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1
BUSINESS PLAN
Shahzeb Shunaid
Mohamed Mugasa
Pedram Keyvani
Kevin Lui
Mission Statement: _____________________________________________________________
AnotherOne is a visionary company that seeks to revolutionize the bike industry. Customers and
their needs come first to us and we make sure that we offer the most pleasant experience for each
2
of them. We aspire to increase our shareholder values, increase market share, and increase our
brand awareness to be able to expand our company. With continuously having a fair and
consistent price, we’ll soon be offering different products in the long run. AnotherOne is that
company that enables you to get the bike you trust, can afford, and need easily.
Our ultimate goal for our business is to stay on top of our financial health, taking care of
our investors, and finding an effective way to market our products which will be the keys to a
long-term successful business plan. Staying updated with the demands and wants of our
customers is the key to maintaining a healthy market for our company. Using certain surveys and
economic forecasts we can plan ahead and be ahead of our regular competitors. Understanding
the needs of our customers means we are going to provide a wide range of products to capture
the needs of a wide variety of bikers. The more customers we reach/gain the more sales we
make. At this stage advertising and human resources plays a vital role. With using effective and
appropriate advertising we can make sure that our voice is heard. After a lengthy and intense
market research on Mike's bike stimulation with single player we have determined that there are
we will be selling our bike at low price and high value to provide to our customer population.
Situation Analysis:
In the current market situation, there are a variety of external factors that affect our
company's performance in the long run. The first thing we want to focus on is the competition
around us. The competitive landscape in the space currently, makes it harder for our company to
secure a larger market share. With a variety of companies selling the same product, only with
different strategies, it greatly influences our ability to secure a business strategy where we can
outsmart the competition. Competition in the bike industry specifically affects our company, as
we do not differentiate significantly in our product. This prompts us, to increase quality and
3
make our brand a priority for our customers. Due to a large number of competitors, maintaining
an upwards trajectory for our shareholder value also is made tougher. With competition, we have
to further increase our company value for our shareholders. It’s important to maintain interest in
the company and develop a strong stakeholder presence.
In a constantly evolving market, the one thing that is a priority is maintaining a smooth
cash flow and having enough reserve. Having cash to use in the future is important for the
growth of the company, as we hope to launch new products. The cash would be used not only for
developing a product, but branding the product very specifically at the time of launch, in order to
ensure future success. In the current economic environment we have to stay adapt to maintaining
low production costs. To ensure the low costs, we require constant investment in our
manufacturing plants. Our main objective continually is to grow economically. In the bicycle
industry that requires us to maintain the balance between the amounts of money spent. The
current economic climate forces us to perform effectively, yet efficiently.
Being a part of the bike industry requires us to be a subject of the safety standards set in place.
Since our product is geared for consumer use, it’s our responsibility to provide the highest
quality of product with the highest set of safety standards. The legal forces, enable us to work
only under direct guidelines from the ‘consumer product safety commission’. From the definition
of what is considered a bicycle, to specific measurements of certain parts, we have to adhere to
these guidelines. Legal and regulatory forces furthermore affect our company as it makes it
harder for us to develop a product which is unique from our competitors. Since many of the basic
aspects of the product are similar, this causes us to focus on maximizing the areas of sales,
marketing and human resources. Furthermore another effect which the regulatory forces have on
the product, is creating a higher cost to produce the product. Since the guidelines are set out and
4
cannot be altered due to safety and legal issues, we have to ensure we maximize our product to a
point where costs are lowest. This causes us to focus on plant efficiency and procuring raw
materials at a lower cost than our competitors.
Being in the bike industry, we have to constantly adhere to the shifts in the socio
economic climate of our business. Since we have a consumer product, it’s important for us to
move with the changes in our consumer's behaviors and choices. The social climate primarily
enforces us to focus our marketing in areas which best target our market. Furthermore, the socio
economic factors, also enforce us to observe our market more actively. With changes in the
economic environment, we have to price our products effectively, where we are within the range
of our consumer’s ability to spend, without having a negative effect on our revenue or inventory.
With the status of consumers constantly changing, we have to minimize our costs to reach the
goals.
Much like any industry today, technological shifts are something that are a key to our
success. Not only is technology important in order to increase efficiency of our plants, it also
affects our product(s). With new inventions and new forms of personal transportation being
introduced in urban areas, it’s our responsibility to adapt to these changes. With technology on
the rise we have to increase our budget for areas of research and development. The results from
these investment will be used in our products currently and help make greater products in the
future. In addition, we also rely on technology to bring our cost down and decrease the amount
of moving parts in our bicycle. Adding new, creative, and improved ways of connectivity with
our consumers is also our priority.
5
S.W.O.T Analysis:
AnotherOne has been at the forefront of improving numbers within the company and
increasing the value of our shareholders, daily. The strengths of our company lie in the ability to
maintain a smooth sales number. Although we haven’t been at the top of the market yet, the sales
of our product have been steady and not directly affected by competitors. Throughout our initial
years, we have maintained a low advertising budget, but concentrated on marketing in the areas
that most attract our customer base. Keeping the marketing budget low helped us increase
revenue and reserve extra cash.
Another area where our company has maintained its position is in our shareholder value.
Our shareholder value has remained at an upwards trajectory and currently peaks at $15.03. We
achieved this number by maintaining sales, and remaining on the upward trajectory. By
increasing shareholder interest initially we had the ability to maintain our cash flow and keep
cash reserves, in case of future development. Despite the fact that some factors of our company
have remained positive, there are certain areas where we need to improve our performance in.
The first factor is internal, where we looked at the price of the product. In the initial stages, we
priced our product at $650. With the lower price point we were able to attract a larger number of
customers and increase brand awareness. On the down side, during our second phase, the price
was set at a higher $700; by increasing the product price, our sales declined, but revenue was
maintained due to the higher number. We hope to counter this with our new strategy for the
coming years. Another area where we could improve in would be in aiding our distribution
channels with extra cash. With this improvement we would be able to capture a larger share of
the market. We hope to provide the extra cash in areas where we have the largest sales.
6
In the marketplace today, there are many areas, which hold great opportunities for our
company. The first place we would like to capitalize is on gaining a significantly larger market.
The marketplace currently is in a time where none of our competitors have a significantly larger
portion of the market. We hope to achieve this goal, by consistently placing our strategy of a
lower price number, and more efficient production. With the extra sales in the initial years, we
will invest further in advertising. The lower price means that the product has a larger advantage
at sales, with the further investment we will be able to further increase sales number. Another
opportunity we want to look towards is giving a dividend to our respected shareholders. With the
dividend we hope to increase shareholder value, and interest respectively in our organization.
The increased shareholder value will also benefit us in the long run, when we need to raise cash.
With a higher share price, when we give out shares to increase cash flow, the company will be
injected with the required funds. Subsequently, we want to focus our attention on is the
manufacturing side of the operation. We want to maximize plant efficiency, in terms of
technology and production. At the moment, we don’t have a large number of closing inventory,
however we’d like to minimize it even further. With a more efficient plant, we hope to bring
down the cost of production. Minimizing costs such as production can help us to further increase
revenue. At last, our strategy towards debt is to pay it as soon as possible by a certain date and
focus our attention on raising money directly for investments within the company.
Business Resources:
C.E.O: Shahzeb Shunaid
C.F.O: Mohamed Mugasa
Operations Manager: Pedram Keyvani
C.M.O: Kevin Lui (Clubbing)
7
When we took control of our company, the company had $5,036,980 in total revenue and
a $4,031,901 margin between our costs and total profit of or company. Today we have
effectively raised our assets to $8,000,000. The success of our company has been based on the
efficient work of our employees. In order to achieve our goals in a timely manner, the
organization distributed roles. Our C.F.O before every rollover briefed the board on the financial
condition of the company. Financial decisions made in other parts of the organization were also
reviewed upon for approval by the C.F.O. Another important task which was overseen was the
long term costs each decision had for the organization. Another key area was operations
management. Our operations management, mapped out plans for how the decisions made by key
executives in the company would be implemented. Our operations manager also had an
important role in the decision of the forecasted production and inventory available. His goal was
to make sure the efficiency of our plant would be increased in a cost effective manner. Moreover,
it was crucial for our quality not being sacrificed by the low cost and minimizing costs strategies
so our CMO made sure that it was not the case, and notified the team when he felt a glitch. By
looking over inventory before and after our rollovers. The department made a report for the
executives, which summed up advice for changes to next year's plan. The CEO of our company,
has been overseeing operations and financial decisions made in the company. The CEO has also
been constantly observing the evolving market around us. By seeking out new opportunities, and
finding areas where our company can achieve growth, it’s important to have an effective leader
in our team.
Business Strategy
In order to be a profitable company who provides high quality bicycles that has a
reasonable cost for our customers. To outline our goals, we analyzed our internal and external
8
results in order to develop an effective plan. In order to continually profiting in this market,
we’ll be staying on top of our financial health, taking care of our investors, and effectively
marketing our products. In order to do so, we will need to be aware of the demands and needs of
our customers. Understanding the needs of our customers means we are going to provide a wide
variety of products to capture the needs of a wide variety of bikers. We plan to take AnotherOne
in the top positions of bikes manufacturing companies in the market with innovations as well; we
think of producing an effective folding bike that can fill the needs of many people, especially
college students.
Our short term goals for our Bike sales is to increase sales through effective distribution,
reduce production cost in order to give our customers the best possible price. Introduce existing
products into new markets that will occur in next couple rollover over that yet to happen. In our
2nd rollover we start to pay off our company debt. Maximize our shareholders’ wealth. The goal
of any business is to start with a “comfortable” cash amount on hand and end with a substantial
margin of profit. This how we took our plan into action with our very initial rollover to see if our
plans is efficient and what changes must be made… so
· (Year 2016)
· Medium Price/ Med volume product
· Initial Strategy - Product Marketing
· Strategy (lower our bikes from $700-$650
· Decreased our forecast sales to $16,600
· Properly allocated costs for advertising (TV; $140,000, Internet: 150,000, Magazine: $
250,000)
9
· Total= $600,000
· Properly Allocated Costs for Public Relations - Television: $50,000, Internet: $170,000 and
Magazines: $220,000. • Production - Lowered Quantity due to Leftover Inventory
If you look at our (first Decisions ) it was good decision because our company came in top 3 out
7 companies, sense of giving us hope that we are leading into the right path.
Financial Projections and Budgets
Year AnotherOne Average
2016 $ 11.26 $ 11.26
2017 $ 13.03 $ 13.38
2018 $ 15.03 $ 15.30
2019 $ 15.02 $ 16.00
10
Performance
2016 2017 2018 2019
ShareHolder Total
Value
$
11,256,910.00
$
13,092,705.00
$
15,032,233.00
$
15,022,209.00
Profit Margin $ 8,190,000.00 $ 8,261,565.00 $ 8,243,181.00 $ 7,988,493.00
Revenue $ 1,425,886.00 $ 1,532,337.00 $ 1,633,348.00 $ 1,355,976.00
11
Pricing Strategy
Sales Units Pricing
2016 $ 18,000.00 $ 700.00
2017 $ 19,554.00 $ 650.00
2018 $ 18,288.00 $ 700.00
2019 $ 19,088.00 $ 650.00
12
Academic Honesty Policy: Drexel has adopted policies to deal with violations of academic
honesty. Drexel is committed to academic honesty and to protecting members of its community
from the results of dishonest conduct. As outlined by the Provost, there are four categories of
academic dishonesty. Those categories are: academic misconduct, cheating, fabrication &
plagiarism.

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Business Plan for MikesBikes

  • 1. 1 BUSINESS PLAN Shahzeb Shunaid Mohamed Mugasa Pedram Keyvani Kevin Lui Mission Statement: _____________________________________________________________ AnotherOne is a visionary company that seeks to revolutionize the bike industry. Customers and their needs come first to us and we make sure that we offer the most pleasant experience for each
  • 2. 2 of them. We aspire to increase our shareholder values, increase market share, and increase our brand awareness to be able to expand our company. With continuously having a fair and consistent price, we’ll soon be offering different products in the long run. AnotherOne is that company that enables you to get the bike you trust, can afford, and need easily. Our ultimate goal for our business is to stay on top of our financial health, taking care of our investors, and finding an effective way to market our products which will be the keys to a long-term successful business plan. Staying updated with the demands and wants of our customers is the key to maintaining a healthy market for our company. Using certain surveys and economic forecasts we can plan ahead and be ahead of our regular competitors. Understanding the needs of our customers means we are going to provide a wide range of products to capture the needs of a wide variety of bikers. The more customers we reach/gain the more sales we make. At this stage advertising and human resources plays a vital role. With using effective and appropriate advertising we can make sure that our voice is heard. After a lengthy and intense market research on Mike's bike stimulation with single player we have determined that there are we will be selling our bike at low price and high value to provide to our customer population. Situation Analysis: In the current market situation, there are a variety of external factors that affect our company's performance in the long run. The first thing we want to focus on is the competition around us. The competitive landscape in the space currently, makes it harder for our company to secure a larger market share. With a variety of companies selling the same product, only with different strategies, it greatly influences our ability to secure a business strategy where we can outsmart the competition. Competition in the bike industry specifically affects our company, as we do not differentiate significantly in our product. This prompts us, to increase quality and
  • 3. 3 make our brand a priority for our customers. Due to a large number of competitors, maintaining an upwards trajectory for our shareholder value also is made tougher. With competition, we have to further increase our company value for our shareholders. It’s important to maintain interest in the company and develop a strong stakeholder presence. In a constantly evolving market, the one thing that is a priority is maintaining a smooth cash flow and having enough reserve. Having cash to use in the future is important for the growth of the company, as we hope to launch new products. The cash would be used not only for developing a product, but branding the product very specifically at the time of launch, in order to ensure future success. In the current economic environment we have to stay adapt to maintaining low production costs. To ensure the low costs, we require constant investment in our manufacturing plants. Our main objective continually is to grow economically. In the bicycle industry that requires us to maintain the balance between the amounts of money spent. The current economic climate forces us to perform effectively, yet efficiently. Being a part of the bike industry requires us to be a subject of the safety standards set in place. Since our product is geared for consumer use, it’s our responsibility to provide the highest quality of product with the highest set of safety standards. The legal forces, enable us to work only under direct guidelines from the ‘consumer product safety commission’. From the definition of what is considered a bicycle, to specific measurements of certain parts, we have to adhere to these guidelines. Legal and regulatory forces furthermore affect our company as it makes it harder for us to develop a product which is unique from our competitors. Since many of the basic aspects of the product are similar, this causes us to focus on maximizing the areas of sales, marketing and human resources. Furthermore another effect which the regulatory forces have on the product, is creating a higher cost to produce the product. Since the guidelines are set out and
  • 4. 4 cannot be altered due to safety and legal issues, we have to ensure we maximize our product to a point where costs are lowest. This causes us to focus on plant efficiency and procuring raw materials at a lower cost than our competitors. Being in the bike industry, we have to constantly adhere to the shifts in the socio economic climate of our business. Since we have a consumer product, it’s important for us to move with the changes in our consumer's behaviors and choices. The social climate primarily enforces us to focus our marketing in areas which best target our market. Furthermore, the socio economic factors, also enforce us to observe our market more actively. With changes in the economic environment, we have to price our products effectively, where we are within the range of our consumer’s ability to spend, without having a negative effect on our revenue or inventory. With the status of consumers constantly changing, we have to minimize our costs to reach the goals. Much like any industry today, technological shifts are something that are a key to our success. Not only is technology important in order to increase efficiency of our plants, it also affects our product(s). With new inventions and new forms of personal transportation being introduced in urban areas, it’s our responsibility to adapt to these changes. With technology on the rise we have to increase our budget for areas of research and development. The results from these investment will be used in our products currently and help make greater products in the future. In addition, we also rely on technology to bring our cost down and decrease the amount of moving parts in our bicycle. Adding new, creative, and improved ways of connectivity with our consumers is also our priority.
  • 5. 5 S.W.O.T Analysis: AnotherOne has been at the forefront of improving numbers within the company and increasing the value of our shareholders, daily. The strengths of our company lie in the ability to maintain a smooth sales number. Although we haven’t been at the top of the market yet, the sales of our product have been steady and not directly affected by competitors. Throughout our initial years, we have maintained a low advertising budget, but concentrated on marketing in the areas that most attract our customer base. Keeping the marketing budget low helped us increase revenue and reserve extra cash. Another area where our company has maintained its position is in our shareholder value. Our shareholder value has remained at an upwards trajectory and currently peaks at $15.03. We achieved this number by maintaining sales, and remaining on the upward trajectory. By increasing shareholder interest initially we had the ability to maintain our cash flow and keep cash reserves, in case of future development. Despite the fact that some factors of our company have remained positive, there are certain areas where we need to improve our performance in. The first factor is internal, where we looked at the price of the product. In the initial stages, we priced our product at $650. With the lower price point we were able to attract a larger number of customers and increase brand awareness. On the down side, during our second phase, the price was set at a higher $700; by increasing the product price, our sales declined, but revenue was maintained due to the higher number. We hope to counter this with our new strategy for the coming years. Another area where we could improve in would be in aiding our distribution channels with extra cash. With this improvement we would be able to capture a larger share of the market. We hope to provide the extra cash in areas where we have the largest sales.
  • 6. 6 In the marketplace today, there are many areas, which hold great opportunities for our company. The first place we would like to capitalize is on gaining a significantly larger market. The marketplace currently is in a time where none of our competitors have a significantly larger portion of the market. We hope to achieve this goal, by consistently placing our strategy of a lower price number, and more efficient production. With the extra sales in the initial years, we will invest further in advertising. The lower price means that the product has a larger advantage at sales, with the further investment we will be able to further increase sales number. Another opportunity we want to look towards is giving a dividend to our respected shareholders. With the dividend we hope to increase shareholder value, and interest respectively in our organization. The increased shareholder value will also benefit us in the long run, when we need to raise cash. With a higher share price, when we give out shares to increase cash flow, the company will be injected with the required funds. Subsequently, we want to focus our attention on is the manufacturing side of the operation. We want to maximize plant efficiency, in terms of technology and production. At the moment, we don’t have a large number of closing inventory, however we’d like to minimize it even further. With a more efficient plant, we hope to bring down the cost of production. Minimizing costs such as production can help us to further increase revenue. At last, our strategy towards debt is to pay it as soon as possible by a certain date and focus our attention on raising money directly for investments within the company. Business Resources: C.E.O: Shahzeb Shunaid C.F.O: Mohamed Mugasa Operations Manager: Pedram Keyvani C.M.O: Kevin Lui (Clubbing)
  • 7. 7 When we took control of our company, the company had $5,036,980 in total revenue and a $4,031,901 margin between our costs and total profit of or company. Today we have effectively raised our assets to $8,000,000. The success of our company has been based on the efficient work of our employees. In order to achieve our goals in a timely manner, the organization distributed roles. Our C.F.O before every rollover briefed the board on the financial condition of the company. Financial decisions made in other parts of the organization were also reviewed upon for approval by the C.F.O. Another important task which was overseen was the long term costs each decision had for the organization. Another key area was operations management. Our operations management, mapped out plans for how the decisions made by key executives in the company would be implemented. Our operations manager also had an important role in the decision of the forecasted production and inventory available. His goal was to make sure the efficiency of our plant would be increased in a cost effective manner. Moreover, it was crucial for our quality not being sacrificed by the low cost and minimizing costs strategies so our CMO made sure that it was not the case, and notified the team when he felt a glitch. By looking over inventory before and after our rollovers. The department made a report for the executives, which summed up advice for changes to next year's plan. The CEO of our company, has been overseeing operations and financial decisions made in the company. The CEO has also been constantly observing the evolving market around us. By seeking out new opportunities, and finding areas where our company can achieve growth, it’s important to have an effective leader in our team. Business Strategy In order to be a profitable company who provides high quality bicycles that has a reasonable cost for our customers. To outline our goals, we analyzed our internal and external
  • 8. 8 results in order to develop an effective plan. In order to continually profiting in this market, we’ll be staying on top of our financial health, taking care of our investors, and effectively marketing our products. In order to do so, we will need to be aware of the demands and needs of our customers. Understanding the needs of our customers means we are going to provide a wide variety of products to capture the needs of a wide variety of bikers. We plan to take AnotherOne in the top positions of bikes manufacturing companies in the market with innovations as well; we think of producing an effective folding bike that can fill the needs of many people, especially college students. Our short term goals for our Bike sales is to increase sales through effective distribution, reduce production cost in order to give our customers the best possible price. Introduce existing products into new markets that will occur in next couple rollover over that yet to happen. In our 2nd rollover we start to pay off our company debt. Maximize our shareholders’ wealth. The goal of any business is to start with a “comfortable” cash amount on hand and end with a substantial margin of profit. This how we took our plan into action with our very initial rollover to see if our plans is efficient and what changes must be made… so · (Year 2016) · Medium Price/ Med volume product · Initial Strategy - Product Marketing · Strategy (lower our bikes from $700-$650 · Decreased our forecast sales to $16,600 · Properly allocated costs for advertising (TV; $140,000, Internet: 150,000, Magazine: $ 250,000)
  • 9. 9 · Total= $600,000 · Properly Allocated Costs for Public Relations - Television: $50,000, Internet: $170,000 and Magazines: $220,000. • Production - Lowered Quantity due to Leftover Inventory If you look at our (first Decisions ) it was good decision because our company came in top 3 out 7 companies, sense of giving us hope that we are leading into the right path. Financial Projections and Budgets Year AnotherOne Average 2016 $ 11.26 $ 11.26 2017 $ 13.03 $ 13.38 2018 $ 15.03 $ 15.30 2019 $ 15.02 $ 16.00
  • 10. 10 Performance 2016 2017 2018 2019 ShareHolder Total Value $ 11,256,910.00 $ 13,092,705.00 $ 15,032,233.00 $ 15,022,209.00 Profit Margin $ 8,190,000.00 $ 8,261,565.00 $ 8,243,181.00 $ 7,988,493.00 Revenue $ 1,425,886.00 $ 1,532,337.00 $ 1,633,348.00 $ 1,355,976.00
  • 11. 11 Pricing Strategy Sales Units Pricing 2016 $ 18,000.00 $ 700.00 2017 $ 19,554.00 $ 650.00 2018 $ 18,288.00 $ 700.00 2019 $ 19,088.00 $ 650.00
  • 12. 12 Academic Honesty Policy: Drexel has adopted policies to deal with violations of academic honesty. Drexel is committed to academic honesty and to protecting members of its community from the results of dishonest conduct. As outlined by the Provost, there are four categories of academic dishonesty. Those categories are: academic misconduct, cheating, fabrication & plagiarism.