Detailed Business Plan for Motorola Razr Smartphone (BM564 Assignment)

This project presents a comprehensive business plan for the Motorola Razr smartphone, examining various aspects essential for its successful market entry and sustainability. The plan begins with an overview of Motorola Mobility and introduces the Motorola Razr, highlighting its innovative bendable design, compact size, and high-performance capabilities. It identifies target customers, including business professionals and premium consumers, and emphasizes the product's unique selling proposition (USP). The plan details the skills required for the venture, including selling, marketing, and promotional skills, and provides financial projections, including income statements and cash flow projections for the years 2020-2022, along with a break-even point calculation. It explores potential funding sources such as bank loans, debentures, and the issue of shares, and outlines plans for obtaining resources. Furthermore, it describes Motorola's management information systems (MIS) including process control, management reporting, inventory control, and sales & marketing. The vision for the product emphasizes its innovative features, high performance, value for money, and potential to gain market share. The plan concludes by summarizing the importance of entrepreneurship and the role of a business plan in evaluating a new product's feasibility.

Enterprise and
Entrepreneurshi
p

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Company Overview.................................................................................................................................3
Business Plan...........................................................................................................................................3
CONCLUSION...............................................................................................................................................7
REFERENCES................................................................................................................................................8

INTRODUCTION
Entrepreneurship refers to a process in which an entrepreneur sets up an enterprise by
taking a risk in order to earn more profits (de Man, J. C. and Strandhagen, J. O., 2017). A
business plan is a detailed roadmap which needs to be prepared before introducing a new idea.
This report is based on preparation of a business plan for introducing a product. In this
assignment, a detailed focus will be made on evaluation of opportunities for an idea, analysis of
skills and resources required for a business and planning the development of the business.
MAIN BODY
Company Overview
Motorola Mobility is an American electronics company which is owned by a Chinese
technology firm Lenovo (Evans and et.al., 2017). Its latest offering in the market is Motorola
Razr which is a compact android smartphone. Therefore a detailed business plan about this
product will be produced for the purpose of analysis and interpretation by the company’s
management.
Business Plan
The detailed business plan for Motorola Razr is as follows-
Particular
s
Details
Product
informati
on
The product being introduced by Motorola is Motorola Razr which is a smartphone
which has been planned to be introduced in the market by the company. It brings
innovation like bendable design, compact screen and high-performance capacities
in a suitable price for its customers.
Customer
s
The target customers for this smartphone will be the following-
 Businessman- Businessman will be the primary target market for this
smartphone as they wish to have a powerful smartphone which is also
compact in size unlike the smartphones available nowadays whose screen is
quite big.
 Premium customers- Premium customers also will be the target market for
this product (Joyce and Paquin, 2016). It is so because the phone is
expensive as compared to other phones offered by the competitors.
USP of the product- The USP of this product will be its bendable features
which allow it to be bended and its compact screen offering.
Skills
analysis
The skills which are required for taking this business idea forward are selling skills,
marketing skills and promotional skills.
 Selling skills- These skills are required so that the product can be sold in the
market with the price being offered by the company.
 Marketing skills- These skills are required for marketing the product
successfully in the market so that efficiency and effectiveness is maintained

within the marketing operations of the firm.
 Promotional skills- These skills are required to promote a product so that it
can reach to the customers (Neumeyer and Santos, 2018). For this, it is
necessary that adequate promotional methods are used so that the product
can be taken forward within the market. This will help in increasing the
sales of the product and ultimately this will reflect on the company’s
revenues and level of profits.
Financial
projection
s
Income Statement(2020-21)
Particulars Amount($) Particulars Amount($)
Admin Exp. 2000 Sales
Production Exp. 10000
Salaries and Wages 8000
Other Exp. 5000
Profit 15000
Total 40000 Total
Income Statement(2021-22)
Particulars Amount($) Particulars Amount($)
Admin Exp. 4000 Sales
Production Exp. 12000
Salaries and Wages 8000
Other Exp. 6000
Profit 20000
Total 50000 Total
Cash Flow Projections(2020-21)
Particulars Amount($)
Inflows-
Cash Sales 30000
Receipts from debtors 5000
Total inflows 35000
Outflows-
Cash Exp. 8000
Payment to suppliers 10000
Total outflows 18000
Cash Surplus 17000
Cash Flow Projection(2021-22)
Particulars Amount($)

Inflows-
Cash Sales 40000
Receipts from debtors 8000
Total inflows 48000
Outflows-
Cash Exp. 10000
Payment to suppliers 12000
Total outflows 22000
Cash Surplus 26000
BEP Calculation
Particulars Amount($)
Sales 40000
Less: Variable Cost 25000
Contribution 15000
P/V Ratio= C/Sales *100 37.50%
BEP= FC/ P/V Ratio 133333
Sources of
funding
The sources of funding which the business can use are as follows-
Bank loan- In Bank Loan, funds are provided by the Bank at a fixed rate of interest
to the business for carrying out its operations. It helps in raising the required funds
for innovating a new product or service in the market (Ortiz‐de‐Mandojana and
Bansal, 2016). It can be advantageous as it provides the required funds and does not
dilutes the control of business but can also be disadvantageous as it included
burden of payment of interest and can create a charge on the assets of the firm.
Debentures- In debentures, funds are raised by a business from the members of the
public by issuing debt certificates to them. It can help in raising funds for the long-
term and does not dilute the control of business. However it is disadvantageous also
because it includes a burden of payment of interest liability.
Issue of shares- In it, shares can be issued to the members of public by a business
so that the funds can be acquired for a long-term. It can help in raising the funds
required for different purposes but can also dilute the control over operations within
a company as a share of equity needs to be given to the respective shareholders.
Plans for
obtaining
resource
The plans which can be used for obtaining resources are as follows-
 The company will obtain Bank Loan by using proper documentation and
will therefore use it for launching its new product which is the Motorola
Razr. The funds raised through this source will be quite helpful for the firm
in dealing with the expenses related to the production of the product.
 The company will issue debentures to the public so that it can raise funds
for the long-term (Piscicelli, Ludden and Cooper, 2018). It will use the
funds raised from the issue of debentures for the marketing activities related
to the product. Thus by raising a large amount of money the firm can
effectively allow marketing of its product. This will lead to increasing the
popularity of the product among the customers.

 The company will issue shares to the public so that long-term equity capital
can be obtained without a burden of payment of interest. The funds which
are raised from the issue of shares can then be used by it for promotional
activities related to the product. With effective promotion, Motorola hopes
that it can get ahead of its competitors and capture a larger share in the
market.
Managem
ent
informati
on
systems(
MIS)
An MIS is an information system which is used in order to facilitate the flow of
information, decision-making, control, cooperation and coordination and
visualization of information within an organization (Management Information
System: Role, Characteristics and Advantages, 2020). The MIS which will be used
by Motorola are as follows-
 Process control- Process control will allow the company to monitor its
processes effectively and efficiently. This will lead to obtaining efficiency
within the production and thus a good product will be produced which can
meet the expectations of the customers.
 Management reporting system- This system will allow the company to
find out the problems which are being incurred in the production of the new
product i.e. Motorola Razr which it wishes to launch in the market. Thus the
problems found can be effectively resolved (Porter and Kramer, 2019).
 Inventory control- This system will allow the company to monitor its
inventory level. Tracking of items in the inventory can be done in order to
maintain efficiency and effectiveness in the inventory operations.
 Sales and marketing- This system will allow the company to figure out the
sales and marketing strategy required to effectively increase the sales of the
product. This will help in getting a larger share in the market.
Vision The vision developed by Motorola for this particular product is-
 It will prove to be a breakthrough in the smartphone market by providing
various first-of-its-kind features to the customers. Bendable smartphone
which has a compact screen is still a new concept in the market.
 It will provide high-level performance as desired by certain customers for
managing their different types of needs and requirements like handling
business tasks, personal information, playing high-end games etc.
 This product will be value for money for the customers. It will justify its
price tag which will be initially a bit high due to the innovation brought in
it. Eventually the company plans to reduce its price to make it more
affordable to the other segments of the customers.
 With this product, Motorola hopes that it will be able to get ahead of its
competitors. It can be possible because the product is unique and has a
strong USP and is backed by a brand like Motorola. Thus this product has
the capacity to impress the customers and thus it can help the company in
acquiring a much larger market share than its various types of competitors
prevailing in the market. Thus it can easily maximize its level of profits by
using it.

CONCLUSION
From the above report, it can be concluded that entrepreneurship is a process of bringing
new innovations in market by taking risk. A business plan is developed in order to provide a
roadmap for a business in evaluating the feasibility of bringing a new product in the market. The
various elements which are a part of the business plan have been discussed. These elements
make this plan comprehensive in nature and allow a company to get a strategic and competitive
edge over its competitors.

REFERENCES
Books and Journals:
de Man, J. C. and Strandhagen, J. O., 2017. An Industry 4.0 research agenda for sustainable
business models. Procedia Cirp. 63. pp.721-726.
Evans, S. and et.al., 2017. Business model innovation for sustainability: Towards a unified
perspective for creation of sustainable business models. Business Strategy and the
Environment. 26(5). pp.597-608.
Joyce, A. and Paquin, R. L., 2016. The triple layered business model canvas: A tool to design
more sustainable business models. Journal of cleaner production. 135. pp.1474-1486.
Neumeyer, X. and Santos, S. C., 2018. Sustainable business models, venture typologies, and
entrepreneurial ecosystems: A social network perspective. Journal of Cleaner Production. 172.
pp.4565-4579.
Ortiz‐de‐Mandojana, N. and Bansal, P., 2016. The long‐term benefits of organizational resilience
through sustainable business practices. Strategic Management Journal. 37(8). pp.1615-1631.
Piscicelli, L., Ludden, G. D. and Cooper, T., 2018. What makes a sustainable business model
successful? An empirical comparison of two peer-to-peer goods-sharing platforms. Journal of
cleaner production. 172. pp.4580-4591.
Porter, M. E. and Kramer, M. R., 2019. Creating shared value. In Managing sustainable
business (pp. 323-346). Springer, Dordrecht.
Online
Management Information System: Role, Characteristics and Advantages. 2020. [Online].
Available through: <https://notesmatic.com/management-information-system-role-
characteristics-and-advantages/>