BUSINESS PLAN

Business Plan

Business Plan

Introduction

The topic under study is about developing a business plan for the expansion of “Far Horizon”. The company, which started as a supplier for marine leisure market, began manufacturing its unique sailing dinghies. The company now focuses to expand its business to deep water sailing. This business plan includes Environmental analysis, internal and external analysis, financial forecast and marketing strategy. A business plan is a working document that sets objectives and strategies of a company with the basic requirements, projects and operations for a specific time frame includes all.Environmental Analysis

Environmental analysis includes both the internal and external factors that are to be considered while developing a strategy. Organizations have more control over psychological factors than external factors. These are the critical forces that needed to be measured while developing a strategy. For Far Horizon, the internal forces include: People, Processes, Financials, Systems and etc. Far Horizon are strong in all of its internal forces and that define its capabilities and strengths. On the other hand, external forces are the things that are beyond the control of an organization. For Far Horizon, the external forces are the economy, competition, political interference, etc. One thing that the organization has to stay prepared for is the fact that internal and external forces changes with time. So the organization should prepare itself to cope up with these changes. Changes in the external environment might affect the internal environment and, it depends on the organization's management that how it respond to these changes. For instance advancement in technology would require the organization to advance its machinery and equipment. So in order to be successful, Far Horizon has to stay updated with the environmental changes, especially those occurring in the external environment. This is done through forecasting or research. The business idea is ensuring the enrichment of our customer's lives by offering them delicious, healthy, best quality of food and creating an enjoyable and relaxing environment for customers. Moreover, introducing and fostering a love of delicious and healthy cuisine in the area.

Market Expansion Strategy

There are several techniques of expanding the business which includes Licensing, Joint venture and direct investment. Each of these has several advantages and disadvantages. Advantages in Licensing and franchising have an advantage of lower investment but several disadvantages are there such as quality issues, promotion, and insufficient control. You can control these to some extent but cannot be fully controlled. Similarly, direct entry has some advantages which include complete control and, opportunities to learn fully about the customers and disadvantages such as high investment high risk, some legal issues might be there and, it might take long to get successful. There are even few other market entry techniques when we talk about expansion these include merger and acquisition and strategic alliances.

Mergers and acquisitions are done to enter the expand rapidly, take over famous brand names successfully, effectively buy market share, instantly acquire market knowledge, buy the normal distribution networks, achieve economies of scale in a single step and most importantly reduce competition by coming in as an established ...