business management capstone written project ђ“ qgt1

Business Management Capstone (QGT1)

Was wondering how long it took to complete? I get that's a subjective question haha.

How many pages in length was it is a more accurate question?

Any advice?

Edit: It looks like there might have been an outline, but it got taken down. Does anyone happen to have that handy?

Don't worry about page count.

My method is to copy the task assignment and the rubric into a blank document. Go through each step, make sure what you have meets the task and the rubic. As you complete each section, delete the instructions, leaving your work behind.

At some point, all you will have left is your paper, and some nagging doubts (Actual doubts you can check with mentors). Nagging doubts are where you think you did it right but it doesn't seem right.

Submit. Take a few days off while it works through Taskstream. If something needs to fixed, they'll tell you. Most of the time, if it doesn't pass outright, you'll find the section you thought was iffy passes, and some other section you thought you nailed needs a revision. And if you don't understand what they're saying, ask the mentor. Everything I've ever done always got approved on the revision.

I do not think that the number of sheets in your run is important. The meaning is more important. It will be cool if you make some research on the example of "The feature of Marketing Management System". You can write about how different companies introduce marketing, what they focus on, which of the types of marketing is more effective for different businesses. You can still speculate about "how much marketing in Business Management is generally needed." You can see a couple of examples on eduowl.pro . This is really a very good essay writing service.

I’m coming up on mine and I’m kinda dreading it. Hope you get some answers here.

I worked on mine a few hours at a time at the computer for a few weeks, every other day or so. The rest of the time I spent tossing ideas and writing in my head. Passed first shot, mine ended up being 33-34 pages.

I wrote mine in 3 days and it took almost 4 days to work through Taskstream. I spent time attending the live cohort. The PowerPoint is decent that they send you after you attend but they really point out the must have stuff. Like a lot of the writing courses, use the rubric and write to the points contained in it. My page count was 32 not including the spreadsheet stuff from section F. Passed on the first submission even though I felt some sections might be a bit weak. Definitely do Section A last. Everything else is fact based and A is a lot more touchy feely. It was way harder for me to BS and write...good luck!

Don't feel overwhelmed with all these high achievers. Mine ended up being about 18 pages. Took about 2.5 days of real work. Be concise and make sure you follow the rubric.

I honestly don't remember how long mine was. My best advice is don't look at the whole thing! It looks super intimidating, but it is very manageable if you take it section by section. Mine took 18 days to complete, but I was only actually focused and working on it for 8.

I typed like a mad man and got it done in about 2 weeks. It took a couple days for it to be graded in taskstream, and I passed on my first submission. Not counting the separate financial attachment, my capstone was 32 pages in length.

It took me about a month to complete, but I had alot going on. It could be completed in a few days. Mine was 25 pages without the financials.

I passed it on the first try by following the rubric and outline!

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QGT1 Western Governors University Business Management Capstone MetaShoe Company Paper

User Generated

Business Finance

Western Governors University

Description

INTRODUCTION

For the capstone project, you will create a business plan for a hypothetical start-up company using the scenarios provided below. In the business plan, you will need to demonstrate the integration and synthesis of competencies in all domains required for your degree program.

Develop a business plan for a start-up company that plans to sell a product or service in a local market, in a national market, or on the Internet. Select one of your favorite products as the basis for the company, or invent a product.

Your submission must be your original work. No more than a combined total of 30% of the submission and no more than a 10% match to any one individual source can be directly quoted or closely paraphrased from sources, even if cited correctly. The originality report that is provided when you submit your task can be used as a guide. You must use the rubric to direct the creation of your submission because it provides detailed criteria that will be used to evaluate your work. Each requirement below may be evaluated by more than one rubric aspect. The rubric aspect titles may contain hyperlinks to relevant portions of the course. Tasks may not be submitted as cloud links, such as links to Google Docs, Google Slides, OneDrive, etc., unless specified in the task requirements. All other submissions must be file types that are uploaded and submitted as attachments (e.g., .docx, .pdf, .ppt).

Create a business plan for your hypothetical start-up company in which you do the following:

Note: You are required to utilize both the attached “Business Plan Template” and the attached “Financial Plan Template” in creating your business plan. If the attached WGU templates are not completed and submitted, your work will automatically be returned to you without being evaluated. These templates are located in the “Supporting Documents” section of the Capstone instructions .

A. Write an executive summary ( suggested length of 1–2 pages ) in which you do the following:

1. Identify the company’s name and location.

2. Describe the mission of the company.

3. Discuss two business goals in support of the company’s mission.

4. Discuss three keys to success for the company.

B. Write a company summary ( suggested length of 4–6 pages ) in which you do the following:

1. Describe the history of the industry in which the company will operate.

2. Identify the legal form that the company will take.

3. Describe the location and type of facilities needed for the company.

4. Describe the management structure, including key positions and specific responsibilities.

5. Describe the products and services offered by the company.

C. Develop a market analysis ( suggested length of 3–5 pages ) in which you do the following:

1. Describe the target market for the company’s products and services, including the specific location, demographics, etc.

2. Complete an industry analysis for the company, including current trends and statistics.

3. Complete a four-square SWOT analysis for the company in which you do the following:

a. Identify three strengths, three weaknesses, three opportunities, and three threats.

b. Explain each of the identified strengths, weaknesses, opportunities, and threats.

D. Develop a market strategy ( suggested length of 3–6 pages ) in which you do the following:

1. Discuss each of the four Ps of marketing as they relate to the company’s products and services.

2. Develop a price list for the company’s products and services.

3. Develop a promotional strategy including specific tasks, target dates, and responsible parties.

4. Develop a monthly sales forecast for the first year of operations, including a discussion of expected market conditions.

Note: The sales forecast will be used as the basis for your revenue in your financial statements.

E. Develop an implementation strategy in which you do the following:

1. Summarize the overall strategy that will be utilized to launch your business, including target dates and goals for implementation.

2. Develop a post-launch monitoring plan (e.g., financial impact, quality control, customer satisfaction, monitoring schedule) to evaluate the success of the company in meeting milestones.

F. Calculate and develop the financial statements and projections for the first year of business by doing the following:

1. Develop a month-by-month forecasted profit and loss statement using an estimate of revenues and operating costs based on the sales forecast.

2. Develop a forecasted balance sheet for the end of year one.

G. Write a financial report ( suggested length of 1–2 pages ) in which you do the following:

1. Summarize the financial projections and the assumptions used in estimating the financial statements.

2. Describe the company’s financial position at the end of the first year.

3. Describe the company’s initial and future estimated capital/investment needs.

H. Acknowledge sources, using in-text citations and references, for content that is quoted, paraphrased, or summarized.

I. Demonstrate professional communication in the content and presentation of your submission.

File Restrictions

File name may contain only letters, numbers, spaces, and these symbols: ! - _ . * ' ( ) File size limit: 200 MB File types allowed: doc, docx, rtf, xls, xlsx, ppt, pptx, odt, pdf, txt, qt, mov, mpg, avi, mp3, wav, mp4, wma, flv, asf, mpeg, wmv, m4v, svg, tif, tiff, jpeg, jpg, gif, png, zip, rar, tar, 7z

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Explanation & Answer

Here you go. In case of any further inputs please let me know!It was good working with you! 👋 Thanks for using Studypool. Take care and good luck!All the best. Running head: BUSINESS MANAGEMENT 1 Business Management Capstone Name Course Tutor Date BUSINESS MANAGEMENT 2 Business Management Capstone MetaShoe Company Executive Summary MetaShoe Company is a shoe manufacturing company to be established in San Antonio, Texas. The company will set up a production unit in San Antonio, where all its production will take place. There are several reasons that informed the location of the business in San Antonio. The most critical factor that made it easy to select the city is the relatively lower average hourly wage in the area. The mission of the company is to produce high quality footwear (sneakers) to meet the needs, tastes and preferences of its customers at affordable costs using locally available resources. One of the goals of the business is to use locally available resources to provide products that meet the needs of the clients. In the production of the sneakers, the company will make sure the products are obtained locally. The second goal of the business is to enhance the economic development of the country by enhancing the creation of job opportunities to locals. There are three key issues that the company sees to be critical for its success. The first is the establishment of suitable relationship with all the stakeholders. The second key is environmental protection. The company sees the development of sustainable environmental conditions as being critical to its development. Finally, the company sees the establishment of enabling organizational culture as being critical for its success. BUSINESS MANAGEMENT 3 Company Summary Industry History The shoe manufacturing industry is a fairly old industry in the world. In the United States, the history of the industry may be traced to the coming of the British colonial masters when the show manufacturers came to provide shoes and boots to the colonizers. The tradesmen acquired leather from the nearby tanneries. In these early periods, there were no established companies since the cobblers who manufactured the shoes operated from their homes. At the end of the colonial era, massive developments had taken place in the shoe manufacturing sector. In Eastern Massachusetts, an industry was already developing. The Revolutionary War played a critical role in the development of this sector since there was a huge demand for boots to be used by soldiers in the war (Davies & Frink, 2014). The shoe manufacturers were compelled to import materials from Europe since the local market could not deliver enough leather. Since that period, there have been massive changes in the shoemaking sector. Today, the shoe manufacturing sector in the United States is highly developed. There are about 230 footwear manufacturing companies in the United States. However, the industry is highly concentrated, with only 50 companies accounting for over 95% of the revenues in the Industry Dun & Broadstreet. (n.d). One challenge that the United States footwear sector faces is the high costs of manufacturing, which compels many companies to manufacture the products abroad and import the products into the country. Legal Form of Ownership The business is a Limited Liability Company (LLC). One of the characteristics of a limited liability company is that it a separate legal entity from its owners. The organization can BUSINESS MANAGEMENT 4 sue and be sued in its name. One of the main reasons for the selection of this form of ownership is that it provides an opportunity for the establishment of flexible leadership (Mancuso, 2019). The owners are able to hire managers to run the business for them and, as a result, make sure there is professional and competent leadership being offered to the business. However, the owners maintain the right to make critical decisions concerning the management of the business. Many business organizations have failed to achieve their goals, not because the environment has been hostile or unsupportive, but because of poor management. One critical issue that many business organizations encounter is the failure of business owners to provide objective and competent leadership to the organization. When businesses are run by their owners, there is a level of emotional attachment to the business that is capable of preventing objectivity in decision-making (Nissim, 2013). Thus, the utilization of the Limited Liability Company approach to the ownership of the business will make sure that the organization has not only proper management but also making sure that the owners do not lose control of the business. Location and Facilities The business organization is located in San Antonio, Texas. There are several reasons that informed the location of the business in San Antonio. One of the reasons for this decision is that San Antonio is a city that has a robust economic development. The city is highly developed in terms of infrastructure, and this will make it possible to easily transport the products of the business to other parts of the country. However, one of the most critical factors that made it easy to select the city is the relatively lower average hourly wage in the area. While the national hourly wage rate is $25.72, the rate in San Antonio is $22.70 (U.S Bureau of Labor Statistics, BUSINESS MANAGEMENT 5 2019). The low wage rates in San Antonio will enable the company to reduce the costs of its production without compromising the quality of the products. The company will set up a production unit in San Antonio, where all its production will take place. The company intends to acquire a piece of land in the region where the production unit will be established. There was a thought of leasing a facility to use for production, but after carrying out a comparative analysis, it became evident that the route of purchasing a piece of land and setting up the production unit on it would be the ideal route to take. Management Structure Managing Director Finance Manager Marketing Manager Production Manager Human Resource Manager Sales Department Research and Dev. Officer Head of employee training and development Legal Officer Fig. 1.0: MetaShoe Company Managing Structure The figure above shows the management structure of MetaShoe Company. The organization is headed by a managing director who is in charge of making sure that the daily running of the organization is smooth so that the organization. The managing director is the BUSINESS MANAGEMENT 6 bearer of the vision of the organization, and the individual is tasked with the responsibility of making sure that all the employees of the organization work towards the realization of a common goal. Below the managing director are departments that are headed by managers. The departments include finance, marketing, production, human resource, and legal services. The finance manager's primary responsibility is to make sure the organization maintains the desired level of financial health. The holder of the office is tasked with making sure the company has policies that will make sure it maintains sound financial standards. Additionally, the finance manager is tasked with handling all the financial resources of the organization. The primary responsibility of the marketing manager is to help the organization to expand its market base and market the products. The marketing manager will make sure that the company creates a loyal customer base in the market by making them understand how the product will add value to them. The human resources department will handle all the issues related to employees from recruitment, training, remuneration, appraisal, and promotions. The human resource manager is tasked with developing human resource policies that will make sure the organization has all the employees that are suitable for its circumstances and culture. On the other side, the production department will make sure the organization makes products that will be competitive in the market. The production manager will be tasked with the responsibility of making sure that the company also obtains the raw materials that it requires to carry out its responsibilities. Finally, the legal office will assist the company in all legal issues. The department will help the organization in decision-making to make sure all the decisions are within the legal requirements at the local, state, and federal levels. BUSINESS MANAGEMENT 7 Products and Services The main product of the company is sneakers. The company will manufacture sneakers that it will sell to its clients within the United States and other markets. Market Analysis A. Market Analysis Target Market The company’s target market is young people who are between 15 and 45 years. Sneakers are shoes that are used primarily in athletics and in training. Most of the people who are actively engaged in athletic activities and those who are involved in active exercises are between the age of 15 and 45 years. Thus, the company will target young people with this product. In the beginning, the company's target market is the American population. While the United States has a lot of companies that are producing sneakers, it is also evident that the market is still not yet saturated. It is possible that a firm can still enter this market and compete favorably with other players as long as it can produce sneakers that are of the highest quality levels. However, as the company increases its customer base in the United States, it will expand into international markets where the demand for the products is still high, but the supply is limited. BUSINESS MANAGEMENT 8 Industry Analysis In the 2019-2020 financial year, the total revenue attributable to the footwear in the United States stood at $ 86 billion. Data suggests that it is expected that the sector would grow at a rate of 4% annually (Statista, 2020). In recent years, this industry has been experiencing significant growth patterns. The image below shows the growth of the revenues from the footwear sector in the United States; Fig. 2.0: Growth of American footwear market between 2012 and 2025 From the data above, it is notable that the American footwear industry has been experiencing tremendous growth in revenue. Between 2012 and 2020, it was only between 2019 and 2020 that there was a dip in revenue. The dip in revenue could be attributable to the impacts of the novel coronavirus pandemic (COVID-19) th...

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• 1. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 1 GrumpleWear Business Plan Hope F. Hreha Founder & President 2216 Harden Circle Hendersonville, NC 28739 (828) 693-0051 [email protected] June 1, 2014
• 2. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 2 Contents Contents.........................................................................................................................................................................2 A.Executive Summary..................................................................................................................................................3 B.Company Summary..................................................................................................................................................6 C.Market Analysis......................................................................................................................................................12 D.Market Strategy......................................................................................................................................................17 D1: 4Ps......................................................................................................................................................................17 Pricing..................................................................................................................................................................17 Product.................................................................................................................................................................18 Place.....................................................................................................................................................................18 Promotion............................................................................................................................................................18 D2: Price List............................................................................................................................................................20 D3: Selling Strategy..................................................................................................................................................21 D4: Sales Forecast....................................................................................................................................................27 E.Implementation Strategy........................................................................................................................................30 E1. Overall Strategy..................................................................................................................................................31 E2. Implementation...................................................................................................................................................32 E3. Control Plan........................................................................................................................................................39 F.Financial Statements and Projections....................................................................................................................42 F1. Revenue and Cost Estimate................................................................................................................................42 F2. Forecasted Profit and Loss Statement................................................................................................................42 F3. Forecasted Balance Sheet...................................................................................................................................44
• 3. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 3 G1. Financial Projections...........................................................................................................................................46 G1a- Breakeven Point...............................................................................................................................................46 G1b-Financial Position.............................................................................................................................................47 G1c-Capital/Investment Needs: ...............................................................................................................................48 References....................................................................................................................................................................49 A. Executive Summary A1. Business Identification: GrumpleWear is a small business whose corporate office is located in Hendersonville, North Carolina. GrumpleWear offers high-quality, humor-based t-shirts manufactured in the United States. Merchandise will be sold via the GrumpleWear online store (www.grumplewear.com).
• 4. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 4 This business plan outlines the sales goals slated for the first year of operation along with the associated costs, the methodology that will guide the company’s growth and identify the capital needs required to successfully launch and sustain the business in the initial year of operation. A2. Mission, Goals and Objectives: GrumpleWear’s mission is to offer best-in-class quality, U.S. manufactured clothing infused with sarcastic humor that speaks to the inner “grumple” of our customers. In support of the company missions, the following goals have been identified: 1) Be an industry leader by setting the stand for high-quality t-shirts 2) Capitalize on the trend among U.S. customers for goods made within the country 3) Provide socially relevant messages delivered with humor 4) Provide superior service to and build a relationship with our customers 5) Ensure growth of the company through fiscal responsibility, commitment to quality and establishing strong brand recognition. In further of these goals, the company will pursue the following objectives: 1) Development of a relationship with a U.S. based company that produces goods within the country. Build a partnership that is focused on ongoing improved quality of manufactured goods. Participation will go beyond the typical organization/vendor relationship with a focus on building a long-term strategic alliance that benefits both companies. 2) Develop brand recognition through careful marketing and ongoing maintenance of the brand.
• 5. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 5 3) Increase sales month-over-month with review of monthly reporting to assess actual sales with goals; examine underlying causes of variation and adjust future (sales projections, marketing efforts, cost containment) efforts as necessary 4) Ensure profit through control of costs and reduction in defects through continuous quality improvement. A3. Keys to Success: There are three main keys to the success of GrumpleWear: 1) The first key to success is GrumpleWear’s commitment to quality through all aspects of the operation, including but not limited to: a. GrumpleWear garments. GrumpleWear garments must live up to their best-in-class quality claims through selection of superior materials and workmanship that lead to longer product life and fewer defects. b. Marketing. Marketing efforts that support the GrumpleWear brand must clearly identify what is unique about the GrumpleWear garment and the commitment to the “grumple” side of life. c. Financial planning & oversight. Financial planning must reflect an attention to detail, careful analysis and sound decisions. d. Customer Service. Creative, well-designed and easy to use website along with customer-centric post-sales follow-up and support. e. Packaging. Packaging utilized for fulfillment of product must be able to withstand the rigors of the delivery process and ensure that product arrives undamaged. Acceptable condition of delivered product enhances the customer experience and minimizes post-sales customer service calls made in order to register a complaint.
• 6. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 6 2) Pricing that is consistent with a high-quality image and high-quality product. The goal of GrumpleWear is not to be the cheapest in the business so the pricing of the product should reflect the quality being offered. 3) Provide humorous content that resonates with customers and reflects GrumpleWear’s signature attitude. The GrumpleWear brand will not be for everybody, but needs to reflect the humor and attitude that the GrumpleWear customer expects. B. Company Summary B1. Industry History: The first component to the GrumpleWear business is the merchandise itself: the t-shirt. The t- shirt has become one of the iconic symbols of America…from the plain tees immortalized by Marlon Brando in the classic film “A Streetcar Named Desire” to logo-laden garments that make their wearers instant billboards for the companies whose moniker they display to modern expressions of individuality of every kind. The t-shirt is an American wardrobe staple that has moved beyond its utilitarian beginnings. First issued by the U.S. Navy in the Spanish American War era, the humble t-shirt was plain and designed to be worn underneath the uniform and soon evolved into a standard issue item for the Army. (History of the T-Shirt, 2014) The first public display of a printed t-shirt occurred on the cover of LIFE magazine in 1942 and featured a reference to the Air Force Gunnery School in Las Vegas, Nevada. Printed t-shirts for the masses, however, did not occur until approximately the late 1950’s or early 1960’s. (Brown, 2009) Some early versions of the printed t-shirt are still popular today including the Tie-Dyed t-shirt that made it’s introduction in 1969 to the I ♥ NY t- shirt introduced in 1977 that spurred a resurgence of tourism for the city and has become the most
• 7. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 7 imitated t-shirt in the articles history. (Cellina, 2011) Now one can hardly imagine any band that doesn’t have a t-shirt supporting their image, cover artwork or song lyrics or any vacation destination that doesn’t offer up a bevy of locale related t-shirts that remind you of your trips. Sales information for apparel does not delinate t-shirts from other types of offerings so inferences regarding sales potential must be made from either general information or by looking at specific companies. Apparel sales in the United States is undeniably huge business with a reported 250 billion dollars in sales revenue 2013 for fixed point-of-sales locations. The general trend size 1992 has been upward with some softening of the market in 2008 and 2009. Those years still brought in 216 and 205 billion dollars respectively. The upward trend reinstated itself beginning in 2010. (Clothing & Clothing Accessories Store Sales, 2014) According to the US Census Buerau report as of 2009, e-commerce apparel sales represented 74.9% of the total sales for the segment. (Wholesale & Retail Trade: Online Retail Sales, 2012) Allowing for the differences in collecting data the conclusion is that the apparel industry offers substantial opportunity. It is also revealing to look at the sales of a heavy weight in the t-shirt business, CafePress, Inc. CafePress is an online retailer whose product mix is heavily t-shirt related. The company has seen substantial annual sales and considerable growth. Total sales for the company were 103.49 million in 2009 and 245.86 million in 2013 with growth year over year during that period which translates into an increase of nearly 138%. (CafePress, 2014) The second component to the business is the advent of e-commerce. The seeds of the modern Internet began in 1962 with the U.S. military wanting a way to ensure command and control over their arsenal of weapons post-nuclear attack and formally launched as the ARPANET in 1968. (Kristula, 2011) It was six years later in 1974 that the first commercial version of ARPANET,
• 8. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 8 Telenet, was introducted. The next several years saw advances in technology, such as the modem and TCP/IP, that would enable the evolution of the Internet toward widespread dissemination. Another milestone in this evolution was the introduction of the first commercial Internet Service Provider (ISP) in the United States in 1989 known as the “The World” and is considered the first ISP utlized on what we know today as the Internet. Two years later in 1991, the World Wide Web (WWW) was born which allowed the mass sharing of information. (Who Invented the Internet, 2014) The World Wide Web in conjuction with the online shopping system cretated by Michael Adrich led to the modern era of online shopping. (Aldirch, 2011) E-Commerce sales dollars are no laughing matter and neither is the growth of the industry. First quarter E-Commerce retail sales were $9.8 billion dollars in 2002. Eleven years later, the first quarter of 2013 was reported at $61.2 billion. (Monthly & Annual Retail Trade, 2014) Online retail sales for the United States are projected to be just over 434 billion in 2017 with apparel sales accounting for 20.93% of those dollars. (US Online Retail Sales, 2013) The Internet and the E-Commerce potential that it has created do not exist in a bubble, but have had profound affects on consumer behavior, the retail world itself and the industries that support it. Consumers no longer have to go to brick-and-mortar stores to make their purchases for everything from apparel to cars to groceries and now have access to items that may not be available for purchase locally, but can arrive directy to their homes through an assortment of delivery options. This shift in “consumer buying behavior is really forcing retailers to rethink their entire fulfillment and supply chain model” and impacts shippers such as UPS, FedEx and the United States Postal Service. (Berman, 2013) The Order Fulfillment Services industry has benefited from the increase in E-Commerce sales as many companies outsource the services they
• 9. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 9 see as outside their core competancies. (Order Fulfillment Services in the US Industry, 2014) Companies are now in the position of having to offer an online E-Commerce options in order to maintain customer satisfaction. Additionally, Marketing has been forced to adapt to an online and increasingly mobile digital world in order to reach customers. Companies are forced to adapt and to adopt new technology quickly in order to play in this still relatively new retail world which requires either developing existing staff, hiring new staff or outsourcing their IT and related infrastructure needs. And the IT world continues to offer innovations that support, enhance and improve the E-Commerce World. Financial systems had to be modernized or replaced in order to support a fast growing electornic trade. (Lakshmi, 2010) B2. Legal Form of Ownership: GrumpleWear will be established as a Limited Liability Company (LLC) operating and licensed in the state of North Carolina. The main advantages of a LLC are that owners are personally protected from any liability that may be created by the company and flexibility regarding taxes. A single member LLC, such as GrumpleWear, can choose to be taxed under the same rules as a sole proprietorship or choose to file as a corporation. (Why Start a LLC? Limited Liability Company Advantages and Disadvantages, 2014) While licensing to do business in North Carolina, the company will be formally recognized as a Delaware company and will utilize a registry agent to assist with this process. The main benefits of this selection is to capitalize on the state’s large body of business law that helps companies carefully plan in order to avoid litigation, court decisions are issued without jury trials so the basis of decisions is from established case law and Delaware’s Chancery court, a separate business court, has a reputation regarded as one of the finest in the country. Additionally, the charges associated with establishment and a continuation as a Delaware company are low in
• 10. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 10 relation to other options. Delaware recognizes both standard incorporation as well as creation of Limited Liability Companies. (Why Incorporate in Delaware, 2014) B3. Location and Facilities: The company’s home or corporate office will be located at 2216 Harden Circle in Hendersonville, North Carolina and will be the hub for all marketing, financial, design and other non- manufacturing roles. Manufacturing of product will occur at the Charlottesville, VA location of our service provider and strategic partner. The company will engage a number of service providers who will be located at various locations. The company will comply, and work with all service providers, to ensure that they comply with any local, state or regulatory requirements. Based on the nature of the manufacturing work this includes not only compliance to the Fair Labor Standards Act (FLSA) but to the rules & regulations set forth by the Occupational Safety & Health Administration (OSHA). Taxes will be filed on an annual basis as required by the Internal Revenue Service (IRS). Insurance will be maintained by the manufacturer who will warehouse the inventory and handle order fulfillment. B4: Management Structure: As the sole owner and single company paid employee, Hope F. Hreha will serve as President of GrumpleWear. In this capacity, she will be responsible for the company’s operations. She will leverage her years of business and consumer affairs experience in the furtherance of the GrumpleWear mission. Additionally, she holds a CompTia Project+ Certification which will allow her to successfully plan and manage the various aspects of starting up and running a business.
• 11. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 11 Expansion of GrumpleWear staff will occur based on the needs of the business. Newly hired employees will be brought on in either a full-time or part-time status as required to handle the expanding business and will be company (W-2 issued) employees and not contract employees. GrumpleWear will continue to outsource many of the services in order to leverage the core competencies of the selected vendors. This also serves to lower the overall operating costs of the business since services can be secured on an as needed basis instead of dedicating company funds, via payroll, for underutilized staff. Additionally, a larger footprint and increased site cost for corporate operations will be avoided through utilizing the outsourcing strategy. At start-up, corporate expenses will be minimized through operating out of a home office instead of costly rental or purchase expenses. B5. Products and Service: GrumpleWear will offer an exclusive line branded t-shirts that feature: 1) A sarcastic and grumpy style of humor 2) High quality, premium cotton spun into extra-long fibers that enhance the durability and softness of the material 3) Re-enforced double-needle stitching at all seams to reduce separation through normal wear and tear 4) Two product options: the GrumpleWear Basic t-shirt and the GrumpleWear Love-to-Live-in-It super soft t-shirt that does not sacrifice product durability for enhanced softness 5) Manufacturing in the United States
• 12. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 12 C. Market Analysis C1: Target Market GrumpleWear’s target market is t-shirt wearers of any age with a great sense of humor that want to speak for their inner “grumple” or get a gift for the “grumple’ in their life. Since GrumpleWear will only sell via an online store the target market is limited to those who make purchases from an online store (e- tailer). Given the expanding nature of E-Commerce, this limitation is not considered to be an impediment to the business which is tailored for the market. Additionally, shipping outside of the United States will not be an option at least during the initial year of operations. Based on feedback from potential customers outside of the United States, the market may be expanded if the volume supports the additional costs related to international shipping. This restricts the target market to the United States. Based on the size of the U.S. apparel marketing this also is not considered an impediment to the business. While not excluding purchases from those below or above, it is anticipated that the bulk of purchase will come from individual in the 25-64 age range based on the overall distribution of income across the various age brackets.
• 13. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 13 (Short, 2013) Utilizing the PRIZM marketing segmentation analysis tool in conjunction with our anticipated age range and the income ranges indicated for those within the age range, it is anticipated that the target market is large and covers a diverse group of individuals including those with and without children and living in a variety of settings from rural to the suburbs to urban centers. (Segment Explorer, 2014) The market includes individuals who prize the American traits of individuality, freedom of expression and the flexibility of choice. It is part of the psychological make-up of the modern American. (Markman, 2012) GrumpleWear speaks to each of these important traits. C2: Industry Analysis – With apparel sales at 20.93% of an estimated $296.7 billion dollars in online retail sales in the United States and steady growth indicated over the next several years, the market in term of revenue dollars is
• 14. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 14 expanding. Even at 1% of total sales, t-shirts will generate over $620 million in sales dollars. (US Online Retail Sales, 2013) A company who could achieve a modest ½ percent market share would generate revenues of over $3 million dollars. Even in the years of 2008-2009 which saw a decline in overall sales including apparel, the total market was nothing short of huge. The growth of online sales is forecasted to increase by 62% by 2016 from the base period of 2011. (Rueter, 2012) As a whole, the indicators indicate positive growth in the industry. C3: Competitive Analysis- There are two main types of competitors in the market. The first type is heavily, but not exclusively, t-shirt oriented. A summary of the top competitors in this segment: Threadless (www.threadless.com) Threadless provides offerings across a wide range of subject matters. The truly unique feature of this website is that it allows artists from around the world to submit their designs. Designs are then displayed for a seven day period to be evaluated (scored) by registered visitors to the site. The results of those scores determine which of the designs will be printed and made available to customers. Artists selected will receive cash and prizes as compensation for a winning design. The focus in on creativity and product details, including quality components, vary from item to item. A scan of the website found no information indicating a significant focus on quality and the comments for individual shirts varied from very pleased to extremely unsatisfied including complaints about the quality of the printing as well as the quality of the shirts themselves. No information was located regarding the sites of manufacturing. Non- sales priced items generally ranged from $20.00-$29.00 for short sleeved t-shirts.
• 15. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 15 CafePess, Inc. (www.cafrepress.com) CafePress offers a veritable smorgasbord of products from mugs to golf balls to cufflinks. However, the best-selling items as indicated by their own ranking were all t-shirts. They also offer a t-shirt designer that lets customers create a product for their own purchase. As with the Threadless site, product details are available but are not prominently highlighted. Of the t-shirts viewed no prominent details regarding product quality were noted in any descriptions. Some t-shirts indicate that they are made in the USA, but this is not a universal feature of the product offerings. This indicates that multiple suppliers are used and possibly suggests that no close strategic relationships have been formed. Non-sale priced items generally ranged in the $7.00 to $50.00 price range for short sleeved t-shirts. Zazzle (www.zazzle.com) Like CafePress, Zazzle offers a wide variety of products including photo gifts, various apparel items and posters to name just a few of the offerings. The website offers a nice, clean and organized feel to it compared to the first two competitors. The product designer provided is similar to the one offered by CafePress which allows individual customers to create t-shirts, business cards and other items on demand for their use. This site also lists product details for each shirt but does so somewhat more prominently than the first two but still not providing a commanding presence. Some of the shirts reviewed made specific mention of quality related details, but this was not uniform across all the offerings. Some t-shirts indicate that they are made in the USA, but this was also not a universal feature of the product offerings. Non-sale priced items generally ranged in the $15.95 to $33.95 price range for short sleeved shirts. Woot! (www.shirt.woot.com)
• 16. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 16 The www.shirt.woot.com site is part of the larger Woot! Site that offers everything from electronics, computers and items for the garden along with its t-shirts. This was the least organized and appealing of all of the sites. A key feature of this site is that it releases a new t-shirt design every night at midnight. Like Threadless it accepts submissions from artists for possible offering on the site although selection may be by the Woot! staff or selected by registered site visitors. The artist has the option of selecting which review and selection process is employed. Every t-shirt also comes with a unique storyline related to the image. Product details are easy to find in relation to the image. None of the viewed shirts provided any information regarding any specific quality details and no shirts were identified as being manufactured in the United States. Shirts are printed in Texas as each shirt is printed after it is ordered. The prince range for short-sleeve shirts is in the $12-18 range. The second segment is comprised of mid to large sized department stores that have an online presence. A few example of companies in this market are JCPenney, Macy’s, Belk’s and Nordstrom. However, they are focused on offering a wide range of products and are not focused on developing a significant brand presence in the t-shirt industry. The primary competitive advantage of GrumpleWear is that it does not want to be the t-shirt company for everybody, but rather wants to build a unique brand that speaks to a large niche of individuals. Additionally, while diversification of the product offerings may be considered at a future time, the focus at inception and for the first year of operation is the production, selling and distribution of high-quality, humor based t-shirts. Through careful branding measures, quality product and humor that resonates, the GrumpleWear brand can carve out its place in the large apparel market and perform well.
• 17. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 17 D. Market Strategy D1: 4Ps. Pricing Pricing for the product will be based first on the overall quality of the product being offered and reflective of association with the GrumpleWear brand. GrumpleWear’s goal is not to be the cheapest in the industry, but a leader in quality, humor-based, in-country manufactured goods and the pricing should reflect these goals. The next step in determining price is the distinction between the two product options which are the “Basic” Tee and the “Love-to-Live-in-It” tee which offers a super soft feel in addition to the high quality requirements of the product. The additional processing required to achieve the desired feel require an increase in the pricing. The final determining factor in pricing is related to the shirt options: short-sleeve versus long-sleeve. The additional quantity of high-quality fabric used in the long-sleeve option warrants the additional charge. In addition to the individual unit pricing of the item, GrumpleWear will offer flat rate shipping for all orders. A base assumption is that orders will be fulfilled with an average of 1 unit per pricing. The flat rate shipping is intended to cover shipping charges and fulfillment costs. If additional quantities are ordered, the increase in revenue is an offset against the additional costs in those areas.
• 18. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 18 A full price list is included in D2 of this plan. Product GrumpleWear will offer high-quality product that is: 1) Manufactured using high quality, premium cotton spun into extra-long fibers that enhance the durability and softness of the material 2) An enhanced version of the product that will undergo additional processing using a specialized brine solution that increases product softness 3) Assembled using re-enforced double-needle stitching at all seams to reduce separation through normal wear and tear 4) Branded with either only the basic GrumpleWear logo or contain the logo on the front and a signature GrumpleWear humorous slogan on the back Place GrumpleWear products will be available exclusively via the online store at www.grumplewear.com. Product will be placed into individual bags either at the end of the manufacturing process or at the beginning of the fulfillment process. Fulfillment of product will be completed at the Charlottesville, VA site of our manufacturer and strategic partner. Promotion Prior to launch, GrumpleWear will be introduced via Press Release via the following sources: 1) 24-7 Press Release (www.24-7pressrelease.com) 2) PR Log (www.prlog.org) 3) T-Shirt Magazine (www.t-shirtmagazineonline.com)
• 19. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 19 Social Media pages will be created using the following which will feature product information, product photos and other teaser material: 1) Facebook 2) Twitter 3) Pinterest 4) Instagram The marketing strategy utilized will focus on the differentiation of the GrumpleWear product line from their competitors. Pre-Customer feedback will be solicited about current design options and offer a way to submit their own “Grumple”-tudes for possible use in a future printing. Shortly before the launch: 1) Acquire services from the web hosting site specialist to fully enhance the website including ease of navigation for the customer, attractive design and an easy check-out process. 2) GrumpleWear will contract with a seasoned individual expert in in enhancing the ability of a site being returned in an online search for keywords associated with the product line. This person should also have the ability to review the website and make recommendations for keyword enhancements on the site itself. The site should be constructed in such a way that the site receives a high return rate based on keyword searches without sacrificing the aesthetic appeal of the site. 3) Identify the vendors that will be utilized for online marketing and work with their personnel to craft various ads to for placement on their site. All marketing efforts will be approved by the president and will be reflective on the GrumpleWear brand image.
• 20. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 20 Coinciding with the launch, GrumpleWear 1) Activate paid marketing via on-line sources. 2) Bring the GrumpleWear blog and community online. Post launch activities will be continued online advertisements and post-sales follow-up and marketing for customers who elect to receive additional promotions from GrumpleWear. Time will be dedicated to regular updates on the GrumpleWear blog and ongoing development and enhancement of the “Grumple” community. Ongoing evaluation of the website will occur and adjustments will be made to enhance the customer experience furthering both the commitment to the customer and to quality in all aspects of the organization. D2: Price List Item Code Product Description Price Each GW001 GrumpleWear Basic Tee-Logo (Short Sleeve) $25.00 GW002 GrumpleWear Basic Tee-Design 1 (Short Sleeve) $25.00 GW003 GrumpleWear Basic Tee-Design 2 (Short Sleeve) $25.00 GW004 GrumpleWear Basic Tee-Design 3 (Short Sleeve) $25.00 GW005 GrumpleWear Love-to-Live-in-It Tee (Short Sleeve) $35.00 GW006 GrumpleWear Love-to-Live-in-It Tee-Design 1 (Short Sleeve) $35.00 GW007 GrumpleWear Love-to-Live-in-It Tee-Design 2 (Short Sleeve) $35.00 GW008 GrumpleWear Love-to-Live-in-It Tee-Design 3 (Short Sleeve) $35.00 GW009 GrumpleWear Basic Tee (Long Sleeve) $30.00 GW010 GrumpleWear Basic Tee-Design 1 (Long Sleeve) $30.00 GW011 GrumpleWear Basic Tee-Design 2 (Long Sleeve) $30.00 GW012 GrumpleWear Basic Tee-Design 3 (Long Sleeve) $30.00 GW013 GrumpleWear Love-to-Live-in-It Tee (Long Sleeve) $40.00 GW014 GrumpleWear Love-to-Live-in-It Tee-Design 1 (Long Sleeve) $40.00 GW015 GrumpleWear Love-to-Live-in-It Tee-Design 2 (Long Sleeve) $40.00 GW016 GrumpleWear Love-to-Live-in-It Tee-Design 3 (Long Sleeve) $40.00
• 21. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 21 Flat Rate Shipping $7.99 D3: Selling Strategy The following are the key points of the GrumpleWear sales strategy: 1) Product Differentiation. GrumpleWear strives to be a unique player in the online t-shirt industry through offering: a. Quality Product-exceeds that of GrumpleWear competitors with a commitment to ongoing improved quality. This includes acknowledging that what is good enough for today is not good enough for tomorrow. b. Brand Recognition-the brand should be easily recognizable with the combination of the GrumpleWear logo and humor. 2) Customer Relationships-a customer will be viewed as more than just sales revenue. Post-sales follow-up will be an important part of this along with building an online “Grumple” community for customers to participate in. 3) Time Management-ongoing analysis of where and how time is spent to ensure that it is focusing on those things that are most important to the success of the company. Hire additional staff as required to handle tasks that while they may be important, are not at the core of the business— quality, humor and the development of customer relationship. 4) Develop a customer-centric website that is easy to navigate and contains an easy shopping cart and checkout process. 5) Utilize online marketing such as pay-to-click, banner ads and product placement ads on Social Media sites to reach market. Offline marketing is inappropriate for our target customer.
• 22. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 22 In support of the outlined sales strategy, the following project goals along with their target delivery dates, milestones and project deliverables have been developed. These are also key items in the Implementation Strategy covered in section E. Certain portions of the detailed items relate only to pre-launch activities that are required for both the sales strategy and the implementation process while other components are ongoing concerns of the sales strategy. Not all items have a defined deliverable as they represent decision points with the next step resulting from that decision producing a deliverable.
• 23. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 23 Task Responsible Party Milestone Target Completion Ongoing ? Deliverable Comments Secure domain President Y 6 months prior to launch N Ownership of domain Select Graphic Artist President N 6 months prior to launch N Develop Logo President/Graphic Artist Contractor Y 5 months prior to launch N Graphic Files Trademark Logo President Y 4 months prior to launch N Trademark Develop Initial Slogans President N 4 months prior to launch N Slogans Final Vendor Selection (Manufacturing & Fulfillment) President N 6 months prior to launch N Vendor Contract (Manufacturing & Fulfillment) President Y 5 months prior to launch N Contract Final Vendor Selection (Customer Care) President Y 4 months prior to launch Y Vendor Contract (Customer Care) President Y 3 months prior to launch Y Contract Develop Quality Specifications President/Vendor Y 4 months prior to launch N Quality specification document Develop Total Quality Program President/Vendor Y 3 months prior to launch Y SOP's Quality is always to be considered an ongoing and evolving concern Identify Advertising Markets President N 4 months prior to launch Y Evaluation of success of each marketing avenue is an ongoing and evolving concern Develop Ads President/Advertisers Y 2 months prior to launch Y Content Evaluation of success of each ad is an ongoing and evolving concern
• 24. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 24 Select Web Hosting Site President Y 4 months prior to launch N Selection is one-time event; evaluation of website is ongoing concern; hosting site will also include available options for cc processing. Develop Website President/Website/Developer N 2 months prior to launch Y Website Evaluation of website, developing & changing content is ongoing concern; website development includes building of the blog and providing a convenient way for customer's to initiate contact with GrumpleWear. Product Samples Vendor N 6 weeks prior to launch N Sample product Initial launch items are one-time event; development of products for expansion are ongoing concern. Approve Samples President Y 5 weeks prior to launch Y Order Product President N 4 weeks prior to launch Y Purchase Order Initial plans are to maximize savings by purchasing full year of inventory; additional orders will be placed if sales exceed projection. Manufacturing Run Vendor Y 2 weeks prior to launch N Inventory Finalize Financing President Y 6 months prior to launch N Funds
• 25. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 25 Select Email Provider President Y 2 months prior to launch N Email provider is also a marketing tool so selected vendor will need to also provide the ability to create marketing campaigns. Launch Website President/Web Host Y Launch Day N Functional Website Sales Monitoring President N Perpetual Y Reports Using reporting available from the website portal review sales and match against forecast. Customer Feedback President N Perpetual Y Reports Selected Customer Care vendor will provide any necessary responses directly to customer; will accumulate feedback and provide via reports. Final Vendor Selection (Surveys) President N N Vendor selected will allow for easy implementation into the website or to provide surveys via email to customers. Vendor Contract (Surveys) President Y Perpetual Y Reports Time Management President N Perpetual Y President will evaluate on an ongoing basis how time is being spent, make adjustments to ensure focus on the core components of the business; hire
• 26. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 26 additional staff as required.
• 27. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 27 D4: Sales Forecast The following is a summary of the projected gross sales revenue for the first year of operations (by SKU): Item Code Total Projected Qty (1st Year) Total Projected Net Revenue (1st year) GW001 3380 $ 84,500.00 GW002 1472 $ 36,800.00 GW003 1472 $ 36,800.00 GW004 1476 $ 36,900.00 GW005 840 $ 29,400.00 GW006 240 $ 8,400.00 GW007 240 $ 8,400.00 GW008 240 $ 8,400.00 GW009 3380 $ 101,400.00 GW010 1472 $ 44,160.00 GW011 1472 $ 44,160.00 GW012 1476 $ 44,280.00 GW013 840 $ 33,600.00 GW014 240 $ 9,600.00 GW015 240 $ 9,600.00 GW016 240 $ 9,600.00 Total Projected Units 18720 Total Projected Revenue $ 546,000.00 The above is a summary of the anticipated annual sales by unit and revenue. The full forecast, by month, is included in the following document: Forecast.xlsx
• 28. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 28 Projected Annual Sales Units by SKU: Projected Annual Sales Dollars by SKU:
• 29. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 29 Projected Annual Sales by Period (Month):
• 30. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 30 E. Implementation Strategy
• 31. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 31 E1. Overall Strategy GrumpleWear, utilizing the www.grumplewear.com website, has a substantial opportunity to enter into the t-shirt apparel market by creating a distinct brand that is built on quality products that support the U.S. manufacturing industry, display a distinctive type of humor and development of a community that encourages ongoing interaction with the customer that recognizes them as more than a sales dollar. A review of the competitive landscape shows that there is significant opportunity for GrumpleWear as the current market has not demonstrated attention to this particular set of qualities. Certain implementation activities will take well in advance of the actual website launch and include, but is not limited, to the following key items: 1) Pre-launch “buzz” generation through press releases and development of social media sites. 2) Development & trademark of the “GrumpleWear” logo 3) Selection of manufacturing & fulfillment vendor that will be a long-term strategic partner 4) Selection of service vendors for web hosting, graphic design and customer care initiatives 5) Securing of financing required to launch and support company in the initial period The research and selection of vendors will be based on their qualifications, commitment to furthering the GrumpleWear goals, an interview of their provided references and industry
• 32. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 32 research. The GrumpleWear commitment to quality at every level of the organization must be present as part of the vendor’s culture. Marketing will occur through online ad placements, development of appropriate social media sites, the GrumpleWear blog and follow-up to existing customers. The message delivered must support the GrumpleWear mission in all instances. Working with the specialists at the selected sites and utilizing the skills of the contract graphic artists will ensure that the message is delivered consistently and exhibiting the quality required of all segments of the GrumpleWear business. An expanded list of pre and post (ongoing) implementation items is listed in sections D3 and E2. E2. Implementation Refer to next page.
• 33. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 33 Task Responsible Party Milestone Target Completion Ongoing ? Deliverable Comments Secure domain President Y 6 months prior to launch N Ownership of domain Select Graphic Artist President N 6 months prior to launch N Develop Logo President/Graphic Artist Contractor Y 5 months prior to launch N Graphic Files Trademark Logo President Y 4 months prior to launch N Trademark Develop Initial Slogans President N 4 months prior to launch N Slogans Final Vendor Selection (Manufacturing & Fulfillment) President N 6 months prior to launch N Vendor Contract (Manufacturing & Fulfillment) President Y 5 months prior to launch N Contract Final Vendor Selection (Customer Care) President Y 4 months prior to launch Y Vendor Contract (Customer Care) President Y 3 months prior to launch Y Contract Develop Quality Specifications President/Vendor Y 4 months prior to launch N Quality specification document Develop Total Quality Program President/Vendor Y 3 months prior to launch Y SOP's Quality is always to be considered an ongoing and evolving concern Identify Advertising Markets President N 4 months prior to launch Y Evaluation of success of each marketing avenue is an ongoing and evolving concern Develop Ads President/Advertisers Y 2 months prior to launch Y Content Evaluation of success of each ad is an ongoing and evolving concern
• 34. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 34 Select Web Hosting Site President Y 4 months prior to launch N Selection is one-time event; evaluation of website is ongoing concern; hosting site will also include available options for cc processing. Develop Website President/Website/Developer N 2 months prior to launch Y Website Evaluation of website, developing & changing content is ongoing concern; website development includes building of the blog and providing a convenient way for customer's to initiate contact with GrumpleWear. Product Samples Vendor N 6 weeks prior to launch N Sample product Initial launch items are one-time event; development of products for expansion are ongoing concern. Approve Samples President Y 5 weeks prior to launch Y Order Product President N 4 weeks prior to launch Y Purchase Order Initial plans are to maximize savings by purchasing full year of inventory; additional orders will be placed if sales exceed projection. Manufacturing Run Vendor Y 2 weeks prior to launch N Inventory Finalize Financing President Y 6 months prior to launch N Funds Open Business Checking Account President N 6 months prior to launch N Confirmation
• 35. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 35 Select Email Provider President Y 2 months prior to launch N Email provider is also a marketing tool so selected vendor will need to also provide the ability to create marketing campaigns. Launch Website President/Web Host Y Launch Day N Functional Website Sales Monitoring President N Perpetual Y Reports Using reporting available from the website portal review sales and match against forecast. This will be completed at least on a monthly basis. Increase in monitoring will occur if sales projections are much higher or lower than anticipated. Expense Monitoring President N Perpetual Y Reports Using accounting software all revenues and expenses will be booked as they occur; accounting software will generate the appropriate reports; monitoring will occur at least monthly; Increae in monitoring will occur if expenses are higher or lower than anticipated or if there is substantial change in sales revenue.
• 36. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 36 Customer Feedback President N Perpetual Y Reports Selected Customer Care vendor will provide any necessary responses directly to customer; will accumulate feedback and provide via reports. Final Vendor Selection (Surveys) President N N Vendor selected will allow for easy implementation into the website or to provide surveys via email to customers. Vendor Contract (Surveys) President Y Perpetual Y Reports Time Management President N Perpetual Y President will evaluate on an ongoing basis how time is being spent, make adjustments to ensure focus on the core components of the business; hire additional staff as required. Supplies President N 6 months prior to launch Y Supplies In the initial phase, operations will be conducted out of a home office; however, certain supplies such as accounting software will be required. License President N 6 months prior to launch N License Establish business in the state of North Carolina
• 37. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 37 Filing President Y 6 months prior to launch N Confirmation Engage a representative in the state of Delaware; file paperwork at LLC. Vendor Selection (Packaging Materials) President N 4 months prior to launch N Vendor Contract (Packaging Materials) President N 3 months prior to launch Y Contract Packaging Materials (Order) President N 2 months prior to launch Y Purchase Order Purchase initial supply is one time-event; materials will be replenished as needed. Packaging Materials (Delivery) Vendor N 2 weeks prior to launch Y Inventory Purchase initial supply is one time-event; materials will be replenished as needed. Customer Follow-Up President N Occurs with 1st sale Y Email A post sales thank you and order confirmation email will be sent to the customer; a shipment confirmation will be sent to the customer; approximately 10 days after shipment a follow-up email with survey will be sent along with an invitation to join the GrumpleWear community.
• 38. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 38 Existing Customer Marketing President N Perpetual Y Email Quarterly emails sent to existing customers with updates on company, introduction of any new designs, and reminder about the GrumpleWear community. Marketing Evaluation President N Perpetual Y Reports Utilizing reports provided from marketers and information gathered via the website (unique keycode identification) evaluate the results of each marketing effort; based on analysis of reporting make decisions regarding which ads to tweak, which to discontinue and which should get an increase in funding.
• 39. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 39 E3. Control Plan The GrumpleWear control plan is broken down into various business segments that are key drivers of our success: 1) Marketing—are the current marketing efforts delivering results 2) Sales—are sales on target 3) Customer—are the customers happy and satisfied 4) Quality—does product deliver on quality claims 5) Inventory—is inventory sufficient to meet demand 6) Financial-what is the financial position of the company 7) Competition—what is the completion doing and does it impact the business Segment Description Action (Possible) Frequency Marketing Review marketing report and evaluate which efforts are providing the great response rate (page landing) and great conversion rate (sales). 1) Determine which ads should be discontinued 2) Determine which ads should be tweaked 3) Determine which ads should have additional funds provided 4) Determine if new ads should be created Monitoring should occur at least weekly in the initial phase (1st quarter post-launch); future monitoring schedule will be determined by sales revenue and customer feedback.
• 40. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 40 Sales Review sales reporting and compare to period forecasting 1) Determine variance 2) Based on whether variance is +/- will determine next action: a) In conjunction with review of marketing information, determine changes in volume, location, $$ spent on marketing b) Order additional product or supplies c) Hire additional support staff d) Hire marketing specialist Monitoring should occur at least weekly in the initial phase (1st quarter post-launch); future monitoring schedule will be determined by sales revenue and customer feedback. Customer Review feedback provide from Customer Care vendor 1) In conjunction with marketing & sales revenue review, determine changes 2) Respond directly to customer for both highly positive or highly negative feedback Monitoring should occur at least weekly in the initial phase (1st quarter post-launch); future monitoring schedule will be determined by sales revenue and customer feedback. Customer Review feedback gathered from surveys (web and post-sales generated) 1) In conjunction with marketing, sales and Customer Care review, determine changes 2) If customer has provided avenue for follow-up, respond directly to both highly positive or highly negative feedback. Quality Evaluate current quality initiatives and develop future initiatives/changes 1) Site visits to manufacturer 2) Continuing research into manufacturing methods 3) Adjust manufacturing methods (as required) 4) Change of raw materials (as required) Site visit to manufacturer should occur 2x per year; review of customer comments or concerns according to Customer segment
• 41. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 41 Financial Review the financial statements in terms of revenue & expenses 1) Adjust projections 2) Reduce costs or increase marketing spend Monitoring should occur two times per month in the initial phase (1st quarter post-launch); future monitoring schedule will be determined by sales revenue and expenditures Inventory Review on hand inventory in relation to sales projections 1) Order additional inventory if sales are tracking above projection 2) Additional orders will be based on SKU purchases and not blanket purchases Monitoring will occur weekly in conjunction with the sales monitoring Competition Review what top competitors are doing 1) Evaluate changes in competitors 2) Make changes to counter the competitor as long as they are in keeping with the GrumpleWear mission 3) Re-enforce brand image in the marketplace. Monthly The control plan addresses the seven key segments that have been identified and includes possible actions to take as a result of reviewing all available information. The planned monitoring schedule may be adjusted based on the needs of the business.
• 42. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 42 F. Financial Statements and Projections F1. Revenue and Cost Estimate During the first year of business, GrumpleWear is projected to earn $695,572.80 in total revenue against total operating expenses of $362,104.54. An additional $9000.00 will be paid in interest expense on a loan made to cover the required start-up costs and 4 months of operating expenses for a net profit of $353104.54 for the year. F2. Forecasted Profit and Loss Statement A review of the forecasted profit and loss statement shows that GrumpleWear will run at a loss for the first three months of the year. Beginning with the fourth month of operation, the business will begin to experience a profit before deducting interest expense. In the fourth month, revenue less operating expenses will show a profit before interest of $724.91. After interest, the business will show a small loss of $25.09. At the end of the fifth month, the business will show a profit based on revenues less both operating and interest expense. At the end of the first year, the company will have a net profit of $324,468.26. Net profit is 46.65% of revenue (sales) for the same period. Graphically, the totals revenues and total expenses (operating + interest) are:
• 43. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 43 Following is the detailed listing of revenue and the various expenses incurred by the business:
• 44. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 44 The top five expense categories of the business are: 1) Cost of Goods Sold 2) Salary Expense (including all taxes and withholdings) 3) Marketing Expense 4) Shipping Expense 5) Web Hosting These five categories comprise 82% of the business total expenses and represent key components for success. A full copy of the Forecasted Profit & Loss sheet including assumptions is included with this plan as an attachment. F3. Forecasted Balance Sheet The balance sheet at the end of the first year of operations shows the company in a very good financial position. All net profit gained from the operations during the first year will be retained in the business and can be used to expand the product line and increase the marketing efforts. There is sufficient cash on hand to pay the full balance of the loan.
• 45. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 45
• 46. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 46 G1. Financial Projections G1a- Breakeven Point The following graph represents where the breakeven point for GrumpleWear lies and includes all expenses (operating & interest expense): Based on the graph and the cumulative revenue and expense chart, the breakeven point will occur sometime in June. At the end of May, cumulative expenses still exceed cumulative revenue by $9377.09. At the end of June, the cumulative revenue exceeds expenses by $3899.46. The June
• 47. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 47 accounting period is the one in which GrumpleWear becomes a profitable business and exceeds the breakeven point. G1b-Financial Position GrumpleWear is expected to be in an excellent financial position at the end of the first year of operations. Revenue generation far exceeds expenditures and leave the company with a projected net profit of $324,468.26. GrumpleWear will have established its presence in the t-shirt marketing by appealing to a specific, but large, group of consumers. Ample opportunity exists to expand the product line and to increase marketing expenditures. Additionally, sufficient revenue exists to add at least one additional full-time person to assist with the additional demands of a growing product line. As with any forecast, a number of assumptions were made in the compilation of this data: 1) Sales growth of apparel will continue to grow based on indicated by industry projections and the t-shirt market will grow in conjunction with the overall market. 2) Prices determined at the time of inquiry for all services will be the same or roughly the same as those included in this plan. 3) Inventory needed for the following annual period will be ordered at the end of the current annual period but due to terms will not require payment until the following period. 4) All inventory will be depleted by the end of the initial annual period. 5) GumpleWear will see continued growth of their product line based on marketing efforts, word-of-mouth and branding initiatives. 6) Average order size is 1 unit.
• 48. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 48 7) Fulfillment expense includes bagging of individual items regardless of what point in the process the bagging actually occurs. 8) One percent of all orders will result in customer service contact via phone with an average talk time of 5 minutes. 9) One percent of all orders will result in customer service contact via email. 10) Estimated that ½% of product sales (does not include shipping revenue) will cover warranty claims and will be paid in the month after the sale occurs. G1c-Capital/Investment Needs: The capital needs required to start the business includes funds to the purchase costs of the initial inventory to be used to fulfill customer orders. In order to maximize quantity discounts, the full amount of inventory projected to be needed for the first year will be purchased at the same time. Additionally, as the business will operate at negative profit for the first four months when including both operating and interest expense the capital raised must include the ability to cover those costs. A small amount of cushion is built into the initial capital needs to provide coverage should initial sales not reach their projected numbers. Based on these parameters, the initial capital/investment needs are determined to be $150,000 which will be acquired via a small business loan.
• 49. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 49 References Aldirch, M. (2011). History of Online Shopping. Retrieved from The Michael Aldrich Archive: http://www.aldricharchive.com/shopping_history.html Berman, J. (2013, December 9). UPS exec addresses how e-commerce has changed logistics and supply chain operations. Retrieved from Logistics Management: http://www.logisticsmgmt.com/article/ups_exec_addresses_how_e_commerce_has_changed_logi stics_and_supply_chain_op Brown, B. (2009, December 18). Brief History of Printed T Shirts. Retrieved from Article Base: http://www.articlesbase.com/printing-articles/brief-history-of-printed-t-shirts-1599172.html CafePress. (2014). Retrieved from MarketWatch: http://www.marketwatch.com/investing/stock/PRSS/financials Cellina, M. (2011, March 7). A Brief and Incomplete Timeline of T-shirts. Retrieved from Neatorama: http://www.neatorama.com/2011/03/17/a-brief-and-incomplete-timeline-of-t-shirt-history/#! TpNuY Clothing & Clothing Accessories Store Sales. (2014). Retrieved from Statista: The Statistics Portal: http://www.statista.com/statistics/197640/annual-clothing-store-sales-in-the-us-since-1992/ Doe, J. P. (2011, 10 10). www.wgu.edu. Retrieved from Student Template in APA for Business Plan: http://www.wgu.edu History of the T-Shirt. (2014). Retrieved from T-Shirt Spotlight: http://tshirtspotlight.com/history-of-the- t-shirt/ Kristula, D. (2011). The History of the Internet. Retrieved from davesite.com: http://www.davesite.com/webstation/net-history1.shtml
• 50. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 50 Lakshmi, L. D. (2010, February 20). Impacts of E-Commerce on Business. Retrieved from Articlesbase: http://www.articlesbase.com/ecommerce-articles/impacts-of-ecommerce-on-business- 1882952.html Markman, A. P. (2012, January 6). Why We Love Independence, Individuality, and Starbucks. Retrieved from Psychology Today: http://www.psychologytoday.com/blog/ulterior-motives/201201/why- we-love-independence-individuality-and-starbucks Monthly & Annual Retail Trade. (2014). Retrieved from United States Census Bureau: http://www.census.gov/retail/ecommerce/historic_releases.html Order Fulfillment Services in the US Industry. (2014, 4 13). Retrieved from IBISWorld: http://www.virtual-strategy.com/2014/04/13/order-fulfillment-services-us-industry-market- research-report-ibisworld-has-been-updated Rueter, T. (2012, February 27). E-retail spending to increase 62% by 2016. Retrieved from Internet Retailer: http://www.internetretailer.com/2012/02/27/e-retail-spending-increase-45-2016 Segment Explorer. (2014). Retrieved from Nielsen: http://www.claritas.com/MyBestSegments/Default.jsp? ID=30&menuOption=segmentexplorer&id1=1027&prevSegID=2611099&filterstate=age_ranges ~25-44^35-54^45-64| hh_income~Wealthy^Upscale^Midscale^Downscale&sortby=lifestage_group_code Short, D. (2013, September 17). Median Household Income by Age Bracket: 1967-2012. Retrieved from dshort.com: http://www.advisorperspectives.com/dshort/updates/Household-Incomes-by-Age- Brackets.php US Online Retail Sales. (2013). Retrieved from visual.ly: http://visual.ly/us-online-retail-sales- %E2%80%93-statistics-and-trends-infographic
• 51. Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 51 Who Invented the Internet. (2014). Retrieved from Computer Hope: http://www.computerhope.com/issues/ch001016.htm Wholesale & Retail Trade: Online Retail Sales. (2012). Retrieved from United States Census Bureau: http://www.census.gov/compendia/statab/cats/wholesale_retail_trade/online_retail_sales.html Why Incorporate in Delaware. (2014). Retrieved from Delaware Intercorp: http://www.delawareintercorp.com/t-WhyIncorporateinDelaware.aspx Why Start a LLC? Limited Liability Company Advantages and Disadvantages. (2014). Retrieved from Rocket Lawyer: https://www.rocketlawyer.com/article/why-start-an-llc-limited-liability- company-advantages-and-disadvantages.rl

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NCM1 TASK 1 CAPSTONE BUSINESS MANAGEMENT CAPSTONE WRITTEN PROJECT QGT 1 Western Governors University 2022-2023 latest exam update

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BS Business Management Capstone (5 Days)

Updated 3/31/18

This blog post is part of a series where I chronicle my advancement through WGU’s Bachelor of Science, Business – Information Technology Management degree. It includes detailed reports on my study methods and strategies as well as occasional tips and tricks. To see all entries in this series, click the “WGU” link under “Categories” on the left sidebar (bottom of the page if viewing on mobile)

The Capstone project is no easy task. I suppose it’s easier than Principles of Finance , but then again, so is a root canal. Here’s my advice:

• Read the requirements carefully – they differ for different types of students and you don’t want to inadvertently do the wrong assignment.
• Email the course mentors early and often. I have a thread with 13 back-and-forth emails to them.
• Watch the videos and take notes of any ‘gotchas’ before completing the sections . I watched afterwards and ended up having to do quite a lot of revising because I’d made some hasty assumptions.
• Write down your numbers . You’re going to be making sales predictions, financial forecasts, etc. I suggest keeping those numbers somewhere where you can easily reference them. I didn’t do that, and as a result I was constantly scrolling back and forth trying to make sure my estimates were consistent throughout the assignment.

Here’s how I completed this assignment in 5 days:

Day 1: Wrote the Executive Summary (yes, I know this is supposed to come last , but it’s required for the Portfolio, so I had to write it first)

Day 2: Wrote the Company Summary

Day 3: Wrote the Market Analysis

Day 4: (1) Wrote the Market Strategy, (2) wrote the Implementation Strategy

• Created the Financial Statements
• Wrote the Financial Report
• Reviewed, compiled, and formatted the document
• Did one last read-through to ensure I met the paper’s specifications
• Submitted the paper

As of right now I haven’t gotten my assignment back, so I don’t actually know whether or not I passed. I’m 499th in the queue, so it might be a while. When I get it back, assuming that I passed, I’ll write up a final post about my experience with WGU. It’s been a positive one. I know I have a few regular readers  and so I hope that these posts have been helpful.

I’ll do more of the wrap up in my next, and final, WGU post. Also, if I didn’t pass the Capstone for some reason, I’ll add an edit to this post and explain why and how to avoid my mistakes.

Update 3/30/2018:

I got the Capstone kicked back for revision. I used a lot of “interesting” language to describe how I felt about that (luckily there were no children present). It got it kicked back for three reasons:

• I did not include statistics and references in C2. Industry Analysis
• I did not provide enough detail in G2. Financial Position regarding the reasons for my assumptions and how those assumptions informed the financial projection
• My “References” page was not in APA format

Okay, that last one was my own fault. In my first reference, I’d forgotten to include an element, and then I based every other reference on that first flawed one. That was a stupid mistake, and I deserved it

Oh well, so it goes. I resolved the issues and resubmitted. When I did so I was 620 in the queue.

Update 3/31/2018:

Got the results back and, with the revisions, I passed.

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