Business Proposal Free Essays

Business Proposal Melissa Wojciehowski ECO561 March 14, 2013 Ed Hartman Business Proposal Thomas Money Service (TMS) Inc. opened its doors in 1940 with the primary purpose of supplying the average household with loans for everyday needs. Since its origination, the company’s success has spawned an expansion including business loans, business acquisition financing, and commercial real estate loans. We will write a custom essay sample on Business Proposal or any similar topic only for you Order Now In 1946 Thomas merged with Future Growth Inc. , an equipment financing company. The merger proved to be a smart move for TMS as they became a viable reckoning force within the forestry and construction industries. From the beginning to mid-2005 TMS proved to be a very successful company and relished all its stature. Like many businesses, TMS experienced drastic losses in stock values because of the economy, and resulted in the need to lay off some of its employees. Natural disasters such as flooding, forest fires, animal activist protesters, and the recent economic crisis were reasons TMS experienced a loss in sales in previous years. The purpose of this proposal is to present suggestions on how TMS can increase revenue, achieve production levels, determine how costs can be attuned to maximize profits, suggest a mix of pricing and non-pricing strategies, and create barriers to entry into the market if possible. This proposal will also look into ways on how the company can increase product differentiation, and if there is other means to minimize the cost for the product. Increasing Revenue Because of the recent decrease in sales, TMS should first consider the marginal revenue and cost profit maximizing guide to determine whether there significant profit will produce to validate producing building and forestry equipment. Based on data gathered, after completing the analysis it proves that the marginal revenue exceed the marginal cost proving that no more would be added to cost than to revenue. If profits are maximized, prices need to be in excess of the average total cost where (P=MC output) as prices are kept at the equilibrium point to maximize revenue. Consumers need a production differentiation because this reflects on the demand of the product. Advertising is a strong marketing tool used to show the public what FGI can offer, not just price wise, but when comparing the quality between competing parties. Thomas Money Inc. can also incorporate its employees into the plan by enhancing customer service and drawing on the idea of expanding into the building of the medical industry. Thomas Money Inc. can also increase revenue by finding new ways to improve the production levels. Because the company manufactures its own brand of forestry and building , they have an advantage over their rivals because they can brand, patent, or license its own products. Investing in companies from within the medical industry, a new focus can be placed on the construction of nursing homes and hospitals that will also assist with increasing revenue. Reducing prices and a strong advertising campaign are ways the company can increase demand for its product in turn boosting levels from revenue to production. Maximizing Profits Thomas Money Inc. as the potential to maximize profits, especially after the information stated that marginal revenue exceeds marginal costs. Increasing revenues and limiting variable costs are the primary motives for the company therefore FGI will need to shift from its consumer targeting from new equipment to used equipment. By focusing on the used equipment and liquidating the repossessed units will generate an increase to marginal revenue since the variab le costs for those units do not exist. The company does not have to stop producing new equipment, but the level of new production need to follow the economic condition and markets to retain normal profit. In calculating the data provided additional revenue can be achieved by integrating resource and production efficiency. In using a series of short-run production analysis and application techniques FGI can maximize profits using the total revenue and total cost approach. With total revenue of $2,600 and total cost of $1,050, it produces an economic profit of $1,550 before the law of diminishing returns begins to affect it negatively. Fixed costs maintain the same output level and variable costs fluctuates at each level increasing at more than $50 dollars, it is recommended that the company look into the cost of advertisement. Although it is a much needed source to increasing revenue and production levels, there need to be another alternative to advertising during the super bowl events especially since it is very costly during that event. Other methods of advertisement can be in the form of newspaper ads, and local TV channels. Creating Price, Non-price strategies and barriers to market entry In every market the primary goal for companies is to sustain or increase profitability, especially during a slow-down of the economy. Ways of doing so is by limiting marginal costs of production and maintain a fair or comparable market selling price to keep consumers from buying from other rivals. As companies incur marginal cost of producing, it triggers a trickling effect where those costs are transferred into the market price that in turn is believed by the consumers. The result is a decrease in consumer demand for the product which creates a loss in profits for the company and consumers looking at other companies for similar products or substitutes. When considering pricing strategies, consumer expectations must be considered. Pricing should be set based on several factors such as geographical location, market segment, and economic conditions. Being flexible toward pricing policies change based on the dynamics of the market is the recommendation for the company. Non-price strategies and barriers to market entry are effective ways of sustaining economic profit and provide a higher potential for increased revenues and maximizing profits. Investing in research and development, becoming technologically equipped, and implement a strong consumer-oriented programs to substantiate the organizations appreciation and show organizational worth of those consumers expectations, demand, and wants. (McConnell) As mentioned previously, some barriers to entry should include patents for designs, copyrights, and branding of Thomas Money Inc and FGI within the current and future economic markets (McConnell) Product Differentiation and other cost saving measures Product differentiation is achieved by ensuring an entity’s products are established from all other organizations within the market, which includes establishing a product mix appropriate to Thomas Money Service Inc. and FGI’s goals and objectives. The improvement of equipment through research and development in the nursing and hospital market through merging, acquiring, or investing in other existing and reliable organizations validates a strong product mix across various market. Thomas Money Service Inc. nd FGI may reduce internal costs through various and simple methods that strengthens increase in revenue, profit maximization, sustaining applicable market pricing, establishing product, mixes and differentiation through high quality. Some cost saving measures includes establishing a strong purpose toward product improvement and eliminating unnecessary areas of productivity. Conclusion In summary, to sustain the goals of continuing to be a competitive and profitable co mpany this business proposal has considered the market conditions in which the company performs. The rate of success Thomas Money Service Inc. and FGI have maintained over the long years of performance provides the basis for the proposal made to increase revenue, employ profit maximization, establish product mix and differentiation, establish price and non-price barriers to market entry, and reduce costs. The design and strategic approach under the business proposal is to ensure the continuance, profitability, and stability of both Thomas Money Service Inc. and FGI providing a strong a basis for expansion, promoting growth, and development for future years respectively. How to cite Business Proposal, Papers Business Proposal Free Essays MAGALANG CHRISTIAN ECUMENICAL SCHOOL, Inc. Marbea Subd. , Sta. We will write a custom essay sample on Business Proposal or any similar topic only for you Order Now Cruz, Magalang, Pampanga In Partial Fulfillment for the Requirement in Technology and Livelihood Education IV Business Proposal â€Å"COCO KNOTS† Submitted by: Lean Carlo R. Gamboa Submitted to: Mrs. Alelie Sapnu-Duldulao Date submitted: February 4, 2013 I. Introduction The scientific name for coconut is Cocos nucifera. Early Spanish explorers called it coco, which means â€Å"monkey face† because the three indentations (eyes) on the hairy nut resemble the head and face of a monkey. Nucifera means â€Å"nut-bearing. † Coconut is highly nutritious and rich in fiber, vitamins, and minerals. It is classified as a â€Å"functional food† because it provides many health benefits beyond its nutritional content. The coconut palm is so highly valued by many as both a source of food and medicine that it is called â€Å"The Tree of Life. † The coconut provides a nutritious source of meat, juice, milk, and oil that has fed and nourished populations around the world for generations. Naturally refreshing, coconut water has a sweet, nutty taste. It contains easily digested carbohydrate in the form of sugar and electrolytes. Coconut water has less sugar than many sports drinks and much less sugar than sodas and some fruit juices. Plain coconut water could be a better choice for adults and kids looking for a beverage that is less sweet. I choose this business because coconut water is becoming popular nowadays. People also are becoming health-conscious and they pick coco water instead of sodas or other fruit juices. Coconut is also cheap and affordable. II. Objectives 1. To earn profit. 2. To gain knowledge about the nature of business. 3. To help people and give them satisfaction. 4. To promote coconut water/coconut juice. III. Management Plan Management is the act of managing, controlling or conducting a business. Organizational structure is under the management plan. These are the people who provide labor that receive salaries while the owner receives the profit. * Organizational Structure -FIGURE 1- * ————————————————- Owner: responsible for controlling or administering all or part of a company; activities and business dealings. * ————————————————- Cashier: responsible for the payments and receipts of the costumer. * ————————————————- Worker: responsible in producing the products that are for sale. Table 1: Salaries of the employees. Employees| Working Hours| Monthly| Yearly| Cashier| 9:00am – 7:00pm| P 5, 000. 00| P 60, 000. 00| Worker #1| 9:00am – 6:00pm| P 3, 500. 00| P 42, 000. 00| Worker #2| 11:00am – 8:00pm| P 3, 500. 00| P 42, 000. 00| Table 2: Time Frame Activities| Jan| Feb| Mar| Apr| May| Jun| Jul| Aug| Sept| Oct| Nov| Dec| Preparation of business| | X| X| | | | | | | | | | Negotiation of financing| | | | X| X| | | | | | | | Registration of business| | | | | | X| X| | | | | | Setting-up production| | | | | | | | X| X| | | | Start of business| | | | | | | | | | X| | | IV. Marketing Plan Marketing  is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It includes all the activities to develop a product and to move it from the producers to the consumers. Marketing can be divided into four categories called 4 – P’s: the product, price, place and promotion. * Product and Price ITEMS| PRICE| 1 Liter| P100. 00| 1 500 ml bottled coconut water| P55. 00| 1 250 ml bottled coconut water| P30. 00| 500 ml bottled coconut shake| P70. 00| 1 250 ml bottled coconut shake| P40. 00| * Channel of Distribution Schools/Students: 50% Office Workers: 20%Walk-in buyers: 30% Figure 2: Coco Knots will be located near the AUF School and Hospital. It is the best area for my business since my target clients/customers are mostly students and employees of nearby business establishments. * Place: In front of Angeles University Foundation and Hospital. * Promotion: First I will advertise my products online, we all know that the net is widely-use nowadays. I will put streamers, posters and tarpaulins along the roads and at highly-populated places. On my opening day, I will offer free 250 ml bottle coconut water for every purchase of 1 liter of coconut water or 500 ml of coconut shake. For the first 10 persons to buy two 500ml of coconut shake gets a free Coco. Knots notebook. V. Production Plan Production is the act of creating ‘use’ value or ‘utility’ that can satisfy a want or need. It is the process on how certain products has been made or produced. * Flow Chart: Figure 1. ————————————————- Buy ingredients and equipments in the market: buy all of the ingredients and equipments needed for the production of your products. 2. ————————————————- Cleaning and preparing equipments: clean the equipments that will be use. Arrange the equipments needed. 3. ————————————————- Set up store area: Check the store if it has defects. 4. ————————————————- Packaging: It will be packed and ready for selling. VI. Tables A) Income Statement COCO. KNOTS’INCOME STATEMENT| Gross Sales | | P1, 019,520. 00| Beginning Inventory| P0. 00| | Purchases | P693,000. 00| | Total cost of goods available for sale| P693,000. 00| | Less: Inventory End| P27,720. 00| | Total cost of goods sold | | P665,280. 00| Gross Profit on Sales| | P354,240. 00| Less Operating Expenses| | | Selling Expense| P 74,300. 00| | Salaries and Wages| P 144, 000. 00| | Total Expenses| | P 218, 300. 00| | | | Net Profit| | P135,940. 00| | ASSETS| LIABILITIES| Cash P478, 220. 00 | Advances from Parents P300,000. 0 | Equipments P30, 000. 00| | Inventory 27, 720. 00| Coco Knot’s Capital P 100,000. 00 Net Income P135,940. 00| | | Total Assets P535, 940. 00 | Total Liabilities and Prop. Capital P535,940. 00| | | . A) Owner’s Equity/ Proprietorship Assets – Liabilities = Owner’s Equity/Proprietorship ASSETS| LIABILITIES| OWNER’S EQUITY/PROPRIETORSHIP| P535,940. 00| P300,000. 00| P235,940. 00| How to cite Business Proposal, Papers Business Proposal Free Essays Customers can print cards for free, which means they don’t have to purchase the card in-store. It is my Job to provide an effective solution. Background Each employee must make a standard of 480 per week equaling out to 100% order filling, with an acceptance of 90% for the week. We will write a custom essay sample on Business Proposal or any similar topic only for you Order Now Fillers should also have no errors with an acceptance of one error per one hundred cards. All orders should be accurate according to the consumers pick list. We thought it would help the company if we had a way for customers to access cards via internet. Cards are free and you can design them yourself. They can be printed or sent via email. Proposed Approach and Work Plan In our first approach we will observe the fillers in this department to make sure that loitering is the only underlying issue. We do not have a problem with employees socializing, but there is a Job to be done. If our consumers are not satisfied with our delivery then that puts the company in a hard place. We are falling behind, which causes us to lose money. Employees must be able to complete the work required of them in order for our business to remain steady. The issue that we are having is not with all of the employees, but it is effecting everyone. Each filler will have to check their orders before taking them to the line. After the orders are placed on the line, a ICQ checker will recheck the order to make sure it is correct according to its specific pick list. Since the orders are being double checked there should be little to no errors. The point of checking the orders more than once is to cut down on the number of errors in each order. The way the employees are working will also be observed. I think it would be best if we put someone on the floor hey are unfamiliar with rather than their team leader or a supervisor. Most times when employees see authority they change their routine so that it is pleasing in the eyes of the supervisor. The person that we put on the floor will be able to observe them for a week. At the end of the week he/she will report to us and we will go further from there. Employees lack the training and development required to perform their Job duties to the high standards of their employer (Scott, 2014). If this is the case, it is the employer and human resource responsibility to produce an action plan to help the employee develop the skills necessary to improve Job performance (Scott, 2014). It is important that you address performance issues as they arise and pursue a progressive approach to discipline (Rutgers). If the report from our source reveal that loitering is the main issue, we will then conduct a department meeting. In the department meeting we will discuss the issue with the employees. We will also discuss how it is effecting the company. After the discussion, we will tell them the consequences of not performing their Job duties to the best of their ability. If tankard is not met in the week, they will receive a write up. After they receive three write ups the employee will be terminated. Disciplining employees is a difficult part of supervision and management (Rutgers). Our customers enjoy the Cards. I don’t feel we should stop the free services, but they should be limited. All of the cards should not be free. I know the goal is to draw in more customers, but the goal is also to make money. I think we should offer a certain amount of free Cards when the customers sign up and when they recommend the website to other people. I think if we take this approach we would ran more money. We may lose some customers, but I think in the end we would still profit. Conclusion The graph displayed is Just an example of the possible projections of our employees. The numbers are displayed as a single number but it is actually in hundreds. Each week their standard progresses. We hope the actual projections are better because these are Just average. Our goal is to make our consumers, customers and employees happy. In order to make this happen we need to work together. If we have employees that are willing to work and be productive, our company will continue to grow. Employee motivation is suppose to be a good way to get employees to do what you want them to do, according to Deed Parr. It is important to get to know your employees. Showing and being concerned about your employees motivate them, which produces better production. A strong and healthy work environment is always needed no matter what kind of business you are operating. When you find out what your employees interests are it is good to use them as positive reinforcement. The more personalized the incentive is the more motivation you will achieve and the greater the productivity (Parr, 2004). Unfit the company. Getting know your employees are important, but you do have those employees that are Just outright stubborn. You Just have those people that Just don’t want to work (Stone, 2014). It will be up to human resources to come up with some vital information to help with the interviewing of the potential employees. I believe that with proper information our employees will benefit as well as the company. I think we would also need to conduct an observation of the Cards on the website after the proposed changes. How to cite Business Proposal, Papers Business Proposal Free Essays Business Proposal Melissa Wojciehowski ECO561 March 14, 2013 Ed Hartman Business Proposal Thomas Money Service (TMS) Inc. opened its doors in 1940 with the primary purpose of supplying the average household with loans for everyday needs. Since its origination, the company’s success has spawned an expansion including business loans, business acquisition financing, and commercial real estate loans. We will write a custom essay sample on Business Proposal or any similar topic only for you Order Now In 1946 Thomas merged with Future Growth Inc. , an equipment financing company. The merger proved to be a smart move for TMS as they became a viable reckoning force within the forestry and construction industries. From the beginning to mid-2005 TMS proved to be a very successful company and relished all its stature. Like many businesses, TMS experienced drastic losses in stock values because of the economy, and resulted in the need to lay off some of its employees. Natural disasters such as flooding, forest fires, animal activist protesters, and the recent economic crisis were reasons TMS experienced a loss in sales in previous years. The purpose of this proposal is to present suggestions on how TMS can increase revenue, achieve production levels, determine how costs can be attuned to maximize profits, suggest a mix of pricing and non-pricing strategies, and create barriers to entry into the market if possible. This proposal will also look into ways on how the company can increase product differentiation, and if there is other means to minimize the cost for the product. Increasing Revenue Because of the recent decrease in sales, TMS should first consider the marginal revenue and cost profit maximizing guide to determine whether there significant profit will produce to validate producing building and forestry equipment. Based on data gathered, after completing the analysis it proves that the marginal revenue exceed the marginal cost proving that no more would be added to cost than to revenue. If profits are maximized, prices need to be in excess of the average total cost where (P=MC output) as prices are kept at the equilibrium point to maximize revenue. Consumers need a production differentiation because this reflects on the demand of the product. Advertising is a strong marketing tool used to show the public what FGI can offer, not just price wise, but when comparing the quality between competing parties. Thomas Money Inc. can also incorporate its employees into the plan by enhancing customer service and drawing on the idea of expanding into the building of the medical industry. Thomas Money Inc. can also increase revenue by finding new ways to improve the production levels. Because the company manufactures its own brand of forestry and building , they have an advantage over their rivals because they can brand, patent, or license its own products. Investing in companies from within the medical industry, a new focus can be placed on the construction of nursing homes and hospitals that will also assist with increasing revenue. Reducing prices and a strong advertising campaign are ways the company can increase demand for its product in turn boosting levels from revenue to production. Maximizing Profits Thomas Money Inc. as the potential to maximize profits, especially after the information stated that marginal revenue exceeds marginal costs. Increasing revenues and limiting variable costs are the primary motives for the company therefore FGI will need to shift from its consumer targeting from new equipment to used equipment. By focusing on the used equipment and liquidating the repossessed units will generate an increase to marginal revenue since the variab le costs for those units do not exist. The company does not have to stop producing new equipment, but the level of new production need to follow the economic condition and markets to retain normal profit. In calculating the data provided additional revenue can be achieved by integrating resource and production efficiency. In using a series of short-run production analysis and application techniques FGI can maximize profits using the total revenue and total cost approach. With total revenue of $2,600 and total cost of $1,050, it produces an economic profit of $1,550 before the law of diminishing returns begins to affect it negatively. Fixed costs maintain the same output level and variable costs fluctuates at each level increasing at more than $50 dollars, it is recommended that the company look into the cost of advertisement. Although it is a much needed source to increasing revenue and production levels, there need to be another alternative to advertising during the super bowl events especially since it is very costly during that event. Other methods of advertisement can be in the form of newspaper ads, and local TV channels. Creating Price, Non-price strategies and barriers to market entry In every market the primary goal for companies is to sustain or increase profitability, especially during a slow-down of the economy. Ways of doing so is by limiting marginal costs of production and maintain a fair or comparable market selling price to keep consumers from buying from other rivals. As companies incur marginal cost of producing, it triggers a trickling effect where those costs are transferred into the market price that in turn is believed by the consumers. The result is a decrease in consumer demand for the product which creates a loss in profits for the company and consumers looking at other companies for similar products or substitutes. When considering pricing strategies, consumer expectations must be considered. Pricing should be set based on several factors such as geographical location, market segment, and economic conditions. Being flexible toward pricing policies change based on the dynamics of the market is the recommendation for the company. Non-price strategies and barriers to market entry are effective ways of sustaining economic profit and provide a higher potential for increased revenues and maximizing profits. Investing in research and development, becoming technologically equipped, and implement a strong consumer-oriented programs to substantiate the organizations appreciation and show organizational worth of those consumers expectations, demand, and wants. (McConnell) As mentioned previously, some barriers to entry should include patents for designs, copyrights, and branding of Thomas Money Inc and FGI within the current and future economic markets (McConnell) Product Differentiation and other cost saving measures Product differentiation is achieved by ensuring an entity’s products are established from all other organizations within the market, which includes establishing a product mix appropriate to Thomas Money Service Inc. and FGI’s goals and objectives. The improvement of equipment through research and development in the nursing and hospital market through merging, acquiring, or investing in other existing and reliable organizations validates a strong product mix across various market. Thomas Money Service Inc. nd FGI may reduce internal costs through various and simple methods that strengthens increase in revenue, profit maximization, sustaining applicable market pricing, establishing product, mixes and differentiation through high quality. Some cost saving measures includes establishing a strong purpose toward product improvement and eliminating unnecessary areas of productivity. Conclusion In summary, to sustain the goals of continuing to be a competitive and profitable co mpany this business proposal has considered the market conditions in which the company performs. The rate of success Thomas Money Service Inc. and FGI have maintained over the long years of performance provides the basis for the proposal made to increase revenue, employ profit maximization, establish product mix and differentiation, establish price and non-price barriers to market entry, and reduce costs. The design and strategic approach under the business proposal is to ensure the continuance, profitability, and stability of both Thomas Money Service Inc. and FGI providing a strong a basis for expansion, promoting growth, and development for future years respectively. How to cite Business Proposal, Essay examples