This document is North gear strategic business plan for over a long period. The plan is for operating, renewing, maintaining and developing the business. In the first year, we need to aim to inform our customers, distributors, and also competitors about our new model cars benefits and we decided more production than profit in the first year. We like introduce two cars in one factory .And we choose the Italy for model -1car and United Kingdom for model-2car. These both countries are have good competitors than other countries and top ten markets also show Italy and United Kingdom quit better than other countries. It helps to easily enter our company in the market. And we choose under 25 age people for model-1 car, because youngster always like low price with lot of additional options. We mind also under 25 peoples are new to drive, so safety must while driving, it helps to easily reach our small car to youngsters. We make a medium car for 25-40 age peoples because they concentrate only quality than price, because they have ready to investment on car than less than 25 age people and also point view on prestige. We decided, to low selling price than our competitors with additional options as per new entrance on markets.
Model -1 = Gazette, Model -2 = Savana
Gazette total production =100000cars
Savana total production = 99343cars
Sold = Gazzana =100000cars and Savana = 99343cars
Company Performance
In our first round company has got a benefit on sales of the cars, because all the cars are sold and no more stock in the first year. And company achievement also wins on sales. Market shares are also good but quit lower than competitors, unfortunately loss of gross profit and post tax profit, because of low selling price and low mark-up and over draft from bank. So, we need to introduced 3rd model car in second round for full fill the overheads than profit of the company. In our second round, we need to introduce model-3 car (luxury car) for full fill the overheads than profit of the company. With investment of 300 million pounds, we are buy new automation for 3rd model production and we decided to remove some options from model-1 and model-2 car, because of control the cost of sales and improve the gross profit. And we need some bank loan again borrow from bank for cash flow over the business. And we decided to increase the selling price for both the gazette and savana cars. As the result in second round we got a great loss again on market share, gross profit, and post tax profit and also unfortunately we had stocks in end of the second year as well and lot of liquid investment to automation, over investment in promotions and we need to concentrate on production department, because we had lot of stocks and also over cash flow in the ...