Evaluating the Interatech Business Plan: CAMPARI Model Analysis

This report provides a detailed analysis of the Interatech Co Ltd business plan, focusing on its strengths and weaknesses using the CAMPARI model. The analysis examines the character, ability, management, purpose, amount, repayment, and insurance aspects of the plan. Strengths include the founders' diverse skills, the potential for revenue generation, and the clear outline of costs. Weaknesses include the lack of a financial track record, potential skill gaps in management, and the absence of insurance coverage. The report also offers recommendations for improvement, such as incorporating insurance and addressing potential market fluctuations. The plan's financial projections, including revenue forecasts and return on investment, are carefully assessed, highlighting the need for comprehensive cost analysis and a more robust repayment strategy. The analysis also addresses the plan's ability to secure funding and its potential for success in the competitive IT industry.

Business Plan 1
BUSINESS PLAN
Name
Course
Professor’s Name
Institution
Location of Institution
Date

Business Plan 2
Introduction
The CAMPARI model seeks to provide an in-depth understanding of the internal and
external environment that an organization operates. It can integrate both factors, from within and
outside an organization, hence identifying the strengths and weaknesses of an organization. The
model encompasses several aspects to profile an organization in terms of its character, which
includes the business track record and its credit history with banks (Huang, Wu, and Chen, 2013,
p. 1231). CAMPARI model shows management ability, resource allocation, and personnel
availability are adequately identified and mapped against both the corporate and functional
objectives of a company or institution (Görener, Toker, and Ulucay, 2012, p. 22). Other aspects
also considered by the model include the business financial resources and planning, issues of
insurance and risks involved, organization interest, and how it has been balanced with that of the
customers, it intends to serve (Gopalan, Nanda, and Yerramilli, 2011, p. 2102). It also analyzes
individual skills and knowledge and matches such skills with market requirements.
Character
Using the CAMPARI model with Interatech Co Ltd, the character is an aspect that most
lenders, especially banks, consider before committing funds in the form of a loan. Bank loans are
an essential source of funding for any business. As strength in character, Interatech, in its plan,
has displayed the possibility and potential to deliver its abilities if they have the choice of
financing the introduction of their new product through a bank loan, besides, to support from
potential investors. The financial breakdown of its forecasted revenues over the years from the
point the new software is introduced into the market indicates a lucrative business venture. These
forecasts show evidence of good times ahead after the launch, hence a strong reference point that

Business Plan 3
can be used to obtain a bank loan (Gunawan, Pituringsih, and Widyastuti, 2018, p. 406). The
plan provides exhaustive information on what is expected of the new software as the company
seeks to venture into the IT industry.
Charts and diagrams have been provided showing their YouTube ad marketing
demographics, with their target audience grouped according to age. However, it is not possible to
conduct a break-even analysis considering the data is not conclusive. The diagrams showing
other competitors and their pricing are also useful especially when making financial decisions
based on pricing and market target. Costs relating to software development, system support,
office expenses, maintenance costs, Marketing and promotion, and other initial set up expenses
have been provided. Graph on expected return on investment puts year 1 at 53450, year 2 at
48850, year 3 at 49859, year 4 at 45850 and year 5 at 38600. The profits are expected to drop at
year 2, rise slightly at year 3 and then drop through to year 5.
A notable weakness of the above aspect of the character with Interatech Co Ltd is the fact
that it has no previous records of financial ability to repay money owed. It, therefore, has no
strong reference point in case a bank loan is required to run operations.
Ability
It is an aspect of the CAMPARI model that focuses on the skills and expertise of both the
management and support personnel tasked with different roles within the company. Regarding
the plan, the five founders are capable individuals with diverse skills and knowledge brought
together under a single company. It is worth noting from the plan that all the founders have been
recognized as individuals with related backgrounds and strong skills and expertise in their fields.
Ms. Elspeth Robertson is a computer science graduate who is into software development and has

Business Plan 4
experience in areas of business strategy, planning, and marketing. She also brings on board
useful skills in business development that will help the new company grow.
Daniel Zebrowski, who is also a computer science graduate and has an interest in IT,
brings on board business management skills. He is tasked with the responsibility of developing
and implementing the company's business strategies. With his Masters in Business
Administration, he is perfectly placed as the one in charge of research and design, product
innovation, marketing, and advertising. Euan Robertson is also an essential asset in the company.
As the design development manager, he is equally up to the task, being an experienced software
engineer. His skills perfectly align with the company’s objectives in IT. He doubles up as an
important link with clients, in addition to being responsible for software development and
design, quality control, and database management.
Thomas Lipman, in charge of marketing and public relations, is an experienced logistics
manager. Coupled with his passion for marketing, he is the best individual for the marketing role.
With his background in environmental science, he is crucial in maintaining and managing the
company and the product’s reputation. Wang Catherine, who is in charge of the finances and
accounting, brings on board her experience and background in accounting and management. She
provides financial advice to her partners in the company. She is also involved in budget control,
taxation, and preparation of financial reports. She can oversee all the office expenses effectively.
The weakness that the company faces is how to identify and acquire people with a strong
passion for IT to enable them to compete favorably. They are also faced with the challenges as
most personnel would prefer the already established institutions as opposed to Interatech that is
just beginning and is still at the infantry stage. It is also not clear whether the company is

Business Plan 5
currently made up of only the five founders, or there are other members not mentioned in the
business plan.
Management
The top management consists of highly qualified individuals. The company boasts of
having a panel of proficient and skilled founding members. All five founders are well-trained
individuals in their respective fields and have years of experience that they are bringing together
under a single umbrella (Bull et al., p. 101). It is a formidable combination made up of top brains
in computer science, software engineering, environmental science, and accounting and finance.
There are also Master's degree holders who have gained even more knowledge required to
support the different functional and corporate roles. All these founders have previously worked
with a large organization in various capacities over the years; hence they are a great asset to the
new company. They bring with them borrowed knowledge and best practices from market
leaders in other sectors and implementing them in their new IT company that intends to
introduce new software into the market (Fisher, 2011, p. 997). The set of skills and knowledge
held by those at the top enhances organization-wide efficiency and effectiveness as things are
done right after careful deliberations and research.
However, the management weakness is the fact that not all these skills may be applicable
in the IT sector. Some skills and knowledge are more useful than others, especially when specific
tasks are to be undertaken. With the current market dynamics, the top managers may lack a
particular skill and technical know-how, especially when they are unable to adjust with the ever
changer trends in the IT sector that requires sophistication and application of new technical
expertise.

Business Plan 6
Purpose
It is an activity of the CAMPARI model that looks into how clearly the amount of money
needed for the project has been stated in the business plan. It also considers all the associated
costs, like marketing and advertising, system support, maintenance, and set up costs. Regarding
the business plan prepared by Interatech Co Ltd, a comprehensive breakdown of all the costs has
been included. It gives a justification of how all the funds received from investors, and the bank
will be utilized in undertaking the activities need to ensure the company is operational. Their
software is introduced into the market. When requesting for banking facility and support from
investors, it is in the interest of the customers as their new software will enhance interactive
activities and support the educational sector. It will enable customers to experience a new kind of
technology that can manipulate and control PowerPoint presentations by merely utilizing hand
gestures and motion detection technology (Xu, Xu, and Li, 2018, p. 2944). It has been presented
as a revolutionary technology that will give customers a new feel of advanced technology that
has not been seen before. It is a technology that is easy to use and will be able to integrate
presentation software tools with different computer applications.
A breakdown of the different costs has been provided, but they failed to include the
actual amount of money they need to cover all these costs and support operations after all the
overheads have been factored. It is, therefore, difficult to ascertain how much the whole project
would cost for planning purposes. Investors are unable to understand how much they are
expected to bring in against the total cost of the entire project.

Business Plan 7
Amount
It is another factor considered in the CAMPARI model focusing on associated costs and
customers. Among the expenses directly related to customers are the costs of direct marketing,
budgeted marketing, and promotion, including university and school visits, giveaways, and
promotional events. All these costs contribute to the customers’ stake in the company. Looking
at this aspect, it is true that all the associated costs have been included in the business plan as
required. Justification has also been provided for every amount needed for the specific activities
outlined.
A significant weakness of this forecast is that they are subject to changing market
conditions and are easily affected as they are dependent on changes in the market. It is, therefore,
difficult to tell whether the amount requested is correct or not. Proper planning is therefore
required to ensure these fluctuations and market changes do not adversely affect the costs.
Repayment
The business plan has clearly outlined its repayment plan by showing related profit
margins, cash flow forecasts, and other relevant financial information needed as proof of the
ability to pay any outstanding debts and bank loans. The plan indicates that the source of revenue
for the company will be sales to learning institutions, which is expected to account for significant
cash inflows. Income is also to be obtained through sales expected in the corporate sector and
through the retailing of individual licenses. The company has set out a plan of introducing the
new software into the market by targeting the corporate and educational sectors to enable it to
drive sales for profitability. It is anticipated that sales will be high to allow the management to
pay any outstanding debts and repay their loans within a given period.

Business Plan 8
The plan, however, does not state other repayment sources apart from the sale of their
software. Such information may not be satisfactory to banks and investors as the company
wholly depends on the income received from the sale of its new software. Additionally, the
anticipated sales are an uncertain occurrence that cannot be relied upon before it is achieved
through actual sales.
Insurance
Insurance is the protection against a financial loss. A business must have security against
any damages that may occur. The business environment is very volatile and could lead to losses
that, if not insured, can affect the profitability of the company (Wentzensen and Wacholder,
2013, p. 150). Insurance is, therefore, able to help a company maintain its position in case of any
losses that would otherwise affect operations and service delivery (Njegomir and Rihter, 2017, p.
54). In the business plan, the aspect of insurance has not been considered by the company’s
management. There is, however, an assurance that risk factors such as competition from big
market players, risk of poor quality caused by specifications variations, and the technological
risks that are manageable. The company’s management intends to do this through partnerships
with other prominent players in the industry.
Recommendations for improvement
Interactive Technologies Co Ltd should revise its business plan and include the insurance
bit to show how the involvement of an insurance provider insures the market risks. Such a move
will create confidence to investors and drive out fear of loss of money in case of an unfortunate
occurrence (Bansal, 2016, p. 49)

Business Plan 9
In the plan, the management should be able to add the vision of the company. A vision
statement acts as an anchor point of any strategic plan. It outlines what an organization intends to
achieve and gives reason to the existence of the company. By having a vision statement in the
plan, INTERATECH will be able to make investors understand more about the company.
Conduct a break-even analysis. It is a powerful financial tool that helps determine the
stage a company, its new product and services are to be profitable. It involves calculations that
identify the number of products, in this case, the new software that they should sell to enable
them to cover all the costs adequately (Abbadi and Karsh, 2013, p. 147). It helps identify the
production point at which costs equal the revenues. It will help forecast and plan monthly and
annual sales to cover the cost of doing business. When finding the break-even point, the
management should consider the fixed, variable, and semi-variable costs.
In SWOT analysis, the management should consider a combination of SO strategies to
use their internal strengths that exist within the organization to take advantage of external
opportunities and present that in the plan (Ghazinoory, Abdi, and Azadegan-Mehr, 2011, p.
26).WO strategies, on the other hand, will allow the company to improve on its internal
organizational weaknesses by exploiting the available external opportunities outlined in the plan.
ST strategies will guide the management to use the inner strengths by reducing effectively, and if
possible, avoid the effects of external threats. WT strategies will provide a strong defensive tactic
directed at minimizing the company's internal weaknesses and adequately managing all external
risks.

Business Plan 10
SWOT Analysis
SWOT analysis of INTERATECH looks at the internal strengths and weaknesses that
exist against the opportunities and threats existing outside the company in the external
environment (Brooks, Heffner, and Henderson, 2014, p. 23). The strengths include skilled and
knowledgeable top executives who are the five founders. An elaborate management structure
with well-defined roles further gives it an upper edge and a chance to grow through proper
management and separation of roles (Akhavan et al., 2015, p. 179)
Among the weaknesses is the narrow product line. The business plan presents a single
product, which is the Airswipe software. It has a unique product that places it at a somewhat
disadvantaged position in comparison to other competitors who have a wide range of products to
deliver to the market.
Opportunities are those factors that represent the reasons the business and its products are
likely to prosper by presenting chances to make higher profits (Phadermrod, Crowder, and Wills,
2019, p. 197). Interatech Company can take advantage of these opportunities by partnering with
other market players to provide their product and minimize the risk of competition (Ying, 2010,
p. 1576)
Threats are the external factors outside the company’s control that affects its performance
and profitability (Wang, Zhang, and Yang, 2014, p. 232). Among the threats is the adoption of
new strategies by their competitors through the introduction of similar or even more advanced
technological products.

Business Plan 11
Appendix A
The objective of a business plan is to communicate the idea to others, especially the
potential investors, hence it is used to raise money for projects (Tounés, Lassas-Clerc, and
Fayolle, 2014, p. 543). It is, therefore, a useful selling tool that provides a basis for financing
proposals.
A good plan is detailed enough to provide all the needed information, including the
description of the business, the unique products and services, and how they are differentiated and
positioned in the market with those of existing competitors (Cooper and Edgett, 2010, p. 36).
Also included in the market analysis of the current and expected customer base, with focus also
placed on the size of the market, whether or not it is growing and the different segments that
exist in the market (Haag, 2013, p. 19).

Business Plan 12
References
Abbadi, S.M. and Karsh, S.M.A., 2013. Methods of evaluating credit risk used by commercial
banks in Palestine. International Research Journal of Finance and Economics, 111, pp.146-159.
Akhavan, P., Barak, S., Maghsoudlou, H. and Antuchevičienė, J., 2015. FQSPM-SWOT for
strategic alliance planning and partner selection; case study in a holding car manufacturer
company. Technological and Economic Development of Economy, 21(2), pp.165-185
Bansal, A., 2016. Systemic Importance of Insurance Companies¡ ªAn Empirical
Analysis. International Finance and Banking, 3(1), pp.44-76.
Brooks, G., Heffner, A. and Henderson, D., 2014. A SWOT analysis of competitive knowledge
from social media for a small start-up business. Review of Business Information Systems
(RBIS), 18(1), pp.23-34.
Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C.,
Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths,
Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services
framework. Ecosystem services, 17, pp.99-111.
Cooper, R.G. and Edgett, S.J., 2010. Developing a product innovation and technology strategy
for your business. Research-Technology Management, 53(3), pp.33-40.
Fisher, E., 2011. What practitioners consider to be the skills and behaviours of an effective
people project manager. International journal of project management, 29(8), pp.994-1002.