BUSINESS PLAN

Business plan for Far Horizon



Business plan for Far Horizon

Introduction

“Far Horizon” has been trading successfully for 15 years and is now planning for expansion. Starting out as a supplier to the marine leisure market, the company subsequently began the manufacture its own sailing dinghies, initially for novices. Considering the restricted business in the small craft market, the company aims to grow. The most effective and practical way to grow as of now is to design and construct a 4 to 6 berth sea-going sailing yacht, offering a much higher sales value than your popular products and with a much greater level of contribution. The company believes that this to be the best way to improve the long term profitability of the business (Cooper, 2003).

Marketing Plan

The market size for the company is very complex, keeping in mind that total yachts in the UK is 250,000 with a replacement and new demand rate of 2%, making the total market size of 5,000 yachts a year in the UK alone. Considering the competition present in the market, the company aims at capturing 10% of the current market (500). Considering the average price of a 30ft yacht is approximately £40,000, reflecting market size of about £40,000 (cost of Yacht) * 5000 (annual demand of yachts) = £200,000,000. The company aims at capturing 10% of the market size, making their market worth 20,000,000.

PEST Analysis

P - The Political Environment

New safety regulations, environmental or quality standards can contribute to the intensification of training of the data ranges that the company could obtain permission to perform work. This change in the system as well as training, job descriptions, increasing the scope of activity and responsibility for the data employed positions (Pinson, Linda. 2004).

E - Economic Environment

The economical condition is not very good considering the financial crunch. This results in a hesitation by the consumers, resulting in lower sales and increased cost in the form of un-utilized labour.

S - The Socio-Cultural Environment

This is the changing lifestyle of consumers and social values, tastes and needs. A company can directly or indirectly participate in the development of a region. In addition, market research yet considering the analysis of the socio-cultural environment of a country before making direct investments abroad - a successful implementation depends on an understanding of this environment (H. A. Simon, 2011).

T - Technology

The technological environment is subject to ongoing monitoring. Innovation has become an essential component of the competitiveness of the company, and we can even say, to some extent, that innovation is the most "cruel" in the competition as it can lead to the disappearance of some companies. The company needs to adapt some of the leading technologies in term of luxuries (Sullivan, 2003).

Development Plan

SWOT Analysis

Strengths

Experience

The company has sufficient experience to use as an asset, not just to attract more clients, but to provide better quality service, catering to a distinct target market (Yachts).

Specialization

The company has competencies in a variety of areas giving them an edge over their competitors when it comes to developing crafts, or ...