects
Financial plan is a helpful consent which support an organisation in order to improve all differentiation and deviations
which arise in business context. This context is supportive in nature which enable management to facilitate their operations and
working properly (Neck and Greene, 2011). A financial plan is one in which whole record of entire year get created along with
cash flow projection. In cash flow estimation, managers have to identify about inflow and outflow of business concern which
facilitate many options in front of them regarding execution.
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NOVASK limited have to estimate about all investment appraisal facts which really need more and more investment.
According to future plan, management want to increase their number of customers through combine working with more than 2
libraries and start doing operations effectively. For this consent, managers have to analyse their reports and resources on the
basis of which appropriate judgement will be carried down. Along with this, cash flow projection will directly support in making
the things correct and appropriate.
SOURCES of Finance
Business operations require appropriate amount of fund which facilitate options to manage business things
properly (Schultz, 2012). There are variety of sources are identify which have to take in account by an organisation under which
they are going to manage fund for executing operations properly: Debenture: It is a type of credit source through which an association become able to arrange fund for the entity. Their
interest rate is fixed which have to pay by an association and it is a duty of management to pay all their debenture amount
to holder and make them satisfied as well (Simoneaux and Stroud, 2011). NOVASK can apply for debenture through
which they are going to arrange fund for long term context. Debenture holders are expecting good return from business
which facilitate proper working
 Shares: These are considered as capital of a business enterprise or can say assets for an organisation. Every firm issue
their shares at market and raise capital through that. Business have good and appropriate financial statement which
enable shareholders to provide fund without any hesitation and other sort of thing.
 Retain earning: Business have to reinvestment few amounts of profit again into the segment. Every time whenever an
association working in more appropriate manner they secure a few amounts of fund which they can easily put into
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business again. Thus, NOVASK can use this approach for their business by utilising their remaining profit and revenue
again into business and grab market opportunities properly.
 Loan: Another major thing which an association will have to take in account is all about using loan as a factor (Wirtz,
2011). Organisational can raise fund through loan as well which facilitate option to manage adequate amount of money
which enable business to get expand and conduct operations at vast level.
However, it is assumed that NOVASK has borrowed loan of £100,000 at the interest rate of 6%.
Cash Flow forecast
Cash is a basic source which facilitate and create better options in order to make things right and correct (Sutton, 2013).
Cash flow is identifying the inflow and outflow of cash by an organisation in a particular time frame. Management have to take
appropriate steps through which they are going to make business operations effective. Cash inflow is considered as an activity
under which revenue get generated in a business. Cash outflow is described as a process under which all expenditure and other
expenses are included.
This process provides a basic information about cash inflow and outflow which describe the real and virtual movement
of cash (Wassinger and Baxter, 2011). A major advantage of preparing cash flow statement is to identify that how much money
company brings back and how much they spend on their number of activities. A positive cash flow is result of two major things
which are planning and organising.
Cash flow has been prepared for NOVASK, which shows that company has a good amount of available cash at the end
of each year. (refer appendix 8)
Break Even Analysis
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Break even analysis of NOVASK has been done that shows that break even profit of company on selling of single unit is
22.78. (refer appendix 9)
Income statement
The main motive of every business organisation is to gain higher profits and sales revenues with ensure its growth and
survival in target market. In order to maintain the financial position in target market, it is necessary for firms to prepare various
account statements. In this context business organisations are created trading and profit and loss account.
In which, profit and loss account represents the annual profits and losses of the company. Trading account represents all
factory expenses and it is developed in order to determine gross profit and losses for the business (Watson and Dring, 2011). So
as to know purchasing, sales and manufacturing whether they are sufficient earning or not. Therefore, the prime objective of
trading account to provide information about direct expenses and gives suggestions regrading safety. Trading accounts also
accessible in comparing closing stock with last year.
Income statement for NOVASK has been prepared for 5 years that company is capable of generating good amount of earning
every year. (refer appendix 10)
Balance Sheet
Balance Sheet of company has been prepared that shows sound financial stability of the company. (refer appendix 11)
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APPENDICES
APPENDIX 1 (Operational plan)
Basis Factors
Production NOVASK is dealing in various range of umbrella that can
be required by customers from any age group. All the
products in which company is dealing are manufactured in
its own concern which helps the company in ensuring the
quality of raw material that used in making finished
products.
Location Headquarter of NOVASK is situated in Manchester,
England. However, it just has a small office and does not
entails a physical store for its products. Company is selling
its p[roducts and services only through online platforms
mainly through Amazon and ebay.
Legal Environment All regulations have to take care by association managers
properly in order of copyright, trade mark or any other
thing which are related manufacturing and selling of
products and services through online to different places.
Personnel NOVASK was started with just 6 employees in 2010.
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however, now it consists of more than 50 empployees in
various departments such as Human Resource, R&D,
Administrative, Marketing, web designer, production and
customer service departments.
Inventory They have good stock of number of stick umbrellas and its
parts. They are dealing at wider level which enable them in
making business operations appropriate. Along with this,
keep track record of every sort of activity as well.
Suppliers Since the company is only indulged in online business, so
there are no suppliers to the company right now. Hence,
due to its expansion plans of opening store in different
locations, company is in search of potential suppliers that
can make available its products in different target places.
Their suppliers are effective and bargaining power is low
as well.
Credit Policies There are no credit policies as the company does not
provide its products on credit to customers.
APPENDIX 2 (SWOT Analysis)
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STRENGTHS
 Strength of company is that it is a small
industry will less number on
employees. Therefore, less salary
expenses.
 Manufacturing unit is in china and
hence, there is low cost of capital.
 It also provides sub products which
increases its sales and also attracts
those customers who only wants small
components.
WEAKNESSES
 Less number of employees may cause
delay in operations.
 Less innovative ideas.
 Economic cost because manufacturing
unit is situated in other country.
 Increased impact of economic issues.
 Less control over manufacturing
concern
OPPORTUNITIES
 Company can open its physical stores
in England as well as China.
 There are fewer industries that provides
sub components of product which
increases more market for company.
THREATS
 Entrance of new competitors in market.
 Wide number of substitutes are
available in the market.
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APPENDIX 3 (Porter's Five Forces model)
Basis Analysis
Threat of new entry This process is low due to less profit generating industry.
Bargaining power of suppliers Low because company is operating through online stores
only hence, less number of suppliers.
Bargaining power of buyers More because more number of alternatives increase
chances of more bargaining by buyers.
Competitive rivalry High as working as an emerging sector although with this
concern profit generation capability is affecting.
Threat of substitute High, there are many organisations are already working in
this sector. Thus number of substitutes are more in number
which affect business profitability.
APPENDIX 4 (PESTLE Analysis)
Basis Analysis
Political High as government have a right to create barrier in order to
analysing or access websites which contain inappropriate content
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and do not reflect positive things in society.
Legal High due to ever changing regulations along with the
implications of both China and UK policies and regulations.
Thus, legislations have to prepare in an appropriate manner.
Social Social impact on business is low in nature. Product belongs to
lifestyle for different age group of customers but is also need for
customers of 50 and above age.
Environmental Maintain proper association of things properly which present that
data should be ethical in nature. Environmental factors such as
weather and changes in climate has a direct impact to sales of its
products. Since weather of UK is more sensitive to rains i.e. rain
can occur during any month of the year, there is a regular demand
of umbrella's.
Technological Use of new technology in business through which chances of
making the accurate and appropriate things are high in nature.
Main product of company i.e. stick umbrella also entails
technology which contains two coloured button along with the
feature of adjusting stick as per the hieght of customers.
However, keeping in view the pace of change in technology,
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management need to think innovatively to incorporate latest
technology in its product.
Economical Economic impact on business is high due to raw material is
imported from different countries to china and then finished
goods are again imported to UK.
APPENDIX 5 (Psychographic Segmentation)
Grade Status Operation
A Upper middle class Administrative, professional or
higher managerial
B Middle class Intermediate managerial
C1 Lower middle class Junior managerial, supervisor or
clerical
C2 Skilled working class Skilled mannual workers
D Working class Semi and unskilled manual workers
E Lowest level of subsistence Widow or state pensioners or lowest
grade workers.
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APPENDIX 6 (Competitor analysis)
COMPETITORS PRODUCTS WEAKNESSES STRENGTHS
NOVASK  U shapes
Umbrellas
 Stick Umbrella
 Parts of products
 No physical
store
 Less known due
to start up
business.
 Less diversified
products.
 Unique feature
with two button.
 Less cost of
manufacturing.
James Smith &
Sons
 Sun Umbrellas
 exotic umbrellas
 Walking sticks
 Seat sticks
 Forlding
umbrellas
 Delays in online
delivery.
 No sub parts
available
 Pysical stores
are available
along with
online store.
 Friendly staff
 super funky old
shop with top
notch services
Fox Umbrellas  U shaped
umbrellas
 High prices as
compared to
 Customised
products
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 sitting sticks
 Repair services
 walking sticks
other
competitors
products.
 Less physical
stores available
 range of variety
and designs for
Umbrella handle
 diversified
business to
raincoat section
also
APPENDIX 7 (Marketing Mix)
MARKETING MIX NOVASK
PRODUCTS Company will be dealing in following products and
services:
 U shaped umbrellas
 Stick Umbrellas
 Walking and sitting sticks
 Repair services
 Sub parts of product
PRICE Prices of products will vary as per the design and quality of
products. However, the average price of its innovative
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product i.e. stick umbrella will be £90.
PROMOTION Company will create number of marketing plans in order to
promote its range of products and business such as:
 Advertisement on social media
 Newspaper and radio promotion
 banners
 Telivision Advertisement
PLACE Currently company is providing its products and services
only through its online store i.e. novaskumbrella.com and
mainly on amazon and ebay websites. However, it is further
planning to open its store in key locations in UK such as
London, Wales and Amsterdam.
APPENDIX 8 (Cash Flow statement)
PARTICULARS
Pre-Operating year
(£)
Year 1
(£)
Year 2
(£)
Year 3
(£)
Year 4
(£)
Year 5
(£)
Opening Balance 181000 197300 218325 244753.8 276575.5
Cash Sales 62500 68750 75625 83187.5 91506.25
Owner's capital 150000
Bank Loan 100000
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working capital 20000
Total Cash Inflow 270000 243500 266050 293950 327941.3 368081.8
Cash Outflow
Fixed Assets 80000
Market Research 2000
Utilities
(Electricity/water/telephone) 2500 2625 2756.25 2976.75 3333.96
Legal help and permits 4000
Promotion and advertisement 1200 1000 1100 950 1200 1300
Rent on premises 12600 13860 15246 16770.6 18447.66
Interest 3000 2400 1800 1200 600
Insurance 700 700 700 700 700
Salary 4900 5390 5929 6522 7174
Miscellaneous Expenses 1800 1500 1650 1815 1996.5 2196.15
Loan Repayment 20000 20000 20000 20000 20000
Total Cash Outflow 89000 46200 47725 49196.25 51365.75 53751.86
Closing Balance 181000 197300 218325
244753.7
5 276575.5 314329.9
APPENDIX 9 (Break even Analysis)
BREAK EVEN ANALYSIS Amount (£)
Average selling Price 25
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Variable Cost 9.5
Contribution 15.5
Total Fixed cost 19000
BEP ( in units): Fixed cost / contribution 1226
APPENDIX 10 (Income Statement)
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Sales from Products and services 62500 68750 75625 83187.5 91506.25
Less: COGS (30%) 18750 20625 22687.5 24956.25 27451.88
Gross Profit 43750 48125 52937.5 58231.25 64054.38
Operating Expenses
Utilities (Electricity/water/telephone) 2500 2625 2756.25 2976.75 3333.96
Promotion and advertisement 1000 1100 950 1200 1300
Rent on premises 12600 13860 15246 16770.6 18447.66
Insurance 700 700 700 700 700
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Salary 4900 5390 5929 6403.32 7171.718
Miscellaneous Expenses 1500 1650 1815 1996.5 2196.15
Depreciation 800 800 800 800 800
Less: total operating expenses 24000 26125 28196.25 30847.17 33949.49
Operating Profit 19750 22000 24741.25 27384.08 30104.89
Less: Interest 3000 2400 1800 1200 600
PBT 16750 19600 22941.25 26184.08 29504.89
Less: Taxation (20%) 3350.0 3920.0 4588.3 5236.8 5901.0
Net earnings 13400.0 15680.0 18353.0 20947.3 23603.9
APPENDIX 11 (Balance Sheet)
PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5
Equity and capital
Owners capital 150000 218205 298024 390229 459746
add:profit 68205 79819 92205 69517 78399
218205 298024 390229 459746 538145
Other Liabilities
Bank Loan 100000 80000 60000 40000 20000
Total Equities and Liabilities 318205 378024 450229 499746 558145
Fixed Assets
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Furniture 70000 95000 97000 110000 148000
printer and computer 40000 60000 111000 139000 158500
intellectual property 13000 13000 13000 13000 13000
Current assets
Cash in hand 15205 17024 19229 21746 20145
cash at bank 180000 193000 210000 216000 218500
Total assets 318205 378024 450229 499746 558145
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