Creating Business Plan
It will outline the name clause, mission of the business, vision, legality of the enterprise, type of the business, products and services among others. It will also illustrate the core goals of the business, entry strategies and growth stragies. Futhermore it will give a summarized overview of the industry the business is venturing in. The last and most important it will give a full justification which will focus mainly on the key strengths of the business idea. 1 Name The proposed business name is; THE FURNITURE PALACE. 2 Business location and address The business will be located along Mombasa road on a five acre land on the suburb of Makindu town plot number 567. There will be addition 3 acres set aside for expansion purposes.
The company will have its own website which will be ;www. Furniturepalace. com. My family is willing to support me with Kshs 200,000 to boost my startup capital. Co-operative bank. I am planning to apply for loan of kshs100, 000 from the bank to finance my business which shall be repaid back after 2 years on the commencement of the business. 4 Type of the business. The main activities of the business will be: • Produce and Sales of office furniture, house furniture and other equipment. The types of products offered: • Office furniture, house furniture and other equipment. We will be able to produce the office furniture’s, house equipment and other equipment that a customer would wish to purchase. All these equipment will be readily available and also will be the source of our income since we will be able to sell the products on hourly basis according to the orders made by our customers.
The product will be having offers so as to attract our customers and for those who require discounts they will be offered. • Services To create a point of differentiation between THE FURNITURE PALACE and other furniture companies in the area, we will offer a variety of custom, personalized services that further enhances the products offered and shopping experience of our customers. 40 billion income and offer jobs to more than 100,000 people. Yearly payrolls of income in each of the last ten years have exceeded Kshs. 20 billion. This is a mature market, and the predicted to equal that of the common economic system. The requirement of furniture has continued to remain powerful despite the economic system. 1 PEST analysis Political factors affecting the company include factors like business freedom in Kenya, stability of government, trade freedom and the Kenyan tax policy.
The economic factors that favor the industry include the rapid economic growth in Kenya, the stability of exchange rates, globalization, low interest rates, availability of cheap labor and growth in the country’s GDP. The social factors influencing the industry are the high rate of population growth, positive buying patterns, and local fashion trends in the furniture industry as well as lifestyle changes. The technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. These companies operate through direct selling as well as through distributors. Companies with large local customer base prefer to sell directly, without involving distributors.
There are a large number of furniture retailers and franchises engaged in furniture retailing in Kenya. Majority of retailers are small in size and scale, large retailers usually operate in urban markets. The market has witnessed entry of specialty furniture chains in retailing. 1 Entry strategies The entry strategy is to start by looking for a large customer base which requires provision of large orders such as local market, home and schools, and international market. It should also adopt an I. T system to be able to keep proper records. 1 Growth strategies New equipment is also needed which are of hi-tech for the purpose of efficiency and effectiveness so as to facilitate in mass production of furniture hence meeting the customer’s needs.
The enterprise also needs to hire more skilled personnel to assist in the production of quality products. Creation of a competitive advantage over its competitors in terms of quality of products. Improvement of product awareness to target customers. Creation of brand loyalty through repeated purchases by customers. 1 Customer The marketing plan should clearly define and identify the target customers and look for ways to create good and profitable relations with them and these will be achieved through the provision of products of high quality which meet their tastes and preferences and also meeting their needs at a timely basis. The target customers of the enterprise are: 1. SWOT analysis for the key players in the industry Name of the company Strengths Weaknesses opportunities Threats Dupco Office supplies Competent managers Slow delivery Availability of cheap raw materials insecurity Unity Makers Good reputation Poorly motivated staff Has high percentage of market share Poor cultural practices of the surrounding community Bush Furniture Enterprises Competent Employees High prices Availability of accessible ready market Competitors offering products on very low prices Copy Furniture Ltd Good management Poor quality products Strategic location Brain drain by the competitors Due to the high demand of office furniture and equipment in the Kenyan market and international market, this has made the industry to become more competitive when it comes to attracting customers and increasing the sales as well as customer loyalty.
Therefore, in order for The Furniture Palace Enterprise to become competitive we are intending to come up with a system that will register the consumer both locally and internationally using the online portals so that prospective clients can easily reach the organization and make orders as per their specifications, taste and preferences. The Enterprise will also create its own website showcasing the service, its inventory of furniture and equipment, initial costs details, and get in touch with other details. The competitive strategies include: • The cost leadership strategy: We as consultants of The Furniture Palace Enterprise Ltd are intending to employ expertise that will be able to bring the functions of the organization to success within its first season of functions. The firm is also intending to employee competent and skilled management who are able to coordinate the activities of the firm and fulfill the functions of management accordingly and in a satisfactory manner with the aim of maximizing shareholders wealth.
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