focus on hardware sales in this area. Low cost products and high labor skills can get more competitive advantage


Gurpreet Kaur

Jia Guo

Mingchuan Tian

Varshaben Desai

Table of Content

1. Executive Summary………………………………………………………………………..3

2. Overview of the Opportunity………………………………………………………………4

3. Market and Industry…………………………………………………………… …………5

4. Specific Elements of the Plan…………………………………………………..…………6

5.Risk Assessment & Contingency Plans……………………………….……………………7

6. Implementation……………………………………………………………………….……8

7.Conclusion and Evaluation…………………………………………………………………9

Executive Summary

Our organization initially started as a home company and has so many competitive advantages. So by analysing the increased demands for new technical innovations and advancements in this industry, we decided to enter into the international market considering the requirements and expectations of the foreign customers. Our target is to make better quality of products in order to increase profit. For this purpose we have hired more skilled employees to increase the quality, quantity and productivity. Our clear target is to compete with the technological engaged markets and we are focusing on our efforts to become a leader in the market. Growing popularity through advertisements will create more demand among the customers for the products, also it will attract foreign investors to invest in our business, hence increased profits and future scope.


Our intention to set up this company is to produce hardware, software, and system. There is a clear division in the company like CEO, HR, financial. Now, the company has two aimed market regions. One is Domestica which is the local market. Because it is the local market, the company is more aware of the needs of the market, and to meet the needs of the market. Furthermore, there are not too many barriers to trade in the local market and less foreign exchange rate risk. Local government usually makes the policies to support the domestic industry. In this area, production cost is lower than average, high labor skills and stable society. That means less economic risk and policy risk in this area. We focus on hardware sales in this area. Low cost products and high labor skills can get more competitive advantage. Other is Abendland which a high wage, high education, low political risk, and low foreign exchange rate. In this area, customer will focus on high- tech products with high price. It is such a market environment that we face is that, we will have a good opportunity to sell our high-tech products to meet the need of the customers. We will pay attention to high technology products sales and services, such as software and system. Thus, we can sell the products in high price with low cost and high quality. If our company wins the market, our income is considerable. In a mature market like Alendland, competition is fierce and unavoidable. The first step in a new market is winning the reputation. So, we will lower the price when we first get into market. When we succeed, our company will consider to higher the price appropriately.

As a new company, the product may be less mature than a big company. At the beginning, we will invest a lot of money in marketing budget and new product research. Better understand the market and the need of customers and make our products as satisfactory as possible. Only in this way can it be more competitive and survive in the market. We keep the existing sales staff for the time being. If we hire more salespeople, it depends on the development of the company. Because of capacity depreciates, our company will add appropriate capacity every period to meet the production.

We also take employees welfare as an important corporate development strategy, improving employees` living standards and happiness index is the goal of the company. A good employee` welfare is the key to retaining excellent employees and affecting the stability of the company`s development. This is the guarantee of the company` long-term development. At the beginning, our HR department has set up a basic employee benefit, such as training and development program and extra retirement and fringe benefits. With the development of company, we will expand the scope of our welfare.

In the long-term development, the company will move the hardware industry to the low labor cost area, maximizing the interests of the company. And we also set up a high-tech department branch in Abendland because there are better-skilled people there. We will analyze the situation according to the market situation and do stock trading cautiously. We take a conservative operation. No loan is made under unnecessary circumstances. Making profits in the normal market as much as possible and make sure the company develop steady.

Strategic intent is actually described for organizations as what they want to do and why they want to do. There are few modifications to the organization must do in order to successful plan .Organization will hire senior manager to observe working pattern of employees and other department who will report the board of directors and CEO. Silicon Valley will change its policy of selling to Abandland, because it has already high skilled workforce where cost is little above high but no huge market because consumer ask for high quality but Silicon Valley also has jumped into training and development to meet successfully its goals and objectives. Innovation will be part of organization to satisfy customers need in order to get success mission and farthest vision. Rewarding employees by giving bonus might be helpful for organization. Another aspect is planning team in which planning team members who are directly engaged in laying out the issues and options for the future of organization. There may be board of directors or executive directors or committee of the board for critical situation. The organization will set a future board meeting to fix a target date for adopting the plan.

Five-forces Analysis

Five forces include the threat of substitute products or services, the threat of established rivals, and the threat of new entrants, the bargaining power of suppliers and the bargaining power of customers. Substitutes of the products or services is one of the major threat, when the similar type, cheap or affordable product is created by any other firm. Probably, it reduces the demand for costly products and due to this we are focusing on increased quality, so that customers may focus on quality and not on price. Even if the substitutes are cheaper, most of the customers will give high priority to the high quality products rather than the price. There are so many factors that affects the industrial established rivals, for instance, increased creativity and innovation in the products, the government established policies and new laws. So, we are focusing on changing market policies and laws in the countries where we have started business. There are so many other firms that are excel in the business and there is always a threat of new entrants in the same business, because it increases the competition. Most of the businesses excel by following the success and seeing the business strategies of other advanced companies. Also, the bargaining power of suppliers is high when there are a number of buyers and few suppliers. Similarly bargaining power of customers is higher when there are a lot of firms supplying the same type of products.

Industry Attractiveness is phenomena when there is low or weak bargaining power of customers and suppliers, where there is low risk of new entrants or threat of substitutes and low intensity of rivalry among existing industries. This concept can be met through a strong business planning and strategy. For this purpose we have done SWOT analysis, so that there are no chances to face such types of situations.


Most importantly we have capital and company assets and skilled employees who always their best towards the organizational goals. Company’s performance is good in its local region and hoping to gain success in the national and international market too. There is no any debt on the company’s assets and liabilities, so taking this point of view, there are reduced tensions. Also the transportation cost is not too high, hence export can be easily managed. It will also lead to get the raw material quickly.


Firstly, we have a limited employees in the local organization, so we need to hire and recruit more employees to increase productivity and obviously it will be very costly for their training. There are a lot of trade barriers, for instance; language and cultural diversities. Customers demand for high quality, innovative and more technical products and trust local markets, so it is very difficult to hold a reputed position in the national or international market soon


Due to the technological advancements, the long distance communication is very easy, hence foreign business can be managed easily. Advertisements through various communications medias can promote our products so there will be more popularity of the products among the people. The area in which we are going to sell our products, the Government is stable there, so it might help the new emerging company for expanding the business. The company can adjust the products properly according to the level of regional development to meet the needs of customers at different levels.


First and foremost thing is that, our company is a locally operating organization, recently entered into national and international market, hence there is greater risk of failure, due to heavy loss. Increased competition and new firms can be the biggest threat, because we have spent an important part of our capital on the foreign assets and recruiting and training more employees. Expectations of the foreign customers may vary, so that is another threat about requirement elicitation of the buyers. Company’s products are to be exported to foreign countries, so there is a higher risk of currency fluctuations. Due to the technological failure during the transportation there is a risk of heavy loss of products.

Specific Elements of the Plan

Resource Management-Resources are considered important part in business to get huge profit, they must be used to the maximum capacity for the minimum amount of cost. In this case the Silicon Valley is number one company. Our organization was at number 4 during first period, but it is now on the top because it’s task are allocated in balanced manners. As you can see it’s current book value is increased $3485 as compared to before in hardware. But we will focus more on human resource development for more production because current capacity has been decreased since first round of period. Silicon Valley analysis that by increasing bonus in third period and wages above industry average is result in more capacity. We have seen positive effect and profit of investing in human resource by giving bonus in third period. While training and development program will be going as it is. However, our recent product has established strong feet in the market but to stay in competitive market, we probably invest in new product research for more standard quality products. We have adopted new business strategy by increasing market budget from $60000 to $80000 and decreasing unit price from 660 to 650 to maintain stability in market which may jump in next round. We observed that technology is extensively used in customization of design products and services and it can be facilitating factor in bringing about change in operations and production management. We will more focus on operation technology because usage of technology in operation management has ensured that organizations are able to reduce the cost, improve the delivery process, standardize and improve quality and focus on customization, thereby creating value for customers. Our software and system market price and marketing budget has been reduced by using low cost strategy by selling more products to get profit from Abendland. We assume that when our organization will focus on quality management, we can create a plan for success. Onetime bonus and retirement and fringe benefits will be given importance in future as well. Our first target will be Domestica for exporting hardware but we may be target Abendland to export because people of Abendland have high buying power and our hardware market is going well over there.

Organization Analysis-Our organization will focus on training program which may work for our other two SBUs and reduce waste during low production to enhance or maintain revenue. We are moving toward quality program for all SBUs to create a high quality, high-performing product or service that meets and exceeds internal and external customer expectations. During low-cost strategy means that we have to improve our production capacity and make few significant investments in the operational technology. Continuous auditing is technology that will be driven, and it works behind the scenes to help facilitate error checking and data verification in real time. If an error or anomaly is detected, then the system will generate an alarm

Risk Assessment and contingency plans

Our company set up two aimed market; one is the local market Domestica which market we sell our hardware and other is Abendland which market we focus on software and system. Why we pick up these two markets? Because these two markets are stable and low risk, the potential market is more than average.

Implementation– In the first decision, we sell our hardware at $600 with $130 in the marketing budget and $85 in new product research. Software`s price is $725, and $130 in the marketing budget, the new product research is $95. The selling system at $755 with $130 in the marketing budget and the new product research is $105. We provide training and development program and extra retirement and fringe benefit in the decision 1 and 2. We have put employee benefits in the first place, learn skills from work, guarantee the standard of living for employees, and good income after retirement. The capacity depreciates by 5% every period. So, we add 5% capacity every period. In the decision 1, we sell all the hardware in our capacity, and we lost 607 sales, the supply of goods is in short supply. I do not want to add more capacity in the market; I believe that means more risk when fewer people buy it. Then we higher the hardware price to $640 to reduce the sales of goods. Then in decision 2, there are lost 135 sales. We go further and up the price to $655. In decision 3, the lost sales decrease to 43. It is still al short supply and we upped the price to $660 in the decision, aim to balance supply and demand. There is a bit of a mistake in the field of software and system. Our share of revenue is lower than other companies. The total capacity of software and system in decision 1 is 5050 and 5715; we sell 3203 and 3195 in this period. We pursue profit maximization in the market. We did not notice our company is losing the customers and up the price to $735 and $765 and lower the marketing budget in decision 2. The total unit sales of software and system in decision 2 are 3248 and 3167. There is no big change in the unit sell result. In the decision 3, we cut down the price of software and system for sale. The price of the two products is $710 and $730. The total unit sales in this period up to 3760 and 3891. So, to further increase our sales, the aim is to keep the company profitable. We decrease the price of software and system in decision 4 to $690 and $709. We sell more products by cutting down prices and increasing the marketing budget. If we did not notice the problem, our company probably would lose the customers, and the profitability of the two industries continues to decline. The bigger problem such as deficit will come to our company. After a period of development, we added one- time bonus this period in decision 3. Unfortunately, we forget to add one- time bonus to decision 4. So, the employee turnover in this period is a little bit higher than last time. For decision 5, I add wages above the industry average in Human Resource. Let employees have more confidence in the company and better serve the company. This strategy can also prevent the loss of talent and stabilize the long-term development of the company.

So far, our company has not been able to get more profits through the collection and sale of the stock, and we take a conservative approach to operate the company. We have always kept the initial sales staff not hiring more employees. We believe that in the short term, existing employees are already able to meet the needs of the company’s development, and whether hiring more employees can be based on the size of the company’s development. For the sales management strategy, we will adjust the data properly according to the sales situation. For example, increase or decrease the marketing budget and adjust the price according to the demand. I saw the defective goods hardware is higher than software and system. So, I up the operations technology to $75 and add $10 in Quality Programs. So that, our company can produce more efficient and good quality products.

Evaluation and Conclusion

In order to check the smooth work flow in the organization, the only way to judge it, is through the customers. We will create a communication session among the customers, so that we will come to know that, what they feel about our products. This could be done through questionnaire session with the customers and our target market. It will lead to more creativity, innovations and advancements in the product’s quality.Based on SWOT analysis, we came to know exactly that, what our strengths and weaknesses are, how many opportunities we have and what are the threats, we would have to face in the future. After summarizing we develop a strategic plan to handle all the interrupts on the way to success for our company:

1) Fixed an amount for employees training and development programs.

2) Purchase more units to increase the quantity as the company is going to expand business in the international market.

3) Fix weekly meetings with the board of directors in order to have a discussion about the company’s performance and the critical facts.

4) Choose specific market regions and firms to sale the products, make sure to regularly follow the requirements elicitation process, so that the company can have an idea that what are the target’s market expectations from the newly arrived products.

5) Develop an employee team, particularly 5-10 members, those who will be responsible to maintain the efficiency and quality of produced goods.

Keep an eye on the company’s assets, capital, costs and revenues all the time

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