Engineering Management: Comparative Report on Business Plans

This engineering management report presents a comparative analysis of two business plans: Green Power Consultancy and StructureAll Ltd. The report begins with an introduction outlining the objectives of comparing the two plans, which is to identify their strengths, weaknesses, and areas for improvement. It then provides detailed descriptions of each company's business plan, including their business profiles, vision, mission, goals, market research, operational strategies, services, marketing plans, and financial strategies. The analysis proceeds to identify the three strongest and weakest elements of each plan, followed by suggestions for improvement. The report also discusses the challenges encountered and lessons learned from the comparison, concluding with a demonstration of the competencies achieved and a comprehensive conclusion. The report references APA style and includes appendices with financial projections and other relevant data, offering a thorough examination of the business plans and their strategic components.

Running head: ENGINEERING MANAGEMENT
ENGINEERING MANAGEMENT
Name of the student
Name of the university
Author note

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Table of Contents
1. Introduction..................................................................................................................................2
2. The descriptions of two business plans of two companies..........................................................2
2.1 Green Power Consultancy.....................................................................................................2
2.1.1 Business profile..............................................................................................................2
2.1.2 Vision, mission and goals...............................................................................................2
2.1.3 Market research..............................................................................................................3
2.1.4 Operational strategy........................................................................................................4
2.1.5 Services...........................................................................................................................4
2.1.6 Marketing plan................................................................................................................4
2.1.7 Financial strategy............................................................................................................6
2.2 StructureAll Ltd.....................................................................................................................6
2.2.1 Business profile..............................................................................................................6
2.2.2 Vision, mission and goals...............................................................................................6
2.2.3 Market research..............................................................................................................7
2.2.4 Operational strategy........................................................................................................8
2.2.5 Services...........................................................................................................................8
2.2.6 Marketing plan................................................................................................................8
2.2.7 Financial strategy............................................................................................................9
3. Identification of three strongest elements of each plan.............................................................10
3.1 Green Power Consultancy...................................................................................................10
3.2 StructureAll Ltd...................................................................................................................10
4. Identification of three weakest elements of each plan...............................................................11
4.1 Green Power Consultancy...................................................................................................11
4.2 StructureAll Ltd...................................................................................................................11
5. Suggestions for improvement....................................................................................................12
5.1 Green Power Consultancy...................................................................................................12
5.2 StructureAll Ltd...................................................................................................................12
6. Challenges and learnt lessons....................................................................................................13
7. Demonstrated competencies......................................................................................................13
8. Conclusion.................................................................................................................................13
References: APA...........................................................................................................................14
Appendix 1.....................................................................................................................................15
Appendix 2.....................................................................................................................................17

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1. Introduction
Business plan of an organization provides a brief view of the strategic objectives of an
organization and the manner in which the same might be executed through operational, financial
and other projections. In this connection, the research will take the initiative of comparing two
business plans of companies Green Power Consultancy and StructureAll Ltd.. The major aim of
the comparison will be to recognize the strongest and weakest elements in the plans and the
improvements that the organizations might consider for increasing their scope of growth. The
research will also focus on identifying the challenges and lessons learnt from the comparison
while enumerating the demonstrated competencies.
2. The descriptions of two business plans of two companies
2.1 Green Power Consultancy
2.1.1 Business profile
The concerned organization, Green Power Consultancy, is a startup organization which is
based in Burlington. The venture aimed at providing the consumers and the architects with
designs and advice on sensitive buildings based on the environmental concerns (Green Power
Consultancy, 2019). The venture operates as an environmental energy consultancy while
providing legitimate solutions relating to passive heating, recommendations on grey water usage,
renewable energy rehabs and employee transportation functions (Green Power Consultancy,
2019).
2.1.2 Vision, mission and goals
Vision

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The vision of Green Power Consultancy will be to make dynamic expansions in different regions
of US from Burlington, Vermont (Green Power Consultancy, 2019).
Mission
The mission of the organization will be to provide the “finest green energy solutions” to the
constructions department and the different existing building owners while providing the same
with cost- efficient measures towards green developments (Green Power Consultancy, 2019).
Goals
The goals of the concerned organization would be:
 To induce cost-benefit analysis environmental approaches and applying the same to
structure building and improve green energy consumption.
 To develop their market position as a proven environmental energy consultancy in the
state within the next five years.
 To improve their rate of profit making within the next three years.
2.1.3 Market research
The market segments for the concerned organization will be architects and the individual
customers. The architect segment of the organization must essentially work upon residential and
commercial design work and their revenue per annum must be between $200 thousand - $5
million (Green Power Consultancy, 2019). The major modifications in the organizational
operations will be based on the efficient functioning of the systems in accordance to the demand
of the customers. On the other hand, the individual customer segment of the organization would
include people with a household salary of over $65,000 and are environmentalists that are
concerned of their activities and its impact on the environment (Green Power Consultancy,

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2019). The age of the individual customers of the venture would range from 35-49 years and are
mostly hold a least of an undergraduate degree (Green Power Consultancy, 2019). The
segmentation of the customers would enable the organization in distributing their services in
accordance to the changing demand of the customers.
2.1.4 Operational strategy
The operational strategy of the organization will be based on careful analysis of the
different possible alternatives and thereby advising the best alternative taking environmental
impact and cost- effectiveness of the alternatives as the criterion (Green Power Consultancy,
2019). In this relation, the organization would employ skilled market analysts and strategists
along with engineers having skills and specific knowledge set on different energy conservation
projects. The organization would also employ different environmentalists with distinguished
knowledge on the different systems in accordance to the demand of the customers.
2.1.5 Services
The concerned venture will provide a wider range of propositions while providing
advices and assisting architectures and individuals in building green construction projects to
means of energy conservation. The venture will specialize in providing advice and consultancy
services in fields like passive heating, grey water usage, renewable energy usage programs and
employee transportation related functions. The wider range of service propositions that will be
made by the venture would allow the same in gaining the loyalty and trust of the target audience.
2.1.6 Marketing plan
Services

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The concerned organization would provide a wider range of consultancy services for
improving the rate of green constructions in a cost- effective manner. The different changes in
the organizational operations will be based on the changing preferences of the customers and the
urgency of moving towards a green construction.
Pricing
The concerned organization would be applying competitive rates for the consultancy
services that are being planned by the venture. The competitive pricing strategy of the
organization would enable the organization in gaining a competitive vantage points over the
existing eco architects and the other architects in the regions.
Promotion
The organization would be utilizing different social media platforms like Facebook and
Instagram for gaining the attention of the target customers (Green Power Consultancy, 2019).
The wider promotion of the services that will be provided by the organization through the social
media would allow the venture in improving the consumer engagement.
Distribution
The distribution streams for the service delivery would be done through the
organization’s online portal where the architects would be encouraged to present quotes for the
offerings and the individual customers could hold communication over the web service portal of
the venture (Green Power Consultancy, 2019). The organization would also integrate a secured
online transaction portal with the help of which the customers could pay for the services that are
being proposed by the venture.

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2.1.7 Financial strategy
The concerned organization’s three year financial projections reflected the costs that
might be incurred by the venture while proposing their offerings to the customers. It has been
noted that the total operating expenses that might be incurred by the organization in the first year
would be $79,690 and the sales would be $87,047, running into a negative amount of net income.
However, the organization would make a projected profit of $32,490 from the second year of its
operations (Refer to appendix 1).
2.2 StructureAll Ltd.
2.2.1 Business profile
StructureAll Ltd. is a consulting firm that is planning to develop operations that would
specialize in structural engineering services for the architects. The business is located in
Yellowknife and will aim at minimizing the startup costs. The founding member of the
organization, Philip Nolan, holds a professional skill of eighteen years of progressive experience
as an engineer (StructureAll Ltd., 2019). The venture would be providing professional and
specialist services to the architects on renovations, rehabilitation, additions in the existing lineups
and new construction.
2.2.2 Vision, mission and goals
Vision
The vision of the concerned venture would be to improve their market position in the north of
Canada while making dynamic expansion to the southward regions (StructureAll Ltd., 2019)
Mission

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The mission of the organization will be to provide structural engineering services to clients in the
northern regions of Canada (StructureAll Ltd., 2019)
Goals
The strategic goals of the organization will be:
 To earn modest revenues from the first year with a steady growth over the next two years
 To achieve a 20% market value by the end of third year of operations
 To increase gross margins by the end of third year of operations
2.2.3 Market research
The organization would primarily target established architectural and engineering firms
as the specific business projects require a Prime Consultant who would pre-select the team
members and promotes the strengths of a proposal to prospective clients. In this relation, the
concerned venture would provide their services to the established engineering firms with the
objective of profit maximization on the basis of better business scope (StructureAll Ltd., 2019).
The concerned organization would also target the territorial and federal governments, law firms,
contractors, individual customers and the like with the purpose of improving their sales volume
in the markets.
It has been noted that the concerned organization would encounter a major competition
from Ferguson Simek Clark (FSC Group) (StructureAll Ltd., 2019). The competitive strength of
the major competitor lies in the systematic approach that are undertaken by the same while
working on a project independently from its very inception. In this relation, the concerned
venture, StructureAll Ltd., would take the initiative of improving their market based propositions
by employing skilled workforce having practical knowledge on architectural designs.

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2.2.4 Operational strategy
The operational strategy of the concerned venture, StructureAll Ltd., will be based on the
employment of skilled workforce having proficient knowledge on the State-of-the-art analysis
and other design tools. The concerned venture would employ proficient market analysts along
with engineers and customer care executives for improving their rate of operations. The
concerned venture would take the initiative of making occasional field visits with the purpose of
adhering to the contract administration requirements (StructureAll Ltd., 2019). Therefore, the
venture would employ dedicated workforce who are equally skilled to serve the operational
criteria of the business while operating in the different markets. The venture would also create a
top- down hierarchy model of governance with the purpose of evaluating the performance and
improving the operations simultaneously.
2.2.5 Services
The services that are being proposed by the venture will be based on the architectural
design based needs of the established engineering firms and individual customers. The venture
would specialize in providing the customers with sustainable design for their construction
projects through the utilization of different tools and state of the art (StructureAll Ltd., 2019). On
the other hand, the customer support team of the venture would allow the same in assisting the
customers with their purchase decisions and post- purchase decisions. It has been observed that
65% of the organizational operations would be directed towards the architectural designs, in
accordance to the demand forecasts in the market. However, the wider range of services that are
being proposed by the business would assist the same in gaining a competitive vantage points
over the existing market players.

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2.2.6 Marketing plan
Service
The organization aimed at providing the clients with services that would enable the same
in gaining over the interests of the customers. The organization would provide structural
engineering services for different types of buildings. The specific services would range from
concept planning, while employing a skilled team collaborating professionally using practical
experience.
Pricing
The organization will be making use of prioritization based strategy where the projects
infrastructure and the time would be considered as driving elements for the project cost
(StructureAll Ltd., 2019). The organization would add costs for project customizations along
with their consultancy charges for providing the customers with a better proposition than the
competitors.
Promotion
The concerned organization will be making use of their official website along with word
of mouth promotions with the objective of drawing the attention of the prospective customers.
Distribution
The services that are being provided by the organization will be directly dispensed to the
customers through meetings and sessions. It would allow the venture in gaining a competitive
vantage points over the market players.

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2.2.7 Financial strategy
The continuous development of the organization is being reflected through the projected
profit and loss statement of the organization. The projected net income of the first year would be
$17,413 which would grow to $50,330 by the end of the third year. The increase in the sales
volume is also noticed over the years (Refer to appendix 2).
3. Identification of three strongest elements of each plan
3.1 Green Power Consultancy
 Green construction related operations: The organization assists the customers with
sensitive buildings based on the environmental concerns. It would allow the business in
improving their market position against the existing players.
 Wide range of propositions: The organization provides a wider range of propositions
from grey water reusing techniques to passive heating and structural architecture designs
in close correlation with the needs of the customers.
 Wider promotional activities: The wider promotional media used by the organization
would assist the same in drawing the attention of most of the target customers.
3.2 StructureAll Ltd.
 Skilled workforce: The organization employs a skilled workforce who have professional
and practical experience on the different business processes. The employees would
contribute to the uninterrupted functioning of the business processes in accordance to the
demand of the customers.
 Use of improved technologies: The concerned organization would utilize improved tools
with the purpose of upholding the efficiency of the operations in accordance to the
demand of the customers.

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 Integrated service engineering: The concerned organization undertakes an integrated
service engineering process through the collaborative functioning of the different
departments in alignment with the unique needs of the clients.
4. Identification of three weakest elements of each plan
4.1 Green Power Consultancy
 Irregular gross margins: The irregular flow of revenue in the organization might make
the business uncertain for future growth process. It has been noted that the net income
declined to $30,672 from $32,490 in the third year.
 Lack of proper structure: It has been noted that the concerned venture lacks a suitable
structure which affected the integrated functioning of the different systems.
 Intense market competition: The concerned venture might encounter an intense market
competition due to the presence of the existing players. The loyal customers are more
attracted towards the brand name and quality of services of the existing players, which
might affect the rate of sales.
4.2 StructureAll Ltd.
 Lack of efficient promotional policies: The lack of efficient promotional policies in the
organization hindered the growth of the venture. It has been noted that the organization
chiefly relies on word of mouth promotions which is time taking, while restricting the
prospective of improving business sales.
 Increased cost of operations: The increased cost of operation of the concerned
organization through engagement of highly skilled employees might restrict their profit
making in the long run.

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 Lack of eco- friendly architectural designs: The concerned organization promotes
structural engineering services for the architects without considering the conservational
techniques of saving on energy sources which might deflect the competitive vantage
points of the same in the competitive markets.
5. Suggestions for improvement
5.1 Green Power Consultancy
 Empowering efficient financial planning procedure: The concerned organization must
take the initiative of empowering efficient financial planning procedure to revise the
irregularity in the gross margins
 Imposing hierarchical structure: The imposition of hierarchical structure in the
organization would allow the management in monitoring and controlling the overall
operations with ease.
 Developing differentiated service propositions: The development of differentiated service
propositions would allow the organization in gaining a competitive vantage points in the
markets.
5.2 StructureAll Ltd.
 Increasing promotions: The concerned venture must take the initiative of developing
social media marketing campaigns over word of mouth with the purpose of increasing
their market scope
 Applying lean principles: The venture must take the initiative of retaining only the
productive and skilled employees for reducing the cost of operations

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 Developing designs on eco- friendly technologies: The concerned venture must take the
initiative of designing eco- friendly architectural designs with the purpose of complying
to the increasing environmental concerns
6. Challenges and learnt lessons
The comparison of the business plans were a strenuous job while considering every
elements of the plans and the manner in which the same correlated with the objectives of the
venture. The major challenge was to find the unique strengths and weaknesses of the plans and
thereby suggest affordable recommended steps for the same.
7. Demonstrated competencies
The major demonstrated competencies as per the stage 1 competency standard for
professional engineers were relate to the knowledge of the contextual factors that affect the
engineering discipline. The lack of knowledge on the contextual factors might affect the rate of
engineering based operations of the organizations (PE1.5).
8. Conclusion
Therefore from the comparison of the business plans it might be noted that there are
certain pros and cons in the planning method which might be addressed. The business plans
identify the scope and opportunities of an organization in making a dynamic market growth
through clear assimilation of the resources. Through the report it has been observed that there are
certain competencies which is required to be dealt with in accordance to the engineering
standards.

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References
Green Power Consultancy (2019). Green Power Consultancy. [online] Bplans.com. Available at:
https://www.bplans.com/energy_conservation_business_plan/executive_summary_fc.php
[Accessed 26 Dec. 2019].
StructureAll Ltd. (2019). StructureAll Ltd. Retrieved 26 December 2019, from
https://www.bplans.com/engineering_consulting_business_plan/executive_summary_fc.p
hp

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Appendix 1
Green power consultancy
PRO FORMA PROFIT AND LOSS
YEAR 1 YEAR 2 YEAR 3
Sales $87,047 $202,343 $238,402
Direct Cost of Sales $8,212 $29,779 $35,086
Other Costs of Sales $0 $0 $0
TOTAL COST OF SALES $8,212 $29,779 $35,086
Gross Margin $78,835 $172,565 $203,317
Gross Margin % 90.57% 85.28% 85.28%
Expenses
Payroll $52,600 $93,000 $122,000
Sales and Marketing and Other Expenses $4,800 $4,800 $4,800
Depreciation $1,800 $1,800 $1,800
Rent $6,000 $6,000 $6,000
Utilities $2,400 $2,400 $2,400
Insurance $2,400 $2,400 $2,400
Payroll Taxes $7,890 $13,950 $18,300
Other $1,800 $1,800 $1,800
Total Operating Expenses $79,690 $126,150 $159,500
Profit Before Interest and Taxes ($855) $46,415 $43,817
EBITDA $945 $48,215 $45,617
Interest Expense $0 $0 $0
Taxes Incurred $0 $13,924 $13,145
Net Profit ($855) $32,490 $30,672

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Projected profit and loss
Gross margin yearly

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Appendix 2
StructureAll Ltd.
PRO FORMA PROFIT AND LOSS
YEAR 1 YEAR 2 YEAR 3
Sales $117,680 $129,600 $180,000
Direct Cost of Sales $35,304 $32,400 $27,600
Other Costs of Sales $0 $0 $0
TOTAL COST OF SALES $35,304 $32,400 $27,600
Gross Margin $82,376 $97,200 $152,400
Gross Margin % 70.00% 75.00% 84.67%
Expenses
Payroll $50,000 $60,000 $70,000
Marketing/Promotion $0 $0 $0
Depreciation $0 $0 $0
Website Hosting Fees $0 $0 $0
Engineering Assoc Annual Fees $0 $0 $0
Continuing Education $0 $0 $0
Yellow Pages/White Pages $0 $0 $0
Telephone/Fax $0 $0 $0
Software Purchases (Staad-Pro Core) $0 $0 $0
Utilities $0 $0 $0
Errors and Omissions Insurance $0 $0 $0
Rent $0 $0 $0
Payroll Taxes $7,500 $9,000 $10,500
Contract/Consultants $0 $0 $0
Other $0 $0 $0

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Total Operating Expenses $57,500 $69,000 $80,500
Profit Before Interest and Taxes $24,876 $28,200 $71,900
EBITDA $24,876 $28,200 $71,900
Interest Expense $0 $0 $0
Taxes Incurred $7,463 $8,460 $21,570
Net Profit $17,413 $19,740 $50,330
Net Profit/Sales 14.80% 15.23% 27.96%
Gross margin

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Profit yearly