Business Plan Analysis Report: Australian Hardware (BSBMGT617)

This report provides a comprehensive analysis of the business plan of Australian Hardware, a hardware and home improvement company based in Australia. The report begins with an executive summary and an introduction to the company, including its history and market position. It then delves into a detailed market analysis, examining the target customers, their preferences, and the competitive landscape. The core of the report focuses on the company's business vision, mission, values, and objectives, providing a critical evaluation of each. The marketing and sales strategies are analyzed, including marketing and sales objectives, advertising and promotion strategies. The report further explores the company's services and products, business strengths and weaknesses, and financial situation and objectives. Finally, the report concludes with a summary of the key findings and a list of references.

Running head: AUSTRALIAN HARDWARE 1
Australian Hardware
(Student details)

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Executive Summary
This report will analyze the business plan of a hardware and home improvement company
Australian Hardware. This is an Australia based company which is very popular among every
type of consumer. The customers of this company value or appreciate luxury style and quality of
products. The purpose of this written report is to detailing a critical analysis of vision of
business, mission, objectives and values of business. This written report will also compare the
strengths and weaknesses of the business plan of Australian Hardware.

AUSTRALIAN HARDWARE 3
Contents
Introduction.................................................................................................................................................4
Market Analysis..........................................................................................................................................4
Business Vision...........................................................................................................................................4
Marketing and Sales Strategy..................................................................................................................5
Marketing objectives of Australian Hardware.........................................................................................5
Sales objectives of Australian Hardware.................................................................................................5
Mission........................................................................................................................................................5
Services and Products..................................................................................................................................6
Business Values...........................................................................................................................................6
Business Objectives.....................................................................................................................................7
Business strengths.......................................................................................................................................7
Business weaknesses...................................................................................................................................7
Financial situation.......................................................................................................................................7
Financial objectives.................................................................................................................................8
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

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Introduction
Australian Hardware ltd is the hardware and home improvement Products Company which is
situated in Sydney NSW and it has 138 stores in Australia. This company was established in
1921 by Percy Greenwright and it was became a public company in 1982. The way as the
company grows, it looks like that within five years it will lead the market of hardware and home
improvement products in Australia. Australian Hardware also provides servicing and expert
advice on hardware products. Holden Greenwright is the both CEO and Board of directors.
Australian Hardware operates their business in main three target markets which are
tradespersons, DIYs and Home improvers (Australian Hardware, 2019a).
Market Analysis
The customers of Australian Hardware live in Australia, basically around 50 km of big cities and
populated centre. Australian Hardware’s customers are both male and female; mainly age group
is 20-60. The customers of this company value or appreciate luxury style and quality of products.
They also value convenience, customer service, and customer experience, ethical and sustainable
practices. Australian hardware’s competitors’ focuses on common products and their consumers
expect high quality products at lowest prices. There are many competitors who compete
Australian Hardware and these competitors are Bunnings with 15% market share, Home
hardware with 5% market share, Mitre 10 with 3% market share, Tradelink with 4 % market
share, Masters with 5% market share and other competitors with 60% market share (Australian
Hardware, 2019b).
Business Vision
Australian Hardware delivers the world’s best quality products of hardware, garden supplies,
building material and home wares to tradespeople and consumers. Australian hardware offers
these all products at low price and also provides consumer values through product quality,
community engagement, environmental responsibility and expert service (Australian Hardware,
2019c).

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The vision of Australian Hardware is within five years, company will lead the home-
improvement and hardware market in Australia. To fulfill this vision company have to create a
strategic plan and must follow some strategic directions which are mainly:
 Increase and maintain share market
 Increase gross profit
 Maintain control on operational costs
 Establish reputation and goodwill
Marketing and Sales Strategy
To analyze the marketing and sales strategy, it is important to know that what is company’s
marketing objective.
Marketing objectives of Australian Hardware
 Popular hardware brand name
 Provide high quality products
 Increase website traffic
 Growth in revenue
 Establish good reputation
Sales objectives of Australian Hardware
 Annual sales of $3.7
 Sales per store average $27
To increase the sales and for marketing purpose, Australian Hardware uses advertising and
promotion strategy. Australian Hardware using many types of advertising and promotion which
are paper flyers, media promotion, social media advertisements, online advertising, magazine
and trade advertising, emails, research on customer needs and e-catalogues.
Mission
Australian Hardware delivers high quality products which include homewares, hardware,
building materials and garden supplies to trade persons and consumers in Australia. The mission
or the target of Australian Hardware is provide consumer value by low prices, good quality
products, expert advice services, environmental responsibility and community engagement.

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Australian Hardware has 138 stores which are located around Australia in big cities and in larger
regional centres. Australian Hardware is growing their business through open new stores in other
locations.
Services and Products
Australian Hardware is a popular and competitively priced home-improvement and hardware
supplier. Consumers of Australian Hardware mostly value high quality products and services,
appreciate innovative and unique style products and prefer high class. Australian Hardware
provides world class and high quality innovative products trade persons and consumers.
Australian Hardware provides many products and service at very high quality. Some of which
are the following:
Hardware products: A range of fixtures, fittings for home improvement.
Tools: Australian Hardware provides imported and Australian tools of high quality.
Housewares: It provides a range of popular international and Australian branded housewares.
Garden: Landscaping materials and seasonal plants for different purposes.
Australian Hardware provides ongoing training to staff and customer service skills. They
promote and appreciate skilled staff.
Business Values
Developing business values is the basic key to follow in a successful business. Basic business
values are the principles- for example, innovation, respect, determination, perseverance,
integrity, fair- mindedness and passion. Follow business value is the positivity of business and
creates a good impression on customers (Haag, 2013).
To fulfill the consumer needs, Australian hardware provides high quality products, expert
services, reasonable prices and community engagement, which are ethical and good business
values.

AUSTRALIAN HARDWARE 7
Business Objectives
Business objective is the result of hope to achieve the target and growth. Every business has
some common objectives, which are:
 Productivity of resources and people
 Excellent consumer services
 Attract employees and customers
 Healthy cash flow maintenance (Wilson, 2014)
Business strengths
Strengths of Australian Hardware
 Good location
 Excellent and skilled staff
 Marketing budget is very controlled and strong.
 Good market share
 High quality and innovative products
 Expert advices by staff
 Online stores
 Brand recognition
 Reasonable prices
Business weaknesses
Along with strengths, Australian hardware has some weaknesses also, which are:
 Less loyal consumers
 Higher cost of sales
 Socially responsible and environmental choices
Financial situation
Investment and operation in fixed assets of Australian Hardware financed by reinvested profits
of last years’ investment and operational activities.

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Financial objectives
 Increase in gross profit of minimum 10-15% each year.
 Maintain cost of goods sold (COGS) at half of gross revenue.
 Increase in gross profit of each year at minimum 10-15%.
 Disciplined growth through control on fixed costs.
Conclusion
Australian Hardware is home improvement and Hardware Company which deals with consumers
who value convenience, customer service, and customer experience, ethical and sustainable
practices. Australian Hardware is a competitive company which provides high quality products
and services. This is the main reason behind the popularity of brand.
This report highlights the analysis of business mission, vision, values of business, and objectives
of business. The main objective of Australian Hardware is to offer high quality products and
services to customers and trade persons. This report also analyses the strengths and weaknesses
of Australian Hardware.

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References
Australian Hardware, 2019a. Business plan. [Online]
Available at: http://australianhardware.simulations.australiantrainingproducts.com.au/
australianhardware.simulations.learn.com.au/uploads/8/5/8/8/85882182/ah_business_plan.pdf
[Accessed 12 July 2019].
Australian Hardware, 2019b. Marketing plan. [Online]
Available at: http://australianhardware.simulations.australiantrainingproducts.com.au/
australianhardware.simulations.learn.com.au/uploads/8/5/8/8/85882182/ah_marketing_plan.pdf
[Accessed 12 July 2019].
Australian Hardware, 2019c. Australian Hardware Vision and Mission Statement. [Online]
Available at: http://australianhardware.simulations.australiantrainingproducts.com.au/
australianhardware.simulations.learn.com.au/uploads/8/5/8/8/85882182/ah_mission_and_vision.pdf
[Accessed 12 July 2019].
Haag, A. B., 2013. Writing a Successful Business Plan: An Overview. Workplace health and safety, 1
January.61(1).
Wilson, J., 2014. Essentials of Business Research: A Guide to Doing Your Research Project. California:
SAGE.