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Expanding A One Store Operation To A Two Store Operation Business Plan

¶ … Integrated Business Plan Brief Outline of the Business Venture

Organizational Issues and Expansion

Legal Issues and Expansion

Business Strategy

Technology

Financial Competitiveness and Expansion

Allocation of Funds

Pro-forma Cash Flow

Net Present Value

Internal Rate of Return (IRR)

Profitability Index (PI)

Payback Analysis

Marketing/Sales and Expansion

Marketing Mix Analysis and Expansion

Mediums of Marketing

An Integrated Business Plan

Management is basically a synergy of four elements i.e., planning, organizing, leading and controlling (Chris & Alan, 1999). The essence of management and its particulars are very important from the perspective of an organization. Businesses and business organizations are the heart of an economy as they have a direct relationship with the long-term fragility of an economy (Chris & Alan, 1999). The basic purpose of company is to earn money and increase profit with the help of different provisions. The ratio of profit for the company is based on the level of investment. To increase profit the company should decrease operational expenses.

It is not a piece of cake to establish a business as it requires lots of research and planning as well as finances to do that. The term establishment has two different meanings in business; one is the establishment of a new business while other is the further establishment of an already established business (Chris & Alan, 1999). Further establishment is also termed as expansion of the network of the business.

Section-1

Brief Outline of the Business Venture

Today the entire world has entered into the era of globalization wherein a single effect in one business ultimately affects whole economy. The purpose of the current assignment is to create a business plan for the expansion of one store into two stores. For this purpose the researcher has discussed the concept of expansion followed by a brief description of the venture and then the actual business plan.

Chris & Alan (1999) stated that there is no better way then a business plan in expanding or establishing a business (Chris & Alan, 1999). The current assignment is a detailed description of a business plan discussing how one store will be expanded into two stores. This is a general store where items like sandwiches, newspapers, snacks, beverages and bottles/Cans are sold. The business plan will assimilate and articulate all the financial, organizational, marketing/sales, legal and IT aspects of the venture. The assignment is bit tricky in nature so there is a need to follow a step-by-step (SBS) approach.

Businesses have been made to earn the economic surplus and mitigate the expenses. There are numerous ways in which a business can increase its net worth. As stated above, establishment occurs in two ways, new business establishment and further expansion. Basically the business which has been selected is a General Store in which different general and edible items are presented for sale. It is a small retailing business in the lobby of a large office building. The current store occupies a space of around 1000 square feet.

The business is located in a large residential building where large numbers of tenants live, so the store keeps those things in the shop which can be used by the tenants. These things include newspapers, wrapped sandwiches and many more. As the store is doing good business in terms of sales and revenues and there is opportunity ahead as a new building is being built few two block away from the current building so the store is planning to expand its business. For this purpose the store is planning to open up new franchise in the new buildings.

Following is a detailed discussion of the organizational, Information Technology, sales, legal, marketing and financial aspects of the business plan...

Organizational Issues and Expansion

Chris (1999) stated that majority of the professionals, officials and analysts consider that organizations have been made to increase the level of surplus and mitigate the expenses (Chris & Alan, 1999). An organization can not increase the level of its revenue by sticking to the current level of business. Hence, expansion is the most important strategy to increase the profit from an organization perspective of an organization. There can be numerous issues which need to be addressed during the expansion phases of an organization (Guy & Emma, 2006). The major issue which usually arises during the expansion is the hiring new staff for the new franchise. The business which we have pursued is not a large one and as in the current store, we have two employees working so with relative to this another two employees will be required for the new store which then may be increased with the...

There will be no communication gap between the owner of the store and workers because there will be no barrier between them which ultimately cause the owner to increase operational portfolio in the upcoming buildings (Guy & Emma, 2006).
In summary we can say that as the new store will not be very far and also will be of same capacity and same number of employees so this organization will not have to bother with the organizational issues and owner/manager will easily manage both stores. Let's now move towards the legal issues.

Legal Issues and Expansion

Another major issue which the organizations face during expansion is the legal issue. Legal issues are related to the laws set by states for businesses. Establishment of an organization has a large proportion of legal binding and legal sophistication. Without proper documentation and legal binding no organization or business can be formed and expanded. There are numerous restrictions applied on the organizations from the regulating bodies (Guy & Emma, 2006).

Securities and Exchange Commission (SEC) is the largest regulating body of the country which governs all the organizations operating in the country (Guy & Emma, 2006). There will be certain restrictions which will be encountered by our business from the regulatory authority. From legal perspective the company is bound to report the government before any kind of expansion. The government requires authentic proper documentation of the current shop and also the documentation of the new shops in the new building (Richard, 2001).

Regulating body also demand reports about the income and revenues in a proper manner from companies so that the provision of taxes will become easy. Let's now move towards the business strategy which will be used in this expansion. So the after the organizational issues are resolved the company will prepare all the documents required by legal authority for the establishment of new store.

Business Strategy

After the organizational and legal issues are solved, the organization has to formulate its business strategy for the new franchise. For the current business expansion is to accommodate low cost, able and safer beverages and accepted articles to our admired barter (Richard, 2001). Our strategy is to assure affordability for the consumers as our indigenous and foremost priority. We will alpha our account by installing the newest and able-bodied maintained accouterment as well as availability of all the required items in the store (Richard, 2005). We will strive to maintain the store and make available the customized agenda times (Richard, 2001). We will serve our respectable customers in a friendly manner and make them realize that they are getting appropriate service against their money. Our main objective is to achieve earnestly:

we will make sure that all the available items in the store are of good quality.

We will manage our account on time, superiority costs and will manage our business budget. We try to absorb the allurement of our casework in the market by befitting the connected account for our admired barter at economical rates.

we will get appropriate approval from the government.

We will make our adapted bazaar allotment at comparable amidst accepted competition. We market aggressively through advertisement and promotional campaigns (Richard, 2001).

We defend our finances, and escort aerial crop for our shareholders (Richard, 2005).

We appoint accomplished and clarify professionals to be an allotment of our team.

We are planning to elaborate our operations in the next year. Our plan is to access achievement plans to the best accepted destinations in the indigenous year operations (Richard, 2001). We will direct the capital share of our obligation to address the store in a way that is best acceptable for our clientele, and make advancement in all areas for the accumulation of a belligerent advantage (Richard, 2005). Our business strategy includes following areas to be focused keenly:

Technology:

This is an era of technology and internet as the entire world is now moving with advanced technology in every field of business from manufacturing to marketing and selling (Richard, 2001). In my view, we don't have to restrict our operations in selling general and edible items but it will be to incorporate some technological items in the store as well like photocopy machine, fax machine and printer. All of these things have demand and people need it in daily life (Richard, 2001). Our business's first priority is to facilitate every tenant by…

Sources used in this document:
References

Cinnamon, R & Larsen, B.H (2006), How to understand Business Finance, British Library Publications

Cinnamon, R & Larsen, B.H (2008), How to understand Business Finance, British Library Publications

Chris, B & Alan, P (1999), Strategic Marketing Communication, Oxford University Publications

Guy, M & Emma, H (2006), Innovative Marketing Communication Plan, McGraw Hill Publications
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