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Business plan for a manufacturer of luxury, eco-friendly cars.

Extracts from this document...

Introduction

Business Plan Executive Summary: As discussed it is Green Clovers intention to target both the mid range market and the luxury market with significant success. Both the luxury car and mid range car will have effective marketing campaigns aimed at the appropriate customers. As discussed earlier the luxury car will be aimed at consumers who want all the characteristics present in a prestigious brand yet at the same time considerate to increasing need to be more environmentally friendly. The mid range vehicle is placed in the large mass market yet it's environmentally friendly credentials will differentiate it from its competitors. Both vehicles are based upon sound financial decisions, which is imperative at this current time. Vision, Mission: To take the best premium and luxury cars that exist, make them better, while saving our planet. We represent excellence at the cost of ourselves not the world. Objectives & Strategy: To hold a powerful brand image which provides world class premium cars, and yet also strives to produce unique luxury to those who require it. Management and Organisation Plan Finance Director - The roles and responsibilities the finance director took on were to ensure our company had a balanced profit and loss account, to obtain a strong financial position within the industry. Also he is in charge of all financial decisions and purchases. Administration Director - The roles and responsibilities include a correct and to date collection of company minutes, ensuring accurate details of absences, meeting objectives and outcomes. Also, briefing the team on each member's roles and necessary tasks which needed to be completed. ...read more.

Middle

Marketing Strategy: We will spend �5million on market research and �5million on market perception. This will entail organising focus groups and customer feedback on certain details of the cars, including level of detail, design issues and advertising campaigns. We are going to spend �10miliion on gathering data on our competitors through Company's House and online sources. Also purchasing competitor's products to closer analyze them could be useful. For the luxury car, we will advertise in luxury magazines, in broadsheet newspapers and business class sections of airliners and trains. For the mid-range vehicle, we will advertise more on the television, and in more mainstream magazines and newspapers, especially the Guardian, as they will respect the green credentials. A period of credit must be set. This specifies how many days the customers have to pay for their products after being invoiced. Longer credit terms are more appealing to the customer. The period of debt specifies the time (in days) the company takes to pay bills from its suppliers. If it is made too long the suppliers may respond by raising prices by up to 5%. Credit and debt periods can range from 0 to 99 days. Green Clovers Financial Plan: Year one Loan Needed Situation Cost Balance Opening Balance �500,000,000 Purchase of Factory �650,000,000 -�150,000,000 Purchase of Automation �5,000,000 -�155,000,000 Promotion �20,000,000 -�175,000,000 Research & Development �7,900,000 -�182,900,000 Labour Costs for Year �75,600,000 -�258,500,000 Raw Materials for Production �1,225,615,950.00 -�1,484,115,950.00 As you can see from the above table, after taking into account all of the costs that the company will require �1,484,115,950 extra funding. ...read more.

Conclusion

However this doesn't take into account the loan that needs to be paid back. The loan will be paid back using half of the profit made each year. Green Clovers Projected First Year Balance Sheet Assets Operating cash �500,000,000 Accounts receivables �1,524,529,800 Inventories �1,225,615,950 Other current assets �0 Total Current Assets �3,250,145,750 Gross property, plant & equipment �650,000,000 Accumulated depreciation �65,000,000 Net property, plant & equipment �585,000,000 Other assets �5,000,000 Goodwill �0 Discontinued operations �0 Total assets �3,840,145,750 Liabilities & Shareholders' equity Short-term debt �0 Accounts payable �1,225,691,550 Accrued liabilities �1,114,454,200 Total current liabilities �2,340,145,750 Long-term debt �1,500,000,000 Other long-term liabilities �0 Total liabilities �3,840,145,750 Green Clovers Growth Plan: The strategy that the company will be taking to help develop and nurture growth is to keep the labour force happy, keep productivity as high as possible and make profit each year. Within the first three years we plan to use the one factory and same level of workforce to produce the same amount of cars assuming that all products are sold, we should make a profit each year. However we will need to increase production beyond this point which would require expansion. This means that we will require another factory, which also means we will need a minimum of 600 more workers but more realistically around about the 2600 mark. To do this we won't be able to rely on existing profits we will require another loan, hopefully one less than the original one planned as its going to take a while for that to be paid back. ?? ?? ?? ?? 1 ...read more.

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