Business Plan for NOVASK: Manufacturing Umbrellas with Stick

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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