Business Development and Value Creation

Table of Contents

EXECUTIVE SUMMARY 1

INTRODUCTION 3

BUSINESS PLAN 3

Business description. 3

Product and service description 4

Opportunity. 4

Company and team. 4

Market analysis 5

Marketing strategy. 8

Operations and logistics. 9

CONCLUSION 14

REFERENCES 15

2. INTRODUCTION

Business development is defined as the activities which involve evaluating the different areas in order to accelerate the performance. It undertakes analysis which help in determining those aspects which need to be improved in order to grab new opportunities for rapid growth of the business in order to increase profittability (Priem, 2018). On the other hand, value creation is about undertaking the practices by which business value can be increased for the customers by selling products and sevices. Furthermore, stakeholders value is also increased by focusing on those stcok prices. This report is about touch sensor cars which are going to be manufactured by a new company “Shazam Automibiles” in London, United Kingdom. The main motive of this enterprise is to introduce cars which latest technology which can be sold at affordable prices. Furthermore, this report invludes business plan comprising overview of company, team opportunities, marketing activities, financial plans aand may more. Together with this, various analysis have been included which can helped the company to ascertain the competition, position in the market and similar segments.

3. BUSINESS PLAN
   1. Business description.

The business is about cars in which touch sensor is embedded and the new company is situated in London, United Kingdom. This entity is planning to lauch cars with advanced technology at such a place which is approachable and one of the most popular locations in London. Shazam is the name which is going to make its place among the competitors by extracting the information about needs and demands of target customers in order to focus on them. Shazam is promising to provide the quality which is according to the customer’s and make the products available at different locations of UK (Prebensen, 2018). The company is focused on making electronic car as well with a view to curb the emission of harmful gases and other substance. This will be add to the main product in which touch sensor is going to be embedded. In addition to this, there are future plans of expanding the business to different countries for capturing huge market share and increase customer base. There will be practices and initiatives for keeping loyal customers by providing them quality goods so that positive feedbacks can be obtained for making the company survive in the competition for a long time (Ritter, 2018).

1. Product and service description

Shazam is considering this new proposal for catering the needs of the customers so that they can get all the features in one car. There has been various incidencts in other automobile manufacturing companies in which numerous defects have been found. This is one of the major reasons for manufacturing the cars which can overcome these defects and increase the satisfaction of the customers. The products are going to be sold to the people living in UK who have high interest in cars which are technological advanced. Furthermore, the other reason for the same is to provide high quality products which can provide good experience to the customers which the company is targetting. The USP of Shazam, the products are within the price range which is affordable by large number of individuals as compared to competitors. Furthermore, it is focused in bringing new products which ca be liked by people in the category of milennials. The sole focus will be on increasing the customer value by providing them quality products which comprises of all the latest features and advanced technology (Porter, 2019).

1. Opportunity.

The main aim of Shazam is to explore the opportunities and use them for the benefit of the company. For being liked by all the customers, Shazam is planning to bring different varients in touch sensor cars and to launch them at a price which can be afforded by every category of individuals (Toms, 2019). It is going to make plans which can help the company take advantage of the new products to attract the customers. UK government is putting efforts in making huge investment in tehcnology and automobiles sector for the growth of UK economy. Therefore, it is the right time to hit the market with new cars which fulfil the requirements of the customers.

1. Company and team.

Legal structure of company: The organisational structure of SHAZAM auto-mobile would be based on the sole proprietorship which working with the several entities of local areas in order to increase new business venture in a the marketplace of UK.

Ownership: The new upcoming business organisation is introduced by a single person or individual named is Mr. John Smith who would be responsible for sharing all profits and loss of the new business as well as takes all decisions individually.

Advisory board: There are few members in the advisory committee of upcoming venture that gives specific directions and advice related to the particular field in which they expertise.

The management team: In a team of managing people for the effective management of upcoming new business that named SHAZAM auto-mobile would be required 5 people at initial level.

Expected contribution or role: The total composition of employees within SHAZAM auto-mobile would be include:

• Managing director: 1
• Marketing expert: 1
• Financial advisor: 1
• employees: 2

Expected salary of staff: The salary plan of all managing people are as follows:

• Managing director: 12000
• Marketing expert: 6000
• Financial advisor: 6000
• employees: 4000

1. Market analysis

Industry analysis:

In order to analyse an industry and acknowledge the profits and revenue drivers for Shazam, industry analysis is very important. This will help the organisation in formulating strategies and plans so that high business advantage can be gained. In this context, porter’s five force framework is discussed below:

• Threat of new entrants: In case of car manufacturing industry, threat of new entrant for an established organisation like Shazam is very less. This is because Shazam is a renowned organisation which is successfully operating in market. Company invest very high amount every year in their products and business. For a new entrant, it is not possible to invent such high amount. Hence, this force is low in case of Shazam.
• Competitive rivalry: Industry associated with car manufacture is very competitive as most of the organisation are providing luxurious cars to their customers. Due to this, each organisation already has a loyal customer base. If Shazam will not provide required facilities and features to customers in their vehicles, other organisation can snatch away their customer base. Hence. This competitive rivalry for Shazam is very high.
• Threat of new substitutes: There is basically no substitute of car in market due to its high advantages like genuine price, safe travelling etc. Due to this, threat form this force is not very high. Even if a new substitute for travelling will be introduced in market, due to high comfort from cars, people are not going to replace it. But, in future to prevent environmental degradation, customers can prefer a substitute over Shazam vehicles. Then this force will became high.
• Bargaining power of buyer: This force is very high for Shazam as if customers of company are not satisfied with the products, it is not possible for Shazam to achieve their sales targets. This will also impact the revenues and profits of firm in a negative manner.
• Bargaining power of suppliers: As many car manufacturing companies are operating in market, it is not possible for Shzam to get all the required material and resources without the help of suppliers. This shows that bargaining power of suppliers is very high in case of car manufacturing industry.

Market research

Market research benefits a firm in analysing and evaluating market trends in a proper manner so that right product can be given to customers in a timely manner. Idea of introducing a touch sensor car is feasible in marketplace. This is because the primary research carried out by manager with the help of questionnaire states that people are in favour of using this innovative car.

Competitors analysis:

Main competitors of company are organisations like Ford, Bentley, Land Rover which provide luxurious cars to their customers. In order to overcome the threat of competitors, manager in Shazam can provide their products to the customers in less price than the rival firms. A slight decrease in price of product will benefits the firm in retaining their customers for maximum time.

Customer analysis:

It is the most important factor of launching a new venture as it includes the analysis of target market as it can be viewed that most of the youth of UK prefer advanced and touch sensor technologies so the demand of this kind of innovative technologies are high in that nation. Basically, upcoming business of touch sensor cars that named SHAZAM auto-mobile targeted youth population of UK linked with the segmentation of largest city as well as popular area of UK that is London.

PESTLE analysis:

Aspects	Analysis
Political factor	Political condition of UK is democratic and stable that highly encourage innovative ideas and support the growth of new business venture. The governments of UK like local, national and European highly support entrepreneurs by providing grants such as Gigabit Broadband Vouchers, Apprenticeship and so forth. Whereas, in this nation, incidents of global wars as well as terrorism would be negatively effect on the new entrepreneurial businesses.
Economic factor	Most of the youth population of UK are price sensitive that would give an opportunity to SHAZAM auto-mobile in order to launch a new idea of touch sensor cars. Whereas, Brexit deal between UK and Europe possess threat related to the demand of products and services in UK. But the high disposable income of targeted customers would be beneficial for a new business venture in order to improve profitability as well as revenue.
Social factor	From the point of view of sociocultural prospective, the popularity of driving is rapidly increasing and becoming a commonplace for families. In UK especially London, youth population demands for advanced technologies in automotive sector so a company named SHAZAM auto-mobile would launched touch sensor detector cars or vehicles as per the trends and requirements of market.
Technological factor	Implementation of the technology factor is increasing with rapid speed. This determines that all the organisation in the auto-mobile industry are performing their work with the technological aspect. Therefore, it is also mandatory for SHAZAM to implement new and innovative techniques in its functions and operations. This results with better technological shift it is easy to make better cars in the future.
Legal factor	Their are various issue are faced by the organisation in the auto-mobile industry such as copyright issue, change in their shape, international laws etc. Therefore, to deal and overcome from the legal aspects of organisation it is mandatory for SHAZAM to monitor the the recent issue that is impacting on the performance of their cars.
Environmental factor	Carbon emission is the major issue that is faced by the auto-mobile industries and its organisation. It is one of the most serious aspects by which the environment and its factors are impacting. This results due to the carbon emission there are several changes are monitored in climate. So in last, with proper action and activities it is easy for SHAZAM and its management to formulate their products as per environment rules.

1. Marketing strategy.

STP analysis:

Segmentation	The new upcoming venture of touch sensor cars emphasise on the population of UK mainly London, as they demands advanced technologies and models of cars. So new business venture segments the population of that nation and provides touch sensor car facility to them.
Targeting	In the whole population of UK basically the upcoming venture targets youth population as well as the richest and middle income level group of people who want touch sensor detector cars or vehicles.
Positioning	The new venture named SHAZAM auto-mobile positioned its vehicles to their customers by adopting effective strategies of marketing mix that attracts huge number of youth.

Marketing Mix:

Product	SHAZAM auto-mobile would be facilitating touched sensor detector cars that will be best meet as per the requirements of youth.
Price	While a business newly launched in the market then they would be keep affordable pricing strategy for their touch sensor cars which attracts the youth populations of UK as well as easily afforded by higher and medium income class of people.
Place	The location of upcoming business venture would be London that is the largest city of UK which have high population. As this helps in attracting the attention of more youth as well as acknowledged huge success in that marketplace.
Promotion	For promoting a new business idea in front of populations an entrepreneur of this venture would be choose social media marketing that includes Facebook, Instagram and so on and it will be highly approachable and used by the youth of a country and a best source of interacting with more people.

1. Operations and logistics.

What and who to deliver:

The enterprise is targetting to provide high quality products for providing higher satisfaction to customers by meeting their demands. In the context of Shazam, it is planning to launch cars with latest technology which are affordable and within the price range that the customers are willing to pay. Furthermore, it is also planning to provide good after sale services to customer so that they can have great experience (Usai, 2018).

Due diligence:

This company is going to operate at large scale and it can be highly complicated for it as there are number of processes and formalities which should be undergone through due diligence. There will be requirement for the company to appoint human resource who are capable of carrying the activities according to roles and skills. In order to ensure diligence, it can hire an accountant In financial due diligence analyse past financial information, sales and gross profit, rates of return on products, account variables, summary of stakeholders etc. In legal due diligence look towards the all copies of agreements and contracts like lease, purchase agreement, sales contract, articles of incorporation as well as trademark, patent, copyright and employment agreements (Chesbrough, 2018). Within the operational due diligence, determine customer patterns, business marketing, market analysis, research industry trends and business competitors etc. In the product due diligence, consider price, profitability, growth rate etc. in against of products which a business venture offers.