Small Business and Enterpreneurship: Specific Resources on Market

areas then they will come to know about the new item which has been launched in the market then after using the product they will get to know about the product and if they like it then they will buy the product. When the company will make entry with their new product into their market then they have to bring changes with the new products like the scent of the sanitization need to be of different and along with that the packaging should be different and the colors which are used for packaging should be different from their other items which are already launched in the market. Along with that the chemicals which they have used in their other products that should be little different with many more new products as the ingredients in their new products so that they can shoe to the customer’s that what new they have brought in the market. They should give advertisements and placards about their new products so that people know about the products from outside (Agarwal, and Gupta, 2012).

Market Growth Strategy

After the sanitary company they have to keep growing in the market so that they can give a tough competition to their competitors, who are already there in the market with their products and giving others a tough competition. The company has to come up with different promotional strategy so that the customer’s gets attracted towards their products and buy their products seen their promotional strategy. After every certain period of time the company has to bring changes in their products by changing the style of their packaging of their product along with that they bring different but same products launched for the different people in the segregated market. Here the difference will be made in the same products like changing the color of the products or by adding some more new ingredients in that product or by changing their advertising style. The promotion component has a large contribution behind a company’s growth. If the company does not promote well about their product then people won’t know about their product and then there will be no growth of their company as it is already known that behind the growth of the company there is a great contribution of the customers as if they by the products then they can tell others about the product then by listening them other people will also buy the products like this the company will gain profit and along with that their company will also grow. Along with the promotional strategy expansion strategy is another strategy which is being adopted by the companies for their growth strategy. Every company wants to expand themselves so that lot more people can know about their products and use them. At first they start expanding nationally so that they become well-known within the country and become one of the top brands in the market of that country then they starts planning how they will expands themselves in the international market as expanding in the international market is not easy. For expanding in the international market the company has to strategize many things. They have to plan many new ways and they think of different promotional strategies which they will require when they will expand in the new country because already in the international market other brands of the same product are already ruling in the country.  So, the company has to think and strategize their plans in such a way that their promotion will bring customer’s attention towards their product so that people buy their product. For that they have to give free sample to the customers with other products so that customer’s use those products and show some interest towards those products (Boag, and Dastmalchian, 2015).

Operational issues:

Operational issues are the anomalies faced by a business in performing its task properly and judiciously. These issues rise due to deficit of some core factors or failure in implementing some stipulated rules. The squeeze business energy and also squeeze out business resources. The operational performance of a business gets affected due to the operational issues and impact execution of the strategies of a business. Operational issues are anti growth in natures. These issues are related to human resources, time, money, communication, government regulatory compliance.

Human resources: Human resources of a business consist of mainly the management and the workers. They are a pivotal factor for keeping a business going on, earning revenues and maximizing profits. They are the most rational elements of a business. Each worker has a spectrum of responsibilities bestowed upon him. But operations may be hampered because of dearth of workers. In the food sanitation business expertise on part of the workers is a revenue earner. But shortage of workers would put extra pressure and extra responsibility upon the employer (Corsten, and Peyinghaus, 2011).  When they are occupied with extra responsibilities, they may not have the expertise and time which affects operations.

Time: Managing time correctly and utilizing time judiciously is a forte of a business.Specific activities of a business fall under a specific time frame. No business can flourish without proper implementation of time management. The time (working hour) for the food sanitizer workers are pre determined. Being unpunctual in reaching the targeted customer can create doubts in the minds of the customers. By word of mouth the food sanitizer company can lose prospective customers if they cannot manage time properly.

Money: Money generates business for an organization. Excess money does not hamper but excess money earned by wrong means like evading taxes can be issues hampering operations. Dearth of money can hamper the business process. Money is a necessity needed for impending calamities in a business like depreciation and wearing out of equipments. To improve the infrastructure, money is required. For motivating workers, money incentive works as motivation.

Communication: When there is a miscommunication between the organization and the customers, it becomes a communication issue.

Government regulatory compliance: The main objective of food industries is to prepare and produce good food which is hygienic to be consumed. Government selects agencies which are bestowed responsibilities for setting food safety standards, conducting inspections of food firms, ensuring that those standards are met; inducing a strong enforcement programs for the food firms which do not follow the norms.

Wastage issues:The resources used to produce food are wasted when food is wasted.Waste management strategies help in removing wastes from the industries. This is because the real cost of waste is more than what is perceived by the layman. the costs in waste management are costs of raw materials, labour costs to pick up wastes, transportation costs to reach the waste in dumping zones. So, waste amount should be reduced to incur fewer costs. Thus, waste is a operational issue.

Quality issues: Quality issues are descriptions about processes in a business that can be improved.

Management and control issues: Management issues may arise due to three causes. It arises when management hold employees accountable due to non-performance; not setting clear and meaningful employee objectives and not spending quality time with employees on development of their career.

Work culture issue: Different persons belong to different cultures. So, their mode of behaviour, mannerism of talking and behaving shall be different. Asian culture does not advocate direct criticism of peers. They do not criticize workers in front of group.

Delay issues: Delay issues may hamper the business operations as stipulated time value will be lost and transaction value will also be not recovered.

Resources:

Human resource: Human resource is the pivotal resource in a business. Human resource synchronizes other man, machine, plant, equipment and money. Missions and goals of a business organization are carried out by the human resources (Rainieri, C. (2014). They generate revenues for a business. They are the management, employees, partners, franchise, vendors, suppliers etc.

Physical resource: Physical entity of a business is required for its proper establishment and identity.  This resource is the costliest. These are adequate and proper workspace, marketing material, effective communication like working telephone lines, information system

Financial resource: This is the pre requisite of a business. Financial resources can be gotten from the owner’s account. There are alternative finance facilities like loan from friends, relative, financial institutions. Finance can also be got from public and private source.

Resources used in food sanitation:

Compounds of chlorine

Compounds of chlorine

Sodium

Peroxyacid

Peroxide

Carboxylic acid

Acid anionic sanitizers

Hydrogen peroxide

QUATS

Idophors

Chlorine Dioxide

Iodine

Comprehensive and Accuracy Financial project:
 

Profit Projection
Category		In $US
Reduction of cost		$              90,000.00
Error reduction		$              75,000.00
Increased flexibility		$              10,000.00
Increased speed of activity		$              30,000.00
Improvement in management planning and control		$              25,000.00
Other		$                         -
Total Tangible Benefits		$            230,000.00
Tangible One-Time Costs
Category	In $US
Development costs	$            100,000.00
New hardware	$              21,000.00
New software	$                2,500.00
User training	$                2,500.00
Site preparation	$                3,500.00
Other	$                2,000.00
Total Tangible One-Time Costs	$            131,500.00
Tangible Recurring Costs
Category	In $US
Application software maintenance	$              30,000.00
Incremental data storage required	$                1,500.00
Incremental communications	$                2,500.00
New software or hardware leases	$                         -
Supplies	$                1,500.00
Other	$                         -
Total Tangible Recurring Costs	$              35,500.00

Breakeven Calculation

Break Even Analysis
Costs of Existing System	Year 1	Year 2	Year 3	Year 4	Year 5
Development costs	$          -	$        -	$        -	$        -	$        -
Additional hardware	$   45,000	$ 40,000	$ 35,000	$ 30,000	$ 30,000
Operation costs	$   20,000	$ 15,000	$ 26,000	$ 16,000	$ 18,000
User time during development	$          -	$        -	$        -	$        -	$        -
Maintenance costs	$     1,500	$   1,000	$   1,000	$   1,000	$   1,000
Total Cost of Existing System	$   66,500	$ 56,000	$ 62,000	$ 47,000	$ 49,000
Costs of Proposed System	Year 1	Year 2	Year 3	Year 4	Year 5
Development costs	$ 100,000	$        -	$        -	$        -	$        -
Additional hardware	$   24,000	$   1,500	$   1,500	$   1,500	$   1,500
Operation costs	$     3,000	$   2,600	$   2,500	$   2,500	$   2,500
User time during development	$     1,000	$     550	$     600	$     600	$     600
Maintenance costs	$     1,500	$   1,000	$   1,500	$   1,000	$   2,000
Total Cost of Proposed System	$ 129,500	$   5,650	$   6,100	$   5,600	$   6,600

 

Monthly Cash Flow Forecasting

Monthly Cash Flow Forecasting
Benefits of option	Year 1	Year 2	Year 3	Year 4	Year 5
Staff savings	$     45,000	$    60,000	$   60,000	$    60,000	$     30,000
Improved buying practice	$       7,500	$      7,500	$     7,500	$      7,500	$       7,000
Improved service	$       3,000	$      2,000	$     2,000	$      2,000	$            -
Total Benefits	$     55,500	$    69,500	$   69,500	$    69,500	$     37,000
Costs of option	Year 1	Year 2	Year 3	Year 4	Year 5
Development costs	$   100,000	$           -	$          -	$           -	$            -
Additional hardware	$     24,000	$      1,500	$     1,500	$      1,500	$       1,500
Operation costs	$       3,000	$      2,600	$     2,500	$      2,500	$       2,500
User time during development	$       1,000	$         550	$        600	$        600	$          600
Maintenance costs	$       1,500	$      1,000	$     1,500	$      1,000	$       2,000
Total Costs	$   129,500	$      5,650	$     6,100	$      5,600	$       6,600
Net benefits/costs	$    (74,000)	$    63,850	$   63,400	$    63,900	$     30,400
Cumulative benefits/costs	$    (74,000)	$   (10,150)	$   53,250	$  117,150	$    147,550

 

Balance Sheet

Assets		Initial balance	Year 1	Year 2	Year 3	Year 4	Year 5
	Cash and short-term investments	$55,000	$186,829	$169,704	$234,982	$319,819	$285,128
	Accounts receivable	3,000	3,000	3,000	3,000	3,000	3,000
	Total inventory	25,000	25,000	25,000	25,000	25,000	25,000
	Prepaid expenses	0	0	0	0	0	0
	Deferred income tax	0	0	0	0	0	0
	Other current assets	5,000	5,000	5,000	5,000	5,000	5,000
	Buildings	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000
	Land	100,000	100,000	100,000	100,000	100,000	100,000
	Capital improvements	0	0	0	0	0	0
	Machinery and equipment	100,000	100,000	100,000	100,000	100,000	100,000
	Less: Accumulated depreciation expense	0	40,000	80,800	122,400	164,800	208,000
	Net property/equipment	$300,000	$260,000	$219,200	$177,600	$135,200	$92,000
	Goodwill	$0	$0	$0	$0	$0	$0
	Deferred income tax	0	0	0	0	0	0
	Long-term investments	0	0	0	0	0	0
	Deposits	0	0	0	0	0	0
	Other long-term assets	0	0	0	0	0	0
	Total assets	$388,000	$479,829	$421,904	$445,582	$488,019	$410,128
Liabilities		Initial balance	Year 1	Year 2	Year 3	Year 4	Year 5
	Accounts payable	$2,000	$2,000	$3,000	$3,000	$1,500	$1,500
	Accrued expenses	0	0	0	0	0	0
	Notes payable/short-term debt	0	0	0	0	0	0
	Capital leases	0	0	0	0	0	0
	Other current liabilities	100	100	100	100	100	100
	Total current liabilities	$2,100	$2,100	$3,100	$3,100	$1,600	$1,600
	Long-term debt from loan payment calculator	$80,000	$65,522	$50,320	$34,358	$17,598	$0
	Other long-term debt	$100,000	$200,000	$150,000	$175,000	$225,000	$150,000
	Total debt	$182,100	$267,622	$203,420	$212,458	$244,198	$151,600
	Other liabilities	0	0	0	0	0	0
	Total liabilities	$82,100	$67,622	$53,420	$37,458	$19,198	$1,600
Equity		Initial balance	Year 1	Year 2	Year 3	Year 4	Year 5
	Owner's equity (common)	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000
	Paid-in capital	250,000	250,000	250,000	250,000	250,000	250,000
	Preferred equity	0	0	0	0	0	0
	Retained earnings	0	6,307	12,584	28,224	38,921	53,628
	Total equity	$300,000	$306,307	$312,584	$328,224	$338,921	$353,628
	Total liabilities and equity	$382,100	$373,929	$366,004	$365,682	$358,119	$355,228

 

Financing:

Use this area to capture key components of the Profit and Loss Statement and the Balance Sheet for the first year only.
1. Year-one revenue expectancy
Number of units sold annually	2,800	1,200	1,600	0
Average sales price per unit	$110.00	$80.00	$40.00	$0.00
Annual revenue per product	$308,000	$96,000	$64,000	$0
Total year 1 revenue	$468,000
2. Year 1 cost of goods sold
Expected gross margin per product	50.00%	40.00%	25.00%	0.00%
Annual cost of goods sold per product	$154,000	$38,400	$16,000	$0
Total year 1 cost of goods sold	$208,400
3. Annual maintenance, repair, and overhaul
Factor (%) on capital equipment	15%
4. Number of years for straight-line depreciation	5
5. Annual tax rate	30%
6. If long-term debt is being used to finance      operations, enter the total loan value.	$80,000

Risks:

The risks involved in materials handling are as follows:

Physical hazards: Materials used in the sanitation of food industry can be harmful and can cause skin related diseases in the employees (Internal operation issues, 2015).

Presence of foreign particles: There may be foreign particles in the food while sanitizing which may cause harm in the limbs.

Presence of extraneous materials:These materials may be hair, fragment of bone which can hamper human health in due process of sanitation.

Mishandling equipments: Equipments of sanitation may be misused by workers which may cause risk in intake of food.

Mitigation:

Training programmes: Training programmes should be initiated for workers to handle materials carefully.

Visual inspection: Judicious visual inspection can help to mitigate risks.

Consumer feedback: The working process must be in accordance to the consumer requirements and what feedback they give about the requirement.

Conclusion

In a nutshell is can be said that the company who are already existing in the market with their other products and is launching their new products then they have to go through all the steps which they had to gone when they have entered into the market with their first product and also have launched their other products. They had to strategize their entry into the market along with that they had to think about their growth in the market and for that they have make their financial and operation plans which they will be required when they will expand themselves in the national and international market.

References

Agarwal, R., and Gupta, B. (2012) Impact of firm specific resources on market entry strategic choice Asia Pacific Journal of Research in Business Management, 3(2), 1-12

Weismann, M. F., Buscaglia, C. A., and Peterson, J. (2014) The Foreign Corrupt Practices Act: Why It Fails to Deter Bribery as a Global Market Entry Strategy.Journal of Business Ethics, 123(4), 591-619.

Boag, D. A., and Dastmalchian, A. (2015) The Relationship between Growth Strategy and Market Performance in Technology-Based Manufacturing Companies In Proceedings of the 1987 Academy of Marketing Science (AMS) Annual Conference (pp. 382-386). Springer International Publishing

Corsten, D., Gruen, T., & Peyinghaus, M. (2011) The effects of supplier-to-buyer identification on operational performance—An empirical investigation of inter-organizational identification in automotive relationships. Journal of Operations Management, 29(6), 549-560.

Kumar, A., & Tripathi, A. (2013) Operational Risk in Banks-Mapping, Assessment and Measurement Issues TEN, 28

Rainieri, C. (2014). Perspectives of Second-Order Blind Identification for Operational Modal Analysis of Civil Structures Shock and Vibration, 2014