University Business Plan: Stay-Dry Product for Graduate Enterprise

This report details a comprehensive business plan for the "Stay-Dry" product, a combined umbrella and walking stick designed for individuals needing support and protection from the rain. The plan includes an executive summary, an overview of the business idea, development plans covering management and operations, a thorough market analysis examining competitors, unique selling points, SWOT, PESTLE, and Porter's Five Forces. The report also outlines a marketing plan, risk assessment, and financial analysis, including proposed funding and financial aspects. Recommendations are provided, and references are cited. The project was completed by a team of four students, with each contributing to different sections of the plan, demonstrating their understanding of various business principles and their application to the Stay-Dry product, a startup venture.

Module title: Graduate Enterprise
Stay-Dry Business Plan
Report
Table of Contents
I.
Executive summary (completed by all students)……..………………………….3
II.Overview of the business idea (completed by ARV15403187)……………..…3
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1. Description of business idea…………………………………………………….3
2. Current situation……………………………………………………………………4
3. Mission and Vision…………………………………………………………………5
4. Aims and Objectives……………………………………………………………….5
5. Critical success factors…………………………………………………………...6
III. Development plans (completed by GRO15403283)……..……………………..7
1. Management team…………………………………………………………………7
2. Operational plan..…………………………………………………………………7
IV. Market analysis……………………………………………………………………….8
1. Competitors analysis (completed by ARV15403187)……………..…………8
2. Unique selling point (completed by ARV15403187)...……………………….9
3. SWOT analysis (completed by TUD15403455) ….………………………….10
4. PESTLE analysis (completed by LUN16423502) …………………………….11
5. Porter Five Forces Model (completed by GRO15403283) ………………….12
V. Marketing plan (completed by LUN16423502)………………………………….14
1. Target market……………………………………………………………………..14
2. Marketing strategy……………………………………………………………….15
3. Marketing Mix……………………………………………………………………..17
VI. Critical Risks and Problems (completed by GRO154032502)………………18
VII. Financial analysis (completed by TUD 15403455)……………..…………….19
1. Proposed fundings……………………………………………………………..19
2. Financial aspects……………………………………………………………….20
VIII. Recommendations (completed by all 4 students) ………………………….21
IX. References list…………………………………………………………….………...22
X . Appendices…………………………………………………………………………..24
XI. Peers Assessment Forms…………………………………………………………34
1.Executive summary (completed by all 4 students)
The focus of this report is to developastart-up business plan analysisof a new
idea in the market, a 2 in 1 product, a walking stick attached to an umbrella. The
product name is Stay-Dry, and comes from the fact that the stick keeps you dry
when the umbrella gets wet, and the same time, offer support to hold on it.
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A start-up business plan is a shortentrepreneurship example, which introduce the
capability to create, compose and handle with a business risks, towards any of its
challenges to benefit from it. The core of entrepreneurial is drawn by development,
take in the risks, and is an essential piece of an organization ability to pick up in an
always showing signs of change centered overall business focus (Bessant & Tidd,
2015).
The following statementscope is to make the idea known and to find new investors. It
starts with an overview of the business idea and itsfollowed by the development
plans, through which the idea is intended to be projected.
To be able to offer the productto the customers, are taken are analysed
thecompetitors in the sector,it is prepared the marketing plan, along with the
adecvate strategies to be apply. Then risks, which may be possible to face,in
creating the products and its features are taken in consideration.In the final stage a
financial analysis is made for the new product, Stay-Dry.
II. Overview of the business idea (completed by ARV15403187)
1. Description of business idea
It may be said that these days, in UK, the rain is part of the daily routine, and it
may be difficult for a specific target of people to handle an umbrella or to walk in the
cold rain.
Being a student and walking to the university in a rainy day, with a twisted leg,
a new idea was born. From the necessity of having an umbrella when it rains, but to
not get wet when you close it and in the same time to have a stick to hold on, when
you may have a walking problem, a new idea2 in 1 was created, named Stay-Dry.
Stay-Dry product innovates the simple umbrella, by adding a stick on it, and creating
a new, unique design, to helps the customers to save space and to be easy to carry
with them, which can give a better life routine.
People with small walking problems and over 55 years, also called the third age,
may have need of the Stay-Dry product, from the needs of having a support to hold
on and in the same time to open an umbrella when it rains, both in the same product.
They may use it as a simple umbrella, by pressing the green button, or just a stick,
by pressing the yellow button.
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To be able to hold oh the stick, once is opened, a small handle appears. Pressing
the both buttons, the product is opened in the both parts, and can offer also the
umbrella and the stick, to be handle with just one hand.In the picture below, it can be
seen an image of the product through all 4 phases:
The basicallybackgroundwhichsupport the Stay-Dry business idea are the theory of
economic growth of Schumpeter and the research made by Backerin organization
routines(Drucker, 2011).
Year Sales value (in 000' GBP)
2008 9860
2009 9823
2010 9329
2011 10229
2012 10372
2013 10221
2014 12514
2015 10892
2016 9870
Statistical trend or data set presents that annual sales value of umbrella made by UK
manufactures increased significantly from the period of 2010 to 2012. In the year of
2012, UK manufacturers sold more umbrellas and exceeded the level 10 million
GBP. However, in 2016, sales decreased from 12514 to 9870 GBP million. The main
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cause behind such decreasing revenue level and unit sold was varying level of the
rainfall. Hence, in UK, demand for the products like umbrella is growing significantly.
Thus, business entity has opportunity to provide customers with innovative umbrellas
in terms of design, colour etc and thereby gets the desired level of outcome orv
success.
2008 2009 2010 2011 2012 2013 2014 2015 2016
0
2000
4000
6000
8000
10000
12000
14000
Manufacturer sales of umbrellas in the United
Kingdom
in 000' GBP
(Source: Manufacturer sales of umbrellas in the United Kingdom (UK) from
2008 to 2016 (in 1,000 GBP), 2018)
2. Current situation
Currently, when writing this report, the new concept of the product is in
process of creating the perfect business plan for it, and continuing to obtain the
patent, to be able to lunch on the market. A patent is a form of protecting the new
product idea that offers the right of the inventor to stop others to use it, without his
permission (The National Archives, 2017).
Together with the creation of Stay-Dry, the foundation of a new business is made.
The company representing this product carries out the name of it, and is a limited
private business, with 4 partners.
To be able to put the base of the new partnership company, Stay-Dry Ltd., it
was necessarily to choose a location for an office. The office is rented for £460 on a
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month, located at 51 Whitechapel Road, London, E1 1EW, a strategically choose, at
only 0,5 miles of the Royal London Hospital
3. Mission and Vision
The 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 (Blythe,2012).
Stay-Dry vision is related to a good planning of the business plan
tofinishproduct registration, to obtain a patent of the product, and make it worldwide.
4. Aims and Objectives
The aims of the new company are to make the Stay-Dry product known in the
UK market and to convince investors to put their money in the business. To achieve
theses aims is necessary to adopt specific objectives. In the first year, the objectives
are to create and offer the product in the market,and then in three to five years to
make it worldwide.
5. Critical success factors
To create a winning business plan for a new product, which will appear in the
challenging market, few things play an important role to support them in long term
context.
Deakins & Freel (2012) argue that in business is not all about the idea, even though
is the first element which put the base of a business, because the profit comes from
more operations, and from success factors as:
 Finding the right partners and hiring the right people can accomplish and
maintaining the goals of the business, or to increase number of the product sale
online,
 The inspiration, the vision and the decisions of the company belongs to
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leadership, which needs to have the necessary skills to turn the idea into a
successful one,
 Focus on customer needs and requirements rather than price and cost incur
on them,
 A plan is valuable as long is executed well,
 Timing is another important factor, as if the gap in the market is founded
before then competitors, gives the winning advantage,
 It is needed to create an adecvate business plan according to the
product, which to contain all the requirements, such as: operational model,
competitor’s analysis,marketing plan, and financial analysis (Deakins & Freel, 2012).
III. Development plans(completed by GRO15403283)
1. Management team
It may be said that in any business, entrepreneurial teams are the essentials in
innovating products and services, dealing with the problems and gainig performance
(Bessant, & Tidd, 2013).
The management team of the Stay-Dry Ltd companyhas four partners named:
Giorgiana Cristina Arvinte as CEO, Gelu Grosuas Facility Manager, Andreea Lungu
as Marketing Manager and Silviu Tudusciucis the Finance manager. Each
studentmay have the skills and aptitudes required, as they still learning for their role,
so they are new in the business sector. An organisational chart is presented in
Appendix 1.
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2. Operational plan
To achieve the strategic objectivesproposed for creating the physical product,
the team focus is on using the resources effectively and efficiently. Below are
presented the key elements of the operational plan (for more details see Appendix
2).
Location
Itwas 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 as seen, based in London, UK. 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;
 Stay-Dry can maintain their stock level by keeping the record of every single
transaction to know behaviour of their clients; They can maintain lead time by analysing the pattern of their client’s actions.
Legal Environment
Policies related to government rules and regulatory comes under this. Itwas required
to take license or permit for special zone of building. After the business plan
adecvate is finished, then it remains to obtain the patent.
Manufacturer – Supply chain
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 from other countries and then it is processed and assembled in China.
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From China factory labelled 500 products (from 1000 umbrellas as a first order) are
send via sea freight directly to our online stores and another 500 pieces to our
London office to be used as samples for bloggers and retailers (see Appendix3).
IV. Market analysis
1. Competitors analysis (completed bu ARV 15403187)
After the operational plan was set up, is needed to have a look on the potential
competitors on the market, to analyse what it can be done different and to make
improvements, if it is the case. Another step involves the evaluation of the competitor
strategies, to determine their weaknesses and strengths in relation to company's
own product (Blackwell, 2011).
However, umbrella producing industry is small in UK, due to this it provides a large
scope for new entrants in market. Thus, business must identify all of them and take
appropriate step for such sort of rivalries in business. Major Competitors for Stay-
Dry, as identified, are:
 James Smith & Sons Umbrella
Headquarters of James Smith & Sons is basedin London, UK. It is working
since 1830 and was also featured in episode four of the BBC's 2015 production of
Agatha Christie's Partners in Crime.They are realy known in UK market with high
prices and diferentiated strategy.
Source: John Smith and Sons Umbrellas
Stay-Dry it differentiates through its shape, and the possibility of using the two
products, umbrella and the stick in the same time, and not separate as it’s above
competitor. Also, the price for stay-Dry it will be set up from low to high, giving a
chance to penetrate the market fast.
Looking to the market, it has been found few competitors but not as close to
the similarities of Stay-Dry. Only one competitor is close to the features of the
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product of this report, which can be found only online, through Alibaba.com, as seen
in the pictures below:
As seen, it offers 2 products, but in different shape and is needed to use both hands
to use the umbrella and the stick in the same time, not only one as for Stay-Dry. For
more details, please refer to Appendix 4.
2. Unique selling point (completed by ARV15403187)
As already mentioned above, it is considered what differentiated the products
and what features are better and more successful. It includes those factors that
differentiates aproduct from its competing products such as high quality, low cost,
unique features (Bridge and Hegarty, 2013).
This could be created by considering a thought of what features does product need
to be entails that competitors do not have. Through USP, company can promise with
clear benefits to customers that other competitors do not provide (Morrisonet al.,
2011). This will also enable them in attracting more customers.
 However, the unique selling point of Stay-Dry is the special design of umbrella
with two buttons along with the feature of switching to stick from umbrella
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without getting wet.
 The product will be available in different colours and size.
 The stick would be adjustable as per the height of customer and can be
detached also to be used during seasons other than rainy.
The unique selling point also helps company to create position of its product in
market.
3. SWOT analysis (completed by TUD15403455)
Market analysis is a major concern for an organisation which enable in ascertaining
all goals and objectives properly. Chances of making the business appropriate is
high in nature through which maximum outcome would be gain (Deakins & Freel,
2012).
Stay-Dry Ltdmust 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.
STRENGTHS
 Strength of the company is that it is asmall industry will less number on
employees. Therefore, less salary expenses.
 Manufacturing unit is in China andhence, there is low cost of capital.
 It also provides sub products whichincreases its sales and attracts those
customers who only wants small components.
WEAKNESSES
 Less number of employees may causedelay in operations.
 Increased impact of economic issues.Less control over manufacturing
concern.
OPPORTUNITIES
 Company can open its physical stores inEngland, as well as China.
 There are fewer industries that providessub components of product which
increases more market for company.
THREATS
 Entrance of new competitors in market.
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 Wide number of substitutes are available in the market.
4. PESTLE analysis (completed by LUN16423502)
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
must organise a PESTEL under which various sort of information get determine
properly (Gupta, 2013).
The most significant factors that may have a major impact when launching the
new product on the market are:
Economic Factors
This includes economic factors such as growth of economy, employment rates,
monitory policy, change in exchange rate or inflation rate. The most important
challenge comes from the need of attract people to invest in the business, to gain the
profit in a shorter time.
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 to protect environment.
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. 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.For completing the PESTLE framework please refer to Appendix 5.
5. Porter Five Forces Model (completed by GRO15403283)
Another major thing which can be used to analyse the market situation is Porter Five
Forces analysis under which five major determinants get evaluated and based on
them proper actions get derive properly (Grant,2016).
Stay-Dry is going to incorporate business in new market world where they want
to increase number of customers as well as cope up working with 4 other
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