Detailed Business Plan: Morgan Motor Company's Startup and Strategy

This report presents a business plan for Morgan Motors, a new car manufacturing company. It outlines the company's vision to produce handcrafted sports cars, targeting upper-class customers through a B2C approach. The plan details the products and services, including innovative designs and intellectual property protection through patents. It analyzes the competitive landscape, identifying key rivals like Mercedes, Toyota, and BMW. The plan explores various funding sources like retained earnings, debt, and equity capital. It also details tangible and intangible resources, including inventory, fixed assets, and patents. The report emphasizes the importance of management information systems (MIS), including ERP, e-commerce, and informatics, for achieving a competitive advantage. Finally, the plan provides a financial forecast and concludes with the company's vision to be a leader in customized sports car design.

CW2
1

Table of Contents
Introduction......................................................................................................................................3
Your Proposed Future Business:............................................................................................3
Customers –............................................................................................................................4
Competitors............................................................................................................................4
Evaluating and selecting suitable sources of funding to grow the business opportunity.......4
Plans for obtaining your resources, both tangible and intangible between now....................5
Type of organisation and the management information systems required to effectively control
the business.............................................................................................................................5
Vision for your Business Idea – what future does your business have..................................6
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9
2

Introduction
Entrepreneurship is an aspect that economists categorize it to be integral to production activities
in countries. It deals with activities of typically creating a business plan, hiring of labour,
acquisition of resources, financing measures, offering required leadership and management for
the business (Tipu, 2019). Present report deal with the business plan prepared for a new business
venture that Morgon motors in order to analyse the basic requirements of resources, vision of
organisation, There is analysis of major competitors, target segment of customers and the way
management information system will be applied for smooth functioning of business.
Your Proposed Future Business:
The new business start up is of Morgan Motor Company. It is a car manufacturing brand that is
started with a vision to produce 850 cars every year and the waiting time period that is estimated
will be of 6 months that can be sometimes long for a year.
Products and services: Morgon motors will be dealing in innovatively designed cars as per
changing customer preferences and needs. The unique blend of craftsmanship, performance and
chairman is offering hand crafted experience in terms of innovative cars for their customers.
 The Morgan Plus 8 GTR
 Morgan 3 Wheeler P101
 Morgan 3 Wheeler LE60
Innovations in the market: Morgon motors will be working on innovative approach of hand
sports cars and highly customised designs.
Intellectual property rights: For Morgon Motors being part of designing and manufacturing of
cars. The most suitable intellectual property rights is top use Patents. Design is a critical element
for designing of cars based on its commercial success (Hopp and Greene, 2018). It determines
the appearance, contours, lines, shape and colour. Design is something that is leading to addition
of differentiation features for various brands and helps in achievement of competitive advantage.
Patent registration: A register design is use for protecting the product appearance that includes
the pattern, colour and texture along with ornamentation. As compared with patent protection
that is used for protecting the way product works, design protection is easy and quick to obtain
patent registration for specific designs manufactured solely by Morgon motors.
3

Customers –
Identify your target customers. B2B or B2C: the main approach for Morgon motors will be to
have a B2C approach where there will be main target segment that is upper class individuals
because there is use of price skimming strategies. But there will be use of B2B approach while
other existing automotive brands will be approached for the purpose of collaborating with
Morgon Motors.
Who are the end-users?
End users of Morgon Motors will be generally the target segment of customers who are people
having preferences for high end design products.
The main USP of Morgon motors is based on classic design and use of updated and latest
technology.
Competitors
The major competitors’ brands of Morgon Motors are Mercedes, Toyota and BMW. Morgon
motors will be competing with these brands based on the mission of this brand is to provide hand
made and customized cars ash frames to their customers (Blackwell, 2017). It has to be
understood the magnitude of Morgan’s customer base is small as compared to other global
manufactures of car brands. The efficiency of manufacturing unit is high as compared to its
competitors that are providing a long term advantage for its survival.
Evaluating and selecting suitable sources of funding to grow the business opportunity
There are some of the sources of funding that can be used for the purpose of expanding and
growing the business opportunity. For Morton motors as mentioned below:
Retained earnings: Business has to maximize their profits by selling of their products or services
at prices as per predetermined costs. After generation of profits some of the parts are saved for
future utilisation. In Morgon motors this form of funding can be utilised that can lead towards
higher cost effectiveness because it is one such source that is not associated with additional costs.
Debt capital: Organisations can obtain finance privately through bank loams nut they can also
use some of the new sources by issue of debt to public. In debt finance the issuer issues debt
securities that include promissory notes and corporate bonds. In Morgon motors this source can
be used as lease, debentures and mortgages.
Equity capital: It is a source of raising fund from public in exchange from ownership in the
organisation after purchasing of shares. Private equity financing can be a option where there are
4

individuals, entities in the organisation. In Morton motors this has a disadvantage of equity
capital may dilute the ownership control as it requires selling of more shares.
Plans for obtaining your resources, both tangible and intangible between now
There are some of the tangible and intangible resources that are required by Morgon motors for
the purpose of smooth functioning of business some of such resources are mentioned below:
Tangible assets: There are some of measurable and physical assets that are compulsory required
for business functioning. It includes assets like plant, property, equipments, machinery etc.
Inventory: Inventory is a tangible asset that is part of cost of goods sold that represents the cost
involved in the production of goods for Morgon Motors (Turner and Endres, 2017).
Fixed assets: It includes the plant and equipments and other types of tangible assets that are part
of the balance sheet. In Morgon motors depreciation is also part of cost of assets that is used for
the purpose of generating revenue for the organisation. Deprecation reflects the wear and tear on
tangible assets in the organisation.
Intangible assets: It can be more challenging to measure the intangible assets from the
accounting standpoint. Some of the intangible assets from the pint of Morgon motors it includes
the patent that will be used as a intellectual property right for the purse of protecting the designs
of their exclusive sports cars from getting imitated by any other similar brand in the automotive
industry (Damayanti and Rahadi, 2021).
Other intangible assets includes the goodwill in the market that is representing the value above
and beyond the target of company’s assets as if any other organisation wants to acquire them
then they have to pay such amount as per the value calculated according to brand image of
morgon motors in the external market.
Type of organisation and the management information systems required to effectively control the
business
In Morton motors there will be use of management information system for the purpose of using
various tools like support processes, IT, intelligence and operations for the purpose of managing
information. It is the core of information management system in an organisation. Some of the
tools that will be used in Morton motors are mentioned below:
Enterprise resource planning: It is a discipline that ensures that all the different departments are
properly integrated. MIS is a concept that is connected with system to have access to data and
further creation of reports.
5

IT Management: It is a department that oversees the process of installation and maintaining of
software and hardware that is part of MIS.
E commerce: with the changing times and the increasing digitisation of business there has been a
shift towards online growth of various physical and traditional forms of business organisations
(Nankani, 2019).
This will be used for having online presence of website so that there can be a dual approach for
customers where the products and brands are easily accessible through such sources.
Informatics: It is a disciplining that combines engineering, information system development and
networking for the purpose of managing data and information of the organization.
Benefits of MIS: In Morgon motors use of MIS is going to help the business in achieving
competitive advantage. The presence of online website and digital marketing tools further for
promotion is going to lead towards a timely impact on the target segment of customers in a
unique and creative manner (Parseghian Hazar, 2018). After completion of specific time duration
managers will also be able to make a suitable comparison with the set standards of performance
and the actually achieved results after for instance a time period of 6 months. It is going to help
in monitoring of activities based on present monitoring structure of Morgon motors.
Vision for your Business Idea – what future does your business have
The main vision for morgon motors is to achieve a competitive advantage by being a leader
product of customised and handcrafted designs of sports car across the world (Silva, 2017). For
this financial planning and requirement of financial resources are mentioned below:
6

Total forecasted budget
Particular 31/12/18 ($) 31/12/19 ($) 31/12/20 ($)
Implementing
technology cost
16000 - -
7

Promotional expense 8000 9000 8000
Advertisement expense 5000 6600 6800
Catalogues 3000 5000 4000
Training charges 7500 7000 7500
Total Cost 39500 27600 26300
8

Conclusion
From above made conclusion enterprise have to prepare business plan as per changing
external business needs. There are some specific resources both in tangible and intangible form
that are essentially required for the business to function. The unique and creative approach in the
product promotion can help a newly established organisation in achievement of higher
competitive advantage in long run. It also leads towards long term survival of business
organisations as compared with other existing competitors in the external market.
9

REFERENCES
Books & Journal
Blackwell, E., 2017. How to prepare a business plan: your guide to creating an excellent
strategy, forecasting your finances and producing a persuasive plan. Kogan Page
Publishers.
Damayanti, C.S. and Rahadi, R.A., 2021. Business plan for property business featuring
sustainable high-performance micro-house concept in Indonesia. Journal of Asia
Entrepreneurship and Sustainability, 17(4), pp.49-74.
HAN, S. and Kang, E., 2020. The Marketing Strategy to Stimulate Customer's Interest in Art-
Gallery Business Plan. The Journal of Distribution Science, 18(8), pp.47-54.
Hopp, C. and Greene, F.J., 2018. In pursuit of time: Business plan sequencing, duration and
intraentrainment effects on new venture viability. Journal of Management Studies, 55(2),
pp.320-351.
Nankani, B., 2019. Well Woman: A Business Plan. California State University, Long Beach.
Parseghian Hazar, A., 2018. Business plan for martial arts studio (Doctoral dissertation,
California State University–Northridge).
Silva, M., 2017. Book4paws business plan (Doctoral dissertation).
Tipu, S.A.A., 2019. Business plan competitions in developed and emerging economies: What do
we still need to know?. Journal of entrepreneurship in emerging economies.
Turner, S. and Endres, A., 2017. Strategies for enhancing small business owners' success
rates. International Journal of Applied Management and Technology, 16(1), p.3.
10