Manufacturing Furniture Plc: A Business Plan in Pandemic Times

This report presents a comprehensive business plan for Manufacturing Furniture Plc (MFP), designed to navigate the challenges of the Covid-19 pandemic. The plan begins with an executive summary and introduction, setting the stage for a detailed analysis. The main body covers business details, including product descriptions focusing on innovative space-saving designs and a location in Manchester, UK, along with online presence. A thorough market and industry analysis is conducted using PESTLE analysis, evaluating political, economic, social, technological, legal, and environmental factors. The report includes a competitive analysis contrasting MFP with industry giants like IKEA and MADE Plc. An operational plan outlines mission, objectives, goals, and key performance indicators. Risk and contingency plans are developed to address potential threats, and sales and marketing strategies are detailed. The report concludes with financial and funding plans, as well as the management team's structure, providing a complete overview of the business strategy and its potential for success.

The Covid Challenge Business
Plan

EXECUTIVE SUMMARY
The report is based on creating business plan by an entrepreneur n the time of crises by
launching Manufacturing Furniture Plc. In the current environment it has become difficult to
develop business so giving emphasis on each aspects become important. The current report has
included product description, location of firm, market and competitors analysis. Present case
study ahs comprised information about sales & marketing strategy, financial, risk and operational
plan. The description regarding management team has been given in current report.

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
Business detail.........................................................................................................................................4
Market / Industry analysis.......................................................................................................................4
Product Description.................................................................................................................................6
USP and Competitor analysis..................................................................................................................6
Operational Plan......................................................................................................................................8
Risk and Contingency Plan....................................................................................................................10
Sales and marketing strategy.................................................................................................................11
Financial and funding Plan....................................................................................................................13
Management team.................................................................................................................................16
CONCLUSION.........................................................................................................................................17
REFERENCES..........................................................................................................................................18

INTRODUCTION
Business plan comprises activities relating to initiating new organization for
accomplishing objectives like profitability. In current scenario of pandemic it and become
difficult to survive for organization as there are various threats and restrictions hindering
performance factors. The current report is based on entrepreneurs risk taking capability and
grabbing opportunities to develop in market. Current case study is based on explaining business
type with product & service description. It will include market, competitors analysis, operational
plan, risk & contingency procedure, sales, marketing, funding activity along with explanation
of management team.
MAIN BODY
Business detail
Entrepreneurship is the activity of setting up business procedure through taking financial
risk in motive of earning profitability. The current business plan is based on manufacturing
furniture which is one of the competitive industries. Present scenario of covid 19 is creating
various challenges as there are several adverse situations which have emerged. This particular
business plan is based on developing manufacturing company in furniture industry.
Manufacturing Furniture Plc. (MFP) is focusing on providing qualitative products through
emphasizing its occupying space on floor (Chernev, 2020). The main quality of this business is
to win competition via solving problems of small houses, offices and other areas through
providing higher capacity inside the furniture and lesser occupying space on floor. This is one of
the innovative idea considered in furniture sector. Location and premises are located in
Manchester of UK which has good roads and facilities providing convenience to reach. It has
presence on online platform as well for getting higher conversion rate.
Market / Industry analysis
There are various aspects of industry that need to be evaluated for getting knowledge of
changing practices and suitable course of action for gaining growth. It can be conducted through
PESTLE analysis which assesses political, economical, social, technological, legal and
environmental factors.

Political Factor
It is most influencing factor which needs higher consideration for gaining profitability.
Political stability, risk of military invasion, bureaucracy in home furniture by government,
intellectual property protection, favored trading partners, etc are some of elements that highly
affect smooth processing of specified company in sector (Opresnik, 2018). It becomes essential
for MFP to get knowledge of political environment where it is operating.
Economical Factor
There are several components such as inflation, saving, interest, employment, foreign
exchange rate, etc that play important role in influencing purchasing power of targeted segment.
There is requirement to give emphasis on economical factors of chosen location while taking
decisions of operating in furniture sector (Wajid and Zafar, 20210). The most import element is
industry growth rate to determine success of company in particular span for accomplishing
objectives.
Social elements
It includes society culture, belief, values, norms as it highly cause way of conducting
operations in business environment. In addition to this, demographic, behavioral, psychological
aspects of selected market play important role in deciding direction of growth. Manufacturing
Furniture Plc requires to focus on these components while designing the pattern of fixtures. To
gain competitive advantages company can focus on implementing acceptable trend and values
for grabbing opportunities of market
Technological Factors
This is most rapid changing and affecting factor of all industries so focusing on it
becomes important in order to have proper industrial analysis. It can be exerted by analysis
competitor’s pattern of technologies utilized for carrying forward manufacturing procedure.
Having effective adapting skills is essential to cope with changing circumstances due to
technological advancement. It majorly result impacting value chain, production process, etc in
both positive & negative manner.

Legal Factors
There are variety of rules, regulations and legislation of every industry which ensures
effective functioning. To derive success MFP require to emphasis on legal factors which
comprises discrimination, consumer, e- commerce, health safety, data protection laws. Following
mentioned regulations can give positive impact on targeted audience and attain trustworthiness
and competitiveness (Qadir, 2020). Adherence to mentioned laws and legislation provide
strength to cope up with changing circumstances & ability to overcome threat.
Environmental elements
Company need to comply with environmental rules and regulations through ensuring that
its resources are utilized in effectual pattern. Optimum utilization and reducing waste for
assuring conservation for future generation. MFP can get affected through these aspects so
higher consideration should be given.
Product Description
Manufacturing Furniture Plc. is producing various types of beds, office furniture, etc. It
as well provides custom design and structure of furniture. The features are affordable for
attracting customers with competitive line of furniture. In addition to this, MFP specializes to
match color, style and finishes on orders (Zeka, 2020). With respect to this, organization
provides after sales service to maintain good relationship with customers to derive maximum
sales. This quality of custom furniture in industry can provide competitive advantages to MCF.
USP and Competitor analysis
In furniture industry there are well established competitors who can give cut throat
competition as there are operating on both domestic and international level. MFP is new rival in
industry so having USP and other competitive advantages become strong competitor is
important. Competitor analysis gives detail description of prevailing similar firms who are
performing effectively via covering larger share mark. The current competitor analysis can be
understood by following illustrated table:

Basis Manufacturing
Furniture Plc.
(MFP)
IKEA MADE
Area of operation Local market International platform
for providing wider
range of services to
customers
This particular
organization covers
wide area of market
share through
providing services and
products on both on &
off line platform.
Products It provides furniture
like bed, sofa, tables ,
office accessories,
Kitchen appliances,
storage, textile ,
bathroom products,
carpets, mats,
flooring, pots, plants,
etc
Living room, home
furniture, lights,
bedroom, dine
accessories, storages
boxes (Sedes and
et.al., 2020).
Pricing strategies The organization
follows penetrating
strategy of pricing.
The reason behind
following this form of
approach is to attract
larger share of market
in order to gain
profitability with
maximum sales
(Adaurhere, Musonda
and Okoro, 2021).
IKEA follows referent
pricing strategy
through keeping focus
on both new and
prevailing prices
according to particular
span of time. It
basically changes
value of products to
meet targeted
audience.
Premium approach for
valuing its accessories
and other offered
products in market
Promotional approach Company follows
print , media, email,
display and direct
Company pay
attention on product
& pricing elements of
Several channels of
marketing are
integrated such as

targeting are some
from of techniques
utilized by
organization to
communicate with
customers.
marketing mix for
developing
promotional method.
Utilization of mono
segment and adaptive
types of product
positioning .
print, media, events,
experiences, etc.
Competitive
advantages
Qualitative as well
designers products
occupying less space
and higher storage
capacity .
Lower pricing
technique is leading
this specified
organization in
industry for gaining
capability of attracting
larger buyers.
The main competitive
advantage is highly
positive employees
which provide greater
amount of customer
satisfaction.
Target customers MFP has made policy
of targeting both
office as well
domestic segment
customers looking for
better quality.
This company targets
cost conscious
segment of market to
attend higher attention
of buyers.
This basically focuses
on domestic segment,
organization, etc for
decorating their
interior with unique
design.
From the evaluation it can be interpreted that company ahs higher completion in industry
that need to tackled with effective approaches. Manufacturing Furniture Plc. require to develop
more competitive tactics to have strong presence in industry.
Operational Plan
This step of business plan describes various important aspects that give insights about
company’s way of working. It comprises essential components that are crucial for planning
smooth functioning of activities. In addition to this, operational plan is associated with having
strategic approach to fulfill objectives of managing physical, financial and human resources.
Mission

The main purpose for developing this specific operational plan to give clarity &
transparency in all functional activities.
Objectives and goals
 The main objective of Manufacturing Furniture Plc. (MFP) is to derive profitability of 10
% via inclining manufacturing at the end of year.
 Increasing 5% operational efficiency at the end of 2 quarters to make manufacturing
activities more efficient via effective delivering channels in industry.
 Encouraging designing and stylish furniture pattern to gain competitive advantages in
furniture manufacturing industry within 2 years.
 Another goal is to establish department to meet guidelines of crises in all functional areas
for deriving smooth functioning of MFP at the need of this financial year.
 It is aimed to provide qualitative furniture through enhancing improvement system at the
end of 2 years to develop R&D activities by 20% for efficient manufacturing process.
Category
This operational plan is developed for ongoing use so that attaining longer term objective
scan be obtained.
Key Performance Indicator
There are various types of performance indicators helping companies to evaluate its actual
position in industry. it becomes crucial for this specified MFP to have specific key indicator for
deriving insights about its lacking and strengthening areas. The required tools for measuring goal
achieving capacity of manufacturing furniture plc for adjusting current method conducting
course (Ortega and et.al., 2019. ). It comprises Return on assets, revenue per client, profit
margins, process and qualitative indicators.
Market derivers Demands Manufacturing performance
actions
Low cost structure to increase
profits
Inventory utilization Ongoing process
Flexibility to cope up with Deliver frequency, machine Cellular production &

government & industrial
guidelines and effective SCM
change over time, etc advanced technology
indication
Time to market Development of stylish &
designer products
Research & development,
training to employees,
continuous improvement.
Improve quality Zero defects Introducing quality control
actions for fixing defects
Resources Required
There are various resources needed to carry forward this business which includes human,
physical and technical components. It as well involves having appropriate structuring if funds for
maintaining sufficient budget in turn all functional practices related with specific business plan
in time of covid 19 can be attained. This expects efficient distribution channel, advanced
technologies, etc
Financial Summary
Manufacturing Furniture Plc will start its operational activities with 5000 capitals from friends
and family (Ansoff and et.al., 2018.). In order to commence business MFP will utilize its
investment of 25000.
Risk and Contingency Plan
This segment of current report provides information regarding threats that can be cause
for hindered performance. These require higher consideration while developing business plan to
have significant data required for understanding unforeseen circumstances. It is concerned with
protection, detection and recoverability.
Risk Probability Preparation Response Impact
Core equipment
failure
Low Maintaining cold
back of core
equipment
Installing backup
plan
High
Poor profitability Moderate Managing Developing High

costing & selling
price strategy
market research
for indentifying
price
optimization
system
Liquid Problems High Ensuring
headway for
excess cash
flows
requirement
Diversifying
sources of fund
High
Threat of
substitute
Low Unique
designing team
development
Continuous
market
evaluation for
getting insights
High
Quality of
furniture
Low Higher
consideration to
quality assurance
system
Testing &
checking
practices for
quality output
High
There is various types of risks that become barriers while achieving objectives of
company. It is important to address all forms of threats such as financial, market, operational,
human resource, economical, technological, etc this is crucial for company to develop effective
risk mitigating strategy in turn negative impact can be reduced. The above illustrated table
indicates possibilities of risk arriving in smooth functioning of Manufacturing Furniture Plc and
suitable course of action along with extent of impact is addressed for deriving success. All
mentioned consequences require effective approach which can positively mitigate as well give
current and potential fluency of processing.
Sales and marketing strategy
It is crucial for company to have sufficient and unique marketing strategy to implement
strong presence in industry. the particular organization is implementing Ansoff Matrix (AM) that
will provide framework to managers, executives and other people concerned with company
(Ansoff, and et.al., 2019.). AM Strategic tool comprises four approaches in order to obtain