​Assignment 4: Supply Chain Management and Financial Plan

Assignment 4: Supply Chain Management and Financial Plan

Due Week 10 and worth 135 points

”One of the most important steps in launching a new business venture is fashioning a well-designed, practical, realistic financial plan” (Scarborough & Cornwall, 2015, p. 454).

With this assignment, you are creating two important elements of a financial plan: an Income Statement and Balance Sheet. You also are preparing an outline of a presentation of your business plan to potential investors or lenders.

Using the business you created from Assignments 2 and 3, write a three to four (3–4) page paper in which you:

  1. Prepare a simple pro forma (projected) income statement and balance sheet for the first two years of operation, using income projections and incorporating an advertising plan.
  2. Outline a plan for hiring and retaining competent, motivated employees for your business.
  3. Prepare an outline for a “pitch,” i.e., a short 20–30 minute business plan presentation that will be made to lenders or investors.
  4. Include at least two (2) references outside the textbook.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.

The specific course learning outcomes associated with this assignment are:

  • Analyze the key financial management considerations in operating a small business, including sources of financing.
  • Determine the various control and support functions needed to manage a small business.
  • Use technology and information resources to research issues in small business management.
  • Write clearly and concisely about small business management using proper writing mechanics.

Assignment 2

Feasibility Analysis

Jebbeh Sawyer

Professor: Dr. Samuel Garwon

BUS402 (Small Business Management)

Date: August 9, 2018

With the current competitive business environment, it has become paramount for entrepreneurs to conduct a feasibility analysis when they have a business idea to avoid instances where one starts a business and ends up failing. Feasibility analysis is the preliminary assessment of a business idea. This analysis is conducted to determine whether the idea is viable enough to be pursued. To this end, feasibility analysis or study helps a lot because it gives one the green light to proceed with the business idea after knowing the idea is viable or coming up with a different business idea when one notes the plan is not feasible. This paper, therefore, will offer a feasibility analysis of Glamorous Hair Collection which is a small E-commerce firm dealing with hair products and human hair in the US.

Glamorous Hair Collection firm will focus on selling hair products and human hair across the US. These products will be sold through an online platform to make sure that people across the nation can access the company’s online platform and order for their favorite hair products or human hair. These products are already in the US market in plenty because the US is the top human hair exporter in the world. As such, there are many other companies which deal with the same products and also sell the product using online strategy. This means there will be high competition (Kapoor, 2005).Glamorous Hair Collection firm will, therefore, need to ensure that its products are of high quality as well as use a good pricing strategy that will attract consumers.

To protect Glamorous Hair Collection from a stiff competition of other firms, it will be paramount to use viable marketing techniques which will not only be focused on attracting customers but also focusing on creating customer engagement which leads to customer loyalty. The human hair and hair products that the firm will sell will be of high quality and will be sold at an affordable price. In addition, the company will have different types of healthy hair products and human hair such as wigs and extensions for different people. This will mean that all people in the US can have their preferred type of human hair and also health hair products at an affordable price.

With many women in the US embracing their natural hair, the company’s products will benefit the consumers in many ways. For example, the firm will make it easy for customers to purchase their favorite human hair and hair products which are recommended for the type of hair one buys. In fact, the firm seeks to offer free awareness to its customers on how to take care of their hair. This will be done upon making a purchase where a customer will be advised on how to maintain the hair using healthy hair products from the company (Adewumi-Gunn, Ponce, Flint & Robbins, 2018). This will benefit customers a lot. Also, it will enable the company to be competitive and attract more customers. Glamorous Hair Collection company, therefore, need a good amount of funds to start the business.

The company will seek to target women in the US. This is because they have been embracing their natural hair a lot in the recent past unlike before. Due to this paradigm shift, it is true to assert that women will be more than pleased to buy these products because of their quality as well as other awareness services which will be offered by the firm. Additionally, this market segment will buy these products due to the mode of selling.Online selling is convenient for customers across the US, and this company will be delivering some products to customers in specific areas. This will boost sales.

However, there will be stiff competition from other companies such as Amazon.com, Tyhermenlisa hair, Sally beauty and Remy Hair Extensions. These firms offer the same products in the US and will be the main competitors. However, Glamorous Hair Collection will have the edge over them in that it will be educating its customers on the best ways to maintain their hair as well as delivery of the products in some regions (Ciriminna, Carnaroglio, Delisi, Arvati, Tamburin & Pagliaro, 2016). This is a weakness for the competitors which will give Glamorous Hair Collection a competitive advantage. Additionally, the hair products that the company will sell will be purely natural as it will be extracted from natural plants and seeds. The advantage of this is that women in the US will benefit from the product because natural products have no side effects on hair as does other unnatural hair products.

The business idea, however, will be likely to face some risks. For instance, change in preference among the target consumers can result in a high loss in the company. Another risk that the company can face is hair care industry evolution which will require new ways of products as well as marketing strategies (Kapoor, 2005).To overcome this risk, Glamorous Hair Collection company will stay informed of any new technology in the Hair Care market. This will give it an added advantage when it comes to marketing its products to the US market.

References

Adewumi-Gunn, T. A., Ponce, E., Flint, N., & Robbins, W. (2018). A preliminary community-based occupational health survey of black hair salon workers in South Los Angeles. Journal of immigrant and minority health20(1), 164-170.

Ciriminna, R., Carnaroglio, D., Delisi, R., Arvati, S., Tamburino, A., & Pagliaro, M. (2016). Industrial feasibility of natural products extraction with microwave technology. ChemistrySelect1(3), 549-555.

Kapoor, V. P. (2005). Herbal cosmetics for skin and hair care.

Assignment 3

Promotion and Pricing Strategies for Glamorous Hair Collection

Jebbeh Sawyer

Dr. Garwon

Strayer University

BUS 402 Small Business Management

August 27, 2018

Introduction

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Glamorous Hair Collection is an e-commerce company that deals with hair extensions, wigs, and natural hair products. Recently, women in the United States of America are embracing their natural hair, and they have a movement called the natural hair community. The community is for all the ladies mostly with kinky and coily hair and rather than using the chemical treatments on their hairs to make it manageable; they embrace their crowns (the coiled and curly hairs). However, the movement does not discriminate whether black or white, it is for all the people who love their natural hair which is not chemically processed (Adewumi-Gunn, Ponce, Flint & Robbins, 2018). Glamorous Hair Collection produces natural wigs and hair extensions as well as selling of products that are naturally from the environment, that is, plants and seeds. The products use organic and all-natural ingredients. The company dedicates most of its time to research on the products that best suits natural hair, and thus their products are scientifically proven to be beneficial for natural hair. Therefore, the products that the company is set to sell will all be beneficial for those with natural hair. The company is also eco-friendly, and thus the products are environmentally friendly. The hair company has friendly prices also for all the products and this is an advantage over other hair product companies.

The Primary Target Market

The primary target group is thus the natural hair community. The natural hair community is inclusive of men, women, and children with natural hair (Kasprzak, 2017). Therefore, this is the primary target group for the company. The company ought to understand what the natural hair community is all about before presenting their products. The target groups like products that are natural mostly from seeds and plants and this give the company an upper hand and give it a competitive advantage. However, even those with chemically processed hair can still use the product since the products will not be harsh on chemically treated hair.

Methods you will use to research customer needs and wants

Identifying the needs of the customers is the essential part of a new business. This is because satisfaction of the customer is what determines the success of the market. Satisfaction of the customer is identified by fulfilling their needs and their wants. The first method that the company can use to research the needs of the customers is through taking of polls. This can be done on the internet where the company can ask people to fill forms and explain in detail the ingredients that they look for in the products before they purchase them. This will help the company come up with statistics on the elements that they will add in their products and the consistency of the products that the customers prefer. Additionally, from the polls, the company will be able to understand the price range that the target group is willing to spend in buying of the products.

The second method that can be used is researching other companies. This can be done by looking at reviews from customers from other companies that deal with natural hair products. If there are reviews about the products, the company will learn on what ingredients the company would love to purchase. This strategy will help the company to understand the needs and wants of the target market. The last method that the company can use identifies the gap in the market. For instance, if the reviews and the polls indicate that people would want a product that lasts longer in addition to being pocket-friendly and has the desired ingredients, then the company can strive to make products that last longer. For instance, instead of coming up with liquid shampoos, they can make bar shampoos with natural ingredients. Identification of the need and wants of the clients reduces the likelihood of entering into disputes with the company or contemplating of legal actions.

Marketing mix

The 4Ps of marketing are a producer-oriented model that marketers use. Since the internet is continually growing, the relationship between the customers and the business has been made easier. The 4Ps include product, pricing strategy, promotion, and placement. The products from Glamorous Hair Collection include hair extensions, wigs, shampoos, conditioners, leave-in conditioners, daily spritz, co-wash products, and essential oils. The company will increase the range of the products once they have established their market. The company uses low-cost products as part of their portfolio. The company will use the penetration pricing first for it to gain market share. Later on, the company will set their pricing strategy as economic since advertising and marketing costs will not be high since the company will have a substantial market share. The company sought to use conventional sales promotion for its products since the company is E-commerce. This will be done through the use of the social media influencers, social media, and the company’s website. This method is convenient as customers can purchase the products at any time and it will be delivered to them physically. Distribution of the products will be through the purchase from the website. This means that the products can only be accessed online.

One-year advertising budget and plan that incorporates the use of various advertising media and publicity.

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal Year Total
SEO $200 $400 $700 $850 $2150
Social Media $100 $100 $150 $200 $450
Social Media Influencers $300 $300 $450 $500 $1550
Email $600 $600
Totals $600 $800 $1900 $1550 $4750

References

Adewumi-Gunn, T. A., Ponce, E., Flint, N., & Robbins, W. (2018). A preliminary community-based occupational health survey of black hair salon workers in South Los Angeles. Journal of immigrant and minority health20(1), 164-170.

Kasprzak, E. (2017, May 6). Black Natural Hair: Why women are returning to their roots. BBC News.

 

 

 

Solution Preview

 

Glamorous Hair Collection

Pro-forma Income Statement (2018 to 2019)

(Amount in USD)

  2018 2019
Sales 17,000 20,000
Cost of sales 500 500
Gross profit 17,500 20,500
Expenses    
Salaries 5000 7500
Licenses and permits 1200 1200
Electricity 1000 1000
Water 1000 1000
Insurance 3400 4500
Advertisement 4,750 3,500
Total expense 16350 18700
Net profit before tax 32,700 37,400
Provision for tax 9810 11220
Net profit after tax 22,890 26,180

 

(1,161 words)

​Assignment 4: Supply Chain Management and Financial Plan was last modified: by