Business Proposal

Executive Summary

S-mart is a novel concept that aims to combine traditional retailing with state of the art fully automated systems. The business will be established as a massive departmental store that will be a departmental store, a recreational facility and a food court. The primary purpose of the store will be to provide consumers with convenience in shopping by offering them a wide range of products under one roof. The business aims to achieve this by selling its products at highly competitive prices. With this, S-mart will ensure that it is able to maintain a wide competitive moat in the target market against some of its major competitors.

In order to determine the profitability of the business in the target market, extensive research data has been collected by market analysts. Primary research methods have been used to identify local demand for the departmental store. Various market research tools have been used in order to ensure that the business venture is a viable endeavor. A thorough analysis of the internal and external market environments has been conducted using SWOT analysis and PESTEL analysis (Witte & Van Muijen, 2000). This way, the leading driving forces prevalent in the local market have been successfully identified.

A financial analysis has also been conducted to calculate the profitability of the business. Financial data strongly suggests that the business will be able to sustain itself well in the long run and will give a healthy return on investment within two years of establishment (Sreenivasan & Narayana, 1992). The main advantage of the business is that it aims to generate revenues through various sources. Apart from revenues generated through sales of goods, the business also stands to benefit from selling tickets for the recreation area and sale of food items at the food court. This significantly reduces the risks that the business is exposed to while operating in the local market and widens the competitive moat of S-mart.

Table of Contents

Introduction4

The Company6

Motto6

Mission Statement6

Business Concept7

Organizational Culture7

Organizational structure10

Market Research to Determine Target Market16

Specimen of Questionnaire for Market Research17

Internal and External Market Research19

SWOT Analysis19

PESTEL Analysis21

Financial Objectives24

Financial Considerations26

Start-up Summary28

Market Segmentation31

Marketing Strategy33

Sales Strategy35

Sales Forecast36

Personnel Plan38

Financial Plan39

Break-even Analysis40

Projected Profit and Loss40

Projected Cash Flow43

Projected Balance Sheet46

S-mart Business Proposal

Introduction

S-mart is being established as a massive departmental store that is based on a unique concept. The store aims to offer consumers with convenience in shopping by offering them a wide range of products under one roof. Apart from this, the store will also comprise of an amusement area and a cafeteria.

The smart shopping store!

However, what will be unique about S-Mart is not the characteristics mentioned above.When compared with the traditional stores, it will be launched as the country's first fully-automated 24-hour destination for shopping, food and amusement. With this unique concept, S-mart aims to capture a major share of the local market through its innovations concept (Schein, 2010). An important factor that the store aims to rely on in terms of achieving its goals of capturing a major share is by ensuring that the major costs and expenses of ...