Business Development Proposal: Automotive Parts Business in the UK

This business development proposal outlines the establishment of "Delphi Designs & Systems" (DDS), an automotive parts business in the East of England, UK. The proposal identifies a significant market opportunity within the UK automotive sector, driven by increasing car ownership and demand for repair services. It details the business concept, including the sale of various auto parts like suspensions, tires, and safety systems. The proposal employs an experimental approach, utilizing both primary and secondary research to assess market feasibility, analyze the competitive landscape, and develop a comprehensive business model. It includes a timescale for achievement, a detailed structure of the report, and an examination of the business concept, target market, value proposition, and specific features. The proposal also addresses the window of opportunity, competitive advantages, and sustainability. Financial aspects, marketing strategies, and management plans are also included in the plan. The study aims to create a sustainable business by offering quality products and services at affordable prices, focusing on customer satisfaction and long-term growth. The proposal uses various models, including the Business Model Canvas, to evaluate the business's viability and potential for success.

Business Development Proposal

CHAPTER 1: INTRODUCTION
1.1 Business opportunity rationale
Automotive industry is enclosed with many business opportunities for the new
entrepreneurs. The auto parts sector is very huge and accounts for high level production of global
manufacturing industry (Berggren, Magnusson and Sushandoyo, 2015). There are more than
3000 firms involved in the UK automotive sector. It has a very strong design and technical base
in respect to automobile parts. Several multinational brands had also established their research
and development base in UK. The manufacturing of auto vehicles is increasing day by day (Allio
and Randall, 2010). The people are showing greater interest in buying the cars. In the recent
years the demand for automotive and repair services had increased significantly. It is because
buying and selling of cars has also enhanced. Consumers prefer to change or repair their
automobile parts at constant intervals. It is also essential for long term sustainability of the
vehicles.
1

Taking that into consideration, a business development proposal has been set up. It is about
opening a business of selling automobile parts for the different consumers in UK. The business is
positioned in East of England. It will sell different kinds of parts such as suspensions,
compressors, pumps, tires, sensors, indicators, lights, dashboards, audio, safety systems, brakes,
rims and many more etc. The name of the company is “Delphi Designs & Systems” (DDS). It
can be a great business opportunity for the entrepreneur because the demand for the products is
very high in the market. The users are also higher in numbers. It is expected that this proposal
can achieve its aim and objectives in effective manner.
1.2 Scenario chosen for this topic
At the time of my training period, I have always found the automobile industry
fascinating. I carried a passion especially for the cars. I was attracted by the designs and
manufacturing. This interest has inspired me to take an entrepreneurial opportunity within this
sector. Further it has been noticed that volume of profits and return is quite adequate. However,
the level of competition is very high as there is presence of many reputed auto parts
manufacturer. Taking this opportunity as a challenge, it is important to make the right decision. It
is expected that the proposed business development proposal will achieve its stated objectives.
1.3 Approach chosen for designing and structuring of report
Experimental approach has been taken in order for designing and structuring of the plan.
The new business is proposed with the goal of how it would function in the future years. With
the help of this study it will be identified that how “Delphi Designs” can create value for the
customers. It will be identified how it can produce the sustainable net cash flow and profit.
Primary as well as secondary research tools have been applied for collecting the required
information.
1.4 Relevant models and use of evidence sources
The study is about a new start-up. For the completion of the research, it is important to
make use of relevant concepts and models. These things can be listed as follows:
 Timescale
 The Statement of concept
 Value Added

 Target market
 Opportunity window
 Feasibility of the investigation
 Gap within the market
 Segmentation
 Value propositions
 Behavior of buyers
 Start-up capital
 Working capital
 Cash flow
 Break even analysis
 Plan of marketing
 Assessment of risk
 Sustainability of business
Statements of Finances
 Business Model Canvas
1.5 Timescale for achievement
It is essential to develop an appropriate time schedule for the completion of the proposed
business development proposal. It is expected that all the activities related to study can be
completed within the estimated time frame.
3

Table 1 : Timescale for achievement
1.6 Structure of the report
The business development proposal consists of the following chapters:

 Chapter 1 Introduction – This chapter is framed to talk about the idea which has to be
introduced. It states the rationale behind the new idea. The chapter also gives the
information about the models and frameworks which are to be used for the investigation.
 Chapter 2 Business concept - This chapter is framed to talk about the concept which has
to be introduced. Things such as target market, value added, specific features, products &
service etc are stated. The window of opportunity is also examined so that long term
existence of the new business can be evaluated.
 Chapter 3 Feasibility Research – Under this chapter, the feasibility plan is developed. The
primary and secondary data needs are identified. Research methodology is constructed
which states how the data has to be collected (Cherubini, Iasevoli and Michelini, 2015).
Five major areas of feasibility research are evaluated.
 Chapter 4 The Business Model – The following chapter is very important from the whole
proposal point of view. The competitive advantages and sustainability of the new venture
is examined. The strategic viability of the new proposal is scanned.
 Chapter 5 The Business Plan – The following chapter addresses the plans related to
finance, marketing, management, structure, technical aspects etc. At the end the entire
development proposal is evaluated so that feasibility can be judged.
5

CHAPTER 2: CONCEPT OF BUSINESS
2.1 Business Concept description
The firm's name is Delphi Designs and Systems that is situated in East of England. In the
recent time the firm is involves in making sales of different kinds of parts such as suspensions,
compressors, pumps, tires, sensors, indicators, lights, dashboards, audio, safety systems, brakes,
rims and many more etc. and other accessories of light vehicles. The organization is being owned
by sole trader. The firm is small size and it wants to expands its market in several areas within
UK. At present the organization wants to make introduction of new range of products for the
customers. The intention of the firm is to enhance the market share by the means of introduction
of new product ranges. The organization is making efforts in increasing the satisfaction among
the customers to a significant level. The company is dedicated to offer new products as well as
services to the areas where there is requirement. This assist in ensuring success within the market
that is driven by customer demand. Delphi Designs and Systems is devised to offer automotive
that combines with quality performance along with the value pricing. The company wishes to
make effective association with the customers, suppliers and employees that can offer value to
the interests as well as objectives of every party. The firm has the aim to offer greater level of
satisfaction to the customers that would assist in increasing the awareness of the firm in the
market. In addition to this it also enhances the customer base of the organization to a greater
extent. The present concept of the business is being developed with the aim to serve the present
growing needs of the market in an effective manner. The major aim is to offer the clients with
affordable prices and wide range of product line at a particular location.
2.2 The Concept Statement
The Product/ Service:
Delphi Designs and Systems acts as an aid for the customers in making selection of
appropriate products at a prices that is in accordance with their need or above expectations. The
company is engaged in making delivery of two segments of products this includes minor auto
parts and major auto parts of light vehicles. Under this the major products included are
enumerated in the manner below:

Table 2 : Product service
The firm offers the wide range of accessories for different brands of light vehicles. Here
the light vehicles involve car, van and other relates. The firm would also offer range of services
to the customers that includes fixtures of several parts. Target Market: In the present business that is Delphi Designs and Systems the target
market includes the local customers who requires to change the auto parts of their
vehicles such as car, van and jeep etc. This is due to the reason that there is greater needs
among local customers regarding making alterations in the car in an affordable prices.
Thus by the means of targeting them their needs can be satisfied in an effective manner.
In the present era the people desires to bring changes within their vehicles from time to
time as they get boredom with the older accessories in the car. Thus because of such
reason the needs for such type of business has emerged to a greater extent. Value Added: In the present case the value added for Delphi Designs and Systems
includes offering of car washing facility to the customers. In the present era individuals
have become very busy that they are unable to devote time towards maintenance of the
cars. Thus this calls for the needs to car décor facilities that are being provided by Delphi
Designs and Systems within affordable prices. In addition to this the firm also offers
additional services that relates with offering facility of modifying the look of the car
(Dweiri, Kumar, Khan and Jain, 2016). This increases the life of the car and moreover it
enhances the interest of the customers towards driving it.
7

 Specific features: In the present business plan the major features of the firm is that it
offers quality services to the customers at affordable prices. In addition to this it offers
wide range of products that are being demanded by the local customers for the purpose of
increasing the life of the car.
 Who is involved: The firm would be involved in making appointment of the new
personnel for its business. The priority will be offered to the individual who has greater
experience. On the other hand, the firm can make decision regarding appointing the
individuals who are skilled, experts as well as talented in carrying the work in car décor
house that is Delphi Designs and Systems. The major aim is to make development of
highly experienced team who have ability to attain success by the means of carrying out
new venture. The individuals who belongs to several domains would be appointed. This
includes marketing, finance, human resources as well as operations etc.
2.3 The Window opportunity
There are wide range opportunities that are available for Delphi Designs and Systems.
This is the major reason because of which the owner has desired to enter within this segment. It
is significant for the owners of the business to examine the opportunities for the new business
that exists within the market. Such is effective for the purpose of attainment of success by the
organization to a greater extent. It is important to take into account the opportunities as it
increase the growth prospects for the new business in an effective manner. The opportunity for
the present business includes increasing demand for the automobile market that is enhancing the
demand for the facility that relates with car decor. As such it offers accessories of maintaining
the car in an effective manner.
In the present era there is greater increase in the working schedule of the individuals. This
implies that there have become very busy that they are unable to devote time towards
maintaining the care and its accessories. Thus this calls for the needs of opening such business
that is effective in offering the services that relates with providing the services that can assist in
effective maintenance of the car and other light vehicles in an effective manner. Thus this would
make the life of people much easier. Further it has potential to attain success in long run course
of time as well. Along with this today there is greater increase in the number of people who
possess four vehicles. This in turn increases the demand of opening such kind of business that

can act as an aid in keeping their vehicles in appropriate manner for longer span of time and with
greater effectiveness. In addition to this there is presence of another reason that demonstrates that
the new business has greater scope in future time duration. This is related with increasing
awareness along the people with respect to fashion and trend that are prevailing in the market.
Due to this reason the customers wants to being alterations within their product as well. Thus this
has effective role in increasing the opportunity of the new business to a significant level. With
this the customers can effective manage to keep their car in the best manner. Thus this ensure
enhancement in the life of the vehicle. It has been examined that in the present era the people
have become more technological savvy. Therefore, they want to bring alteration within the
vehicles time to time so that they can increase its potential in terms of performance and benefits
gained through it. Such can be effectively bought by the new business with assist in providing
satisfaction to the needs of the people in an effective way. With technological advancement the
individual can increase the way they vehicle perform and its life in terms of longer duration of
time. This also enhances the satisfaction among the people to a greater extent. Further it is
important as it has greater scope in the years to come.
9

CHAPTER 3: FEASIBILITY RESEARCH
3.1 Research plan feasibility
In order to ensure that business plan will work out in reality it is very important to test the
feasibility of the business idea. Some time when one is talking about business plan with other
people think that business can be opened easily but in reality it become very difficult to open
same business as there are many constraints in the way. Hence, this makes it inevitable for
entrepreneur to measure feasibility of the business plan. In order to check feasibility of the
business plan a detail research will be carried out and under this primary and secondary data will
be collected from various sources of information. Apart from this projections about business
income and expenses will also be made by entrepreneur. In this regard estimated statement of
income, balance sheet and statement of cash flow will be prepared in the report. On this profit of
the projected venture will be measured. In this way feasibility of the project will be measured.
Business model is one of the important thing that needs to be taken in to consideration in order
to measure viability of the business idea. Business model refers to the way in which goods will
be produced at manufacturing plant and will be sold to end customer's. In order to ensure that
business idea of sale of automobile spare parts business model will be prepared. For this
extensive research will be carried out on the business models that are adopted by the other small
size firms in this industry. Thus, on the basis of evaluation and finding out of merits and demerits
of the business model adopted by the spare parts sellers business model for proposed venture will
be identified and on basis of which business idea feasibility will be tested. In this way feasibility
of business plan will be measured.
3.2 Primary and secondary research needs
There is need of secondary research to carry out present study. As on single sight on facts
and figures viability of business idea cannot be measured. It is very important to conduct
secondary research in present study because before opening a business in specific domain it is
very important to understand business conditions. For this purpose, it is important to understand
past. Hence, in order to do so it is necessary to collect secondary data. In order to fulfill
secondary data need of the research data will be collected from various sources of information.
In this regard business newspapers will be take in to consideration and from same data related to

people expenditures on car will be collected. From newspapers data in terms of car purchase will
be collected. In this way the demand of cars and its spare parts will be accessed that is from local
people side in the market. Secondary data will also be collected from books and magazines.
Apart from this, periodic reports of relevant association of automobiles will also be evaluated in
order to access demand for product in the market. Collection of all these facts and figures will
create deep understanding about business conditions which will be used to develop business plan
and strategy.
3.3 Research Methodologies
Research design
There are three types of research design namely descriptive, experimental and
exploratory research design. All such research designs are used in different conditions.
According to research requirements appropriate research design is selected for the research.
Exploratory research design will be appropriate for the research and due to this reason same will
be used in present study. There are many techniques of data collection that comes in this
category. According to research requirement appropriate data collection method will be adopted
in order to collect data for the research.
Research approach
In order to conduct present study two types of data can be collected. These two types of
data are qualitative and quantitative data. Quantitative data refers to the facts and figures that are
collected in relation to research topic. On other hand, there is qualitative data which refers to the
theoretical data which does not include and fact or figure. In order to conduct extensive research
both type of data will be collected in the business plan. The present business proposal is such that
it needs application of both the approaches.
Data collection methods
Data collection tool is regarded as essential part of business plan. For the present business
plan automotive industry, the collection of data has been done by the means of secondary
method. In this regard published articles, books as well as several researches are being utilized.
Along with this secondary information has been collected through online, blogs as well as
censuses and government reports.
Data analysis
11

For the present business plan on automotive industry technique of quantitative tool is
being used in order to analyze data. The major reason of quantitative analysis is that with this the
researcher would be able to gain insight to the future sales and profitability of the new venture.
Thus the decision can be taken regarding whether it would be worth investing in such type of
business. Quantitative analysis can be done through analysis of the financials that can assist in
development of the business plan in an effective manner.
3.4 5 key areas of feasibility research
Product service
Delphi Designs and Systems possess core competencies in the large crew to work on all
the makes as well as models of foreign as well as domestic vehicles. The focus of the all the
personnel is towards offering superior quality services to the customers. Delphi Designs and
Systems would strive to be accurate as well as honest with the customers with respect to quoting
the cost estimates of the equipment’s that are being replaced in the car. Further honesty would be
complied with while communicating the completion time estimates to the customers. The
services would be delivered as per the promise made by the personnel. Such lay emphasis on
developing stronger relationship with the customer that is based upon the trust as well as
integrity would be the catalyst in establishment of stronger base of the customers. The fir m
makes use of greater degree of technology for the purpose of managing fuller range of auto parts
inventory. The major goal of Delphi Designs and Systems is to never be out of particular parts
while increasing the inventory turnover. Stronger vendor relationship is being established with
the most reputed vendors in relation with shipping of major parts. The firm Delphi Designs and
Systems would facilitate the customers in making selection of the suitable parts for their
application at price that can meet and exceed their expectations. In case of any issue faced the
organization would assist and counsel the customer so that solution can be done within minimal
span of time. The company is engaged in making sales of auto parts that includes major and
minor auto parts for light vehicles.

The firm would include auto parts for the light vehicles of varied brands that exists in the
market or are in greater demand of the local customers. Through this the requirements of the
customers can be meet in an effective manner. The entire car décor functions would be
performed under a single roof. Thus this can offer greater convenience to the customer in terms
that they can make modification of their car with greater effectiveness. Thus there need any be
fulfilled in an appropriate manner. The car washing services and other value added services
would also be provided to the local customers as in the present era the people are not able to
devote time towards maintaining their vehicle. Thus the new business would assist in offering
them services that can fulfill their requirement with greater ease and in economical prices. The
employees possessing greater expertise would be hired as they would be able to offer the
services in accurate way. This is considered as the major product and services of the new
Table 3: Products parts
Business that is Delphi Designs and Systems that can assist it in attainment of desired targets
within specific span of time.
Industry and Market analysis
There is increasing demand for car among the people of the society. This is because of
increasing standard of living among the people which is influenced by their purchasing power. It
has been gained that there is greater role of increasing technology is affecting the demand within
13

automobile industry. With the enhancement in the awareness among the individual, today almost
every person prefers to transport through light vehicles. This is as a reason of convenience it
offers and the duration it takes is less when moving from one location to another. Within UK
there is presence of greater number of suppliers who are involved in making delivery of quality
materials to the customers in an effective manner. The people in UK attain greater benefit with
the presence of such companies within the industry. The major strength lies towards making
innovations in the auto parts that is affecting its demand to a significant level. It is one of the
industry that has seen tremendous growth with the passage of time. With the increase in
manufacturing the light vehicles there is increasing need among the customers to maintain it so
that it can be used for longer duration of time. It is significant that there is huge role of updating
in the vehicles in the present era. This increases the role of car décor facility that are being
offered by different companies. The demand for such has increased with the increase in
advancement that are bought within the automobile sector. It orders to fulfill the needs of the
target market it is essential to establish the outlet that are engaged in providing such kind of
services in an effective manner. With the enhancement in the purchasing power of the customers,
today there is greater increase in the sales of the organization that are into automobile sector.
This is increasing the role of opening car décor outlet that possess the potential in maintaining
the vehicle in an effective way. It has been gained that more than 1.5 million cars were being
built in UK in the year 2014. This figure is increasing year on year. Such is because of changing
needs of the people living in society. This has resulted in increasing the number of companies
that are dealing in particular sector.
With the increasing awareness and usage of technology among the customers there is
greater need among the customers to look for the outlets that making sales of the auto parts both
of foreign and local vehicles. With this the customers are able to attain better services in an
effective manner. This would assist in fulfilling their requirements to a greater extent. In the
present era there is existence of greater number of people who possess busy schedules and are
not able to devote time towards maintenance of the vehicle in an effective manner. Thus by the
means of car décor they can maintain their vehicles. Along with this, today the number of models
of particular brand are emerging at rapid speed. Due to this reason the demand of customers are
changing significantly. Thus through car décor the customers can make alterations in the model

which would result in increasing satisfaction among them. Further it enhances their motivation
towards driving same car for longer duration of time.
The car parts aftermarket is demonstrating signs relating with the recovery. However, the
market has remained under pressure that is being caused due to increase in longevity of parts.
The recent economic downturn has affected this business to a greater extent. The overcoming of
such is the major challenge for the market and this can result in bringing prospect with respect to
much stronger sales in future time span. The UK car parts after market at present has passed
through wide range of difficulties. This is related with combination of wide economic problems
as well as slowdown in the sales of car. This has resulted in increasing the number of drivers that
are making either delay in replacing the parts. Moreover, they are making purchase of some
lower quality products. The trends towards the longer servicing as well as warranties would
continue to constrain expansion of the market. The improvements within the economic outlook
in UK are established for encouraging trade up and has eased the pressure on prices. Car
aftermarket parts is referred to as the products that are required to the replaced for the purpose of
making the car function much better in all the aspects. In this relation they differ from car
accessories that can involve comfort, security as well as appearance as prime motivators towards
the purchase. Estimate £280 million in 2007, the market of car accessories has been flat in the
recent times. There are various categories of the products that are being sold to the customers in
the particular market. Such to a significant level affects the sales of the firm. It is important that
proper attention is required to be paid for the purpose of increasing the attractiveness of the
customers to a significant level.
Organization
PESTLE ANALYSIS Political factors: There is increasing number of dealers that are making sales of
automobile products. This are under pressure by the regulatory authority. This is for the
purpose of making automobile more affordable for common people rather there is
increase in cost. It has been gained that increase in middle class within developing and
developed nation has led to enhancement in the demand for automotive. Political
instability as well as corruption are regarded as major hurdle that can affect the
operations of firm to a greater extent.
15

 Economic factors: The automobile industry to a greater extent is influenced by the
conditions prevailing in the economy. There has been emergence of number of economic
crisis in past as well as each one is influencing the sales of automobile specifically in
developed nations. Though automobile sales in developed country is stagnant but
innovation can only increase the sales of automobiles. Social factors: The automobile industry has revolutionized the entire society. The
automobiles that were being produced initially for upper class are now required by
everyone. There is presence of thousands of individuals that are associated with
automobile industry at global level. It has changed the lives in several manners. The role
of automobile sector is crucial for the progress as well as growth of economies at global
level. Automobiles have now become essential part of the society. The customers have
demand for both local and foreign vehicles. Thus there is greater demand for the auto
parts in order to ensure maintenance of the vehicle. This can affect the new business to a
greater extent. Technological factors: Automobiles have passed through varied stages that is from
innovation since it has been produced. As there is increasing awareness among the
customers with respect to technology there is expectations among the customers that
automobile industry provides greater number of accessories as well as features. This has
become greater challenge for the companies that are manufacturing the products. This in
turn will affect the new business plan that relates with car décor. Another major factor
that can influence the automobile is related with internet. At present the customers have
become aware of the technological innovations within the automobile industry by the
means of internet. But it is difficult to offer services through internet. Legal factors: The safety of automobile is regarded as important concern for the law
makers at global level. Thus there is global trends which imposes varied rules,
regulations as well as quality standards for automobiles. There is greater pressure on the
automobile industry to follows such rules, regulations as well as laws. Along with this
there is presence of several countries in which there is restriction on increasing the price.
Thus in such case it becomes difficult for the organization to operate in those nations.
Automobile sector within developing nation is growing at tremendous rate but several

countries have laws regarding automotive sector that can be difficult for the new
organization to start up the business in such countries. Environmental factors: Automobile sector is regarded as one of the major culprit that is
affecting the environment to a greater extent. With the increasing knowledge on the
issues relating with environment the customers have become more concerned with
respect to automobile. Thus this has increased growth of using ecofriendly parts within
automobile industry.
Financial
Financial plan relating with Delphi Design and Systems is being kept conservative as
well as simple. The major purpose regarding this is to keep the expenses low. Further this would
assist in increasing the sales of the firm in effective manner. There are no greater expenses to be
made as there is less amount of cash in hand. The report is towards making payment against the
bills as well as salaries and add more number of auto parts for the local customer segment. It has
been assumed that organization would have positive balance of cash all time. The cash in hand is
required to be stable and grow in effective manner. As this would act as an aid in increasing the
sound financial position of the firm. These have been presented in (Appendix 1)
Appendix 1 reflects the financial statements of Delphi Designs and Systems for the
period of five years. The initial investment that is being made is by the firm is £20000. This has
been invested towards attaining the equipment’s, auto parts and well as building. It has been
assumed that in the initial two years the Net cash flow for the firm is negative. From the third
year the new start up business would be able to maintain balance between inflow and outflow of
cash. Further this has increased year on year. The rate of tax has been assumed to be 25%. Profit
after tax in the initial year of Delphi design and Systems is negative. However, this has become
positive in the later years. Along with this the amount of profit would increase with the passage
of time. This is because of increasing awareness of the firm in the market. The return on capital
invested by the owner would be -12% in the initial year. Such would be positive in the second
year that is 2%. In the later year this has reflected tremendous growth that is 3% in 3rd year, 7%
in 4th year as well as 12% in the 5th year. The amount of rent is kept constant however the wages
and salaries reflects would increase with the enhancement in the performance of the personnel to
a greater extent.
Break even Analysis
17

The breakeven analysis is on the basis of the average revenue per sale. Instead of making
sales of product at higher price, Delphi Design and Systems is engaged in making sales at
cheaper rates. The average fixed cost is 146200.98. In addition to this the contribution made is
50%.
3.5 Research results in terms of ambition vs ability
The concept of ambition vs ability needs to be taken into account by the researcher for
the purpose of attaining success through the business plan in an effective manner. The aim of the
firm is to make delivery of auto parts of foreign as well as domestic vehicles. This is one of the
new business ambition that can be attained as the Delphi Designs and Systems possess the
vendors that are located across the globe. This would ensure deliverance quality products. Thus
through this the firm would be able to get equipment of different light vehicles that can assist it
in fulfilling the needs of target market in an effective manner.
Another aim of the business is to provide expertise services to the customers so that they
are able to gain higher level of satisfaction. In order to accomplish such ambition, the ability of
the firm is that it has hired experts who possess greater knowledge regarding the auto parts. In
addition to this they have experience of working in automotive industry. Through this customer
can be offered with quality services in an effective manner. This would act as an aid in
increasing satisfaction level of the customers to a greater extent.

3.6 Emergent resource needs
Starting up new business is considered as daunting task. In this regard various resource s
are required by the firm. This acts as an aid in carrying out the activities of the new firm in an
effective manner. Such have been enumerated in the manner stated as under: Financial resources: It is considered as the most essential resource that is required for
starting up new business. This is related with funding. Financial resources are essential as
they are required since registration of business name, gaining business telephone line as
well as printing business cards as well as others. Financial resources can be attained
through the means of wide range of sources. This includes loan from bank, retained
earning etc.
 Human resources: Success of the firm largely depends on the talent as well as strength of
its personnel. With the recruitment of experienced professional that possess track record
of excellence in the field of expertise demonstrates that the goals and mission of the firm
would be carried out in effective manner and with competence. The manpower required
for the current business plan is 8. This is including 1 accountant, 1 marketing person, 1
sales person, 1 helper, 2 expert mechanic, 2 for washing vehicles.
Figure 1 : In side workshop Physical resources: Whether the business is small or big every firm needs suitable
physical resources in order to survive. This is comprised of proper space for working,
appropriate telephone lines, effective marketing materials as well as sufficient
19

information systems. These are regarding as emergent resources that are required by
business for attaining its desired targets with greater effectiveness.
 Educational resources: One of the essential thing that is required to be done by the new
business relates with gaining suitable knowledge regarding the present business in an
effective manner. By the means of understanding the competition and attaining
knowledge smarter decisions can be developed by the researcher in an effective manner.
This assist in offering suitable direction with respect to implementation of the plan to a
significant extent. Such resources are important for the survival of organization for long
run course of time.

CHAPTER 4: THE MODEL OF BUSINESS
4.1 Introduction to model of your business
Development of business model is significant for the purpose of deriving the way in
which the new organization would compete with the structures as well as relationship interfaces
with the customers. It is required for creating sustainable value in order to earn profitability. The
approach related with value chain assist the model of organization to occur valuable for the new
business organization. In this phase the strategic resources are being assessed in an effective
manner for the purpose of gaining competitive advantage. Consequent innovation is being made
to the value proposition, the supply chain as well as the target customers. It bits required to be
taken into account when making development of plan.
4.2 Each element in the model
4.2.1 Business Model Canvas
21

The Figure: business Drivers
These are considered as the group of individual who have come together with the aim to
start up new venture. The organization is being driven by the sole trader who possess immense
amount of experience in the automobile industry. The automotive industry is making huge
amount of development in an effective manner. Demand for such product is enhancing day by
day in addition to the increase in the number of firms as well as jobs. There is greater need
towards keeping technological automobile parts in the office with the aim to attract large number
of customers towards the office in an appropriate way. Thus in such manner the demand for
highly technological auto parts and appealing car models has been emerged to a greater extent.
This is effective in providing greater opportunity to the new firm. Thus it would assist the
business drivers in ensuring growth as well as development.
Identity
The ownership of Delphi Design and Systems possess sufficient amount of experience
that would assist the new product segment to grow and flourish in an effective manner. The car
décor business that are engaged in making sales of foreign as well as local car parts have not
been into existence earlier. But there was greater demand among the customers regarding such.

Thus with the emergence of such business the needs of the customers can be accomplished in an
effective manner.
Core customers
The target market for Delphi Design and System is segmented into categories that have
been enumerated in the manner stated as under:
Local customers: The target market is regarded as one of the highly potential market for the
business and this has potential to make generation of greater amount of revenue for the business.
Every firm direct efforts regarding accomplishment of the need of target market. In the present
business plan the target market includes local customers who possess the need to make
alterations of the auto parts of their vehicles that includes car, van and jeep etc. This is because
of the major reason that there is requirement among the local customers to bring alterations
within the car at affordable prices.
Value propositions
It includes the elements such as:
Emotional: The different auto parts of the foreign and domestic light vehicles would be offered
to the customers. Further the facility of car washing is also provided to the customers in an
effective manner. The auto parts that would be provide will possess the attribute s such as higher
quality, durability as well as sustainability.
Functional: The major idea is towards making sales of the products to the local customers for
the purpose of maximizing the sales as there is presence of greater demand among them.
Price: The products are provided at affordable prices to the customers. Prices will provide sound
competition the other retailers that are carrying out operations in the industry.
Competitive: The edge over the customers can be attained by the means of selection of the
product and the manner in which the customers are being educated. Within the local market there
is presence of few numbers of suppliers that are selling auto parts of both foreign as well as
domestic vehicles. In addition to this they are not reflecting very active attitude in making sales
of the products in an effective manner.
Ethical: The auto products are attained from the supplier across the globe. This ensures that they
are making sales of higher quality of the products. The different products that are being supplied
would possess higher and genuine quality.
23

Market relevance: The location of the business is East of London. The trend emerging within the
UK automobile market would influence the business of car décor to a greater extent. There is
greater demand among the market towards making alterations in the auto parts and designs of the
cars for the purpose of maintaining it in an effective manner. This affects the sales of the new
start up business to a greater extent.
Competition and competitive strategy
There is presence of greater competition among automobile industry. This is because of
the increasing number of customers that are entering the automobile sector. These businesses are
carrying out operations of large scale. But in the local market there is existence of very few
numbers of supply stores that are making sales of auto parts. However, they are not active in
fitting and maintaining the car to a greater extent. It is important for the business to bring
something that can be differentiated from others and are unique. The competition advantage of
Delphi Design and System is towards selection of product made by itself and well as the manner
in which it provides guidance to the customers. Sound quality as well as higher standards are
factors that are regarded as means for driving competency.
Channels
There is greater requirement towards creation of varied channels in order to create
awareness and reaching the target market segment. The organization that is Delphi Design and
Systems would reach the customers by the means of channel that have been enumerated in the
manner stated as under:
 This is comprised of online means for listing of the products.
 There would be outlets for the customers. In order to offer demo and description with
respect to the offerings skilled personnel would be employed within the organization. Aggressive campaign relating with marketing would be complied with. In this social
media marketing would play crucial role.
Key activities
The major objective is to offer wider range of quality as well as genuine auto parts to the
target market. The sales of the product would be done on local level in order to accomplish the
needs of the local market segment in an effective manner.
Value chain based resources

There is presence of greater amount of things that can add value to the functioning of the
new venture. This is comprised of the following:
Customers are able to gain wider range of auto market for domestic as well as foreign
vehicle under a particular roof in an effective manner. There is existence of greater demand
relating with automobile products in the market. There is existence of higher experience as well
as skilled team that are engaged in providing superior quality of services to the customers with
greater efficiency. The customers can make booking by the me ans of making phone call and
later they can reach the outlet so that auto parts can be altered and also changes can be made to
the model of the car with greater effectiveness.
Structure of cost
The cost structure of the organization demonstrates the means that acts as an in making
selection of the final selling price for the products (Evans, 2015). It can be stated that there is
presence of several elements that are attached with this. The establishment of the final price is
being done after deciding on the wholesaler margin, retailer margin as well as distributor margin.
Relationship, network and alliances
For the purpose of establishing new business it is essential in maintaining sound
relationship with the customers as well as local communities. Such are regarded as an essential
aspect that assist in making promotion of the venture. Further it acts as an aid in creating
awareness in the market for long run course of time. Delphi Design and Systems can adopt
approaches that includes sponsorship in order to market its products among the customers in an
effective manner. Alliances with the suppliers also plays significant role as it assists in avoiding
the situation that relates with bad weather and uncertainties. Above all the experience s of the
customers would be managed in an effective manner so that purchase on repetitive basis can be
promoted to a significant level.
4.2.2 SWOT Analysis
SWOT analysis is considered as the tool that can be effectively used for the purpose of
determining the potential of a particular venture in an effective manner. It possesses
effectiveness in making determination of the existing position of the firm and where it is carrying
out its operations. In a business development proposal like such it is helpful in making judgment
25

regarding the feasibility as well as viability of the new venture. The SWOT analysis of the new
venture has been carried out in the manner which has been enumerated as under:
Strength:
 New as well as innovative ways of making sales of the auto parts of the vehicle.
 Superior customer service.
 It has been established for the purpose of bring innovation in the market
 Advantage of being first mover.
 Providing modern and high tech products to the customers that can comply with the
changing requirements of the customers in an effective manner. Possess the availability of wide range of auto parts both for foreign as well as domestic
vehicles.
Weakness:
 Existence of other sellers that are engaged in selling auto parts.
 Higher cost of operations
 Absence of brand image
 Smaller size of the organization
 Higher pressure with respect to deliverance of quality products. Existence of greater competition in the market
Opportunity:
 Requirement towards hard core promotion as well as advertisement.
 Expansion in other parts of England.
 Superior customer service.
 Establishment of the brand image based on the product quality. Increasing number of local customers within the field automobile sector.
Threats:
 Individuals possess easy options for switching
 Competition from other automobile organizations that offers car décor services
 Increase in the rules as well as regulations
 Economic aspects such as recession as well as financial crisis
 Decrease in the customer’s power to purchase
 Testing of the auto parts

By carrying out the analysis of the above elements it can be determined that there is
presence of immense of amount of potential that is being possessed by the new venture. It is
being estimated that the new business would be able to attain its goals and targets in an effective
manner.
Other models in (Appendix 3) that is SWOT Analysis and McKinsey 7s Framework
27

CHAPTER 5: THE BUSINESS PLAN
5.1 Overviews of the plan
The company Delphi Design and System is automobile and car décor business that is
planning to open new venture in East of England. In the present time it is engaged in making
sales of varied part that includes suspensions, compressors, pumps, tires, sensors, indicators,
lights, dashboards, audio, safety systems, brakes, rims and many more etc. and other accessories
of light vehicles. The business is owned as well as managed by Sole proprietor. The organization
is small size in nature and wants to make expansion of its market in various areas in UK. The
new firm wants to introduce new product ranges for the customers. The organization possess the
intention to increase its share of market through introduction of new ranges of product. Delphi
Designs and Systems is devised to offer automotive that combines with quality performance
along with the value pricing. The company wishes to make successful association with the
customers, employees and suppliers that is regarding valuing the interests as well as targets of
every party.
5.2 Products and service
Delphi Designs and System assist the customer in selection of suitable products in the
prices that is as per the needs as well as expectations of the target market. The organization is
engaging itself in delivering two segments of the product. This is comprised of minor as well as
major auto parts. In this major products involved are stated in the manner as under: Minor auto parts for light vehicles: It is comprised of parts that are oil sump, Tank caps,
Spark plugs, Tracks, Joints, Air filters, Gas tanks, Washers, Forks as well as Disk/ drum
brakes.
 Major auto parts for light vehicles: This is regarded as the parts that are major for light
vehicles. It includes compressors, transmission, braking systems, AC systems,
Catalyzers, Air bags, Main harness, Crankshafts, Indicators as well as sensors.
5.3 Marketing plan
Marketing Analysis and Competition

The role of automobile industry is significant in making contribution to the economy of
nation. The business of car décor is one of the major contributor of revenue in the field of
automobile sector. It has been gained that there is increase in the demand of car in the people of
society. This is due to the reason of increase in the standard of living of the people. This is
affected by their power of purchasing. It has been determined that there is major role played by
technology in influencing the demand of the individuals in the automobile sector. Through
greater increase in awareness among the people almost every individual possess preference to
transport by the means of light vehicle. The people in UK are attaining huge amount of benefit
through the presence of such companies in the industry. The greater advantage is in terms of
increasing innovations within the auto parts that is having impact on their demand to a greater
extent. It is regarded as one of the industry that has attained huge amount of growth to a
significant level.
Competition for the new venture has increased to a greater extent. There is presence of
huge number of organizations that are making sales of auto parts and offers services relating with
car décor. However, it is being determined that within the local market there is presence of only
few suppliers of the auto parts. But they are not active in providing the related services in an
effective manner. Thus it is important for the firm to bring something innovative as well as
unique that can assist the firm in fulfilling the needs as well as wants of the customers to a
greater extent. The major advantage that can assist the firm in getting edge over competitors
relates with the selection of the products and the way it offers guidance to the customers. The
two factors that acts as an aid in deriving competency relates with sound quality as well as higher
standards of services.
Buying behavior
The new start up business is being segmented into three segments. This is comprised of
local customers. The particular segment demonstrates varied buying behavior. The local
customers of the particular region majorly belong to middle and upper class. Thus for them status
and recognition plays significant role. Due to this reason they are attracted towards bringing
alterations in the car that is being possessed by them. Thus with this they can demonstrate their
position within the market for long run course of time.
Market strategy
29

There is presence of greater number of strategies that are being possessed by Delphi
Design and System. Such have been demonstrated as under:
 The main aim of the organization is to make sales of niche products that are hard to be
found in the normal channel of sales. Moreover, it also needs suitable knowledge in order
to understand and makes its utilization in an effective manner.
 Along with this another major strategy of the firm is to offer education to the customers
and develop sound relationships with them by the means of offering them superior
customer service.
 The new organization would make sales through sales channels that is with the assistance
outlets.
The marketing strategy of the organization possess two categories that is can assist in
increasing awareness among the local customer base of East of England. The local marketing
strategy would be followed in order to increase awareness among the customers to a greater
extent. This is comprised of strategy that relates with cold calls, Yellow pages as well as business
groups. It has been gained that cold calls would be made to the existing customers of the
automobile industry that can show intention in renovating the products that is their light vehicles
to a greater extent. The strategy assists in educating the customers regarding the product to a
greater extent. Yellow pages are another means that can assist in gaining insight to the
individuals who can be made aware about the products and services which the business can sale
to the prospects. The marketing strategy which the business can use relates with offering the
customers product related information on the social networking sites. This acts as an aid in
increasing awareness as well as knowledge among the buyers who are interested in bringing
renovation in their car to a greater extent. In addition to this it can company can organize
campaign so as to increase awareness among the customers to a significant level. Advertisement
would be an effective means that can be used by the new business for the purpose of promoting
the services that are being offered by them to the customers. This assist in increasing the base of
customers that will be possessed by the business. Thus this would result in enhancing the sales as
well as profitability of the organization to a greater extent in future course of time. The role of
marketing strategy is significant in creating awareness of the products in the minds of target
market to a greater extent. This is effective in developing knowledge about the products and
services that is being sold to the target market.

5.4 Plan of sales
The sales strategy of the new venture can be categorized into two. Such has been
enumerated in the manner below:
Local sales: In this strategy the traditional approaches to selling would be adopted. The salesman
of the firm would be performing in a fashion that relates with calling the local customers and
creating awareness among them with respect to products and services that are being offered by
them. Delphi Designs and Systems would make use of local network and contacts for the
purpose of targeting the clients to a greater extent. With this sale plan the organization attain its
desired targets in an effective manner. There is greater importance of the new venture in
increasing the effectiveness of the sales plan so that customers can be convenience to make
purchase of the auto parts that are being sold by the new business. This would act as an aid in
attainment of the organizational targets to a significant level. Selling through such means can
assist the firm in attaining greater value.
5.5 Proposed plan of action
Table 4 : Plan action
Activity/ 1-4 5-12 13- 18- 22- 28- 31- 35- 41- 44-48
31

Months 17 21 27 30 34 40 43
Carrying
survey of
market
Business plan
development
Meeting
financial
requirement
Infrastructure
development
Setting up of
physical
resource
Purchasing
material
needed
Recruitment of
repair staff and
other
employees
Physical store
establishment
Marketing and
promotion
Potential
buyers
targeting

The above demonstrated is the proposed action plan of the new venture. It is comprised
of series of activities that needs to be implemented for the sake of attaining the pre-determined
targets as well as objectives of the business plan. There is greater role of the organization to
comply with the series of actions so that it can sustain in the market for longer course of time.
The plan starts with conducting of the market survey at initial level. Along with this it ends at
targeting the potential market so that they can be attracted towards the new business to a greater
extent. It is essential for the organization to conduct investigation of the market as it assist in
gaining insight to the requirement of the potential market. Such plays effective role increasing
the attraction of the customers towards the new venture to a greater extent.
Capital needed as well as sources of financing
A budget of £200000 has been decided in order to start up new venture in an effective
manner. It is important to determine the initial budget so that activities of the business can be
carried out within the set limit. There is presence of various sources that can be used for the
purpose of financing the new venture activities. This has significant role in increasing the
amount of funds that can be used by the business for carrying out its activities in an effective
manner. Leasing: Delphi Design and System is considered as the type of business that makes use
of various machines and equipment’s for the purpose of sitting several auto parts within
the vehicles that are being possessed by the customers. In this regard there is greater need
among the business towards making utilization of several expenses machine parts. Not all
the machines can be purchased by the new venture as it is newly start up. Thus has
inadequacy of the resources. In order to manage the activities of the firm the company
obtains machinery or certain expensive equipment’s on lease for which it can make
payment of rent to the firm leasing. Thus this would assist the organization in
accomplishing the set targets within pre-determined span of time. Leasing has major
advantage in terms that it reduces the cost of new startup which otherwise has incurred in
making purchase of the new machine as well as equipment’s. Personal saving: Another major source of finance is personal saving. It is effective as
with this researcher is not required to make payment of interest or repay the amount after
specified duration of time. Delphi Design and System's owner would make use of
33

personal saving amount in order to establish the business plan in an effective manner.
With this it can meet the requirement of business activities in significant way.
Service model
The service model of the new start up business would be consumer oriented. The new
business would provide the customers with higher quality of the auto parts that can assist the
customers on complying with their requirements to a greater extent. There is significant role of
effectiveness of the service model so that target of the organization can be attained. The major
emphasis is over creation of value and innovation for the purpose of attracting the customers to a
greater extent. Selling by the means of traditional means can add to the value of the new start up
with effectiveness. The business model demonstrate differentiation is the key to success of the
organization.
5.6 Personnel plan
Table 5: Personnel plan
Delphi Design and System is involved in the business that makes sales of auto parts. The
firm is in carrying out car décor business. The firm is owned by single individual. It is small size
organization that is desiring to open new outlet in East of England. At present the plan is towards
the development of new range of products as well as services for the customers so that they can
attain better experience in an effective manner. Company will provide wide range of auto parts
for both domestic as well as foreign vehicles in order to offer greater level of satisfaction to the

customers to a significant level. The number of employees demonstrated above are sufficient for
the sake of conducting the present business plan. In situation of expansion of the firm there
would requirement of more number of helpers in future course of time. The owner of the
business possesses greater experience of working within automobile industry. This has enhanced
the extent of planning that is being made in relation with the new business venture.
5.7 Financial Summary
(Appendix 2)
5.8 Statement of likely risk and the ways it can be managed
Every organization whether small or large has threat from risks that can occur at any
point of time. It is essential for the organization to consider the different kinds of risk which the
business can face while developing plan. This is because such would act as an aid for the firm in
carrying out its future activities in an effective manner. There is presence of greater risks that can
be experienced by the new business. Further these risks can be managed by the organization
through the adoption of various measures. Types of risk along with the ways it can be managed
have been enumerated in the manner stated as under: Strategic risk: This is regarded as the risk that results from operating directly in a
particular industry within particular duration of time. The changes in the preferences of
the customers or emergence of the technology regarding the new auto parts as well as
other drastic forces in the market can be a greater risk for the newly start up business. For
the purpose of managing such kind of risk it is essential for the business to take measures
such as feedbacks from the customers so that alterations with their requirement can be
determined in an effective manner. This can be effective in reducing strategic risk to a
greater extent. Compliance risk: Such is another type of risk that can be faced by the new start up
business. It is considered as the risk that is attached with the abidance of the subjects
relating with legislative as well as bureaucratic rules. It can be related with the best
practices for the purpose of investment. This is comprised of employee protection
regulations that are being imposed by Occupational Safety as well as Health
Administration or environmental concerns such as the one that are being indulged by the
35

Environmental Protection Agency (EPA) or state as well as local agencies. These risk can
be minimized by the means of complying by the regulations that have been laid down for
the safety of personnel. Financial risk: It is considered as the risk that is attached with the way in which the
organization handles the funds that are being possessed by it. Financial risk is regarded as
the types of risk that also takes into consideration the rate of interest into consideration.
Further it also considers foreign exchange rates that has to be taken into account while
developing plan. Such kind of risk can be managed by the organization by the means of
considering the financial risk into account when developing the plan so that corrective
actions can be taken in prior. This can result in increasing effectiveness of the firm
towards carrying out the business plan with greater effectiveness. Operational risk: It is referred to as another most crucial risk that results from internal
failures. These risk are attached with the failure that can occur within the internal
processes, people as well as system. Thus unlike strategic risk, there is absence of yield
on the risks that is operational in nature. Operational risks can lead to unforeseen external
events that can be breakdown in the system of transportation as well as failure of the
supplier to make delivery of goods on time. These issues can be resolved by the Delphi
Design and System when it makes selection of the suppliers after considering various
factors such as its reputation in the market and methods of delivery it adopts. This can
assist in minimizing the risks associated with operational risk. Reputational risk: Loss of the reputation of the business can result in failure of the
products and can result in negative publicity of the of the firm in the market. It is being
said that it takes immense amount of time to build stronger reputation but it can be lost in
a particular day (Kushwaha and Sharma, 2016). In the present era of social networking a
negative post on the website of the company by the customers can affect the earnings
overnight. This is the major risk that can be faced by the new business. A single negative
blog can bring alteration in the direction of the organization to a greater extent.
Reputational risk can be managed by the new organization when it pays attention towards
addressing the queries and complaints of the customers in an effective manner. Physical risk: It is another kind of risk that can occur before newly start up organization.
Building risk are considered as the most common types of physical risk. Fire or explosion

can be regarded as the most common risk that is being associated with the building. This
can occur at any point of time. Delphi Design and System can face such risk and can get
affected through this to a greater extent. For the purpose of reducing this kind of risk it is
essential for the newly start up business to install fire alarms as well as smoke detectors.
In addition to this system of sprinkler needs to be provided to the equipment’s and
personnel so as to reduce the risk that can emerge in form of physical risks. Location risk: This is another type of major risk which Delphi Design and System can
face. This relation with the location of the newly start up organization. In case the firm is
situated near to the area of fore, storm damage, earthquake, floods or other natural
disasters. This can result in occurrence of the risk that is associated with the location. It is
essential for the employees to possess complete knowledge regarding the location that is
near to the business. As such has huge influence on the activities of the firm to a
significant level. For Delphi Design and System is essential to minimize such type of risk
so that the operations of the firm do not get affected to a significant level. This can be
reduced when measure such as analysis of the location are being carried out the firm. Human risk: Alcoholism as well as drug abuse are regarded as the major risks to the
employees within the workforce. The personnel that are experiencing such kind of
conditions needs to seek for treatment, counseling as well as rehabilitation in case it is
essential. The role of human risk can result in increasing the amount of influence on the
activities of the firm to a greater extent. This has long term impact on the success of the
business. Protection against theft as well as fraud can be difficult but such are regarded as
the crimes that can emerge on frequent basis within the organization. In order to avoid or
address such kind of human risk it is essential for the firm to adopt the system of double
signature needs for the purpose of checking as well as verifying the payables for the
prevention of fraud. Another issue relates with sickness within the workforce that is
inevitable. In order to prevent loss of productivity, it is essential to train backup
workforce for handling the work of the crucial personnel when they are not present as a
reason of illness. Technology risk: This is considered as another major problem that is related with
technology. Power outage is regarded as the most common form of risk that is associated
with technology (Martins, Rindova and Greenbaum, 2015). It is essential for the
37

organization to keep high power back up batteries so that computers can be kept running
in an effective manner. Though the failure of telephone and telecommunication can be
considered as uncommon risk but it is important for the manager to take into
consideration offering of emergency use-only organizational cell phones to the
employees for whom the usage of phone is crucial.
 Other risks: Such types of risk cannot be categorized with greater ease. It involves the
risks from the environment that can be in terms of nature disaster. It is referred to as the
kind of risk that can be faced in maintenance of the trained personnel that possess up-to-
date skills for operating the activities of the startup firm. This is regarded as employee
risk management. Such risk is essential to be managed by the firm for the purpose of
managing the operations of the business in an effective manner.
There is greater need towards minimizing the risk that has been stated above. Insurance is
considered as the principle safeguard that can assist in management of the risk. There is presence
of several risks that are insurable. Product liability insurance in case of automobile industry.
Thus needs to be taken into consideration by Delphi Design and Systems while making
development of the plan in an effective manner. Such has greater impact in carrying out the
operations of the firm with greater efficiency.
5.9 Critical factors for success
Critical success factor is the term that is being used by the management for the elements
that are essential for the organization. Along with this such possess importance for the firm or
project in order to attain its mission. Such is regarded as the critical factor that are important for
making sure the success of specific firm. There is presence of wide range of critical success and
factors relating with success for Delphi Design and System. This enhances the survival of the
business for long run course of time. The critical factors of success have been enumerated in the
manner stated as under: Specialty of the products: The organization is providing wide range of auto parts both for
domestic as well as foreign vehicles. Specialty in the product is being regarded as the
uniqueness within the products that are being possessed by the organization (Parks, Olson
and Bokor, 2015). Such has significant role in assisting the organization to gain edge over
competitors in the market. Delphi Design and System possess the auto parts of the varied

variety that are belonging to various brands of car. This can lead to enhancement in the
success by the business in long run course of time. Excellent customer service: Such is considered as another success factor that can ensure
survival of the newly start up to a greater extent. In order to attain such the focus of
Delphi Design and System would be over offer excellent service to the customers so that
repetitive purchase can be encouraged in significant manner. Excellency in the customer
service would assist in encouraging positive word of mouth that can further assist in
gaining loyalty of the customers in an effective manner. This is regarded as the major
factor that can lead to creation satisfaction among the target market. Moreover, it can
assist in development of loyalty among the target market to a greater extent. There is
huge importance for the business to offer superior services to the customers so that it can
sustain in the market for long run course of time in an effective manner. Movement in slow way: The growth of Delphi Design and Systems would be kept
constant for the purpose of keeping the expenses low. This act as an aid for the business
in carrying out its operations in an effective manner. By keeping the movement in slow
manner the organization can attain growth in slower terms in an effective manner. This
can be by the means carrying out the operations at slower pace that can increase the
performance of the firm and can assist in the survival in the organization in an effective
manner.
 Usage of effective sales plan: The use of effective sales plan is significant in attainment
of the set organizational targets. The sales plan needs to be in accordance with the needs
as well as requirements of the target customers. Such acts as an aid in assisting the
customers in building trust in the market for long run course of time. The method through
which the sales would be done also assist in determining the extent to which success
would be gained by the business in an effective way.
In contrast to this there is presence of several failure factors that assist the firm in making
determination of the criteria that can lead to failure of the organization in an effective manner.
Such have been enumerated in the manner stated as under: Presence of competition: In situation the firm faces immense amount of competition from
other businesses that are operating in automobile sector then it became difficult for the
firm to build effective position in the market for long duration of time.
39

 Knowledge as well as understanding: There can be major issue faced by the business in
making the people attain knowledge regarding the products that are being sold by Delphi
Design and Systems. This can result in creating communication barrier and can lead to
development of ineffective outcomes for the newly start up firm.
 Economic factors: The factors that includes recession as well as unemployment can affect
the organization. Higher rate of recession as well as high unemployment would lead to
decreasing the number of jobs as well as offices within the nation. In case there is lack of
jobs then standard of people will not increase and ultimately they would not make
purchase of car. As such their power to purchase declines to a significant level. Thus
affects the car décor business as well.

REFERENCES
Journals and Books:
Berggren, C., Magnusson, T. and Sushandoyo, D., 2015. Transition pathways revisited:
established firms as multi-level actors in the heavy vehicle industry. Research Policy.
44(5). pp.1017-1028.
Cherubini, S., Iasevoli, G. and Michelini, L., 2015. Product-service systems in the electric
car industry: Critical success factors in marketing. Journal of Cleaner Production. 97.
pp.40-49.
Dweiri, F., Kumar, S., Khan, S.A. and Jain, V., 2016. Designing an integrated AHP based
decision support system for supplier selection in automotive industry. Expert Systems
with Applications. 62. pp.273-283.
Evans, V., 2015. The FT Essential Guide to Writing a Business Plan: How to win backing to
start up or grow your business. Pearson Higher Ed.
Kushwaha, G.S. and Sharma, N.K., 2016. Green initiatives: a step towards sustainable
development and firm's performance in the automobile industry.Journal of Cleaner
Production. 121. pp.116-129.
Martins, L. L., Rindova, V. P. and Greenbaum, B.E., 2015. Unlocking the hidden value of
concepts: a cognitive approach to business model innovation. Strategic Entrepreneurship
Journal. 9(1). pp.99-117.
Parks, B., Olson, P. D. and Bokor, D. W., 2015. Don't mistake business plans for planning
(it may be dangerous to your financial health). Journal of Small Business Strategy, 2(1),
pp.15-24.
41

APPENDIX

43

45

Appendix 3
4.2.3 Value chain analysis
Value chain analysis is considered as the analytical framework that acts as an aid in
making determination of the business activities that can result in creation of value as well as
competitive advantage to the organization. It is comprised of support activities as well as primary
47

activities. The primary activities include inbound logistics, operations, outbound logistics,
marketing and sales as well as service. On the other hand, support activities includes
infrastructure of the organization, human resource, development of technology and procurement.
Such has been enumerated in the manner stated as under:
Primary activities: Inbound logistics: This is comprised of two separate operations that is transportation of
the parts from the local suppliers to the outlet and further it includes global inbound
logistics for transporting part from foreign suppliers. Operations: For the purpose of carrying out the operations the newly established business
would pay attention towards the location that is East of England. As such the
organization consider it to be potential market where it can make sales of its auto parts in
an effective manner. Marketing and sales: The emphasis of the organization is towards innovativeness as well
as efficiency of the brand and integration of the brand with the best practices of doing
things. The company makes use of print and media advertising, sales promotion, public
relations and direct marketing tool with the major focus over television advertising.
Through means of sales and marketing promotion of the activities in an effective manner. Service: The organization works on the principle that the customers comes the first. It is
being demonstrated in the processes that are being followed by Delphi Designs and
Systems. The services are being offered in relation with the needs and expectations of the
target market. Such to a greater extent assist in fulfilling the target of the new venture to a
significant level.
Support activities:
These are regarded as the activities that supports the primary activities of the firm to a
greater extent. Its elements are being stated in the manner as below: Infrastructure of firm: The infrastructure of the new business is set in the way that it acts
as an aid in carrying out the different activities with greater effectiveness. The
infrastructure plays significant role in providing employees with the environment where
they can carry out activities of business with greater ease. Moreover, they can feel
comfortable which can increase their efficiency to a significant level.

 Human resources: With Delphi Design and System there is presence of 8 employees who
are charged towards performing various roles and responsibilities in an effective manner.
Human resources are regarded as major supporting activity that assist the firm in
attainment of organizational targets in an effective manner. Technology Development: The development in the technology is another essential
supporting activity that assist the newly established business in carrying out the activities
of the organization in an effective manner. The technological development within the
firm is regarded as the means through which the business activities can be carried out in
an effective manner. By the means of technological development immense amount of
development can be bought within the activities as such it leads to enhancement in the
work performance. Procurement: The concept of procurement can be defined with perspective of attaining
quality material from the suppliers. This can act as an aid for the firm in making delivery
of the quality products to the customers. It is significant in terms that relates with
attracting larger mass towards the automobile outlet in an effective way. Procurement has
major role in developing relationship among the suppliers and employer. This results in
attainment of business target to a greater extent. For the purpose of offering the
customers with the auto parts of both domestic and foreign vehicles it is important for
Delphi Design and System to attain the products from foreign suppliers as this can assist
the business in fulfilling its needs to a greater extent.
4.2.4 McKinsey 7s Framework
McKinsey model is being utilized for the purpose of examining the environment of the
organization so the objectives developed can be attained in an effective manner. It is comprised
of wide range of elements that work in joint manner for the purpose of increasing the chances of
success for the organization.
Strategy: The strategy relating with sales has focus on maintenance of local sales in an effective
manner. In the local marketing strategy, approaches like cold calls, business groups as well as
yellow pages is being used in order to attain the list of the target market. Further the organization
would depend on mouth publicity.
Style: The style of management that is being used is participative as it allows the customers in
providing greater contribution in the decision making process. It is important to establish sound
49

relationship as well as network with the suppliers. Mix of transitional and participative
leadership would be complied with. At all the levels greater importance would be given to
innovation and creativity. As such would result in attainment of success by the organization.
Structure: Formal structure would be followed. However there would be presence of less
hierarchies within the system. Along with this there would be clarity -in defining the roles as
well as responsibilities. Decentralized approach is being complied with so that all the things can
be easily recognized as well as identified.
Skills: All the personnel would be trained in an effective manner before they are offered with an
opportunity to enter into real world . A sound team of experts would be maintained who would
be engaged in making delivering of the best services at different locations.
Shared Values: The vision of the company to provide auto parts and car décor services to the
local customers at economical prices. On the other hand the mission statement of the business to
enhance the relationship with that of suppliers in order to offer quality products to the customers
for attainment of leadership in the market.
Systems: Sales would be made by the means of outlets as they are reals means that can assist in
making sales in an effective manner. A sound database as well as knowledge management would
be maintained. Along with this focus is being given on building capacity and maintaining the
quality of the services to a greater extent. There would be enhancement made in the experiences
of the customers on constant basis through designing the products in accordance with their needs
as well as expectations.
Staff: The new start up business that is Delphi Design and System is engaged in hiring the
personnel that possess greater experience in automobile sector. This is due to the reason that
such would assist in offering quality services and effective experience to the customers for long
run course of time. Along with this the responsibilities would be granted to the personnel in
accordance with their knowledge and skills. Such would reflect attainment organizational targets
in an effective manner. Staff is the one that represents the business before the customers.
Therefore it is significant that quality services and suitable behavior is being demonstrated by
them. This makes sure that greater level of satisfaction can be attained by the customers. Proper
training is being given to the employees so that they can execute their job in an effective way.

51