Detailed Business Plan for NOVASK Stick Umbrella Company, UK Market

This business plan outlines the strategy for NOVASK, a UK-based company launching an innovative stick umbrella. The plan includes an executive summary, overview of the business idea, development plans, market analysis (including competitor, SWOT, PESTEL, and Porter's Five Forces), marketing strategies, and financial projections. NOVASK aims to become a leading umbrella seller in the UK by offering a unique product with features like adjustable stick length and dual functionality. The plan details the company's objectives, mission, values, and critical success factors, along with an operational plan and management team structure. The market analysis identifies key competitors and highlights NOVASK's unique selling points. Marketing strategies focus on target markets and the marketing mix, while the financial analysis covers key financial aspects. The plan demonstrates a comprehensive approach to launching and growing the business, with a focus on innovation and customer satisfaction.

BUSINESS PLAN

TABLE OF CONTENTS
I Executive summary.......................................................................................................................1
II OVERVIEW OF BUSINESS IDEA............................................................................................1
Company Legal structure and owner..........................................................................................1
2.1 Objectives..............................................................................................................................2
2.2 Mission & Vision..................................................................................................................2
2.3 Values....................................................................................................................................3
2.4 Critical Success Factors........................................................................................................3
2.5 Products and services............................................................................................................3
III DEVELOPMENT PLANS.........................................................................................................4
3.1 Operational Plan....................................................................................................................4
3.2 Management Team................................................................................................................5
IV MARKET ANALYSIS...............................................................................................................6
4.1 Competitor Analysis..............................................................................................................6
4.2 Unique Selling Point.............................................................................................................7
4.3 SWOT Analysis....................................................................................................................7
4.4 PESTEL Analysis..................................................................................................................8
4.5 Porter Five Forces Model......................................................................................................9
V MARKETING PLAN................................................................................................................11
5.1 Target Market......................................................................................................................11
5.2 Marketing Strategy..............................................................................................................13
5.3 Marketing Mix....................................................................................................................14
VI FINANCIAL ANALYSIS........................................................................................................15
6.1 Financial aspects.................................................................................................................15
REFERENCES..............................................................................................................................19
APPENDICES...............................................................................................................................22

I Executive summary
Business plan is work as a beneficial tool under which every activity get planned properly and in relation to this all
operations get done in an appropriate manner. This factor includes a business plan which represent an organisational
development and growth related activities which are concerned with every level of managers. Overview of business idea has
been presented by preparing mission, vision, objectives and with critical success factors a perfect plan get developed. Companies
name is NOVASK with an innovative business idea of manufacturing an umbrella with stick that can provides support to hold
while walking in rain. Along with this, operational plan will enable in making the things corrective in manner through budgetary
format. Details and unique features of product are also described below along with unique selling point. For operating
efficiently, company need to analyse its internal as well as external environment in which it is operating and evolving. For this
purpose SWOT Analysis, Pestle analysis and Porter's five Forces model has been explained. Financial plan is helpful in examine
all finance and fund related things and requirement of business. For this perspective, various sources have to get determine
properly in which diverse sources of fund get identify. Cash flow statement present about inflow and outflow of a company on
the basis of which proper actions and suggestions get underpin.
II OVERVIEW OF BUSINESS IDEA
Company Legal structure and owner
NOVASK
Legal structure of NOVASK is Private Limited under Partnership. The company is owned and managed by Kevin
Nooreki and Elle Anderson. They came up with an innovative idea of a new concept in a market by creating a new 2 in 1
product i.e. an umbrella with a stick as per the needs of different segments of customers. The company was started in year 2010
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with just 6 employees. This innovative idea first strike into the mind of Elle Anderson who was at the age of 52 then, when she
realised the need of having a stick and umbrella at the same time while waking in rain. Mind captured the idea and then design
was developed.
2.1 Objectives
Following are the objectives of NOVASK:
 To become the best umbrella selling organisation in UK.
 To maintain a rich tradition of manufacturing and services.
 To have the most contended and satisfied customers in the umbrella industry.
 To meet the needs and expectations of customers and employees as well.
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 Strive to achieve excellence in manufacturing of quality stick umbrellas through loyal, committed and dedicated
workforce (Amatucci and Grimm, 2011).
 To double the market share till 2020.
 To attain a minimum profit of 30% along with a minimum sales volume of 100,000 units in a year.
2.2 Mission & Vision
“Company is creating products which are based on user understanding and keep their needs in heart”. This mission
statement of a company clearly signifies that they identify various users needs and requirement and deliver great experience
about investigation. This is helpful in enhancing area network of an association through which targets get ascertain in an
effective manner. Thus, they are providing results on user centred because, number of customers are related to different
segments.
2.3 Values
NOVASK understand only thing which is just to provide best services as an organisation can. Thus, on the basis of this
thing, several core values of an association are as follow:
 Maintain their focus on customers needs and continuously improving product, services and technologies (Authority,
2016).
 Formulate vision on the basis of customer feedback and then implement plan to ascertain them properly.
 Motivate employees and appreciate them towards creative thinking.
 Innovating and improving technologies for libraries so that user experience get improved in an appropriate framework.
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2.4 Critical Success Factors
Behind the success of NOVASK various sort of things play an important role which support them in long term context.
Thus, essential factors behind success of NOVASK are described as follows:
 Using new and innovative technique through which chances of ascertaining objectives are high (Barringer, 2012).
 Focus on customer needs and requirements rather than price and cost incur on them
 Execute operations in partnership not individual which increase number of sale of stick umbrella online
 Major target of a company is to increase target market by 20%
 Entering in contract with two different online retail store to increase market
2.5 Products and services
(STICK UMBRELLA)
 They have innovated a simple umbrellas by adding a stick on it.
 This idea came from the need of having an umbrella when it rains and at the same time need of having a stick to hold on
in order to not to slip on the road.
 Main feature of the stick umbrella is that when the wet umbrella is closed it turns into form of stick without making a
person wet.
 It contains two buttons. One is green coloured button and another is red coloured button.
 When green one is pressed, it opens umbrella and when red one is pressed it opens stick.
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 Another special feature of the product is that the length of stick can be adjusted as per the height of customer.
 This product can also be used as a safety object in order to defend oneself even when it is closed ( Barrow, Barrow and
Brown, 2012).
 Price of per unit Stick umbrella would be £90.
 Price of per unit stick umbrella is high as compared to normal umbrellas available in the market. This will be a
competitive disadvantage for company.
III DEVELOPMENT PLANS
3.1 Operational Plan
It helps the organisation to get clear picture of their task and responsibilities to in order achieve strategic objective of the
business. It consists of various activities and budget plan for each part of the firm (Beheshti, Meek and Kaufman, 2012). They
focus on utilising the resources effectively and efficiently. Following are the elements of operation plan:
Location: NOVASK is required to find the place which is easy to reach and convenient for its customer. However, being a start-
up business, there low availability of resources and hence, company is mostly focusing on online stores for which only a small
office will be based in Manchester England. Services offered will include online services, free home delivery services, payment
through wallet and cash on delivery services along with one year warranty of product and extra 10% discount on bulk orders.
Stock & Equipment
 Company will keep only finished goods which will be imported from manufacturing unit established in China.
 Average value of stock presented in the organisation for 3 months period will be £1300.
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 NOVASK can maintain their stock level by keeping the record of every single transaction so as to know behaviour of
their clients. They can maintain lead time by analysing the pattern of their clients actions.
Legal Environment: Policies related to government rules and regulatory comes under this. Organisation is required to take
license or permit for special zone of building (Bérard and et. al., 2013). They are required to update the trademark, copyright or
patent if required so as not to adhere the law of the economy.
Manufacturer (china)
Company has established manufacturing unit in China as there is low cost of production and high availability of
workforce (Blackwell, 2011). Raw material is imported form other countries and then it is processed and assembled in China
(refer appendix 1)
3.2 Management Team
This includes personnel who will manage day to day operations of business along with the impact of their experiences,
skills and attitudes towards the improvement of business. The cited firm also need to create an ancilliary plan for business if any
of the key personnel leaves or incapacitated.
Currently there are 50 employees working in the company. Hence, organisational chart for the company will be:
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Following hierarchy need to be used by NOVASK for efficient working of operations. However following departments
must be present for professional and advisory support to the company:
 Board of directors
 Mentors and key advisors
 Management advisory board
 Accountant team
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 Banker
IV MARKET ANALYSIS
4.1 Competitor Analysis
This involves identification of potential competitors in the matket along with evaluating their strategies in order to
determine their weaknesses and strengths in relation to company's own product and services (Blascovich, 2013). However,
umbrella producing industry is small in UK, due to this it provides a large scope for new enterants in market. Thus, business
have to identify all of them and take appropriate step for such sort of rivalries in business. Major Competitors for NOVASK as
identified are: James Smith &Sons Umbrella: Headquarters of James Smith & Sons is based in London, UK. It is working since 1830.
its was also featured in episode four of the BBC's 2015 production of Agatha Christie's Partners in Crime.
 FOX Umbrella: Headquarters of Fox Umbrella company is based in London UK. It is a potential copmpetitor of
NOVASK as it provides services ranging from online store, customised umbrella's, etc. (Refer Appendix 6)
4.2 Unique Selling Point
It includes those factors that differentiates a product from its competing products such as high quality, low cost, unique
features, etc. (Bridge and Hegarty, 2013) This could be created by considering a thought of what features does product need to
be entails that competitors does not have. Through USP, company can promise with clear benefits to customers that other
competitors does not provide. This will also enable them in attracting more customers.
 However, Unique selling point of NOVASK is special design of umbrella with two buttons along with the feature
of switching to stick from umbrella without getting wet.
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 Product will be available in different colours and design.
 Stick would be adjustable as per the hieght of customer and can be detached also to be used during seasons other
than rainy.
 Unique selling point also helps company to create position of its product in market.
4.3 SWOT Analysis
Market analysis is a major concern for an organisation which enable in ascertaining all goals and objectives properly
(Bryman and Bell, 2015). Chances of making the business appropriate is high in nature through which maximum outcome would
be gain. NOVASK limited have to determine about all strength and weakness of their own along with number of opportunities
which are prescribed in market world. Moreover, it is essential for managers to analyse threats as well so that competitive
advantage would be gain properly. Below is a SWOT analysis which get evaluated all things properly by ascertaining pros and
cons of business enterprise.
Strength: Strength are considered as all advantages which are gaining by an organisation in order to maximise their revenue and
profit (England, 2015).
Weakness: Every business suffer several limitations which are inappropriate for business concern. Thus, management have to
analyse all weakness properly and take beneficial decision in such relation
Opportunities: This industry is all about new and small number of firms involving into this business concern.
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Threats: Every business have a fear of something new and things which are inappropriate in context as well. A major risk for
business is fear of more and more number of substitute which restrict in operation of activities in a proper framework. (Refer
Appendix 2)
4.4 PESTEL Analysis
For evaluating various situation of market, it is essential to identify various factors which made a vast impact on an
association performance. Whenever an organisation is going to incorporate business in new market world, an organisation have
to organise a PESTEL under which various sort of information get determine properly (Finch, 2013). On the basis of this basic
evaluation of market, management will go to ascertain objectives properly:
Political factors: This includes those political factors that can have significant impact upon the smooth functioning of business
activities such as policies, type of government, political changes to government and global influences.
Economic Factors: This includes economic factors such as growth of economy, employment rates, monitory policy, change in
exchange rate, inflation rate, etc.
Social factors: Company need to look after its social and corporate governance responsibilities which includes demographic
influences, lifestyle factors, providing more employment opportunities, using of eco-friendly material in order to protect
environment, etc.
Technological factors: These are the factors that have significant impacts to any industry. Technology is changing with the
changing environment and increasing needs and expectations of customers and clients (Gately and Cunningham, 2014).
Company need to cope up with the changing technology so that better services can be provided to their customers as per their
needs and requirements.
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