Business plan is important to establish a new venture effectively in the market. The report will cover an effective business idea and its objectives to achieve profitability and production. PESTLE analysis to understand external factors and event associate with budget management is also discussed in this report in order to promote business. Marketing plan, strategies and objectives are also covered with 4ps of marketing mix. Business information system to take operational, tactical and strategical decisions will be discussed. Finally, the report will cover importance of supply chain management.
The business idea is to open a stationary store which is named as Duke near university. The business will provide products and services related to stationary department such as Books, Pens, Charts, stationary tools Adhesives, Brush Pens, Cartridge Fountain Pen, Clay and Dough, Colour Pencils, Colour Pen Pencil, Drawing Books, etc. The firm will operate near the university on street. Online marketing will be established after some time in order to provide products to students and other customers in the market and university as well (Aremu and Shola, 2016). The stationary store is a good idea that it is located near the university which helps students by providing stationary products in a short time period and when requirement is necessary as well as urgent for them. This will help to assist customers in a unique way which will lead towards the business expansion.
Main objectives for Duke stationary business will be as follows:
To create customer base: Customer relationship management is crucial for Duke in order to increase the sales and profitability. The main focus will be on target and potential customers in market that helps to drive business operational activities and performance as well. In order to do that, customer services should be effective and excellent so that it will help to encourage customer loyalty and satisfaction (Barrow, Barrow and Brown, 2015).
To try something new: The objective is to try something new. The word 'New' here refers to manage products and services which are more reliable and long-lasting for customers. In order to do a successful business, the management or owner requires unique products and services which are fresh in the market will help to increase profitability and sales.
To offer green office supplies that cost low: Green Office will become a market leader offering a wide and price competitive selection with the finest customer services. In order to do that, the business will cut prices to lead market over competitors effectively.
To build a better brand: Customer relationship management, fair prices and quality products will help business to become a popular brand among students and other consumers effectively. The objective is to lead market and make effective image of business in market.
For starting a new venture, sole proprietorship will be the best option for Duke stationary business. Partnership will be allowed if needed. For an example, according to _________, Sole proprietorship is easy to start a new SME venture that small profits and losses are beard by the owner only. According to__________ partnership is required when the firm wants expansion to increase profitability and production.
Political: Political factors are those in which the government influences economy of a specific business. For an example, a new tax duty, policies and trade tariffs which are applicable for entire revenue generating structure for stationary firm. This will also affect the business economic environment in terms of profitability and production (Cordes and Burke, 2015). Thus, Duke will consider all Germany political factors in order to run business smoothly.
Economical: Economical factors can be determined by economic performance of that particular country which has a significant impact on business such as inflation rates effectively. This will affect the business of Duke in terms of purchasing power of customers, change in demand and supply and interest as well as foreign exchange rates. Thus, Duke will consider economic changes and make operations more effective.
Social: Social factors refer to social environment of UK in terms of market environment, cultural trends, population analysis and demographics. This may be favourable or unfavourable for business. For an example, it can be buying trends for Western countries like the US where there is high demand during the Holiday season (Cramer, 2017).
Technological: Technological innovation, the latest techniques and research and development are some factors of technology. These are the essential factors that should be adopted by firm in order to expand their business and for its growth. This will lead towards the profitability and production as well.
Legal: Legal factors have both internal and external sides. There are some certain laws and legislations which affect the business environment with certain policies. Government formulate laws and legislations in order to manage and control the business activities. Thus, certain laws and legislations should be followed by Duke in order to run business smoothly and effectively.
Environmental: Environment factors are those influences which are determined by the surrounding environment such as competitors. For an example, farming, tourism, global changes, geographical location, agriculture and climate, etc. These are the environmental factors that affect business operations and other activities related to trading. Thus, Duke should analyse all the environmental factors that helps to increase firm’s profitability and production.
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