YA.

co
BusinessPlan

April-October 2008
(ya.company@gmail.com)

A Young Achievement Australia Company

 Table of Contents

1.0 YA.co............................................................................................................................................3
1.1 What is the Aim of this plan? ..................................................................................................4
1.2 Company Structure .................................................................................................................4
2.0 Project Organization....................................................................................................................4
2.1 Directors and Officers .............................................................................................................5
3.0 Directors Reports................................................................................................................................7
4 .0 Core Procedures ..............................................................................................................................11
4.1 Communications Plan ..................................................................................................................11
4.2 Meeting Procedures ....................................................................................................................11
4.3 Conflict Resolution Procedures....................................................................................................12
4.4 Wages & Salaries Policy ...............................................................................................................12
4.4.1 Pay Grades ........................................................................................................................... 12
4.4.2 Pay Cycle for Salary employees............................................................................................13
4.4.3 Commissions ........................................................................................................................13
5.0 Business Profile.................................................................................................................................14
5.1 What is the business opportunity for our business? ............................................................14
5.2 How will we take advantage of the opportunity?.................................................................14
5.3 Legal structure of business: ..................................................................................................14
5.4 Industry Knowledge and experience/skills of key personnel:...............................................14
5.5 Location of premises:............................................................................................................16
5.5.1 Advantages:..........................................................................................................................16
5.5.2 Disadvantages: .....................................................................................................................16
5.6 SWOT analysis ....................................................................................................................... 17
5.7 TOWS Strategy formulation...................................................................................................17
5.8 Business Objectives:..............................................................................................................18
6.0 Marketing Plan ..........................................................................................................................18
6.1 Market Analysis........................................................................................................................... 18
6.1.1 Our product/service and who needs our product/service: ..........................................18
6.1.2 Customer Profile ..........................................................................................................18
6.1.3 Trends affecting the industry in the past and future ...................................................19
6.2 COMPETITIVE ANALYSIS........................................................................................................19
6.2.1 Competitor Evaluation Table........................................................................................19
6.2.2 In what areas does your business have a competitive advantage? ............................. 19
6.2.3 In what areas does your business lack a competitive advantage?............................... 20
6.2.4 Can competitors easily diversify into your market?.....................................................20
7.0 SALES PLAN................................................................................................................................21
7.1 Objectives: ............................................................................................................................21
7.2 Packaging:............................................................................................................................. 21
7.3 Distribution: ..........................................................................................................................21
7.4 Pricing:..................................................................................................................................21
7.5 Promotion: ............................................................................................................................22
8.0 OPERATIONAL PLAN..................................................................................................................23
8.1 Objectives ............................................................................................................................. 23
8.2 Productivity........................................................................................................................... 23
8.3 Plant and equipment requirements......................................................................................23
8.4 Quality control measures......................................................................................................24
8.5 Staff requirements ...............................................................................................................24
8.6 Training .................................................................................................................................24
9.0 FINANCIAL PLAN........................................................................................................................25
9.1 Establishment Costs.....................................................................................................................25
9.2 Profit Budget Schedule (on following page) completed: ............................................................. 25
9.3 Break Even Analysis .....................................................................................................................26

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Executive summary

Our company YA.co is made up of students from the University of Queensland. We all have
different skills and bring different attributes to the team. YA.co believes that the best
customer service is delivered by providing customers with options, therefore our proposed
product has the flexibility to be personalised for each customer.
Our product is handmade wooden door hanger which can be engraved on the spot
according to the customer’s requirement. In order to provide extra incentive for our
product, we came up with the idea to include a wide range of pictures and patterning, that
can be pre-prepared and the variety will fulfil different customer needs. The customers can
also personalise their own product by adding extra decorations and our team can engrave
each hanger with the customer’s name. In terms of packaging, we provide 2 options to
customer who either purchase for themselves or as a gift.

Our target customer groups are teenagers, family groups and university students. Our
marketing team will begin by promoting awareness of our company and our product
through the combination of attractive store set ups and constant exposure in our university
and friend’s network.

As part of the marketing and advertising strategy, we will distribute flyers that customers
can use to get a 5% discount on all our products, potential consumers could also capture our
business logo via our website and the posters displayed around the University of
Queensland.

To maximize the profitability for each shareholder, we understand the importance of tight
cost control and competitive price range. Our variable cost per unit will be below $2 and this
will allow us to have a higher profit margin.

By using each team members different expertise’ and fast learning skills under a clear and
well organised direction, I believe we will be one of the top companies and deliver a
personalized and innovative product to the public as well as a substantial return to our
shareholders.

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1.0 YA.co

1.1 What is the Aim of this plan?

This plan will be used by the members of YA.co to guide them through the various stages of
their business operations. They will use the information in this business plan to keep on
track and work towards achieving their goals.

1.2 Company Structure

2.0 Project Organization

Each Individual in this business has specific roles and responsibilities to manage. It is
recognised however, that in order to function as an effective team these roles are flexible,
and individual’s can contribute to different areas of the business than those assigned. Thus,
it is hoped that this will create an effective working environment where an individual’s
specific knowledge and group collaboration combine to obtain the best outcomes for YA.co.
Most importantly each individual has a shared responsibility in the business’s success.

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2.1 Directors and Officers

2.1.1 Managing and Manufacturing Director - Christine Leung

The Managing Director (MD) is in charge of designing, developing and implementing the
strategic plan for YA.co in the most cost effective and time efficient manner. The MD is
responsible for both the day-to-day running of the company and developing business plans
for the long term future of the organization. A secondary role of the MD is to manage
company meetings and ensure that smooth debate and general order is maintained. Thus,
the MD has a general coordination role of the different aspects of the business.

The Manufacturing Director oversees the production of the product and the development of
a production plan. This includes aspects such as, product design, product testing, supply
chain management and so on. All general and manufacturing related queries should be
directed to Christine Leung.

2.1.2 Company Secretary (Chief Administration Officer) - Elizabeth Coleman

The Company Secretary (CS) ensures that YA.co complies with relevant legislation and
regulation, and keeps board members informed of their legal responsibilities. The CS is
YA.co’s named representative on legal documents, and it is their responsibility to ensure
that the company and its directors operate within the law. It is also their responsibility to
register and communicate with shareholders, to ensure that dividends are paid and to
maintain company records, such as lists of directors and shareholders, and annual accounts.
Any queries regarding the following should be directed to Elizabeth Coleman: Minutes;
Meeting Times, Locations and Agendas; General YAA Forms, Shareholder Records; Any other
Official Company Contracts, Documentation and/or Formal Correspondence.

2.1.3 Environmental Director/Information Technology Manager - Ray Newman

The Environmental Director (ED) is responsible for the environmental aspect of YA.co. This
incorporates the following; developing and implementing an environmental management
plan; investigating environmentally friendly materials, suppliers and manufacturing
processes; and identifying cost savings associated with eco-efficiency.

The IT Manager is in charge primarily of YA.co’s website but also any other IT related aspects
of the business. Any queries that require an identification of the environmental impacts, or
whether a course of action complies with YA.co’s environmental management plan should
be directed to Ray Newman. In addition as IT Manager any questions or suggestions
regarding the administration and design of the YA.co website may be directed to Ray
Newman.

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2.1.4 Co-Finance Director - Wayne (Yewen) Li

The Finance Director (FD) is primarily responsible for managing the financial risks of YA.co.
The FD is also responsible for financial planning and record-keeping, as well as financial
reporting to higher management. This role is likely to become more specified as the Co-
Directors assume different tasks. Any queries regarding YA.co’s finance should be directed to
Wayne Li.

2.1.5 Co-Finance Director - Ken (Bao Dinh) Truong

The Finance Director (FD) is primarily responsible for managing the financial risks of YA.co.
The FD is also responsible for financial planning and record-keeping, as well as financial
reporting to higher management. This role is likely to become more specified as the Co-
Directors assume set tasks. Any queries regarding YA.co’s finance should be directed to Ken
Truong.

2.1.6 Human Resources Director - Aaron Sparshott

The Human Resources Director (HRD) is responsible for all of the functions that deal with the
needs and activities of YA.co employees including these areas of responsibility. This includes
motivate and retain current staff; hire new staff; administer attendance and payroll;
establish and maintain confidential personnel records; assist in conflict resolution; organise
training and development of staff, and monitor the performance of all of YA.co’s employees.
Contact Aaron Sparshott if you are unsure who to contact, have a problem with another
employee, applying for leave or regarding training.

2.1.7 Marketing Director - Jenny (Shengjie) Peng

The Marketing Director is responsible for supervising the design and implementation of a
market plan and strategies. The following are areas of responsibility for the Marketing
Director of YA.co; design and supervise market research; plan and implement promotions;
produce media releases and ensure that all marketing initiatives include recognition of
sponsors and YAA. Any queries regarding YA.co’s marketing plan or activities should be
directed to Jenny Peng.

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3.0 Directors Reports

3.1 Christine Yeung – Managing Director/Manufacturing Director

Acting as the Managing Director, my role is to overlook the whole operation process and
group meeting, give direction of the team work, integrate and collaborate team member
work to attain the optimal result. My duel position in Manufacturing Director allows me to
directly control the cost and resources used in production and the quality of the product.

Currently as a handbag wholesale business owner assist my understanding in both marketing

and financial area, so that I would be able to allocate the resources in both sides with a cost
effective and efficient view. My network with other business owners also helps me to gain
crucial information for the decision making on the company strategy and direction.

I also was professionally trained by my former employer to produce the quality product. My
past experience in working for the engraving company equip my skills needed to deliver high
quality engraving product.

The following experience also progress my management skill

 Manager in restaurant located at south bank
 Board of director and office supplier manager in UGR at UQ foundation
 Chairperson in Economic Association

I believe my prior experience will provide the clear and right direction to the company and
contribute in both profitability in this company and members’ self-development in the area
of business management and entrepreneurship.

3.1 Elizabeth Coleman – Company Secretary

Hi! My name is Elizabeth Coleman and I am the Company Secretary of YA.co. I would like to
see our company, work together as a team to overcome communication and scheduling
boundaries and to create a unique product that is appealing to a large target market, whilst
also making a profit and giving a return to our shareholders.

I would also like to see each member gain priceless business and industry experience and
have fun along the way. I’m looking forward to working with all members of YA.co and hope
that we are able to achieve our goals and overcome any problems that we may face.

3.2 Wayne Yewen – Co Finance Director

After living in the world of accounting for 2.5 years, my adequate relevant accounting
knowledge is an assurance for successfully performing this role.

So far, I have accurately recorded every business transaction up to date, plus giving every
valuable suggestion relates to each transaction in consideration; I have performed a Break -
Even Analysis and bank reconciliation based on the information at the time; Due to
Secretary’s 4 weeks absence, I have taken over the jobs to issue and collect shares, to record

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shareholders information, and to chasing company members for the share capital; Due to
people’s inefficiency and negligence, I have been literally contacting ANZ Toowang Branch
Staff on daily basis for a month; while there were only small group of members making
contributions, I have also shifted to marketing team to give out surveys, and to purchase raw
materials in production team.

There is no such thing as a bad business idea, yet there is a bad product. Personally, I like
the product from the start, and indeed, it is a fascinating idea to make personalized wooden
door hangers, however, as business going on, members including mentor/s are too
parsimonious about the very basic factor to make every business grow – Time. Without time,
even if we have the most brilliant idea, it will go nowhere, Hence, I would say as a member,
YA.co may have good performance in short run, but definitely not long term, and as the
Finance Director, I doubted YA.co will ever break even.

3.3 Ken Truong – Co Finance Director

My name is Ken Truong and I am the Co Finance Director of YA.co. My experience and skills
in this area include, training through a finance program provided by a small finance
company, during this training I learnt about collecting information and evaluating the trends
of the currency market and gold market in the macro scale. I am cu5rrently for a bachelor
and masters degree and have gained a lot of academic skills from finance and accounting
courses such as issuing stocks (IPO), managing the corporate governance, MA and other
accounting skills involving budgeting and keeping track of Finance Statements, as well as
analysing the Annual Financial report of the company.

In addition to this, I have worked as an intern and been exposed to the business world and
have learnt how to build good relationships with suppliers, resulting in low cost materials.

In my opinion, the product concept that Ya.co has produced is quite unique compared to
others available in the market. Most of our directors have finance backgrounds and only a
few of them did creative jobs, however they are all enthusiastic and keep brainstorming,
searching for more ideas.

3.4 Aaron Sparshott - Human Resources Director

As the Human Resources Director I will be responsible for all of the functions that deal with
the needs and activities of YA.co employees including the following areas of responsibility.
This includes motivate and retain current staff; hire new staff; administer attendance and
payroll; establish and maintain confidential personnel records; assist in conflict resolution;
organise training and development of staff, and monitor the performance of all of YA.co’s
employees.

I have prior Project Management Experience: In original undergraduate degree and during
high school years when managing a web development and graphic design company. I have
also acted as team leader on a number of projects whilst studying Bachelor of
Engineering/Economics.

 Experience in event management – Assisted in the launch of Sartori resorts.

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  Experience in Customer Service Roles
 Some limited financial experience through original degree and high school (e.g. as
part of a school course ran a financial advisement business for a 6 months).

Through correct management and using the appropriate business skills and tools, I believe
this company will achieve its objective of securing a profit for YA.co shareholders.

3.5 Raye Newman – Environmental Director

I am suited to be the Environmental Director because I am concerned about the

preservation of our home. I always put my rubbish in a bin, and go for recyclable products. I
try to conserve as much water when doing the dishes, and save power wherever I can. I like
knowing that although my contributions aren’t too big, it’s still better than doing nothing.

My role in Ya.co is to try to find the most environmentally friendly way to accomplish our
goals. This includes finding alternatives for preparation and production that accomplish the
same thing in a healthy way.

I think Ya.co has good quality members; I like our product ideas and am looking forward to
bringing it to the market. The product is unique, and hopefully this will be what sells it to our
customers.

3.6 Jenny Peng – Marketing Manager

My name is Shengjie Jenny Peng and I am the Marketing Director of YA.co.

With the progression of our company, I will assist wherever I am needed and will contribute
to both marketing and sales. In addition, I will help with the production process since we do
not have a large number of people in this department.

My background is in Commerce, majoring in Accounting and Finance. Since Kelly is studying

Marketing and Binh used to work in marketing and sales. We work together as the
marketing and sales team.

As the marketing and sales team, we will initiate the market survey for YA.co. As well as
conduct our market survey. Survey analysis will be done by Binh. With the contribution from
other group members, our marketing team will also formulate our selling channel. In
addition, we will design and produce the first set of flyers for our market sales promotion.

On the day of our product launch on the UQ open day, I will be at UQ with other team
members setting up booth, distributing flyers and helping with sales.

With the shortage of staff and conflicting schedules of our team I can see some possible
problems, however I think YA.co will perform well and we will be successful at the trade
expo and therefore be able to at least break even with a view to a profit.

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3.7 Kelly Le - Advertising Manager

My name is Kelly Le and I am YA.co’s Advertising Manager. I am also currently in my final

semester of a Marketing major and I am particularly interested in the Advertising area. I am
good at brainstorming ideas, being creative and flexible. I enjoy interacting with customers
and listening to their opinions.

By joining YA.co, I would want to use this opportunity to put what I have learned into
practice and challenge myself in this area. As the Advertising Manager I will be responsible
for generating creative ideas to advertise the products, coming up with themes and new
ideas to introduce products and communicate to potential customers, choosing suitable
communication tools (such as internet, emails, flyers etc.) to reach customers and
representing the company in a persuasive way to encourage their purchases, I will also be
responsible for booth decorating, poster designs and flyers.

I will work with other departments to create promotion strategies (discount policy,
presenting products samples...) lastly, I will work to ensure that the message sent to
customers is accurate and sufficient in terms of information of the company and product.

YA.co is making some progress and if everything goes well according to plans, YA.co should
have a great performance. YA.co members are smart and motivated individuals who have
the talent and capability of organising a business and working as a team. I believe that YA.co
will perform very well if all members contribute their efforts to the company and be able to
maintain this highly positive and motivating spirit among them.

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4 .0 Core Procedures

4.1 Communications Plan

The primary method of communication amongst business associates shall be email, with the
use of Facebook as a secondary option. Email was selected as the primary choice as it was
determined to be the most convenient method for the group to communicate. The following
strategy has been developed in regard to email communication;

1. Primary email should be checked at least once a day.

2. Acknowledgement from the receiver is required within 48hrs of the email being
sent. This can be either through email or verbal conversation.
3. Facebook should be used in situations that affect the business as a whole or require
group discussion. As such;
4. YA.co group page should be checked at least every second day for announcements

Phones are used in situations where the individual has either not complied with the
rules above or is absent from a meeting.

4.2 Meeting Procedures

A set meeting shall be held every Thursday at 5pm. All other meetings shall be organised by
the Managing Director, Company Secretary or another Director assigned to organising the
meeting for that week.

A meeting agenda should be planned in advance by the Managing Director and Company
Secretary in collaboration with the other Directors. This provides a base structure to the
meetings so YA.co’s primary objectives can be accomplished. The Company Secretary’s
responsibility is recording detailed minutes and summarising key points of meeting.

Subsequently, uploading these minutes to Google Docs and sent as an attachment via email.
This allows a written record of team progress to be kept for future reference. In the event
that the Company Secretary is not present at a meeting the Assistant Company Secretary
shall take over the role of recording minutes.

Acceptable reasons for not attending a meeting organised by the Managing Director or
Company Secretary are sickness or another valid reason communicated to the group prior to
the meeting. In the event that an employee cannot attend a meeting they shall either;

 Leave a message with the full details regarding future absence from a meeting on
the Facebook discussion board entitled leave. (Note: Communication via facebook is
only valid 12hrs before meeting)
 Contact the Managing Director or Company Secretary via phone if less than 12hours
until the arranged meeting.

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4.3 Conflict Resolution Procedures

The group recognises that conflict can occur while undertaking a team project. To manage
conflict a number of strategies have been developed to ensure that any conflict is
constructive and is not detrimental to group performance.

1. Individuals shall negotiate problems between themselves.

a. Each individual shall communicate their idea and position clearly to the
other and discuss the problem.
b. Develop and investigate a number of possible constructive options.
c. Reach an agreement on one of the options.

If this step fails the process will proceed to the next step.

2. Opposing individuals shall undergo mediation with the entire team to try and
develop a positive outcome for all concerned. If this step fails the process will
proceed to the next step.

3. Finally, after analysing all options the group will vote on an option and the option
with the most votes shall be used. This step requires that all team members vote for
an option.

4.4 Wages & Salaries Policy

Introduction: YA.co’s wage and salary plan classifies each position into a grade that is
associated with a salary range. This policy will come into effect in week 12 or when
production commences.

The Human Resources Director is responsible for the general administration and
maintenance of the salary program including:

· Determining salary ranges and recommending any changes in the salary structure
caused by internal or external conditions;
· Establishing job evaluation methods and ensuring that positions are evaluated
properly;
· Communicating and monitoring salary increase guidelines; and
· Submitting certain salary increase recommendations to YA.co management for
approval.

4.4.1 Pay Grades

Pay Grade $ per Month
Managing Director 8
Executive Directors 6
Managers/Other Employees 4

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4.4.2 Pay Cycle for Salary employees

YA.co employees are paid on the last working day of each month. Changes will be made and
announced in advance whenever holidays or closings interfere with the normal payday.

4.4.3 Commissions

Available Options per YAA requirements are;

- Max of 10% commission on sales
- Can be donated to charity
- Best strategy would be to probably go 50/50 e.g. 5% for employee / 5% for charity
- Or could have just 5% sale commission and then allow the company member to
decide whether or not they want to donate it to charity. By having a lower
commission we can give a greater return to our shareholders at the end.

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 5.0 Business Profile

5.1 What is the business opportunity for our business?

 Members within the group has various connections and Networking opportunities
 Large customer base at uni
 Access to free weekly university markets
 Managing director has prior business experience and can use this to make our team
successful
 Team members have many useful business skills – example. Finance students,
marketing students etc
 Work with a product that is unique

5.2 How will we take advantage of the opportunity?

 Attend networking events to continue relationship with business contacts and get
our company an product name out into the public
 Promote our company and product through friends, uni markets, community notice
board, UQ union and any other marketing opportunities at the university
 Use the real life webpage design, marketing, managing and finance experience of
our company members to help establish high standards within our business
 Demonstrate a demand for the product

5.3 Legal structure of business:

YA.co will operate under the Young Achievement Australia legal structure

5.4 Industry Knowledge and experience/skills of key personnel:

Name YA.co Business Role Highest/Current General Skills/Experience

Qualification
Aaron Sparshott Human Resources Director UQ Bachelor of General Skills: Management (Project &
Engineering/Bachelor of Event Management), Marketing, Customer
Economics – yr 2 Service, Basic Finance

Computer skills: Extensive computer

training (Cert IV) & experience, including
knowledge of multiple networking
environments and business software
packages.

Language/s: English, Basic Mandarin,

Spanish (currently learning)

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Binh Nguyen Sales Director UQ MA Commerce General: organisation, computer skills
(Accounting and Finance), (office), web graphic design
- yr1
MA International Computer skills: Advanced web/graphic
Relations, University of design, office.
Nottingham (F:07)
Language/s: English, Vietnamese
Christine Yeung Managing and UQ Bachelor of General Skills: Finance, Management
Manufacturing director Commerce (Finance) – yr (Human and product/service e.g. supply
3 chain), Customer Service,

Computer skills: Basic Computer Skills

(word, etc)

Language/s: English, Cantonese and

Elizabeth Coleman Company Secretary &
Assistant Managing Director
Mandarin
UQ Bachelor of General Skills: General Business Skills, (Cert
International Hotel and III) Organisational skills (events, planning,
Tourism Management etc), People & liason skills,
(Events Management) –
yr 1 Computer skills: Computer Skills (Cert I)
(word, etc)

Language/s: N/A
Jenny (Shengjie) Marketing Director Bachelor of Commerce General Skills: Finance, Customer services,
Peng (Accounting & Finance) Research and Communication

Computer skills: N/A

Language/s: N/A
Kalie Le Advertising Manager UQ Bachelor of Business General skills: a quick learner and willing to
Management (Marketing learn, able to work under pressure, easily
and HR) – yr 3 adapt to new environments, good
interpersonal skills, maintain a positive
attitude, very responsible and hard-
working.

Computer skills: Basic Computer Skills

(word, etc) & SPSS.

Language/s: English, Vietnamese, French

(beginner)

Ken (Bao Dinh) Co-Finance Director UQ Master of Commerce General Skills: Accounting ( book keeping
Truong (Finance and Accounting) and Financial Statement analysis) Finance
(Merger and Acquisition, Stock Trading,
Equity Trading) Marketing & Corporate Law
background.

Language/s: English, Vietnamese,

Min Currently no Role Assigned Bachelor of Commerce N/A
(On Exchange) (Accounting & Finance)

Oliva Chen Market Research Manager UQ Bachelor of General Skills: Comprehensive skills in
Commerce marketing and also general knowledge in
commerce (accounting and finance)

Computer skills: N/A

Language/s: N/A

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Raye Newman Environmental Studying for Diploma of General Skills: Create business logo,
Director/Website Manager screen: Animation Website Optimization, Drawing, Good
Cert IV in arts motor skills
administration
Computer skills: Advanced web/graphic
design, office.

Language/s: N/A

Tracy Nipperess Production UQ Bachelor of Business General Skills: Management, General

Manager/Assistant Company Management (Marketing Business Skills, Fashion Business &
Secretary and Hospitality) Merchandising
College of Tourism and
Hospitality Diploma of Computer skills: Advanced.
Hospitality Management
Language/s: N/A
Wayne Li Co-Finance Director UQ Bachelor of General Skills: Customer service, Finance,
Commerce (Accounting Accounting & General business skills
and Finance) - yr3
Computer skills: Computer Skills

Language/s: English, Chinese, Mandarin

5.5 Location of premises:

Meetings and production will take place in a number of locations including:

 Indooroopilly Library
 Toowong Library
 UQ Library
 Managing Directors House

5.5.1 Advantages:

The advantages of holding our meetings in the libraries are the free resources, including
power, meeting rooms, projectors, whiteboards, internet and computers. We also have the
advantage of holding our production meetings at our Managing Directors house as we can
leave the area set up and cut down on set up time. We also have a secure place to store our
products and materials. All of these meeting places are fairly central to our residences and
have good access to public transport.

5.5.2 Disadvantages:

There are few disadvantages of our meeting places; however there is a chance that meetings
rooms will not be available on the days and times that we need them.

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5.6 SWOT analysis

Strengths Weaknesses Opportunities Threats

Enthusiastic team Communication Great selling 6 other university
members barriers between opportunity teams with similar
international and selling opportunities
Australian students
Prior business Different perspectives Wide variety of skills Suppliers
knowledge and skills that can be utilised
Strong Leader Different schedules Creative group of Cheap substitutes
people
All students studying Product might not sell Good problem solvers
business well
Older students with Insufficient manpower Potential new Competitors (other YAA
more life experience customers can create teams, other booths at
high awareness of our market)
products, which can
create good reputation.
Unique product
Wide variety of skills
that can be utilised
Unique and creative
product ideas, perfect
for gifts

5.7 TOWS Strategy formulation

Maximise Strength & Opportunity Max Opportunity - Min Weakness

 Team members with prior  Communicate effectively to avoid

knowledge to share experiences
and identify potential problems
 Use strong leader and good
problem solvers to help the team
function in a successful and
productive manner
Max Strength – Min Threat
conflict, misinterpretation of
messages
 Look at ways to make the product
more appealing
Minimise Weakness and Threat

 Use our creativity to make a unique  Arrange meetings to suit all

product that will not be compared schedules
to other teams products  Effectively communicate
 Do thorough research into  Keep on task
suppliers  Set specific goals for specific period
 Teams should rotate and help of time.
contribute to the whole company,  Constantly review goals and
working crossed-section to obtain objectives
the best of all team members  Honest & open communication with
constructive feedback

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5.8 Business Objectives:

a. Sales/Profitability

As a company YA.co has the intention of making a profit and giving a significant
return to our shareholders

b. Other objectives:

 To communicate efficiently and effectively

 To create a unique product
 To learn new skills
 To work well as a team

c. Specific time frames:

 Our main selling opportunity will be at the YAA Trade Expo in August, therefore
we aim to have produced enough products to fill orders and demand.
 Complete and submit all compulsory paperwork by the due date

d. How will these objectives be achieved?

 Be aware of deadlines and work and communicate effectively as a team

 Set a specific set of goals to work towards

6.0 Marketing Plan

6.1 Market Analysis

6.1.1 Our product/service and who needs our product/service:

 Our product is a personalised wooden door hanger

 It comes in a variety of colours, including natural wood an d can be personalised
by painting, engraving and wood burning
 Our product is great gift idea and would appeal to most age brackets

6.1.2 Customer Profile

Before deciding on our product, YA.co conducted market research through surveys,
observations and interviews of potential customers in various range of ages.

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Our research showed that:

 Middle aged women [usually mums] were interested in our products and the ideas
of engraving on the products.
 Teenagers also like the ideas of designing their own unique door-hangers, especially
cool or funny statements
 Male adults generally were less interested in this particular kind of products
compared to Females

6.1.3 Trends affecting the industry in the past and future

 People’s demands and desires are constantly changing and so too are the major
trends affecting the industry, including petrol prices and price increases as a result.
 The season also impacts on demand, as this product is intended as a gift we would
expect more sales around holiday seasons
 People with higher incomes are able to spend more time and money in home
decorating and taking care of their houses, which creates the demand for our
products
 Many houses in Australia are made of wood, which goes well with our wooden door-
hangers

6.2 COMPETITIVE ANALYSIS

6.2.1 Competitor Evaluation Table

During our market research process we found very few shops actually selling this product.
We did find similar products but none that offered our unique personalisation

Company Name Size Sales Mix Years In Reputation Rating

(Product/Service) Business (1-10)
Souvenirs Shops Small Product Varies 5
Discount Stores Large Product Varies 7
Online Stores Medium Product/Service Varies 5
Gift Stores Small Product Varies 7

6.2.2 In what areas does your business have a competitive advantage?

 Good company members with quality attributes

 Competitive Pricing
 Personalisation able to be done
 Unique ideas with creative designs
 Our staffs are experienced with engraving and artistic skills

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6.2.3 In what areas does your business lack a competitive advantage?

 Small amount of manpower

 Small amount of capital to be utilised
 Production process requires many small materials which might result in high
additional costs
 Time-consuming through many different steps to make the final product.

6.2.4 Can competitors easily diversify into your market?

Factor Yes/No Reason Why

Technology Yes Easy access to engraving tools
Cost of Entry Yes Cheap production cost
Unique Product/Service No Special and experienced staff who knows engraving art
Knowledge & Skills No Special experience required to engrave

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7.0 SALES PLAN

7.1 Objectives:

 To Maximize sales volumes with a view to profit or at least break even.

 To appeal to target market and make our product known to customers.
 To generate a lot of sales not only to break-even but also gain profit for
shareholders.

7.2 Packaging:

 low cost packaging made by wrapping/gift paper

 envelopes
 In order to be cost effective, customers are given 2 options, one is free packaging
with just ordinary white small paper bags, or nothing at all if they do not require
 However, if they want to buy for gifts and require nice packaging, we can charge
them extra 50c for wrapping papers for each door-hanger bought.
 Packaging should be cohesive with our chosen theme and products, preferably
bright catchy colours with our YA.co name clearly printed.
 Also, YAA and logos of sponsors/donor should be printed or attached to the
packaging.

7.3 Distribution:

 personal selling to friends and families through word of mouth

 selling at UQ market day with a selling booth
 sales on the trade exposition
 possible ordering from our website
 We can also take orders from customers with their personalised requests, and they
can collect them at the next market day [1 week if at UQ market]
 Postage is also available with additional charges. However, YA.co will not be
responsible for any missing or delay in product delivery by postage.

7.4 Pricing:

 5% off when presented with our flyers

 5% off on our grand opening to attract attention and sales
 uniformed price for door hanger with variations with add-ons
 The suggested price is $10 for the products. For following reasons:
- Affordable for our target markets which are teenagers and young adults, uni
students
- 1 price for all products makes it simple and convenient for profit calculation and
forecasting sales

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 - Relatively cheap price compared to competitors [other booths at the UQ
market]
- Cash only, no EFTPOS

7.5 Promotion:

 web site and blog for our company

 flyers distributed for market day
 posters and standing for the selling booth
 decorations for our selling booth to catch eyes
 Emails can be sent around to our families, friends and their friends to promote our
products.
 100 flyers will be handed to potential customers near market areas on the product
launch day; some will be put around uni on notice boards
 To appear visible and stand-out, modern music will be played to catch attention, big
banners, colourful balloons and ribbons to create a fun “party” theme.
 Our sales staffs will be active in approaching customers, introduce our new
products, answer to their questions and listen to their feedback/opinions.

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8.0 OPERATIONAL PLAN

8.1 Objectives

We aim to obtain the optimum capacity, through minimizing costs and resources used in
operation and production by,

 Ensuring all staff are well informed of the dangers of using the engraving pen
 Ensuring all the engraving staff are well trained to deliver quality product
 Production procedure is operating under the most effective and efficient manner

8.2 Productivity

Production Process-

Stage one- Burn the wooden door hanger edge

Stage two- Engrave picture/pattern along the edge of the door hanger (paint if required)
Stage three- on the spot Engrave name and other pattern according to customer need

Production management- Safety issue and training process

Safety issue- All engraving staff will go through a one on one training, ensure all of the
engraving staff are under secure condition.

Training process-

 Proper way to hold the engraving pen-write

 Burning line and pattern
 Practicing each letters and style

8.3 Plant and equipment requirements

 Colouring the picture

 Brush and acrylic paint/ water paint
 Engraving
 Soldiering iron
 Sand paper
 Burning the edges
 Flaming Burner

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8.4 Quality control measures

The nature of engraving the wooden door hanger is its flexibility in the ability to personalise
each one for the customer on the spot.

To provide better service along with our unique products,

We have three set of different font style for people to choose

 normal
 quirky
 colour bold

Customer can choose different patterns or pictures which are premade on the door hanger,
then they pick the font style and give the word they want to be engraved, then we
can engrave it on the spot, so that each product will meet the exact order from the
customer.

Since the Managing Director has been professionally trained in this area for 2 years, and all
the production is made by or under supervision of the Managing Director. All the
steps and changes are made by her, so the quality of product is maintained and
supervised.

8.5 Staff requirements

2 Engraving staff who are

 Good at drawing and artistic.

 Good handwriting
 Be available to all the training section
 Expected to bring the engraving pen to home to practice on wood

8.6 Training

Staff will be trained specifically to write and engrave on wood by using soldiering iron and
the whole training period of time is 3 weeks

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 9.0 FINANCIAL PLAN

9.1 Establishment Costs

To start up YA.co, the known costs are the kit fee of $209, insurance of $77 and the Trade
Expo entry fee of $55. Other expected future ongoing costs will be for wooden plain door
hangers, colours, packaging, and for tools like soldering irons and glue gun.

9.2 Profit Budget Schedule (on following page) completed:

Profit Budget
6-Aug 13-Aug 23-Aug 27-Aug 3-Sep 10-Sep 17-Sep 24-Sep
Sales volume 10 10 30 10 10 10 10 10
Revenue
$100.00 $100.00 $300.00 $100.00 $100.00 $100.00 $100.00 $100.00
@$10/unit
COGS
$ 11.20 $ 11.20 $ 33.60 $ 11.20 $ 11.20 $ 11.20 $ 11.20 $ 11.20
@$1.12/unit
Gross Profit $ 88.80 $ 88.80 $266.40 $ 88.80 $ 88.80 $ 88.80 $ 88.80 $ 88.80
Period Fixed
cost Total $ 73.63 $ 73.63 $ 73.63 $ 73.63 $ 73.63 $ 73.63 $ 73.63 $ 73.63
$589
Trade Expo
$ 55.00
Entry fee
EBIT $ 15.18 $ 15.18 $137.78 $ 15.18 $ 15.18 $ 15.18 $ 15.18 $ 15.18
Tax at @30% $ 4.55 $ 4.55 $ 41.33 $ 4.55 $ 4.55 $ 4.55 $ 4.55 $ 4.55
NPAT $ 10.62 $ 10.62 $ 96.44 $ 10.62 $ 10.62 $ 10.62 $ 10.62 $ 10.62

Comment:

Given YA.co ceases trading in October, and we have a free spot in UQ Wednesday market
day. The trading days will be every Wednesday from August to 24th September with
exception on 23rd Aug, which is Saturday Trade Expo. The total fixed cost excluding Trade
Expo Entry fee of $55 is divided evenly among the 8 trading days, which gives us $73.63 of
the fixed cost recognised on each trading day.

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9.3 Break Even Analysis

Breakeven Analysis
YA.co
Amounts shown in A.U. dollars
Sales
Sales price per unit 10.00
Sales volume per period
(units) 10
Total Sales 100.00

Variable Costs
Commission per unit
Direct material per unit 1.12
Supplies per unit
Other variable costs per unit
Variable costs per unit 1.12
Total Variable Costs 11.20

Unit contribution margin 8.88

Gross Margin 88.80

Fixed Costs Per Period

Administrative costs 20.90
Insurance 7.70
Rent 5.50
Other fixed costs 30.24
Total Fixed Costs per
period 64.34

Net Profit (Loss) 24.47

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