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Company Business Plan Assignment
This is a solution of Company Business Plan Assignment that describes about Developing business strategy which has helped companies like Toyota, Volkswagen to cope up with the aging systems and limited resources.
Business Plan-Motor Company
Our company which is a new venture into the motor vehicles in the European market is aiming to breakeven in the first year of the operations. The Unit price of the car sold by the company is about £11,995. Hence to breakeven in the first year of the operation company needs to sell approximately 100 units a year. And taking the sales growth of the company about 5% a year looking at the current scenario in the automobile market where in all the major automobile companies are not recording high growth year on year.
So be on the conservative side we have taken growth for the car sales to be approximately 5% of the total car sold by the company. Hence the projections for the next five years of the company sales taking the growth pattern to be 5%, 10%, 10% and 15% in the consecutive years. The Increasing growth rates of the sales have been taken by our company looking at the recovery in the economy of the Europe and increasing demand of the motor vehicles in the recent years. So the sales projections for the next five years of our company can be shown by the graph as follows:[caption id="attachment_5169" align="alignnone" width="400"]Annual Sales Projections for the Company[/caption]
2.0 Market share
Our company which is a new venture will have to fight with some of the well established and reputed brands in the automobile industry in Europe market. Hence the main competition of our company would be with some of the well established brands such as Subaru, Nissan, Honda, Mazda, Ford, Vauxhall, Renault, Skoda and Peugeot. The target market focused on by these companies and our company is same the middle to lower range income cars. The Price range for us and our competitor is in the range of £12k which is afforded by the middle income families. But the main competitor of the company is VW as the company also operates in the same target customer zone as of ours.
So the market share of the company would be captured either through the major competitors of the company or through attracting the new customers in the car industry. At present various leading car manufactures in the European car market are Volkswagen, Renault, Ford, Peugeot, Opel, Fiat, Toyota, Mercedes and BMW (Mintel, 2009). The Market share captured by the VW and other major companies is about 10% and hence we can see a fragmented market shares in the European car market and hence there is no clear leader in the European car market.[caption id="attachment_5170" align="alignnone" width="554"]Market Share of various companies in Car Market in Europe[/caption]
Hence the market share predictions which our company have expected from the current sales growth of the company is expected to be very small portion of the overall car market in the Europe. Hence if the company get successful in maintaining their sales growth of about 5% or more for the several next year then definitely in few years our company would be able to achieve some significant portion of the car market in Europe.
The company is dealing in the middle and lower range car in European market so it has a wide impact on the workforce hired by the company. The Labour law is the reason for high labour costs which is among the major cost for any automobile company as the labour is very costly for the automobile industry. Also the labour required for the automobile industry should be highly skilled and should be very productive (Storey, 2007). The Workforce of the company would comprise of a mix of both the direct workforce as well as the contracted workforce for the company in order to provide the greater flexibility to the company.
The Middle and top project management of the company would be highly skilled and completely would be able to handle their task well and would be recruited through the professional recruitment staff of the company. Specialized sales force would be recruited in the company in order to combat the high competition in the automobile market in the European market.
The Best practice and best fir would be implemented in the company in order to enhance the productivity of the company and for the development of the employees of the company. Employees would be given various incentives which would be based on the individual as well as on the group performances of the employees working in the company. Employees would be given rigorous training so that they can become master of their job and various motivations would be offered to employees in order to work with proper motivation.
The Company would try to incorporate the high productive manufacturing system in the company. And the company will establish one of the best “car per man” data in the industry (Wilson, 1995). Our factory would be in operation for 24 hours a day and hence there would be three convenient shifts which would be offered to the employees for working. Employees would be able to opt for any one of the shift they will feel comfortable.
For improving the productivity of the company various productivity enhancement programmes would be incorporated in the company which will include programmes such as Just in time technology which will help to minimise the inventory which in turn will help in efficient inventory management in the company, Kaizen which is done for the continuous improvement in the company and also would be having the various implications for the health and safety of the workers.
Another major step for enhancing the productivity of the company would be job rotation (Wilson, 1995). The Process of job rotation implies that every employee would be given different job at various times. Hence by doing the job rotation employees would be skilled in more than one job and would be able to perform the various jobs if it would be required. The Process of job rotation would inculcate productivity in the company as the employees of the company would be more efficient by doing so.Read about Big Data Assignment Help.
- Hartness, James(1912), The Human Factor in Works Management, New York and London: McGraw-Hill. Republished by Hive Publishing Co (Hive management history series, no. 46) (ISBN 978-0879600471)
- James M. Wilson, (1995) An historical perspective on Operations Management, Production and Inventory Management Journal
- Mintel (2009), Car Ownership and Purchasing in Europe, http://academic.mintel.com.ezproxy.leedsmet.ac.uk/index.html?logon&start=display&id=475603> [Accessed 13th December 2010]
- Storey, J. (2007) "What is strategic HRM?" in Storey, J. (2007) Human Resource Management: A Critical Text, Thompson