iMBA Group Coursework: Detailed ASD Business Plan Analysis Report

This report details the business plan for ASD, a London-based sports product seller. The plan includes a group peer review form, a business plan, and an individual reflective report. The business plan covers various aspects, including an executive summary, market and competitor analysis, sales and marketing strategies, STP analysis, management (including VRIO analysis), and operations (using the Ansoff Matrix). The report highlights the importance of market analysis, competitive strategies, and effective management in achieving business goals. It also includes a financial forecast and discusses funding requirements. The group peer review assesses teamwork and communication, while the individual reflective report provides personal insights on the project. The business plan aims to enhance profitability and increase market share in the competitive sports trading industry. The analysis also covers segmentation, targeting, and positioning (STP) strategies, as well as VRIO and Ansoff matrix applications for strategic decision-making.

Organisational context

Table of Contents
COMPONENT 1..............................................................................................................................1
Group peer review form...............................................................................................................1
Business plan...............................................................................................................................1
REFERENCES..............................................................................................................................12
CONPONENT 2............................................................................................................................13
Individual reflective report........................................................................................................13
REFERENCES..............................................................................................................................17

COMPONENT 1
Group peer review form
iMBA Group Coursework Report Form
Provide a brief answer to the following questions
1. What were the strengths and weaknesses of the way your small group worked together
to complete the Group Work?
All the group members performed all the tasks allotted to them effectively it was the strength
for the team. All the individuals in team having different point of views which created
conflicts which was the weakness.
2. What difficulties, if any, arose in your group? How were these addressed?
One of the main difficult which affected the group was conflicts among team members. It was
dealt by interacting with each other of regular basis and communicate regarding business
plan.
3. How well do you think you each member contributed as a group member? What was
the main roles played in the group?
All the members in the team contributed effectively for the completion of the simulation game.
Different roles which were played in the team were leader, analyser, information collector
etc.
4. 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?
Group learned various things from this simulation game one of them is importance of
effective communication. All of us have planned to make various changes in future. One of
them is working more collectively and coordinating with each other.
Business plan
Executive summary: ASD is one of the sport product seller of London which is dealing
in different types of equipment to the customers. A detailed business plan is created for the
organisation for the purpose of enhancing profitability and capture larger market share. It is a
part of sport trading industry which is selling items such as Ice Hockey Stick, Tennis Rackets,
Inline Skates and Skateboards to the customers. In order to form the plan for growth in future
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different aspects are analysed in detail which includes, market, competitors, sales, marketing,
management, operations, risk assessment financial forecast and requirements. Company is
maintaining its supply and demand which has helped it to reach all its long term business goals
successfully. With the help of this plan organisation will be able to deal with competition which
may leave adverse impact upon its profitability and market share. In order to execute the plan
funding is required and the recommended sources of finance are personal savings, bank loan,
selling useless assets of business.
The business: ASD is a company which is a part of sport trading sector which is offering
different range of products to its customers for the purpose of executing all its business
operations in a systematic manner. Different items which are sold by it to the clients are inline
skates, ice hockey sticks, skateboards and tennis rackets. From the simulation game it has been
analysed that current position of the company in the market is stable because the organisation is
trying to meet the demand and enhance sales (Sadgrove, 2016). It balanced scorecard is showing
that it is generating good profits as compare to other companies and a large part of market share
is being captured by it. Due to this its competitive advantage within the industry is very high
which is beneficial for it to sale its products to the customers. Balance sheet of the organisation is
showing that it is having good liquidity. Profitability of the company is also very high as the
income statement is showing profits of 71637 pound for 8th year which is being increased as
compare to last year from 49194 pound.
Market and competitors: For all the organisations it is very important to analyse its
market so that the factors which may leave negative impact upon all the business operations
could be identified. From the simulation report it has been analysed that the demand of sport
items of ASD is very high in the market and organisation is trying to meet it by supplying the
products according to requirement. Proper coordination between supply and demand has resulted
in higher revenues of the company. In sport trading sector there is high level of competition
which may affect profitability of the organisation. Other major players in the market are
Strength, PSM, Slike and AVG (Nicholas and Steyn, 2017). According to simulation report all
these companies are giving tough competition to ASD. It is very for the enterprise to form
strategic decisions so that all the challenges could be responded appropriately. Managers and
other executives of the company can conduct market analysis for this purpose as it can help them
to analyse actual conditions of competitive market and help to take effective decisions.
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Sales and marketing: Selling can be defined as a process of exchanging a product or
services with money. There are two different parties in it buyer and seller. On the other side,
marketing is a process in which companies try to aware customers regarding their products with
the help of different medias. It helps to attract large number of clients and enhance sales of the
company. Both the activities are interrelated with each other because an organisation is required
to market its products to meet the targeted sales. The simulation report shows that sales of ASD
is very high as compare to other organisations which are dealing in same products. The sport
items which are sold by it to the clients are Skateboard, Inline Skates, Tennis rackets and Ice
Hockey Sticks. Demand of all of them is very high which has resulted in higher revenues
(Storey, 2016).
ASD has adopted various techniques to market all its products so that large number of
customers could be attracted towards it. Currently it is using different modes such as direct,
social media marketing etc. From the simulation it has been analysed that the market budget of
the company is 3500 pound. While performing marketing activities it is very important for ASD
to focus of three major aspects of it which are segmentation, targeting and positioning. All of
them are considered as the part of STP analysis which is as follows:
STP analysis: It is a combination of three main marketing activities which should be
focused by companies in order to reach the objective of attracting large number of customers.
Different elements of it are discussed below in context of ASD:
Segmentation: It is a process which is followed by companies such as ASD for the
purpose of dividing a large market in small areas where potential customers could be identified.
There are three main types of it which are as follows:
 Behavioural: In this type of segment clients are segregated in the basis of their buying
behaviour. If this segmentation option is selected by ASD then managers are required to
segment clients according to different factors such as benefits needed by customers,
brand loyalty etc.
 Geographic: This segmentation guide companies to segregated the market according to
geographic areas. If it is selected by ASD then organisation is required to segment the
clients according to country, state, village, cities, density of population etc. factors.
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 Demographic: There are various types of factors which are considered by companies such
as ASD which using this style of segmentation. These are age, gender, income level,
religion, education level etc.
From all the above described segments ASD adopts demographic segmentation as it helps
the organisation meet the expectations of clients. With the help of it taste and preferences of
customers could be understood which is beneficial for the enhancement in marketing efforts to
target them and sale products.
Targeting: When a best suitable segment is identified by a company then the next step is
to identify a part to target where products will be sold. ASD is currently targeting professional
athletes and sport persons as the items which are offered by it are specially made for them.
Positioning: It is the process of setting a good image of products in the mind of
customers. For this purpose, companies such as ASD conduct marketing and promotional
activities. The company also offers good quality products on affordable price which is beneficial
for it to position itself in their mind.
Management: In all the business entities specific processes are followed for the purpose
of controlling, analysing and monitoring different activities which are performed to reach long
term business goals. All of them are considered as the part of management. In companies such as
ASD it is very important for managers to make sure that all the operations are managed in
appropriate manner. While formulating plan for management it is very important for top level
executives of enterprises to determine sources of competitive advantage. It can help to form
strategic decisions which may benefit the company in long run. To determine competency of all
of them VRIO model could be implemented (Biech, 2019).
VRIO: It is a business analysis tool which is used by most of the organisations for the
purpose of determining features of different factors which may create competitive advantage for
the company. There are four different aspects of it which are analysed below in the context of
ASD:
Sources Valuable Rare Inimitable Organised
Financial resources ✔ ✘ ✘ ✘
Growth ✔ ✔ ✘ ✘
Market share ✔ ✔ ✔ ✘
Profitability ✔ ✔ ✔ ✔
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 Valuable: From the simulation game it has been analysed that ASD is having four
different sources which are contributing in enhancement of its competitive advantage.
These are profitability, market share, financial resources and growth. All of them are
valuable for the company because with the help of it operational activities are conducted
in appropriate manner (Sudrajat and Amin, 2016).
 Rare: The VRIO analysis shows that financial resources of ASD are not rare because
there are various companies which are having high investment in their business.
Profitability, growth and market share of the enterprise are rare because all the
organisations in the same sector do not have higher level of them as it is very difficult.
 Inimitable: Growth of ASD is not inimitable because with the implementation of
effective strategy competitors in the market imitate the growth of the company. Two
competencies market share and profitability of ASD which could not be imitated by other
organisations because it is very difficult to acquire same resources (Indrajaya, 2017).
 Organised: According to the simulation report market share of ASD is not organised
because of high level of competition in the market it fluctuates continuously. Profitability
of the company is organised by top managed in appropriate manner as it helps to run the
operational activities in a systematic manner.
Operations: All the process which are executed for business purpose are known as
operations. In order to reach business goals, it is very important for companies to focus on them
and formulate strategies for effective execution and controlling of them. To find different options
for the growth of business and operations Ansoff matrix could be used as it provides different
alternatives for development of organisation (Julien, 2018).
Ansoff Matrix: This model was developed by Igor Ansoff in year 1960 for the purpose
of facilitating organisations to choose best suitable growth strategy (Salwa and Sudarsan, 2018).
There are four different components of it which are discussed below for ASD:
 Market penetration: With the help of this option companies such as ASD try to increase
revenues by selling existing products in current marketplace. While using this option
company can develop a new strategy for marketing purpose which will be beneficial to
encourage clients to select or utilise more of the products.
 Market development: This strategy of Ansoff matrix states that if it is used by
organisations like ASD then existing items could be sold to a new market as it guides for
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the same. For this purpose, different sales channels could be used by the enterprise which
includes online and direct sales to a new location (Bouwer, 2017).
 Product development: In this type of strategy business entities such as ASD can launch
new products in their existing market place for the purpose of increasing the number of
customers. In order to attract prospect customers ASD can develop related products
according to its current items.
 Diversification: It is considered as the strategy which covers high level of risk as
companies launch new products in new market place. It could be selected by ASD to
introduce new sport items in a new location for the purpose attaining higher growth and
capture larger market share.
From all the above described strategies ASD can use market development strategy by
launching its existing products in a new location. It will help to expand the business in different
geographic areas and enhance market share (Min and Feng, 2014).
Financial forecast: The process in which future figures for an organisations are analysed
is known as forecasting. With the help of it all the companies can analyse the events which may
take place in future. Another benefit of it is that it helps to formulate strategies for future period
so that business can be operated in appropriate manner (DeNoble and Zoller, 2017). An
estimation of ASD’s demand, supply, sales and unsold inventory is as follows:
Forecasting for Skateboards:
Years Demand Supply Sales
Unsold
inventory
1 420 0 0 0
2 416 500 416 84
3 366 584 366 218
4 442 718 442 276
5 331 626 331 295
6 404 575 404 171
7 382 421 382 39
8 364 439 364 75
9 366 473 407 77
10 392 493 431 74
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11 333 508 453 68
From the above table it has been analysed that in upcoming three year’s sales, unsold
inventory and supply of Skateboards for ASD will be increased. On the other hand, in 11th year
demand of the sport items will be decreased. It shows that that in future company will grow and
its profitability will be enhanced. Main reasons behind this increment is high level of focus of the
company on market research which helps it to estimate future sales, supply and demand.
Forecasting for Inline Skates:
Years Demand Supply Sales
Unsold
inventory
1 320 0 0 0
2 349 500 349 151
3 394 651 394 257
4 451 657 451 206
5 478 526 478 48
6 527 348 348 0
7 588 350 350 0
8 618 550 550 0
9 665 558 580 -20
10 724 583 626 -41
11 752 608 672 -57
The above table states that in upcoming three year’s demand, supply and sales of Inline
Skates for ASD will be increased which will be beneficial for it to generate higher revenues. It
will also help to enhance liquidity so that all the future operations could be executed in
appropriate manner. As since last three years the number of unsold inventory was 0 so it has
resulted in negative figures of them for 9th, 10th and 11th year.
Forecasting for Tennis Rackets:
Years Demand Supply Sales
Unsold
inventory
1 470 0 0 0
2 483 500 483 17
3 532 517 517 0
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4 490 500 490 10
5 553 490 490 0
6 552 500 500 0
7 510 500 500 0
8 509 550 509 41
9 536 595 556 11
10 542 637 594 16
11 547 677 629 12
From the above table it has been analysed that according to the simulation game demand,
supply and sales of Tennis Racket for ASD will be increased in upcoming three years which are
9th, 10th and 11th. Number of unsold units will fluctuate during this period. It will be around 11,
16 and 12 for 9th, 10th and 11th year respectively. Continuous increment in sales will result in
higher profits and liquidity for future operations.
Forecasting for Ice Hockey Sticks:
Years Demand Supply Sales
Unsold
inventory
1 380 0 0 0
2 387 500 387 113
3 440 613 440 173
4 484 523 484 39
5 434 239 239 0
6 431 320 320 0
7 443 400 400 0
8 426 450 426 24
9 435 464 455 9
10 439 483 483 -1
11 443 501 512 -10
The above table states that, it has been estimated that in 9th, 10th and 11th year ASD’s
sales, supply and demand for Ice Hockey Sticks will be increased. With the help of it
organisations will be able to generate higher amount of revenues. It may lead the company
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towards success and development. Number of unsold inventory may show a negative balance at
the end of 11th year because in 5th, 6th and 7th year it was showing nil.
Business model canvas: It can be defined as a tool which is required for all the business
entities to provide brief understanding of different key elements to its stakeholders. With the help
of it all the main components of a business could be analysed by internal as well as external
parties. For ASD it is also very important to form it as it can help to make sure that the business
will be able to attain growth in upcoming year or not. A canvas for ASD is as follows which
covers all the nine vital elements of a business:
Key partners
 Staff
members
 Sharehol
ders
 Customer
s
 Creditors
 Suppliers
Key activities
 Offering
all the
sport
products to
clients
 Conductin
g market
research
 Promoting
products
through
different
medias
Value propositions
 Good quality
of all the
sport
products that
are sold
 Effective
management
of supply
chain
 Right price
for all the
items so that
clients may
get satisfied
Customer
relationships
 Being
easily
accessible
for
customers
Customer
segments
 Sport
persons
 Nationa
l or
internati
onal
athletes
Key resources
 Human
resource
 Sport
items
 Funds
Channels
 Stores in
London
and other
locations
 Ecommerc
e
Cost structure Revenue streams
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 Cost of buying items from suppliers
 Cost of conducting different activities
such as marketing, research and
development
 Sales of sport products to the clients
such as athletes and other sport persons
Financial requirements: All the companies require funding to execute all the operations
in appropriate manner. It could be determined by estimating future expenses and losses. In order
to execute the business plan of attaining growth ASD also requires funding. All the financial
requirements of the organisation for future are as follows:
Particulars
Amount
9th
Year
10th
Year
11th
Year
Purchase from suppliers 305000 320000 315000
Research and development 20000 18000 15000
Transportation expenses 23000 28000 25000
Wages and salaries 180000 200000 190000
Marketing and promotional events 10000 15000 12000
Other overheads 12000 18000 16000
Advertisement 8800 12400 9500
Supplies for office 7000 5000 4000
Rent and rates 32000 35000 33500
Taxation 4000 6000 5000
Total required funds 601800 657400 625000
From the above table it has been analysed that ASD requires funding of 601800, 657400
and 62500 for upcoming three years which are 9th, 10th and 11th respectively. In order to execute
all the business operations in future in appropriate manner it is very important for the company to
arrange them. In order to acquire finance different sources of funds could be used. These are
internal as well as external which includes personal savings, bank loan, selling useless business
assets, angel financing etc. Two of them which will be beneficial for ASD to arrange funds for
its business are described below:
 Personal saving: When business owners plan to expand or grow the business then they
require proper funding for it. Their personal saving is also an option for it in which they
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