A Business Plan and Expected Life Cycle

Executive Summary

Modern Tech is a starting up organization that will operate within the American local market.  The company will be specializing in the sales and repair of home-based electronics which will particularly entail entertainment products which as CD/USB players, TV, and Home theatre music systems. The company will be targeting individuals who place significant importance in their entertainment equipment as well as possess high-end and quality electronics which presents cost proficiency with repair rather than being replaced in general. For instance given that most electronics, particularly in the entertainment sector, are usually characterized by reduced prices most individuals find it easier, convenient and cost effective to purchase fresh products than attempting to repair the ones that exist. Based on the high starting and operating cost of an electronic corporation, the firm will initially operate locally to low the cost. The electronic market is highly competitive and saturated and therefore, this plan will be useful for a strategic venture.

Company’s Description

Modern Tech is intended to be a cost and differentiation front-runner in the home-based entertainment electronics sales and repair. This will enable the corporation to ultimately offer TV and Satellite servicing, installation and new electronics sales which will make the corporation to be a local leader in inclusive electronic products and services. The company will be registered under sole proprietorship to ensure that it has comprehensive control of all its operations.

Mission Statement

The prime mission of Modern Tech is to offer superior, all-inclusive and convenient entertainment electronics and household electronics repair at the least price. The most significant feature of this business revolves around reliance. In that, the objective of the company is to acquire an ample consumer fulfillment in regard to strong relationships, openness, discovery, superiority and reliable achievement. Consumer satisfaction is the priority of the company given that it is centered on ensuring that their needs are fulfilled completely. The company will consistently search for fresh ways to exceed the consumer’s expectation while offering the services at the most affordable prices. Home-based entertainment electronics are usually costly to purchase and repair which leaves most of the users disappointed. The company will be changing this status and creating a different attitude based on its quality, unique, convenient and affordable services and products.

Major Success Forces

In the electronic sales and repair sector today, a company can best formulate its consumer base slowly based on the responses acquired from every consumer and mainly through engaging in well-situated marketing strategies. In this context, Modern Tech major success forces are several which will help in building an extensive and strong base. This will include, high superiority services and products, adequate and professional appearances at any given time that seeks to build better relationships with the consumers, well-informed technicians that are consumer objected, approachable and will ensure that they offer comprehensive explanations of the intricate business nature and their responsibility. In addition, it is vital to preserve active managerial evaluation and assessment of cost, services, and operation in ensuring that they offer the least costs at the quality (Andreas, 2011).

Organizational Structure

The company is in its starting up level, where so much effort is required in the development of a reputable image that will be able to accommodate the changing consumer needs. In this context, an appropriate organization structure will be a necessity. A functional organizational Structure will, therefore, be applied in running the company (Gido, Clements, & Baker, 2017). In the functional structure departments divisions are conducted on the basis of similar tasks functions. In that, the organization will be grouping members based on their responsibilities and purposes (Gartner & Bellamy, 2009). In short, the functional structure will involve dividing the firm into distinct units on the basis of functions as advertising, exploration, management, procurement, product development and technicians.

The use of the functional structure was selected given that it permits high specialization degree for all the involved staffs and developments can be measured at ease (Gartner & Bellamy, 2009. In addition, the structure is capable of creating major barriers, particularly where there are distinct functions thus causing inefficiency due to products or targets variety. It is, therefore, suitable for Modern Tech Company given that it provides products that are within a single line. In addition, the structure is suitable given that the company is particularly small and will result in increased concentration, high control and efficiency (Gartner & Bellamy, 2009.

One major functional organization benefit is that it results in specialty. Every unit usually operates as a unique by running distinct roles (Gido, Clements, & Baker, 2017). In this context, staffs concentrate mainly on their designed functions thus developing unique knowledge and expertise as they progress. As their expertise develop the units and the company in general benefits from this knowledge and experience (Gido, Clements, & Baker, 2017). In addition, throughput and efficiency are increased. Any staff within the professional units operates different functions with increased speed, convenience, and efficiency which tends to expand productivity. Understanding different roles adequately allow employees to operate with much confidence with lower mistakes since the operations are clear (Gido, Clements, & Baker, 2017). This creates reliability, improves on superiority and consumer satisfaction.  However, given the complexity of managing the structure a strong management that seeks to promote teamwork and productive relationships will be required.

Influence of the Founder(s)

Modern Tech Company will be possessed and managed by Anderson Stevens, who is a retired criminal justice investigator in America with two master’s degree in criminality justice and electrical engineering from California University. In addition, he is a certified electoral and electronics electrician with different company brands where as he has worked for several years with the justice department. In running and developing the business he will collaborate with his son who holds vast experience in regard to electronics sales and marketing.

Management Style

Management is the most important part of business given that it does not only determine operations but also the outcomes (Glynn & Woodside, 2012). For a starting up business in a highly competitive sector, there is a need to focus on strategic operation and reliable in the quest of developing consumer’s trust. The company is a consumer centric one and therefore, it must focus on the needs, demands, and preferences of the target consumers. The company will apply a participative managerial style which is popularly referred to as democratic leadership.  This style was mainly selected because it calls for the input of all the employees within the corporation in decision making. All the staffs in the company are offered with appropriate data in regard to the firm’s problems and the probable solutions which are discussed collaboratively and the desire of the majorities normally determines the most probable action for the corporation to adopt (Glynn & Woodside, 2012). Democratic leadership is usually slower in regard to settling for suitable decisions but in this case the most suitable given that the corporation cannot afford to make mistakes in the starting levels (Glynn & Woodside, 2012).

Participative managerial style holds several advantages that are likely to benefit Modern Tech Company. To begin with, it results in acceptance (Mahagaonkar, 2010). The staffs under this leadership are willing and ready to embrace the decisions and strategies because they feel accounted. This results in lowering the level of resistance in general for any new operations which lead to speedy application of fresh thoughts. In addition, it leads to increased motivation because the staffs that are given the opportunity to play part in running the organization acquires a personal sensation of success liability (Mahagaonkar, 2010). Due to the opportunity to engage in making decisions the motivation is retained at high levels as a form of appreciation.

Creativity and retention are also enhanced. In that, when, the employees are encouraged to offer their opinions in regard to the firm’s issues there are variety of thoughts to be acquired (Mahagaonkar, 2010). Operating in the electronics sector necessitates innovativeness in fulfilling the changing technology based consumers preferences and thus a participative leadership authorizes staffs to utilize their imagination in creating more productive and efficient working procedures. With high morale and satisfaction comes low employee turnover and the retention benefit contributes to career development as well as organizational growth by encouraging participation for the general, success of the firm which ultimately lowers the working costs and time (Mahagaonkar, 2010). Also, the company will work to ensuring that everyone gets a recognition because high participation is vital in ensuring that growth is enhanced given that the lack of good recognition results in the loss of morale, reduced performance and inferior services which might destroy the goal of creating better relationships (Martínez-López, 2014).

How Management Will Align Organizational and Management Goals

            In aligning organizational with management goals the company will first ensure that feedback and responses are constant. In that, the provision of continuous feedback works in ensuring high performance given that this response act in boosting the existing relationships (Martínez-López, 2014). Second, the company will allocate duties in an appropriate manner. In that understanding, the respective roles eliminate any form of conflict and confusion which is essential for tracking goals and ensures that performance is well accommodated (Martínez-López, 2014).

How Management Will Align Organizational and Employee Goals

Employees might not always sense personal motivation to the achievements of the firm’s objectives such as expanding sales, markets or focusing on quality. However, they can be motivated to embrace them and participate by aligning the company’s goals with their own (Mathur, 2010). To begin with, this can be achieved by ensuring that the company makes their needs to be a priority in order to create a sense of belonging and security which will have a positive impact on morale, preservation, and inspiration. Next, the company will focus on explaining the benefits associated with the organizational objectives in the long term. This will not exclude communicating success and issues to ensure that the morale is not affected which might affect both productivity and financial generation. In addition, the company will personalize rewards, incentives, and welfares in managing performance. In addition, some resources will mainly be devoted to social responsibility. Employees owning the belief that they work for the better community cause are characterized by high satisfaction sense in regard to their operations (Mathur, 2010).

SWOT Analysis

Strengths

Modern Tech is characterized by several strengths which will be useful in ensuring that it achieves success. The strengths include high barriers to entry into the electronic sector, limited starting up threats, strong and knowledgeable management, and low competition for cost leading companies and the ability to find more consumers. In that in the market that is associated with fewer risks, any company will operate under fewer threats (Sam & Makor, 2011).

Weaknesses   

The corporation has limited starting up capital which might affect operations. The electronic market does not only necessitate much capital but also financial stability (Sam & Makor, 2011). In addition, the transportation expenses are also quite high which might affect affordability of products. There will be limited pricing changes given that lowering extensively might affect the generation of revenue.

Opportunities   

The ability to expand to a wider market is a major opportunity given that after acquiring stability the company will gain the capability to adopting flexibility. The other opportunity lies in the capability to extend products and services to the electronic sector to incorporate inclusiveness (Walker, 2011).

Threats

The electronic industry is characterized by high competition due to the existence of established corporation that has acquired significant consumer segments (Walker, 2011). The company will, therefore, necessitate more marketing to inform the public of its services which will ultimately add to its operating cost. The other threat is the change of regulation which might affect sales. Consumer preferences are also changing consistently.

Expected Life Cycle

Similar to a human's existence cycle every business goes via development stages (Gido, Clements & Baker, 2017). The seven major stages that the business will undergo will begin with seed stage. This is the level where the business exists as just a thought which denotes a fresh business birth. Within this state, the company will be necessitated to outweigh acceptance challenges to pursue its market. This stage is focused on matching the existing opportunities with the company’s skills, capabilities, and knowledge while accounting for suppliers and any regulation.

Startup Stage

This is the second level where the birth of the company has occurred and therefore exists as an illegal one (Gido, Clements & Baker, 2017). The financial estimation will be done prior to the business initiation and the focus of these level is to account for the company’s profit needs, consumer demands and market operations. The main objective will be to establish a consumer base and an adequate presence within the sector while assessing and controlling cash use. Money sources will be from owner, family, consumers, donations, and friends.

Growth Stage

Given that the business is already out of the nurturing stage and the consumers and profits will be increasing along with some rising issues and venturing opportunities this stage will be focusing on running the company in a more strategic approach with the capability to handle increasing consumers and sales (Gido, Clements & Baker, 2017). This stage involves operating under increasing issues which shows that effective administration is necessary.

Establishment Stage

The development of sales can be categorized as manageable and therefore the issues surrounding demands, marketing and competition should be accounted adequately. The focus of this stage is in production and development and therefore, competing in established markets necessitates firm operating strategies in collaboration with subcontracting and mechanization in the quest of enhancing productivity (Glynn & Woodside, 2012).

Expansion Stage

This level is characterized by a unique development into fresh distribution and operating markets. There are more difficulties within this stage because market expansion is extensive and necessitates more efforts (Glynn & Woodside, 2012). The objective of the company within this stage will be to enlarge its services and products to other markets and the existing ones while developing its consumer base.

Decline Stage

Due to socio-economic transformations, market situations and economic decline sales and revenue production can be lowered which might lead to the end of the new firm (Glynn & Woodside, 2012). The company will mainly focus on establishing fresh chances as well as business ventures while reducing costs in order to retain its financial stability.

Exit Stage

When the business is unable to sustain its operations the resulting solution is to close down and thus an exit approach is required (Glynn & Woodside, 2012). This cannot be performed without performing adequate valuation. The focus will be to generate appropriate valuation by assessing its resources, challenges as well as opportunities which will translate into a transition plan. The company will exit by merging and acquisition by another larger corporation to sustain its value if it is unable to operate.

 

 

 

 

 

 

 

 

 

 

 

 

References

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Gido, J., Clements, J. P., & Baker, R. (2017). Successful project management. Cengage Learning.

Glynn, M. S., & Woodside, A. G. (2012). Business-to-business marketing management: Strategies, cases and solutions. Bingley, UK: Emerald Group Pub.

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Walker, A. (2011). Organizational behaviour in construction. Chichester, West Sussex, UK: Wiley-Blackwell.