Foex Business Plan: Executive Summary, Strategies, and Forecasts

This report presents a detailed business plan analysis for Foex, a trading company specializing in sports products like skis, bicycles, foils, and surfboards. The executive summary highlights organizational issues, management changes, and the application of Porter's generic strategies (cost leadership) and VRIO analysis to improve product quality and pricing. Ansoff's matrix is used to guide market penetration strategies. The report covers the business's mission, vision, goals, market analysis, competitive landscape, sales and marketing strategies (including STP and 7Ps), and a comparative analysis with competitors. The management and operations section discusses changes in management and the use of market analysis tools. The financial forecast includes an income statement, objectives, and financial requirements. Risk assessment and a conclusion complete the plan. Peer review forms and tables of content are also included. The business plan aims for continuous growth and sustainability, with a focus on increasing profit and sales figures. The report highlights the importance of adapting to market demands and using effective marketing strategies to achieve organizational objectives. The business plan is a comprehensive document that provides insights into the company's operations, strategies, and financial projections.

Organisational Context

Executive Summary
Foex face lots of issue in first two years. Change in management has huge contribution
towards the development of organisation and bring improvement in different determinants.
Porter and VRIO help to ascertain that needed to improve quality and adoption of reasonable
price. Ansoff help to select the strategy that Foex has to focus over market penetration. Effective
application of business plan ensures the success of organisation in future too along with
attainment of sustainability.

Group Coursework Peer review form
Q1. What were the strengths and weaknesses of the way your small group worked together to
complete the Group Work?
Ans. Trust and team building capacity is the strength that help to complete the work on time.
Conflicts at some point work as weakness.
Q2. What difficulties, if any, arose in your group? How were these addressed?
Ans. Different views is the only issue faced and solved through the consideration of each point.
Q3. How well do you think you each member contributed as a group member? What was the
main roles played in the group?
Ans. Each member played good. The roles played includes leader, analyser, information
collector etc.
Q4. What did the group learn more generally about how to work effectively in a team and what
would you all change in the future to improve the outcomes?
Ans. Learn more about change in future. This includes acceptance of patience and calmness in
nature. This is the way only to grab the effective outcomes.
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Table of Contents
Executive Summary.........................................................................................................................2
Group Coursework Peer review form..............................................................................................1
ELEMENT 1....................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Business plan ..................................................................................................................................3
The business...........................................................................................................................3
Markets and competitors........................................................................................................4
Sales and Marketing...............................................................................................................4
Management and Operations..................................................................................................7
Financial Forecast ................................................................................................................10
Financial requirements.........................................................................................................12
Risk Assessment...................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
.......................................................................................................................................................16
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ELEMENT 1
Business plan
The business
Foex is a trading company in sports products. The main four products in which company
deals includes Skies, Bicycles, Foils and Surfboards. High profitability of the company presents
high liquidity that allows organisation in performance of day to day functions in proper manner.
Income statement of 8th year of the organisation shows the profit of £ 40920 which is positive in
nature and depicts as profitable business organisation.
The main objective of the organisation is about attainment of continuous growth and
sustainability in market. This also includes achievement of improvement in profit and sales
figure in positive direction.
Mission: To improve growth by 10% in next three years of time period.
Vision: To build the culture of providing quality product that help improve the
competitiveness by 20% in market.
Goals: To improve the profit figures by 20% within the period of next three years.
Porter generic strategy: This is the effective strategy that includes the use of internal
capabilities of organisations to attain competitive advantage in market. The three different
determinants are persists in this are defined below:
Cost leadership: This is about the use of the strategy of providing products in market at
low cost in comparison to other competitors.
Differentiation: This is about the use of strategy regarding the providence of product
which is totally different in nature in all respect from the competitors.
Focus: This is of two types i.e. cost focus and differentiation focus. Under this, focus is
provided over niche market.
The best strategy to adopt to attain growth in the future is cost leadership as lots of
competitors are present. Acceptance of this help to grab the market and attraction of potential
customers.
Markets and competitors
Information ascertained from the simulation report depicts that demand of the sports
product of this organisation is good in market as they able to earn significant amount of profit in
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8th year of operation. To meet the market demand, change has been done by the organisation in
their distribution strategy where products are directly imported from the factory. This will not
only saves the time but also contributes in the reduction of unnecessary cost. The use of same
exercise in future is also effective and help the organisation to attain competitive advantage. The
presence of overall conditions and growth rate of other competitor organisation depicts that wide
scope is present in market to grow (Heffernan and et.al., 2016).
From the below image ascertained that, the performance of Bounce and Zero is not
effective and much competitive in nature against Foex. Bounce has left unsold inventory in their
8th year of operation in one product which is surfboard. Also, Zero has unsold inventory in
surfboards in 8th year of their operation. From comparative analysis ascertained that Foex has not
unsold inventories in respect to any product in 8th year of operation. This depicts that the
performance of Foex is better then these two organisation.
Bounce
Zero
Market size is wide in respect to the products like skies, bicycles, foils and surfboards.
Large number of opportunities are present in market along with scope to attain significant
amount of growth.
Growth opportunities present in this market are high. This totally depend over the
selection of best suitable strategy. Adoption of cost leadership help to attain significant amount
of growth in market after the presence of intense competition.
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The segment upon which focus is provided is sports freak and young in age. The
selection of this help to ascertain their actual characteristics along with demand. This will help to
capture the market along with new and potential customers.
Sales and Marketing
Second year operations of the Foex depicts that position of organisation is not good
where management is unable to sold all of there inventories. The figures which are ascertained
from the simulation report that skies unsold inventory is around 84, Bicycles present in the
number of 151, Foils in 17 and surfboards in 113. To improve the sales of organisation products
and bring consistency in the figures of demand supply, many efforts are taken from the
management side (Hernaus, Bosilj Vuksic and Indihar Štemberger, 2016). The changes
ascertained in operations is related to supplier, pricing an marketing. The impact is ascertained
over the demand of products. In current 8th year of operation ascertained that demand of all the
products of Foex is increases from the number of supply of products. This results into the
achievement of the position where none of the inventories are available in stock as all are sold.
The results present in simulation report also supports the less effectiveness of the
marketing report where after having the sufficient amount of supplies of the product not able to
generate the demand (Horst and Järventie-Thesleff, 2016). Presence of unsold inventories hold
negative impact over the organisation and its overall operations. At present, in 8th year of
operation ascertained marketing department of Foex is doing good where they able to generate
the demand in respect to all of their products. Now, the amount of unsold inventories is zero.
Currently, organisation uses STP and 7P's of marketing. The contribution of these marking
approaches in development of the organisation in market is quite good. It is also suggested to the
marketing department of Foex uses these on continuous basis. This is so because at some point
of time they must contributes in accomplishment of organisation objective (Jaoua, 2016).
STP
Segmentation: The four different segments are present on the basis of which market is
divided. These are named as demographic, geographic, Behavioural and psycho-graphic. The
one which is used by the organisation is demographic. The two determinants are used age and
income.
Targeting: This includes the process of the selection of consumers on the basis of factors
ascertained above. On the basis of age the target consumers of the organisation includes those
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which lies between the age of 18 to 40. On the other hand, on income basis the criterion selected
to target consumers are those which belong from higher middle and upper class (Johnson, 2016).
Positioning: This is the aspect which is about determination of the strategy that
organisation is needed to select to present themselves in market. The importance of this against
the organisation is that help to improve the recognisability in market that has direct positive
impact over brand image. Use of social media platform and commercial marketing mix strengths
the power of organisation in respect to their reach towards their determined targeted consumers.
The results of the simulation report in relation to sales and inventory depicts the overall success
of this approach including its all determinants.
4 P's of marketing: This is the tool which help the organisation in respect to the
selection of tactics. These are selected on differently in accordance to the requirement of each
attribute of this model. The four different points against to which tactics are adopted or
ascertained by management includes product, price, place and promotion:
Product: Foex is the trading organisation and deals in different number of sports
products. The four main products of this organisation are named as skies, bicycles, foils and
surfboards (Karami, 2016).
Price: This is the most important quadrant which has direct impact over demand and
sales. Currently, the price strategy adopted by organisation is competitive and penetrating in
nature. In respect to the foils and skies the pricing policy is penetrating. For surfboards and
bicycles prices are selected competitive in nature.
Place: Foex operates its business through use of physical outlets and platforms all over
the London. This creates the opportunity as they can easily approach by the consumers
(Maduenyi and et.al., 2015).
Promotion: Important aspect which work towards the disbursement of information. In
respect to the promotion of all products the strategy used by Foex includes the application of
social media platform along with commercial communication mix. The effectiveness of both is
ascertained in the manner that have wide reach in market specially among the youth belong from
the age in between 18 to 40. This will huge contribution in future success of the organisation too
as the same age group of people are organisation's target consumers. In future organisation is
required to use the Omni marketing channel that help to improve the experience of customers
through getting direct access over the organisation product from the social media platforms.
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Comparative analysis in between Foex. Bounce and Zero
Comparative analysis is done between our organisation along with other two on the basis
of price and sales. This will help to determine that how the price impacts the sales figure. Also,
the ability of others can be judged from this analysis:
Foex
Bounce
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Skis Bicycles Foils Surfboards
0
100
200
300
400
500
600
255 265 255 260250
120
500
400
Price
Linear (Price)
Sales
Linear (Sales)

Zero
It is interpreted from the above graphs that performance of bounce is good in comparison
to other too. The sales of this organisation is high in respect to all the products after charging the
decent amount of price. Fooex is the organisation comes on the second number after Bounce in
accordance to the above graph. Zero charges high price and unable to generate sales in respect to
the two products. The performance of this organisation is below the average in comparison to
other too.
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Skis Bicycles Foils Surfboards
0
100
200
300
400
500
600
279 299 299
249
228
500
465
509
Price
Linear (Price)
Sales
Linear (Sales)
Skis Bicycles Foils Surfboards
0
100
200
300
400
500
600
300 310 310 300
0 0
500
64
Price
Linear (Price)
Sales
Linear (Sales)

Management and Operations
In initial period of 2 year, management of Foex is not sound that results into depletion of
sales and overall profit. The ways in which organisation operates or handled are not effective in
nature which becomes the reason that management stuck in between and not able to carry
profitable business. From the 3rd year, management is taken over (Maylor, Turner and Murray-
Webster, 2015). Analysis of the market is start from this stage where Porter and VRIO is used
which help the organisation to choose their strategies and direction. Ansoff matrix is used by the
organisation in determination and effective application of strategy through bring analysis of the
various alternatives. Currently, these derive the operations of organisation towards success as in
8th year Foex ascertained the profit of amount £40920. In future, application of these approaches
is beneficial in nature and help to get the predetermined objectives as mentioned above
(McDonald, 2017).
Porter five forces
Suppliers power: The number of suppliers of sports products in London are high in
nature. Also, many number of options or medium to get the inventories. This shows the power of
organisation is high in market. The way which is used by Foex in actual is direct import form
factories.
Buyers Power: Many number of buyers are present in market to buy sports products and
equipments. Talking about the power of Foex then this have moderate number of buyers on
average basis. This represents the moderate power of organisation where neither buyer or
organisation gave impact each other.
Competitive rivalry: The number of competitors present in retail trading of sports
equipments is high in nature. The organisations present in this industry that have big share
includes VAST Sporting, Athletes and Jonex sports. Those who have inequivalent and small
share in market includes Moxie, Zero and Bounce. Overall the power of Foex in industry is low.
The strategy help to overcome from this includes focus over price and quality of products. This
has contribution to get the improvement in number of demand of their products (Nankervis and
et.al., 2016).
Threat of new entrants: To start business and enter in this industry is not easy in nature.
This represents that the power of Foex is high as established in market. Requirement of fund is
high to setup the business in this industry which makes the entry of the new one difficult.
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Threat of substitutes: Number of organisations in this industry is high which deals in
trading of sports equipments. The many of them are mentioned above which reports the power of
organisation low in market. The strategy help to overcome is focus over providence of products
at lower cost (Paliokaitė and Pačėsa, 2015).
Ascertained from overall analysis is that in industry, position of organisation is
significant. Usage of tactics like providence of products at low price and high quality in nature
help to combat the threat of rivalries. This results into the attainment of sustainability in future.
VRIO
Particulars Valuable Rare Inimitable Organisable
Human resources Ѵ Ѵ Ѵ Ѵ
Logistics Ѵ Ѵ
Brand image Ѵ Ѵ
Valuable
Human resource: This includes the employees and technical personnel in the
organisation that work for the purpose of doing organisational functions properly. The
valuability of this ascertained from the point that all the employees have unique talent and hire
by organisation in ratio that fulfils their overall operational demand (Sajasalo and et.al., 2016).
Logistics: This includes the medium used by the organisation in transmission of products
from one place to another. Use of eco-friendly logistics presents the valuable nature as not only
help to save the environment but also results into the reduction of cost.
Brand image: The image of organisation at present is valuable in nature as this will have
huge contribution in current or future too in creation of demand of their products.
Rare
Human resources: The employees of organisation are rare in nature as hired by
management in the ratio that fulfils their all requirements. Also, the skills and characteristics
have by them are specific in nature which help to carry operations in any situation. This will
builds them rare from others.
Inimitable
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