Strategic Planning and Implementation Amazon Financial Plan Case Study
PART ONE (Need to follow APA guidelines including introduction, conclusion, citations, and reference)AMAZON FINANCIAL PLANPrepare a financial plan for AMAZON. This financial plan will be included in your final business plan in your capstone course. Be creative. Please make sure to include at least 2 histograms and 2 graphs and make sure they look professional.Describe the business that you would like to start, including the type of business (what industry, product offering, etc).Create the business case, which is your justification of why the business is needed in the market. Determine why funding is needed for the company. Determine the sources of funding. Evaluate the requirements of each funding source you determined appropriate. Analyze the associated risks of each funding source. Decide which sources are the best fit for your company based on the requirements of each. Justify your decision. Estimate the cost of capital for both short-term and long-term funding sources. Research current estimated APRs for your selected sources of funding. Consider creating a table or chart to display this information. Create a profit-and-loss statement for a 3-year period. Project revenue, stating realistic assumptions, such as growth per year, in your projections. You will have to develop these numbers and provide details.Estimate direct costs, including capital, marketing, labor, and supply costs, which should be included in your P&L statements for all 3 years. Please include at least 1 histogram and one graph (make sure to look professional)PART TWO (Need to follow APA guidelines including introduction, conclusion, citations, and reference)Market Analysis for AMAZONSection 1 - Business overview, mission and visionDescribe the Amazon business. Address the following in your summary: What type of product/service will it offer? What is the intended market? What is the business model? Articulate Amazon’s mission and vision statements. Section 2 - Market analysis. Please be very detailingBased on your intended product or service, describe the characteristics of your customer base. Investigate and list Amazon's current competitors. For example, if you’re manufacturing and selling exercise equipment, current competitors would be companies like NordicTrack or Nautilus, Inc. To simplify the process, limit yourself to businesses you are competing directly against. If your business is a local bistro, then your competitors are other local similar restaurants. Research and estimate the size of their market. Market size is the number of potential customers or unit sales for their products/services. Consider the nature of Amazon business when researching market size. For instance, if your business is a local bistro, then your market size is determined by the population within a reasonable radius of the restaurant, say, 5-15 miles maximum. On the other hand, if your business intends to sell a low-weight mountain bicycle online, then the market size is the average number of low-weight mountain bicycles sold nationwide annually. Estimate the value of your market. Market value is the potential revenues the market has to offer. For instance, suppose low-weight mountain bicycles have a market size of 300,000 units a year with a $500 average price. Then the market value would be $150,000,000. It can be difficult to estimate market value as you must make assumptions related to market size and average unit price. Use the expected value concept introduced in Chapter 6 of the textbook and the chart below to do the estimation. Expected Market Value: Mountain Bicycle Scenario Assumptions Probability p(x) Units ('000) Avg. Unit Price ($) Market Value ('$000) Pessimistic 0.30 200 450 90,000 Most Likely 0.50 300 500 150,000 Optimistic 0.20 375 550 206,250 Expected Market Value ('$000) 102,110 Estimate the total addressable market or TAM. This is the fraction of the total market you realistically estimate to get. Most businesses have a relatively modest market share, well under 20%. For example, if we expect to get a 5% share of the mountain bicycle market, then our TAM would be: 0.05 * $102,110,000 = $5,105,500 or approximately $5.1 million. Section 3: Recommendation. Please be very detailingBased on the information collected, do you feel it is a good idea to continue with the implementation of the business? Explain why or why not.PART THREE (Need to follow APA guidelines including introduction, conclusion, citations, and reference)Develop an Operations plan for Amazon and Include the following components as they relate to the type of organization you created:HR/laborSupply chainInventory managementProcess managementChange managementLegal issues/considerationPlease include graphs and charts and make sure it looks professional