BUS302 Entrepreneurship: Feasibility Analysis & Marketing Plan

This document presents a comprehensive business plan for a new venture focused on developing and marketing a food heating machine for domestic use. The plan includes a market feasibility study, analyzing market trends, competitive threats, and potential strategic alliances. A SWOT analysis identifies the business's strengths, weaknesses, opportunities, and threats, while a detailed marketing plan outlines strategies for promoting the product through various channels. Human resource requirements are addressed, detailing key personnel, recruitment, and training programs. The plan also assesses technical and operational feasibility, covering production, distribution, and relevant legislations. Financial projections for three years are included, forecasting revenue, costs, and capital requirements. The business aims to provide a high-quality kitchen appliance that simplifies food heating, targeting domestic households in Australia.

Running head: ENTREPRENEURSHIP
Entrepreneurship
Name of the University:
Name of the Student:
Author’s Note:

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Table of Contents
Introduction to Business.............................................................................................................2
Market Feasibility......................................................................................................................2
Market Trends and Conditions...............................................................................................2
Strategic Alliance...................................................................................................................2
Threat of Competitors............................................................................................................3
Market Research.....................................................................................................................3
SWOT Analysis.....................................................................................................................3
Marketing Plan.......................................................................................................................4
Human Resource Requirements.................................................................................................5
Key Personnel’s.....................................................................................................................5
Recruitment Program.............................................................................................................5
Training Program...................................................................................................................6
Technical and Operational Feasibility.......................................................................................6
Production..............................................................................................................................6
Distribution............................................................................................................................7
Legislations............................................................................................................................7
Operations..............................................................................................................................7
References................................................................................................................................11

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Introduction to Business
The main purpose of the business plan is to open a business which would be
developing a food heating machine which would be providing best solutions for kitchens and
domestic purposes. The business would be looking to make profits from operations and
thereby also expand the operations (Burns and Dewhurst 2016). The vision of the business is
to expand the operations and reach out to more and more customers so that it can generate
more revenues from the business. The mission of the business is to provide the best quality of
kitchen appliance which can make heating of food much easier.
Market Feasibility
Market Trends and Conditions
The market trends shows that domestic kitchen appliance markets is on the rise as
more and more sophisticated home solutions are available. The Australian market is
characterized by innovative practices significantly along with rapid urbanization and
increasing purchasing power allows the residents to purchase such products. The microwave
oven market has grown to attain a market size of $28.9 billion by 2023 and it is forecasted to
grow at the rate of 5.9% over the years (WIRE 2017). The analysis shows that the market is
extremely favourable for a new product which has domestic application and especially in line
of a microwave oven.
Strategic Alliance
In order to effectively establish the operations of the business, the management of the
company need to form strategic alliances with different suppliers in order to prepare
reheating machines which would be involving latest technology and most durable frames so
that the same can be used for a long period without sustaining much damage
(Mordorintelligence.com. 2020).

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Threat of Competitors
The kitchen appliance market is highly competitive in Australia and due to global
interactions; foreign brands have also penetrated the market thereby increasing the threats of
competitors. In addition to this, the level of technology has enhanced which enables
companies to offer better products in terms of durability, frame and technique. Therefore, it
can be said that the threat of competition is quite high (Foodstandards.gov.au. 2020).
Market Research
The management of the company is trying to introduce and survive in the market for
the time being and therefore the strategy of the business should aim at promoting the product
while at the same time keeping the costs of the business low. The market analysis shows that
there is a growth rate of 5.9% in the industry which is further anticipated to improve over
time (Chaffey and Smith 2017). Therefore, it can be said that the business plan should be
implemented so that it can successfully commence its operations.
SWOT Analysis
SWOT analysis can be used by the senior officials for the purpose of internal and
external analysis of their business situation and on the basis of the same take appropriate
decisions relating to the same. The different elements of the tools which are listed below:
Strengths
 The business would be setting up its stores in Australia which would be franchises
and therefore it would be able to attract more customers from the market.
 The business also intends to offer different range of products so that the kitchen
reheating food machine can be afforded by all..
Weaknesses

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 The business might be facing financial situations in terms of liquidity position as the
operations of the new business would be requiring significant investments.
 The business would be required to properly manage the costs as unproductive costs
are likely to happen in such form of a business (Hiduke and Ryan 2013).
Opportunity
 The market is highly favourable as the Kitchen appliance industry has the growth rate
of 5.9% which is considered to be increasing further. This is an indicator that the
business would be having lots of opportunity to achieve success.
 The entity has lot of opportunity to expand the activities of the business by opening in
new stores.
Threats
 The level of competition is very high in the industry due to the entrance of global
brands and therefore the revenue of the business can be impacted.
 There are numerous norms and regulations which are applicable in Australia
regarding safe products and appliances which are hazard free from the perspective of
the customers.
Marketing Plan
The management of the company needs to formulate a proper marketing plan so that
the customers are aware of the products which are being offered and especially the domestic
household’s needs to be targeted so that the business is able to generate maximum revenue
from the operations of the business (McDonald and Wilson 2016). The business aims to
promote the product in paper media as well as television and social media so that more

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customers are attracted to the products and thereby the business is able to increase its own
sales turnover. The business would also be arranging for exhibition so that the customers are
able to know what products are being offered by the business and how useful the same can be
in day to day application.
Human Resource Requirements
Key Personnel’s
In order to effectively compete in the market, the business requires skilled labour
force for which the business needs to recruit skilled employee who have experience in the
area. The key personnel’s for the business is considered to be important as they would be
responsible for handling the activities of the business and also developing the product which
is to be offered to be the business (McKeever 2016). The business would also be requiring
marketing and sales experts so that they can handle the sales operations of the business in an
effective manner. Furthermore, a research and development team would also be required so
that the business can stay up to date with the recent changes in technologies and effectively
implement changes in the product which is offered by the business. The operations of the
busness would be handled by the supervisors and team leads and the same would be
operating within the framework which is established by the senior manager.
Recruitment Program
The business would be sending out advertisement for the purpose of different job
roles which is required and thereby conduct interviews so that most skilled and competent
employees can be recruited in the operations of the business. The recruitment program would
also be referring to the experience which the employees have while addressing situations of
the business and also maintaining efficiency in the activities of the business. The senior
officials need to recruit marketing and sales employees along with technicians and research

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team so that the product which is being offered is of the highest quality and is slightly
different from what is available in the market (Parente and Strausbaugh-Hutchinson 2014).
The recruitment would be followed by an induction program so that the employees are well
accustomed with norms and regulations which are applicable in the business and also aware
of the goals and objectives of the business.
Training Program
The business would also be having a training program set so that the employee can
further sharpen their skills and get accustomed with the working environment of the business
so that they can provide maximum productivity in the business (Finch 2013). The training
program is also formulated for the technicians so that no mistakes takes place in the
production and the customers get access to the best quality of products.
Technical and Operational Feasibility
Production
The main product which is the business is offering is reheating food machines which
would enable the customers to heat up food which was cooked earlier for a meal and this
would save time and energy as well The target market for the business would be the domestic
households who require such a product more often. The business would be hiring technicians
and experts for the purpose of designing the product which would then be produced in bulk
and sold off from the outlet of the company (Jones and Penaluna 2013). The business would
be looking after the most recent technological advancement so that it can keep its products
technologically advanced. These steps would help the senior management to appropriate face
competition while at the same time maintain efficiency in the operations of the entity.

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Distribution
The business would be opening its own outlet for the purpose of selling its products
and would be focusing on promotion to get hold of the attention of the customers. The
business would also be distributing the products of the business with the help of trucks in
case there is an online order for the reheating machine. The aim of the management is to
maintain an efficient distribution system which would help the business to generate require
amount of revenue from operations (Blackburn, Hart and Wainwright 2013).
Legislations
The business needs to be aware of the food related legislations which are available in
the country and also consumer protection act as well. The management needs to comply with
all relevant legislations which is applicable to the business so that it does not attract any kind
of penalty of fines.
Operations
The operations of the business would be handled by the senior management of the
company and they would be responsible for taking all the major decisions relating to the
business. The operations of the business needs to be efficient so that it can be managed
properly and there is no problem in generating revenue for the business.
Financial Analysis
The financial projections has been done for the company for a sum of three years whereby
relevant trend analysis has been performed. In order to well analyze and forecast the various
business, financial and operating needs that the company would be requiring it is essential to
draw and analyze the same. The forecasting of the financials of the company in particular has
been done by looking at the various business operations that the company would be operating
and the various needs and functions that it needs to carry on. In order to well forecast and get

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a clear view of the financials of the company, there were various assumptions that have been
made in order to well forecast the various financial figures.
Revenue Analysis
The key source of revenue that the company will be earning will be coming from the sales of
equipment which will be generating around $625,000 in the first year. The market penetration
or the number with the help of which the revenue base will be growing in the trend period is
expected to be around 10%. The forecasted revenue base is expected to be around $687,500
in the second year and around $756,250 in the third year.
Cost Analysis
The key costs that the company would be incurring will be in the form of cost of
goods sold which is expected to be around 40% of the sales amount. On the other hand the
key operational expenses that the company would be incurring will be primarily in the form
of premises rent, salary and wages that would be paid to employees, marketing expenses,
interest on loan, preliminary expenses, lease expenses and others.
Year FY-1 FY-2 FY-3
(a) CAPITAL
Starting Equity Capital 700,000 770,000 847,000
Loans/Borrowings 300,000
Repayment of Loan 0 150,000 150,000
(b) SALES FORECAST
Projected Revenue 625,000 687,500 756,250

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(c) COGS 250,000 275,000 302,500
(d) EXPENSES (Overhead)
Premises (RENT & RATES) 100,000 105,000 110,250
Salary 125,000 131,250 137,813
Accountant Fees 1,500 1,575 1,654
Payroll Tax 1,250 1,313 1,378
Supplier contracts 4,250 4,463 4,686
Marketing Exp. 2,750 2,888 3,032
Postage & Telephone 1,100 1,155 1,213
Broachers 1,750 1,838 1,929
Logo Designs 1,000 1,050 1,103
Interest on loan 10% 30,000 30,000 30,000
Market survey 1,250 1,313 1,378
Preliminary Expenses 2,500 2,625 2,756
Lease payments 3,000 3,150 3,308
(e) FIXED ASSETS
Equipments 200,000 220,000 242,000

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Vehicles 100,000 110,000 121,000
Plant and Machinery 350,000 385,000 423,500
Financing
It is expected that the project would be requiring around $1,000,000 and the same will
be well financed with the help of equity and debt financing. The equity finance will be
contributing around 70% and the rest of 30% would be contributed with the help of debt
financing. In order to well control and manage the financial risk of the company the company
would be reducing the borrowed sum of money in the three years of time so that the financial
risk does not affect the operations of the company.
Profitability and Return
Profitability and return generated from the proposed business plan will be marking the
viability and the success of the organization. The profit that the company will be incurring in
the first year will be around $91,630 and the same will be around $159,345 and $187,937 in
the second and third year respectively. The return on investment is expected to grow from 9%
to around 11% in the trend period marking the financial success of the business organization.

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References
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and
integrating online marketing. Taylor & Francis.
Finch, B., 2013. How to write a business plan (Vol. 35). Kogan Page Publishers.
Foodstandards.gov.au. (2020). Cooling and reheating food . [online] Available at:
https://www.foodstandards.gov.au/foodsafety/standards/Pages/Cooling-and-reheating-
food.aspx [Accessed 19 Jan. 2020].
Hiduke, G. and Ryan, J.D., 2013. Small business: an entrepreneur's business plan. Cengage
Learning.
Jones, C. and Penaluna, A., 2013. Moving beyond the business plan in enterprise
education. Education+ Training, 55(8/9), pp.804-814.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit
from them. John Wiley & Sons.
McKeever, M., 2016. How to write a business plan. Nolo.
Mordorintelligence.com. (2020). Australia Kitchen Appliances Market | Australia Kitchen
Appliances Market: Analysis, Trends, Forecast, Overview, Research, Opportunity, Growth
and Potential.. [online] Available at:

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https://www.mordorintelligence.com/industry-reports/australia-kitchen-appliances-products-
market-industry [Accessed 19 Jan. 2020].
Parente, D. and Strausbaugh-Hutchinson, K., 2014. Advertising campaign strategy: A guide
to marketing communication plans. Cengage Learning.
WIRE, B. (2017). Microwave Oven Market (2017-2023) - Research and Markets. [online]
Businesswire.com. Available at:
https://www.businesswire.com/news/home/20170804005540/en/Microwave-Oven-Market-
2017-2023---Research-Markets [Accessed 19 Jan. 2020].