INTERNATIONAL BUSINESS/ GLOBAL BUSINESS PLAN
1.0 Executive summary
The illuminator is a business that deals with the household appliances. Through the help of the management, the business has decided to go to the outskirts to expand on its markets and increase the sales (Barrow, C. 2011). By concentrating on its SWOT analysis, the company has found it best to have other branches in India. After having conducted an adequate research, the business has decided to move out to India and provide some of the household items like the fridges and cookers.
The following business plan will direct the company in establishing itself there with minimal challenges in the international markets. Being aware of the level of competition in the global market, it is therefore necessary to lay out some of the objectives and strategies of its establishment for its survival and sustainability.
- Objectives
1.2 Mission
1.3 Key to success
- Customer satisfaction through quality products
- Better finance projections and controls
- Increase in marketing strategies to acquire a greater and global market share.
- Company summary
Illuminator Company has been in existence for the last ten years and has been located in Miami state in the United States. It specializes in the sales if household items and has ever since experienced tremendous sales thus their option of expanding to the global market (Yashio, Y. 2012). The company has opted to expand to India as the market is great and sustaining. Being international will have more benefits than when the company concentrates in one region.
2.1 Company ownership
The company is owned by ten shareholders who happened to have the same objectives and goals that saw them coming together to start the business. The company was formed and started with an initial company that was sourced from the members’ contributions. The business to be set up in India will require much capital thus the need to borrow form financial institutions combined with the profits ploughed back from the already existing company.
2.2 Startup summary
Illuminator Company will use the least inputs to get maximum outputs. Some of the apparatus that will be needed is;
- A room that will act as store and at the same time the shop for the house hold items
- The considerable number of the house hold items
- The personnel to be in charge in India
- The after sale services that ensure that the customers are assisted in the getting the products to their homes through transport provision and later connecting them to avoid any breakages and mishandling.
Startup expenses to fund 100,000
Startup assets to fund 200,000
Total funding required 300,000
Assets
Non-cash assets 20,000
Startup cash requirements 40,385
Cash balance brought forward 50,456
Total assets 110,841
Financed by:
Capital 40,591
Long term liabilities 20,650
Startup expenses 39,600
Total liabilities 110,841
3.0 Market analysis summary
Illuminator Company has identified its target market segments which include, new home owners, hospitality companies especially the hotels and the manufacturing companies. With the increased population in India, new home owners are many who require stocking their houses with different household items (Dlabay, et al 2010). The hotels need items like the refrigerators to keep their beverages fresh and cold to minimize the perishability level hence their consumption levels of the house3hold items is high.
The manufacturing firms’ especially dairy products manufacturers also require items like the fridges to keep their manufactured products under cool temperatures as they await transportation to the distributors and retailers. They provide a ready market hence easy entrant as the demand of the household appliances is also high.
3.1 Product description
The products would range from all the household items to be able to collect more revenues. When one product sales reduces, the company can rely on sale of the other products. The home appliances include; the refrigerators, electric jugs and kettles, speakers, and microwaves. The diversity of the products would help tap the market in a massive way since they would be of high quality at minimal prices. They would also have extended services for instance, warranty. No item in the company would be sold to the consumers without the warranty.
3.2 Target market segment strategy
Illuminator Company is targeting the above mentioned groups and those who require quality household products in India. The provision of the after sale services will help attract a good number of customers especially when backed with massive advertisements and the experience got from Miami. The groups consist of already established firms thus minimal risks in terms of payments. Selling to the home owners will entail signing of contracts that will compel the customers to complete finish their installments. The contracts could also be used as evidence in courts if payment disputes happened to arise.
3.3 Industry analysis
The company operates on selling of the products that are able to last for long. The services associated with the products are just numerous as we have realized that most companies that sell the household items in India do not concentrate on getting quality products. They are just in the market to make profits and not for customer satisfaction. The items also have warranties that help in provision of security to the consumers thereby; becoming reliable and winning more customers to our business. The household appliances in India are highly priced putting out of reach form the low income earners. The legal requirements of the business in India are also minimal thus ease in setting up the business since it turns out to be cost effective.
3.3.1 Competition analysis
The competition of the household items in India are high but due to the provision of the after sale services, we will have an added advantage over the competitors. The variety of products offered will help us gain more customers since all the household items would be found at the same location and premises (Barrell, A. 1991). This strategy will attract more consumers since it will be cost effective in terms of transportation costs. The prices charged at the initial stages will be less compared to the others to help gain a considerable number of customers.
3.4 Competitive strategy
The strategies put in place will help the company acquire a competitive edge and at the same time have a faster market entrant. The market strategy would be concerned in offering high quality products that are long lasting at affordable prices, and also providing for any required assistance in the installation of the products.
3.5 Marketing strategy
Massive advertisements, sales discounts, and paying in installments will help in marketing our products due to the services offered and pocket friendly prices. The company also targets the low income earners since they could purchase the products and pay for them on hire purchase prices hence no pressure added to them.
3.6 Sales strategy
The company should first concentrate on selling the name and not the product. The name will contribute to attracting more consumers and increase awareness of the company In India about its existence and location. Later on the products and the services can be introduced to the people. We expect sales to be minimal in the first years since it is initial stages of the company in a foreign country. However, we expect the sales to increase gradually as the products become well known to the citizens.
3.7 Management summary
All the shareholders possess business degrees from the various universities. However, before coming into partnership, all the ten shareholders had different experiences in the business world that helped in the implementation of the ideas and coming up with a profitable business as the Illuminator Company. The level of education was a big boost to the company.
References:
Barrow, C. (2011). The 30 day MBA in international business: Your fast track guide to business
success. Philadelphia, PA: Kogan Page.
Yashio, Y. (2012). Business plan for international venture legal assistance P.C. Azumino:
International Business Consulting Office.
Dlabay, L. R., & Scott, J. C. (2010). International business. Mason, Ohio: South-Western.
Brown, R., Gutterman, A. S., & Curry, J. E. (2011). A short course in international business
plans: Charting a strategy for success in global commerce. Petaluma, Calif: World Trade Press.
Barrell, A. W. (1991). Building a global business. Cambridge: Director Books.
