BMO6511: Business Strategy Proposal for Venture Capital Firm

This document presents a business proposal developed for the BMO6511 Strategic Management and Business Policy course. The proposal focuses on introducing a new two-wheeler product designed for female working professionals in Australia. It begins with a vision statement and analyzes the external environment using PESTEL and Porter's Five Forces, highlighting political stability, economic growth, and industry competition. The internal analysis identifies core competencies like skilled employees and a diversified product portfolio, along with the value proposition. The strategy section outlines a skimming pricing strategy and targets the specified customer profile. The analysis justifies the business-level strategy and details the competitive advantages. The proposal aims to secure venture capital investment by demonstrating a viable business model that addresses market opportunities and leverages the company's strengths.

BUSINESS STRATEGY PROPOSAL
This document pertains to
BMO6511 Strategic Management and Business Policy:
Assessments 2
[TYPE YOUR ORGANIZATION’S NAME HERE]
STUDENT NAME:
STUDENT ID#:
WORD COUNT: (REPORT TEMPLATE CONTAINS APPROX. 500 WORDS)

BMO6511 Business Strategy Proposal Document
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CONTENTS Page
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ASSESSMENT 2
Vision
Market Opportunity
Solving the Problem
Strategy
Validation

BMO6511 Business Strategy Proposal Document
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STRATEGY IN ACTION (ASSESSMENTS 2)
BRIEF
You are an entrepreneur with a new idea. It is the next big thing, or at least it could
be; that is, if you can translate this idea into a viable business model that will
entice a venture capital (VC) firm to invest.
Drawing on your unit readings, activities and discussions, author a high-level
business proposal for a venture capital firm using the template provided.
*Assessments 2 and Assessment 3 combine to create a subject artefact (the
business proposal document).
ASSESSMENT 2 (40%)
Create a business proposal document.
Drawing on your learnings from weeks 1-3, create your foundational business
model and business-level strategy.
Introduction:
The paper is focused in the description of a new business idea for one of the
reputed organizations of the global automotive industry named as TATA Motors. The
company will introduce a new business product which is a two wheeler in Australia. The
new product will be unique for the company as it will be a latest edition to the product
offerings of the company. The new product will be designed for the female working
professionals of Australia. The paper includes a new vision statement for the company and
along with that, provides notable amount of information regarding the external
environment of the company in the new region with precise focus on the PESTEL analysis
and Porter’s analysis. Along with that, the paper also identifies the internal environment of
the mentioned company with a precise focus on the core competencies of the company. In
addition to this, the paper also identifies the business level strategies of the mentioned
company with the introduction of the new product in the Australian market.
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ASSESSMENT 2 – PART A
VISION
1. OUTLINE YOUR ORGANIZATIONAL PURPOSE
Maximum: 1-2 sentences
The company has the vision of the reducing the stress of the female working
professionals regarding the transportation. In addition to this, the company is seen to be
dedicated in delivering a quality solution for providing the much required ease to the
increasing female working professionals in the nation for effectively reducing their
concerns of transportation.
MARKET OPPORTUNITY
2. EXTERNAL ENVIRONMENT – ANALYSIS
Approx.: 600 words
a) General Environment
PESTEL ANALYSIS:
With a precise focus on the political circumstances of the selected country, it is
pretty evident that the trade relations of the mentioned country with the neighboring
countries is significantly improving and that is pretty evident with the association of the
company in various organizations such as the World Trade Organization, Commonwealth
of Nations along with G20 (Wto.org. 2019). The stable political environment inside the
country is seen to provide notable amount of competitive advantage of the mentioned
country is becoming the most favored destinations for the new organizations in opening
their business.
The selected country was placed at the 13th position in the list of largest economies
in the year 2017 and along with that the economy of the country is seen to have 2%
growth in the same year (Finance.gov.au. 2019). Apart from this, majority of the
economists of the country are seen to have the expectation of a significant growth in the
GDP of the country (Statista.com. 2019).
Along with this, the significant increment in the number of the female working
professionals working in the various organizations of Australia is seen to be major trigger
for the selected company in introducing the new product.
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Considering the incorporation of the technology in the products and services of the
company, the increment in the usage of the technology amongst the youth generation,
specifically the females is seen to be pretty prominent (Beavis 2013). Along with that, the
increasing acceptance level of the customers regarding the incorporation of the
technology is considered to be crucial for the company in incorporating the modern
technology in the improvement of the facilities of the new product.
The national government of the country is seen to be notably focused in making
sure that country maintain the sustainable balance in the environment of the country and
the urgency amongst the regulatory agencies of the government regarding the formation
of the relevant legislations for the efficient management of the ecological balance of the
nation provides the proof of the fact (Environment.gov.au. 2019). Hence the selected
company needs to make sure that they manage the environmental concerns of the
government such as the ethical and eco-friendly sourcing of the raw materials and along
with that, they needs to control the emission of their new product in accordance to the
guidelines of the company.
With a precise focus on the legal aspect, the company needs to make sure that they
follow the relevant labor and employment legislations for the manufacturing of the
product and along with that, the company needs to maintain the ethical guidelines
regarding the patents for the design of the new product.
b) Industry Analysis
With a precise focus on the industry, it is evident that the Australian two wheeler
market is dominated by the companies such as the Honda, Yamaha or Kawasaki. The
current revenue of the mentioned industry is approximately 2 billion US dollars and along
with that, the industry is able to contribute in the formation of 705 number of businesses
and 3856 number of employments in the nation (Ibisworld.com.au 2019). However, the
growth of the industry is seen to be bit slow in nature and majority of the companies are
observed to be focused in the identification of the new tactics such as the increment of
their product chain for managing the competition and increasing their growth rate.
c) Competitor Analysis
With a precise focus on the well- established business operations of the motorcycle
manufacturers such as Honda, Yamaha or Kawasaki, it is pretty evident that the company
will face a significantly tough competition in introducing their products (Honda.com.au.
2019).
Along with that, the application of the competitive prices from the part of the
mentioned organizations will increase the threat of substitution for the company. In
addition to this, the increasing initiatives from the part of the companies in the
enhancement of the quality and the improvement of the facilities of the products, the
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selected company is expected to face a notably tough competition from the part of the
mentioned competitor organizations. However, a different point of view portrays the fact
that the limited number of available organizations with such product for the mentioned
segment of the customers signifies a bit relaxation that will be associated with the
bargaining power of the buyers and the company is expected to face moderate bargaining
power of the customers.
Considering the ample number of suppliers with the quality of the on time supply of
the materials along with appropriate quantity of the supply in a considerably reasonable
prices, the company is expected to face a low bargaining power of the suppliers (Farahani
et al. 2014). In addition to this, the significant increment in the number of the female
working professionals and the absence of products solely designed for them is the major
factor which triggers the new organizations in opening their business in Australia.
SOLVING THE PROBLEM
3. INTERNAL ORGANIZATION – ANALYSIS
Approx.: 400 words
a) Core competencies
One of the main strengths of the selected company is the expanded skilful employees of
the company. The company currently experiences the service excellences of more than
81,090 number of employees across the globe (Tatamotors.com. 2019). In addition to this,
the company is seen to have the highly diversified product portfolio which specifies the
company’s interest and the ability of introducing new and unique products for serving the
needs of the customers of all groups.
In addition to this, the excellence of the engineering, research and development
department of the mentioned company is seen to be one crucial reason of the success of
the company in meeting the diverse requirements of the customers.
The strong cash flow inside the organization along with the financial backup from
the part of the parent organization of the company is seen to be an important factor that
provides notable amount of competitive advantage to the mentioned company in
conducting the infrastructural development for providing the modern facilities in the
products of the company. In addition to this, the financial support from the part of the
parent company, TATA Group becomes crucial for the organization in improving the skills
and competency levels of the employees of the organization and that is pretty evident
with the increased occurrences of the training activities conducted from the part of the
company.
Other than this, the strong brand awareness of the company is considered to be a
crucial factor in favor of the company in introducing new and improved products. The
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success of the company in the formation of the strong brand is seen to be dependent on
the excellence of the marketing team of the company in conducting increased number of
marketing and promotional campaigns for their products.
b) Value proposition
Two of the elements of the value chain of the company that are seen to provide maximum
amount of value for the products and services of the company are seen to be the brilliance
in the services of the employees of the companies along with the urge of the senior
management of the company in incorporating the modern technology in the products of
the company. The employees of the company are seen to have the capability to design
the products in accordance to the preferences of the customers which triggers the
intention of repetitive purchases amongst customers and the increasing revenue of the
company provides a significant proof of the fact. On the other hand, the features of the
company’s new products are pretty significant in stating the incorporation of the modern
technology in the products of the company and that plays a crucial role in increasing the
facilities of the products for the enhancement of the value of the products.
STRATEGY
4. BUSINESS-LEVEL STRATEGY – STRATEGY FORMULATION
Approx.: 400 words
a) Business-level strategy
The features of the new product will provide notable amount of ease to the customers in
its usage. Considering the pricing strategy, the company is expected to use the skimming
strategy as the product is new to the company along with the Australian market (Spann,
Fischer and Tellis 2014).
b) Customer profile
i. Who will be served?
The new product of the selected company will serve the female working
professionals of 20 to 30 age group.
ii. What needs do your target customers have that your business will satisfy?
With a precise focus on the dynamics of the transportation industry, it is pretty that
the number of female passengers for the bus and taxi services is increasing in a
significant manner. The new product will be crucial for minimizing the concerns of
the mentioned segment of the customers regarding the transportation.
iii. How will their needs be satisfied?
The new product will be crucial for minimizing the concerns of the mentioned
segment of the customers regarding the transportation.
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c) Justify your choice of business-level strategy
The application of the strategy will be significant for the company as it will enable them to
target the customers with the new product in an efficient manner. The application of the
strategy for the cost leadership becomes crucial for the organization as the company is
currently positioned in a country which is experiencing an intense price war between the
motor cycle manufacturing organizations.
d) Competitive advantage
The features that make the product different from other will be the reduction
in the machinery for operating it. As the product is designed for the working
professionals, the product will weigh only 95kg and will have kick and self -start
facilities. The product will have digital fuel indicator, tubeless tyres and will provide
75kmpl mileage along with 3 years warranty period.
ASSESSMENT 2 – PART B
VALIDATION
5. ASSESSMENT 2 (PART B) – STAKEHOLDER FEEDBACK REFLECTION
(EPORTFOLIO)
Approx.: 500 words
a) Blog posts
From the blog posts, it is pretty evident that it is important for the managers
to make sure that they are transparent with their business policy and their claims
are ethical. Other than this, it is important for the managers to have the passion
required for running a successful business and along with that the blog posts are
significant in stating the need of analyzing the old business ideas for the design of
the new business ideas.
Apart from this, the blog posts portray the fact that the success of the
modern organizations is seen to be dependent on the capability and interest of the
companies in innovating their products. In addition to this, the blog posts make it
pretty clear that it is important for the companies to strive towards the consistent
growth but at the same time, it is important for the organizations to identify the
changes of the market and manage their impact on the businesses through
innovative ideas.
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Other than this, the blog posts provide notable amount of idea regarding the
need of identifying the strengths, weakness, opportunities and the threats. With a
precise focus on the concept of SWOT analysis, it is important for the organizations
to have the idea regarding the weaknesses and threats so that the companies be
able to undertake necessary actions for managing profitable business.
Conclusion:
On a concluding note, it is evident that the Australian motorcycle market has
grown in a significant manner over the years. However in recent past, it is
observed to face a decline owing to the inappropriate targeting strategies from the
part of the competitor organizations and under such situation, the idea of the
company in selecting the working female professionals for the target market and in
introducing a two wheeler product that is solely designed for the mentioned target
market, will be crucial in regenerating the growth.
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References
Beavis, C., 2013. Young people, new media and education: Participation and
possibilities. Social alternatives, 32(2), p.39.
Environment.gov.au 2019. Department of the Environment and Energy.
Department of the Environment and Energy. [online] Available at:
https://www.environment.gov.au/resource/local-government-and-australian-
environment-law
Farahani, R.Z., Rezapour, S., Drezner, T. and Fallah, S., 2014. Competitive supply
chain network design: An overview of classifications, models, solution techniques
and applications. Omega, 45, pp.92-118.
Finance.gov.au. 2019. Department of Finance |. [online] Available at:
https://www.finance.gov.au/
Honda.com.au 2019. Home | Honda Australia. [online] Honda Australia. Available
at: https://www.honda.com.au/
Ibisworld.com.au 2019. Motorcycle Dealers – Australia Industry Research Reports |
IBISWorld. Retrieved from https://www.ibisworld.com.au/industry-trends/market-
research-reports/retail-trade/motor-vehicle-parts-retailing/motorcycle-dealers.html
Spann, M., Fischer, M. and Tellis, G.J., 2014. Skimming or penetration? Strategic
dynamic pricing for new products. Marketing Science, 34(2), pp.235-249.
Statista.com 2019. Australia - Gross domestic product (GDP) growth rate 2024 |
Statistic. [online] Available at: https://www.statista.com/statistics/263602/gross-
domestic-product-gdp-growth-rate-in-australia/
Tatamotors.com. 2019. Tata Motors Limited - Largest Indian Automobile
Manufacturer. [online] Available at: https://www.tatamotors.com/
Wto.org. 2019. World Trade Organization - Global trade. [online] Available at:
https://www.wto.org/
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Bibliography:
Tatamotors.com.au 2019. Tata Motors Australia. [online] Tatamotors.com.au. Available at:
http://www.tatamotors.com.au/home/en/
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