Azusa Pacific Entrepreneurial Business Plan Part D and Change Matrix Project

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Entrepreneurial Business Plan Part D:

The purpose of this assignment is to evaluate the advantages and disadvantages of using social media as part of the firm's promotional campaigns. To complete Part D of the Entrepreneurial Business Plan, students will have to conduct outside research, using their preferred search engine (i.e., Google, Ask, etc.) and a minimum of three peer-reviewed articles to conduct an investigation of the advantages, risks, concerns, and downfalls of integrating different social media channels as part of their promotion campaign strategies. (CLO's 1, 6, 7, and 8)

Expectations for this assignment:

General Guidelines:
1. Your paper should meet all APA (6th Ed.) writing standards.
2. The Change Matrix must be placed immediately following the Title Page.
3. Beginning in Wk. 2 - Instructor's feedback, recommendations, and corrections must be addressed and detailed on the change matrix page.
4. Include a faith integration component - The faith integration component should be present throughout your business plan (e.g., not just a paragraph or mention of faith at the end of each section). In other words, how does your faith or world view influence your firm?

Specific to this week's component:
1. This assignment requires a minimum of three peer-reviewed articles published within the last five years.
2. Present an in-depth discussion of the advantages of using social media as part of a promotional campaign.
3. Present an in-depth discussion of the disadvantages of using social media as part of the promotional campaign.
4. Present a discussion of proposals for the firm.


Feedback from the instructor on Part C:

"I am not seeing the attachment of the required city, county, state, and federal business application forms. Be sure to insert these (in the Appendices) before your final submission. Also, be sure to review the notes I placed directly on your paper and let me know if you have any questions."

I have attached the document with the instructors annotated feedback, to be included in the Change Matrix.

I also included Part C so you can just add to it.

Unformatted Attachment Preview

Running head: BUSINESS PLAN 1 Entrepreneurial Business Plan – Part C Amanda McCausland BUS505 Dr. Joe R. Putulowski September 22, 2019 BUSINESS PLAN 2 Entrepreneurial Business Plan Assignment Title: Entrepreneurial Business Plan Student: Amanda McCausland Date: September 22, 2019 Instructor’s feedback (specific How the error was addressed by Page numbers listing of the error) the student. where change appears Because this report will become part I corrected these errors and used the of your official school records, be sure right style Pg. 1 to add the class number and name, date, and professors name. Be sure to place the Change Matrix I attached the change matrix after the p. 2 immediately following the Title Page. cover page APA Errors: Delete the blank line Deleted P. 2 APA error - be sure your Headers I placed the headers in the correct p. 6-8 meet the APA formatting format before your header requirements. in-text citation? This sentence does In text removed p. 6 BUSINESS PLAN 3 not need one... Citation should go here Added P. 6 Consider adding the specifics - how Details added p. 6 Where in the US? Details included p. 6 including... Included P. 6 The word Nevertheless seems out of removed p. 6 Added p. 6 Added p. 6 Information added to the mission p.7 much as the industry grown? place. Consider revising. may sell or plans to sell. Additional information is needed. Consider your reader - a potential investor - you will want to grab his or her attention by offering some sort of data showing the potential of your firm. Consider a brief discussion on the number of potential customers, profits, or marketability of your company. Additional work is needed - statement How so? BUSINESS PLAN This reference does not look complete 4 Changed - corrections are needed. . A lot of work is needed to bring this paper up to the level needed for the class. I suggest you review the APA manual to ensure you are meeting each of the required guidelines. Additional outside research is needed relating to the mission and vision statements. Lastly, include information that gets your potential investor onboard/excited about your company Successfully adjusted Pg. 8 BUSINESS PLAN 5 1 Table of Contents Executive Summary ........................................................................................................................ 5 Blue Ocean Strategy ..................................................................................................................... 8 Customer Segmentation ............................................................................................................... 9 Graphical representation ........................................................................................................... 12 Graphical explanation ................................................................................................................ 14 Industry Analysis ........................................................................................................................ 14 Industry description.................................................................................................................... 15 North American Industry Classification number .................................................................... 16 Profit Margin............................................................................................................................... 16 Location Preferences .................................................................................................................. 16 References ..................................................................................................................................... 20 BUSINESS PLAN 6 Entrepreneurial Business Plan Company Identification The business to be discussed in this case is known as Platinum Cases; this firm will be producing smartphone cases. In the course of the recent past, the smartphone industry has been growing at an increasing rate; the growth rate was approximated to be 0.9% increase per year. In 2018, smartphone accessories depicted revenue of $28,529.3 million (Stern & Xu, 2018). Platinum Cases is a company based in the Texas, US, and it will endeavor to produce different types of smartphone covers, this product will be fit for different kinds of smartphones like Samsung, iPhones, LG, and Sony. The company plan to concentrate on smartphones from Samsung and Apple and later on, it will consider the other companies. The company was founded in 2018, and thus it is still new in the market. One of the unique characteristics of the company is a high-quality product which will ensure that customers are satisfied. This is because these covers are made of pure leather. Furthermore, the brand will be unique from that of the competitors because they offer low-quality products which barely last long. The principal value of the firm is the provision of better products at a reasonable price. The other major characteristic of the company is the fact that it will concentrate on serving customers as fast as they can; this will be archived through progressed customer care services. The other unique feature of the company is that it will have both physical stores and online marketing. With the increase in technological advancements, it has become easy for the company to reach out to its customers through various online marketing channels. For example, the company plan sells its products through e-commerce firms like Amazon and eBay. Finally, the company will partner with the customers in order to augment their experience in with the BUSINESS PLAN 7 product. This will be archived through some problems like referral and affiliate programs. As mentioned earlier, the primary product of the company is the smartphone cases, which will mostly deal with Samsung and iPhone smartphones. The market for protective covers in the US was approximated at US$ 12,934.4 million at the end of 2016, and the tree is expected to increase put to $ 19,210.0 million by 2023. The CAGR rate is roughly 5.8% from 2016-2023. The above statistics show the current performance of smartphone covers market. This market is significantly lucrative, and thus, it will many potential investors. The mobile phone protective cases market was estimated at US$ 12,934.4 million by the end of 2016 and is anticipated to reach US$ 19,210.0 million by 2023, growing at a CAGR of 5.8% from 2016 to 2023. Mission Statement The mission statement of Platinum Cases is: “We will dedicate technology and human resources to produce high-quality products, therefore, taking part in an enhanced global community. This will be achieved by developing a culture of innovation among our teams and departments. Moreover, the culture of teamwork will be promoted in the company in order to boost the productivity of the workforce. Core values will guide various operations in the organization. The company will incorporate the idea of corporate social responsibility to establish a better neighboring community." The mission statement of this company is concerned about augmenting the quality of the consumer products which will be archived by the use of the available technology and human resources. Furthermore, it is aimed at depicting a better society whereby every person is able to live without any difficulty (Rey & Bastons, 2018). Also, this BUSINESS PLAN 8 mission statement will be valuable in the achievement of long-term and short-term goals; it will act as a guard rail in the accomplishment of the set objectives. Vision Statement The vision statement of Platinum Cases is: “We progressively invent to become the greatest target for our partners and customers. This will be achieved by producing high-quality products. Quality in operations and the products will be a vital principle which will guide different departments in the company. We will endeavor to reach out to many customers in different parts of the world; this will be archived through the use of e-commerce and social media platforms to reach out to local and international customers." This statement aims to show the endeavor and aim of the company to become the best in the industry. Through innovation, the company will be in a position to become the best in the industry. This is following the nature of the customers as they like innovative products which are of high-quality products. For instance, our product will employ the innovation which will make it 99% protective against different forces applied on smartphones. Also, this will enable them to avoid some of the common problems like wear and tear as well as screen breaking. Blue Ocean Strategy Blue Ocean Strategy alludes to a market for services or product where there is less or no competition (Kim & Mauborgne, 2015). This strategy gyrates around looking for a business in an environment whereby very few firms operate and where pricing pressure barely exist. This strategy will help the company to identify new demand in the competitive market, and to render rivalry inapt by producing products with great features. It allows the firm to exploit maximum profits as the product can have a higher price tag following is incredible characteristics. The BUSINESS PLAN 9 critical principle of Blue Ocean Strategy is value innovation; this is a business tactic that concentrates on developing new market opportunities rather than competing with the rivals in the present market share. This strategy will allow the company to make high-quality products which will be way better compared to that of the competitors. One of the most significant values in any company is to offer high-quality products to its customer base at a relatively low price. Furthermore, high-quality products are essential as they allow the company to develop its brand in the market quickly. For instance, concentrating on the values like quality and durability of the product will attract a broader customer base, and this will allow the company acquires a good reputation in the production of mobile phone covers. The strategy is essential as it will allow the company to explore new markets by rearranging the boundaries of the existing one (Kim & Mauborgne, 2015). Creation of a new market for the company will be necessary than competing in the already existing one. This may help in the development of the company’s brand since it will be the main product in that market. The other important thing about the strategy is the aspect of value innovation; this allows the company to be highly creative with the help of innovation, this will enable it to think out of the box and thus attaining a better competitive edge in the market. Finally, the strategy is essential as it allows the company to formulate a better value proposition. Customer Segmentation Customer segmentation is the process of dividing the potential customers into groups. Customer segmentation focuses on building the customer market and providing them with their specific needs. This segmentation ensures the company deals with a specific set of customers. The segmentation is based on the customer’s BUSINESS PLAN  Financial status  Behavior  Needs  Buying frequency  Education status  Culture  Population 10 The major market approaches include prior segmentation, needs-based segmentation and value-based segmentation. In prior classification, the segmentation is based on publicity which includes the industry size in the market. Needs-based segmentation focuses on the customers' needs in the market. The products that the customers love most are enhanced to meet their demands. Value-based segmentation distinguishes customers with their financial status hence producing products that suit every class. The segmentation for our company will focus on three main characteristics which include: buying frequency, needs and financial status. i. Buying frequency The company monitors the rate at which customers purchase products and focuses more on the specific product. Segmenting using buying frequencies enables the company to determine the number of products to produce. In our case study, the production of smartphone cases is vital and targets high-end customers. The feasibility study was done before revealed that most of the customers in the country use Samsung and IPhone phones. The buying frequency recorded through the last few months indicated that more sales of black covers were recorded hence the need of the company to produce more products of this dimension. For every ten covers that were BUSINESS PLAN 11 brought, 6 were black covers. Customers also revealed that they would prefer having two different covers for their phones and would be glad if they were of different colors. Moreover, the customers preferred the covers to be unique and have a flip cover. The value the customers generated was the key factor that made the segmentation. ii. Needs Developing variables of the customer transaction enables the organization to determine the trends of the customers and establish the best products they want. According to the sales recorded, the most preferred product was the black flip cover. Other back covers performed well too, but with the highest purchases being made on the flip covers, our main focus will be to produce more flip covers. The preferred colour being black gave the organization an insight into the colour preference when producing new products. iii. Financial status The market demands from the survey done indicated that most youths below 35 years preferred the flip covers and made the most purchases. On the other hand, the old adults preferred the back covers and approximately made some good sales. In spite of this, the customers who made big revenue returns purchased the flip covers. As this was the most selling category, the organization will come up with new strategies to improve on this product. BUSINESS PLAN 12 Graphical representation 1. Buying Frequency Buying Frequency 600 500 400 300 200 100 0 Skins Shells Wallet 2015 2016 Leather 2017 Rugged BUSINESS PLAN 13 2. Needs Segment Needs Segment 500 450 400 350 300 250 200 150 100 50 0 Skins Shells Wallet 2015 2016 Leather Rugged Leather Rugged 2017 3. Financial Statement Financial Statement 500 450 400 350 300 250 200 150 100 50 0 Skins Shells Wallet 2015 2016 2017 BUSINESS PLAN 14 Graphical explanation From the needs graph, the trend reveals that in 2015, the most sales that were made came from the purchase of leather and skin types of cases. The skins sales topped the market in 2016 while in 2017 leather-topped. From this trend, we realize that the customers preferred the skin cases most within the three years. The needs reflect the choice of most of the young adults. From the Financial statement, most users preferred leather cases. This can be credited to the fact that most of those who preferred leather cases are financially stable and inactive employment. Through this segment, we diagnose that the other preferred choice was a wallet. In spite of it being the second choice, the survey indicated that most people who preferred this were aged millennials in their early twenties. The buying frequencies for the three years were a little bit skeptical. Most customers still preferred leather cases. All through the three years, the sales of leather cases have undergone some stable increment. Additionally, the wallet brand was the second preferred choice. The durability of the wallet brand increased its viability and made it become the second most preferred choice. Industry Analysis Industry analysis refers to the process where an organization performs market research to determine industry competitiveness. The analysis enables businesses to determine their position in the market in regards to other competitors. Additionally, it enables the company to understand the opportunities it has and the threats that might lead to its low income. Moreover, it enables the company to understand the differences between them and their competitors. Industry analysis involves porters five forces, SWOT analysis and PEST analysis. Porters 5 forces include BUSINESS PLAN 15 bargaining power of suppliers & buyers, the threat of potential entrants, power of service providers and the threat of substitute goods. PEST analysis stands for political, economic, social and technological. PEST analyzes the external market. SWOT analysis refers to Strengths, Weakness, Opportunities and Threats. Industry analysis enables the organization to understand the market and its demands. From the industry analysis conducted, we established that the most preferred cases were leather cases. Most adults and the aged preferred these cases because of their long life. Industry description Platinum Cases is a firm producing smartphone cases. In the course of the recent past, the smartphone industry has been growing at an increasing rate. Platinum Cases is a company based in the United States, and it will endeavor to produce different types of smartphone covers, this product will be fit for different kinds of smartphones. Nevertheless, it will target smartphones from Samsung and Apple. The company is still new in the market. One of the unique characteristics of the company is a high-quality product which will ensure that customers are satisfied. This is because these covers are made of pure leather. Furthermore, the brand will be unique from that of the competitors because they offer low-quality products which barely last long. The principal value of the firm is the provision of better products at a reasonable price. The other major characteristic of the company is the fact that it will concentrate on serving customers as fast as they can; this will be archived through progressed customer care services. BUSINESS PLAN 16 North American Industry Classification number The North American Industry Classification number for our industry will be 8999 because it's a service that has not been classified anywhere. The importance of the NAIC number is to enable an organization to determine its competitors and work to enhance its competitiveness in the industry. Profit Margin The expected profit margin will be approximately 1300. From the survey conducted and the expected growth, the company will be making big strides in sales. 2015 2016 2017 Skins 200 234 345 Shells 150 321 345 Wallet 300 300 333 Leather 450 400 432 Rugged 230 300 276 1330 1555 1731 Total The company will major on making profits and improving on goods that the customers love. This will enable the company to maintain its customers and focus more and fulfilling the customers’ needs. Location Preferences The location preference for our business will be a high-end city or town. Samsung and IPhone smartphones are used mostly in urban areas and would be viable if found in a big city. The city of choice has approximately 45,000 people. BUSINESS PLAN 17 The demographic data of the city include: 70.4% are Americans, 11.8% African-American while Asians occupy 3.8% The region of preference is Texas, Austin. The advantages of doing business in Texas are that the people are passionate about new changes. Most people use iPhones and Samsung phones. The city is a 24-hour town. The market sales survey done established it as a powerhouse in producing the most sales. 2 Corporate Structure Corporate structure of an organization is the system of power and ownership of the entity. It is how the organization is structured. The four structures that are available include sole proprietorship, Limited Liability Company, cooperation and partnership. Sole proprietorship is a type of enterprise that is owned and run by a single individual who is also the overall decision maker in the organization. This type of organization requires total dedication from the owner who has to spend most of their time in the enterprise. The owner is taxed on the income they make and the business they run is not always a legal business. The lack of legal formalities makes it easy to operate and close a single business. The liability lies on to the business owner, hence in the event of a failure or debt, the owner is mandated to stand in and sort out. The owner suffers the risks involved in the business. Moreover, all the profits are managed by the owner. Having control of the business makes the owner free to make any decisions that affect the business. Confidentiality of the business is maintained as no second party gets access to the system process. The life cycle of the business depends on the life expectancy of the owner. In the 3 event of death or accident, the business comes to an end. BUSINESS PLAN 18 Partnership is a business agreement by a group of people who manage the business together and share the profits. Having joint heads is always a great option than having a single head. In this structure, more capital to run the business is available. An external regulation is limited and does not affect the organization. The legal structures that bond the partners can be changed any time if need be. Additionally, income splitting option is available to enable ease of paying taxes. The borrowing capacity is high which enhances the chances of the business to grow. The disadvantages of such arrangement include having a liability in the event of an unpaid debt. Each of the partners is responsible for the debts accrued by the other partner. Disagreements occur frequently within such arrangements. The disagreements lead to legal battle if separating. A limited liability company LLC is an organization whose owners are not responsible for the debts or liabilities of the company. The organization of this dimension entails both characteristics of partnership and sole proprietorship. The investors in such arrangement are not drained cash from their personal accounts in cases where the liabilities of the company fail. LLC passes some taxation laws as the business is also considered as personal owned. The numbers of owners are not limited in such an arrangement (Kim, W. C., & Mauborgne, R. 2015). Owners can invest in the business in regards to their limit because there is no set limit for investing. LLC owners have free managerial capacity and don’t need to meet regularly to plan the functions of the organization. Disadvantages include working extra hard to earn capital to sustain the company. LLCs pay more legal fees to get licenses to operate and they require annual renewal. Government regulations limit the type of businesses to be registered as LLCs. Avoiding to pay federal taxes may result to the business paying more taxes than other structures. BUSINESS PLAN 19 A corporation is an entity recognized by the government to transact its business by hiring, firing, borrow, loan money and enter contracts. Shareholders only risk equity of the business. The liabilities do not affect the shareholders directly. Extra income can be gained by selling shares. Corporations have the audacity to deduct the benefits it has set for its staff. Demerits of corporations include the time used for formation which is too much. Agencies monitor the activities of corporations which results to additional paperwork. Profits gained may be liable to more taxation from the government. 4 Platinum covers act as a partnership organization. With this type of arrangement, the organization will fulfill its mandate in the business market successfully. This model will fully focus on the merits of the covers. Having partnership will be a key feature as combining the technology of Samsung and IPhone requires partners to be assembled together. 5 Executive Summary The company selected in the business plan is Platinum Covers which deals with smartphone covers. The mission and vision statement of the company is aimed at producing high-quality products at a lower price to satisfy customer needs. Finally, the paper analyzes the value and importance of Blue Ocean Strategy in Platinum Covers. BUSINESS PLAN 20 References Rey, C., & Bastons, M. (2018). Three dimensions of effective mission implementation. Long Range Planning, 51(4), 580-585. Stern, A., & Xu, C. (2018). Signature change in matrix model solutions. Physical Review D, 98(8), 086015. Kim, W. C., & Mauborgne, R. (2015). Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant. Watertown, MA: Harvard Business Review Press. Comment Summary Page 5 1. Be sure you update your Table of Contents... I am not seeing this week's work listed. Page 17 2. Be sure you update the Table of Contents - this section is not included in the TofC. 3. A good job introducing this week's component. Page 19 4. Corporations - be sure you discuss both S and C corporations. 5. Just for future reference - the Executive Summary is the last thing written and placed at the very front of your plan. Running head: BUSINESS PLAN 1 Entrepreneurial Business Plan – Part C Amanda McCausland BUS505 Dr. Joe R. Putulowski September 22, 2019 BUSINESS PLAN 2 Entrepreneurial Business Plan Assignment Title: Entrepreneurial Business Plan Student: Amanda McCausland Date: September 22, 2019 Instructor’s feedback (specific How the error was addressed by Page numbers listing of the error) the student. where change appears Because this report will become part I corrected these errors and used the of your official school records, be sure right style Pg. 1 to add the class number and name, date, and professors name. Be sure to place the Change Matrix I attached the change matrix after the p. 2 immediately following the Title Page. cover page APA Errors: Delete the blank line Deleted P. 2 APA error - be sure your Headers I placed the headers in the correct p. 6-8 meet the APA formatting format before your header requirements. in-text citation? This sentence does In text removed p. 6 BUSINESS PLAN 3 not need one... Citation should go here Added P. 6 Consider adding the specifics - how Details added p. 6 Where in the US? Details included p. 6 including... Included P. 6 The word Nevertheless seems out of removed p. 6 Added p. 6 Added p. 6 Information added to the mission p.7 much as the industry grown? place. Consider revising. may sell or plans to sell. Additional information is needed. Consider your reader - a potential investor - you will want to grab his or her attention by offering some sort of data showing the potential of your firm. Consider a brief discussion on the number of potential customers, profits, or marketability of your company. Additional work is needed - statement How so? BUSINESS PLAN This reference does not look complete 4 Changed - corrections are needed. . A lot of work is needed to bring this paper up to the level needed for the class. I suggest you review the APA manual to ensure you are meeting each of the required guidelines. Additional outside research is needed relating to the mission and vision statements. Lastly, include information that gets your potential investor onboard/excited about your company Successfully adjusted Pg. 8 BUSINESS PLAN 5 Table of Contents Executive Summary ........................................................................................................................ 5 Blue Ocean Strategy ..................................................................................................................... 8 Customer Segmentation ............................................................................................................... 9 Graphical representation ........................................................................................................... 12 Graphical explanation ................................................................................................................ 14 Industry Analysis ........................................................................................................................ 14 Industry description.................................................................................................................... 15 North American Industry Classification number .................................................................... 16 Profit Margin ............................................................................................................................... 16 Location Preferences .................................................................................................................. 16 References ..................................................................................................................................... 20 BUSINESS PLAN 6 Entrepreneurial Business Plan Company Identification The business to be discussed in this case is known as Platinum Cases; this firm will be producing smartphone cases. In the course of the recent past, the smartphone industry has been growing at an increasing rate; the growth rate was approximated to be 0.9% increase per year. In 2018, smartphone accessories depicted revenue of $28,529.3 million (Stern & Xu, 2018). Platinum Cases is a company based in the Texas, US, and it will endeavor to produce different types of smartphone covers, this product will be fit for different kinds of smartphones like Samsung, iPhones, LG, and Sony. The company plan to concentrate on smartphones from Samsung and Apple and later on, it will consider the other companies. The company was founded in 2018, and thus it is still new in the market. One of the unique characteristics of the company is a high-quality product which will ensure that customers are satisfied. This is because these covers are made of pure leather. Furthermore, the brand will be unique from that of the competitors because they offer low-quality products which barely last long. The principal value of the firm is the provision of better products at a reasonable price. The other major characteristic of the company is the fact that it will concentrate on serving customers as fast as they can; this will be archived through progressed customer care services. The other unique feature of the company is that it will have both physical stores and online marketing. With the increase in technological advancements, it has become easy for the company to reach out to its customers through various online marketing channels. For example, the company plan sells its products through e-commerce firms like Amazon and eBay. Finally, the company will partner with the customers in order to augment their experience in with the BUSINESS PLAN 7 product. This will be archived through some problems like referral and affiliate programs. As mentioned earlier, the primary product of the company is the smartphone cases, which will mostly deal with Samsung and iPhone smartphones. The market for protective covers in the US was approximated at US$ 12,934.4 million at the end of 2016, and the tree is expected to increase put to $ 19,210.0 million by 2023. The CAGR rate is roughly 5.8% from 2016-2023. The above statistics show the current performance of smartphone covers market. This market is significantly lucrative, and thus, it will many potential investors. The mobile phone protective cases market was estimated at US$ 12,934.4 million by the end of 2016 and is anticipated to reach US$ 19,210.0 million by 2023, growing at a CAGR of 5.8% from 2016 to 2023. Mission Statement The mission statement of Platinum Cases is: “We will dedicate technology and human resources to produce high-quality products, therefore, taking part in an enhanced global community. This will be achieved by developing a culture of innovation among our teams and departments. Moreover, the culture of teamwork will be promoted in the company in order to boost the productivity of the workforce. Core values will guide various operations in the organization. The company will incorporate the idea of corporate social responsibility to establish a better neighboring community." The mission statement of this company is concerned about augmenting the quality of the consumer products which will be archived by the use of the available technology and human resources. Furthermore, it is aimed at depicting a better society whereby every person is able to live without any difficulty (Rey & Bastons, 2018). Also, this BUSINESS PLAN 8 mission statement will be valuable in the achievement of long-term and short-term goals; it will act as a guard rail in the accomplishment of the set objectives. Vision Statement The vision statement of Platinum Cases is: “We progressively invent to become the greatest target for our partners and customers. This will be achieved by producing high-quality products. Quality in operations and the products will be a vital principle which will guide different departments in the company. We will endeavor to reach out to many customers in different parts of the world; this will be archived through the use of e-commerce and social media platforms to reach out to local and international customers." This statement aims to show the endeavor and aim of the company to become the best in the industry. Through innovation, the company will be in a position to become the best in the industry. This is following the nature of the customers as they like innovative products which are of high-quality products. For instance, our product will employ the innovation which will make it 99% protective against different forces applied on smartphones. Also, this will enable them to avoid some of the common problems like wear and tear as well as screen breaking. Blue Ocean Strategy Blue Ocean Strategy alludes to a market for services or product where there is less or no competition (Kim & Mauborgne, 2015). This strategy gyrates around looking for a business in an environment whereby very few firms operate and where pricing pressure barely exist. This strategy will help the company to identify new demand in the competitive market, and to render rivalry inapt by producing products with great features. It allows the firm to exploit maximum profits as the product can have a higher price tag following is incredible characteristics. The BUSINESS PLAN 9 critical principle of Blue Ocean Strategy is value innovation; this is a business tactic that concentrates on developing new market opportunities rather than competing with the rivals in the present market share. This strategy will allow the company to make high-quality products which will be way better compared to that of the competitors. One of the most significant values in any company is to offer high-quality products to its customer base at a relatively low price. Furthermore, high-quality products are essential as they allow the company to develop its brand in the market quickly. For instance, concentrating on the values like quality and durability of the product will attract a broader customer base, and this will allow the company acquires a good reputation in the production of mobile phone covers. The strategy is essential as it will allow the company to explore new markets by rearranging the boundaries of the existing one (Kim & Mauborgne, 2015). Creation of a new market for the company will be necessary than competing in the already existing one. This may help in the development of the company’s brand since it will be the main product in that market. The other important thing about the strategy is the aspect of value innovation; this allows the company to be highly creative with the help of innovation, this will enable it to think out of the box and thus attaining a better competitive edge in the market. Finally, the strategy is essential as it allows the company to formulate a better value proposition. Customer Segmentation Customer segmentation is the process of dividing the potential customers into groups. Customer segmentation focuses on building the customer market and providing them with their specific needs. This segmentation ensures the company deals with a specific set of customers. The segmentation is based on the customer’s BUSINESS PLAN • Financial status • Behavior • Needs • Buying frequency • Education status • Culture • Population 10 The major market approaches include prior segmentation, needs-based segmentation and value-based segmentation. In prior classification, the segmentation is based on publicity which includes the industry size in the market. Needs-based segmentation focuses on the customers' needs in the market. The products that the customers love most are enhanced to meet their demands. Value-based segmentation distinguishes customers with their financial status hence producing products that suit every class. The segmentation for our company will focus on three main characteristics which include: buying frequency, needs and financial status. i. Buying frequency The company monitors the rate at which customers purchase products and focuses more on the specific product. Segmenting using buying frequencies enables the company to determine the number of products to produce. In our case study, the production of smartphone cases is vital and targets high-end customers. The feasibility study was done before revealed that most of the customers in the country use Samsung and IPhone phones. The buying frequency recorded through the last few months indicated that more sales of black covers were recorded hence the need of the company to produce more products of this dimension. For every ten covers that were BUSINESS PLAN 11 brought, 6 were black covers. Customers also revealed that they would prefer having two different covers for their phones and would be glad if they were of different colors. Moreover, the customers preferred the covers to be unique and have a flip cover. The value the customers generated was the key factor that made the segmentation. ii. Needs Developing variables of the customer transaction enables the organization to determine the trends of the customers and establish the best products they want. According to the sales recorded, the most preferred product was the black flip cover. Other back covers performed well too, but with the highest purchases being made on the flip covers, our main focus will be to produce more flip covers. The preferred colour being black gave the organization an insight into the colour preference when producing new products. iii. Financial status The market demands from the survey done indicated that most youths below 35 years preferred the flip covers and made the most purchases. On the other hand, the old adults preferred the back covers and approximately made some good sales. In spite of this, the customers who made big revenue returns purchased the flip covers. As this was the most selling category, the organization will come up with new strategies to improve on this product. BUSINESS PLAN 12 Graphical representation 1. Buying Frequency Buying Frequency 600 500 400 300 200 100 0 Skins Shells Wallet 2015 2016 Leather 2017 Rugged BUSINESS PLAN 13 2. Needs Segment Needs Segment 500 450 400 350 300 250 200 150 100 50 0 Skins Shells Wallet 2015 2016 Leather Rugged Leather Rugged 2017 3. Financial Statement Financial Statement 500 450 400 350 300 250 200 150 100 50 0 Skins Shells Wallet 2015 2016 2017 BUSINESS PLAN 14 Graphical explanation From the needs graph, the trend reveals that in 2015, the most sales that were made came from the purchase of leather and skin types of cases. The skins sales topped the market in 2016 while in 2017 leather-topped. From this trend, we realize that the customers preferred the skin cases most within the three years. The needs reflect the choice of most of the young adults. From the Financial statement, most users preferred leather cases. This can be credited to the fact that most of those who preferred leather cases are financially stable and inactive employment. Through this segment, we diagnose that the other preferred choice was a wallet. In spite of it being the second choice, the survey indicated that most people who preferred this were aged millennials in their early twenties. The buying frequencies for the three years were a little bit skeptical. Most customers still preferred leather cases. All through the three years, the sales of leather cases have undergone some stable increment. Additionally, the wallet brand was the second preferred choice. The durability of the wallet brand increased its viability and made it become the second most preferred choice. Industry Analysis Industry analysis refers to the process where an organization performs market research to determine industry competitiveness. The analysis enables businesses to determine their position in the market in regards to other competitors. Additionally, it enables the company to understand the opportunities it has and the threats that might lead to its low income. Moreover, it enables the company to understand the differences between them and their competitors. Industry analysis involves porters five forces, SWOT analysis and PEST analysis. Porters 5 forces include BUSINESS PLAN 15 bargaining power of suppliers & buyers, the threat of potential entrants, power of service providers and the threat of substitute goods. PEST analysis stands for political, economic, social and technological. PEST analyzes the external market. SWOT analysis refers to Strengths, Weakness, Opportunities and Threats. Industry analysis enables the organization to understand the market and its demands. From the industry analysis conducted, we established that the most preferred cases were leather cases. Most adults and the aged preferred these cases because of their long life. Industry description Platinum Cases is a firm producing smartphone cases. In the course of the recent past, the smartphone industry has been growing at an increasing rate. Platinum Cases is a company based in the United States, and it will endeavor to produce different types of smartphone covers, this product will be fit for different kinds of smartphones. Nevertheless, it will target smartphones from Samsung and Apple. The company is still new in the market. One of the unique characteristics of the company is a high-quality product which will ensure that customers are satisfied. This is because these covers are made of pure leather. Furthermore, the brand will be unique from that of the competitors because they offer low-quality products which barely last long. The principal value of the firm is the provision of better products at a reasonable price. The other major characteristic of the company is the fact that it will concentrate on serving customers as fast as they can; this will be archived through progressed customer care services. BUSINESS PLAN 16 North American Industry Classification number The North American Industry Classification number for our industry will be 8999 because it's a service that has not been classified anywhere. The importance of the NAIC number is to enable an organization to determine its competitors and work to enhance its competitiveness in the industry. Profit Margin The expected profit margin will be approximately 1300. From the survey conducted and the expected growth, the company will be making big strides in sales. 2015 2016 2017 Skins 200 234 345 Shells 150 321 345 Wallet 300 300 333 Leather 450 400 432 Rugged 230 300 276 1330 1555 1731 Total The company will major on making profits and improving on goods that the customers love. This will enable the company to maintain its customers and focus more and fulfilling the customers’ needs. Location Preferences The location preference for our business will be a high-end city or town. Samsung and IPhone smartphones are used mostly in urban areas and would be viable if found in a big city. The city of choice has approximately 45,000 people. BUSINESS PLAN 17 The demographic data of the city include: 70.4% are Americans, 11.8% African-American while Asians occupy 3.8% The region of preference is Texas, Austin. The advantages of doing business in Texas are that the people are passionate about new changes. Most people use iPhones and Samsung phones. The city is a 24-hour town. The market sales survey done established it as a powerhouse in producing the most sales. Corporate Structure Corporate structure of an organization is the system of power and ownership of the entity. It is how the organization is structured. The four structures that are available include sole proprietorship, Limited Liability Company, cooperation and partnership. Sole proprietorship is a type of enterprise that is owned and run by a single individual who is also the overall decision maker in the organization. This type of organization requires total dedication from the owner who has to spend most of their time in the enterprise. The owner is taxed on the income they make and the business they run is not always a legal business. The lack of legal formalities makes it easy to operate and close a single business. The liability lies on to the business owner, hence in the event of a failure or debt, the owner is mandated to stand in and sort out. The owner suffers the risks involved in the business. Moreover, all the profits are managed by the owner. Having control of the business makes the owner free to make any decisions that affect the business. Confidentiality of the business is maintained as no second party gets access to the system process. The life cycle of the business depends on the life expectancy of the owner. In the event of death or accident, the business comes to an end. BUSINESS PLAN 18 Partnership is a business agreement by a group of people who manage the business together and share the profits. Having joint heads is always a great option than having a single head. In this structure, more capital to run the business is available. An external regulation is limited and does not affect the organization. The legal structures that bond the partners can be changed any time if need be. Additionally, income splitting option is available to enable ease of paying taxes. The borrowing capacity is high which enhances the chances of the business to grow. The disadvantages of such arrangement include having a liability in the event of an unpaid debt. Each of the partners is responsible for the debts accrued by the other partner. Disagreements occur frequently within such arrangements. The disagreements lead to legal battle if separating. A limited liability company LLC is an organization whose owners are not responsible for the debts or liabilities of the company. The organization of this dimension entails both characteristics of partnership and sole proprietorship. The investors in such arrangement are not drained cash from their personal accounts in cases where the liabilities of the company fail. LLC passes some taxation laws as the business is also considered as personal owned. The numbers of owners are not limited in such an arrangement (Kim, W. C., & Mauborgne, R. 2015). Owners can invest in the business in regards to their limit because there is no set limit for investing. LLC owners have free managerial capacity and don’t need to meet regularly to plan the functions of the organization. Disadvantages include working extra hard to earn capital to sustain the company. LLCs pay more legal fees to get licenses to operate and they require annual renewal. Government regulations limit the type of businesses to be registered as LLCs. Avoiding to pay federal taxes may result to the business paying more taxes than other structures. BUSINESS PLAN 19 A corporation is an entity recognized by the government to transact its business by hiring, firing, borrow, loan money and enter contracts. Shareholders only risk equity of the business. The liabilities do not affect the shareholders directly. Extra income can be gained by selling shares. Corporations have the audacity to deduct the benefits it has set for its staff. Demerits of corporations include the time used for formation which is too much. Agencies monitor the activities of corporations which results to additional paperwork. Profits gained may be liable to more taxation from the government. Platinum covers act as a partnership organization. With this type of arrangement, the organization will fulfill its mandate in the business market successfully. This model will fully focus on the merits of the covers. Having partnership will be a key feature as combining the technology of Samsung and IPhone requires partners to be assembled together. Executive Summary The company selected in the business plan is Platinum Covers which deals with smartphone covers. The mission and vision statement of the company is aimed at producing high-quality products at a lower price to satisfy customer needs. Finally, the paper analyzes the value and importance of Blue Ocean Strategy in Platinum Covers. BUSINESS PLAN 20 References Rey, C., & Bastons, M. (2018). Three dimensions of effective mission implementation. Long Range Planning, 51(4), 580-585. Stern, A., & Xu, C. (2018). Signature change in matrix model solutions. Physical Review D, 98(8), 086015. Kim, W. C., & Mauborgne, R. (2015). Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant. Watertown, MA: Harvard Business Review Press.
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Running head: BUSINESS PLAN

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Entrepreneurial Business Plan – Part C
Amanda McCausland
BUS505
Dr. Joe R. Putulowski
September 22, 2019

BUSINESS PLAN

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Entrepreneurial Business Plan

Assignment Title: Entrepreneurial Business Plan

Student: Amanda McCausland

Date: September 22, 2019
Instructor’s feedback (specific

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where change
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I corrected these errors and used the

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to add the class number and name,
date, and professors name.
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immediately following the Title Page.

cover page

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BUSINESS PLAN

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not need one...
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Consider adding the specifics - how

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including...

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much as the industry grown?

place. Consider revising.
may sell or plans to sell.

Additional information is needed.
Consider your reader - a potential
investor - you will want to grab his or
her attention by offering some sort of
data showing the potential of your
firm. Consider a brief discussion on
the number of potential customers,
profits, or marketability of your
company.
Additional work is needed -

statement
How so?

BUSINESS PLAN

This reference does not look complete

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- corrections are needed.
. A lot of work is needed to bring this
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Table of Contents
Executive Summary ........................................................................................................................ 5
Blue Ocean Strategy ..................................................................................................................... 8
Customer Segmentation ............................................................................................................... 9
Graphical representation ........................................................................................................... 12
Graphical explanation ................................................................................................................ 14
Industry Analysis ........................................................................................................................ 14
Industry description.................................................................................................................... 15
North American Industry Classification number .................................................................... 16
Profit Margin ............................................................................................................................... 16
Location Preferences .................................................................................................................. 16
References ..................................................................................................................................... 23

BUSINESS PLAN

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Entrepreneurial Business Plan
Company Identification
The business to be discussed in this case is known as Platinum Cases; this firm will be
producing smartphone cases. In the course of the recent past, the smartphone industry has been
growing at an increasing rate; the growth rate was approximated to be 0.9% increase per year. In
2018, smartphone accessories depicted revenue of $28,529.3 million (Stern & Xu, 2018).
Platinum Cases is a company based in the Texas, US, and it will endeavor to produce different
types of smartphone covers, this product will be fit for different kinds of smartphones like
Samsung, iPhones, LG, and Sony. The company plan to concentrate on smartphones from
Samsung and Apple and later on, it will consider the other companies. The company was
founded in 2018, and thus it is still new in the market. One of the unique characteristics of the
company is a high-quality product which will ensure that customers are satisfied. This is because
these covers are made of pure leather. Furthermore, the brand will be unique from that of the
competitors because they offer low-quality products which barely last long. The principal value
of the firm is the provision of better products at a reasonable price. The other major characteristic
of the company is the fact that it will concentrate on serving customers as fast as they can; this
will be archived through progressed customer care services.
The other unique feature of the company is that it will have both physical stores and
online marketing. With the increase in technological advancements, it has become easy for the
company to reach out to its customers through various online marketing channels. For example,
the company plan sells its products through e-commerce firms like Amazon and eBay. Finally,
the company will partner with the customers in order to augment their experience in with the

BUSINESS PLAN

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product. This will be archived through some problems like referral and affiliate programs. As
mentioned earlier, the primary product of the company is the smartphone cases, which will
mostly deal with Samsung and iPhone smartphones. The market for protective covers in the US
was approximated at US$ 12,934.4 million at the end of 2016, and the tree is e...


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