Objectives On successful completion of this assessment, students should be able to: prepare a summary of a business idea clearly indicating the business purpose, consumer need, and potential for profi

Objectives On successful completion of this assessment, students should be able to: prepare a summary of a business idea clearly indicating the business purpose, consumer need, and potential for profi
Running Head: DEVELOPING A BUDGET STATEMENT ASSIGNMENT 0 Developing a Budget Statement Assignment Gurleen Kaur 2019081614 BUSI 2153- Entrepreneurship Professor Hamid Reza Mohammadi Sunday, February 13, 2022 Introduction For the company to be able to maximize on its profits they have to work hard to ensure they maintain their costs low. Globally all companies are looking towards succeeding in the market and obtaining a higher market share which is vital for having a competitive advantage among other companies. For a company to succeed then it has to ensure it’s on the right track while they are doing business and to be able to achieve this then there are areas they have to focus on for it to succeed. In the implementation of the different strategies for ensuring the company succeed they have to look at the short term vs. longterm strategies for investment, the cash flows and the financial plan for the company, they have to consider its marketing plan, carry out market research plus analyzing the market. To be able to succeed in this areas the company has to adapt the right technology which will push them towards maintaining their costs low and succeeding in the markets. Taking an example of the transport sector, appetite for owning cars has continued to increase up to where currently there is one car for 11 individuals (Arbogast,2017). Through an increase in total number of the vehicles globally, the total number of accidents has continued increasing. In reference to the WHO close to 1.2 million individuals they end up dying on the roads annually (Global status report on road safety 2015). For most of the companies they are trying to come up with vehicles which can function without having drivers to be able to reduce the errors which occur as a result of human error leading to death. When the right technology is adapted it will ensure there is success in business being done which will give the company competitive advantage among the other companies. The main problem which is being addressed in this matter is to ensure the business adopts the right strategy for its competitive advantage. Objectives The main aim of this project is to ensure the business succeed through the adoption of the new business model that can be adapted at the commercial level. The other objective is checking for viability. To check how ready, the business is to adapt the proposed new strategies. Scope for the project As a business we have been focusing on viability of the technology being adopted by the company to be able to serve purpose besides seeing where the company is,in this there is consideration of global market. Advantages Through the adoption of the proposed project within the business the main advantage will comprise: Reduction in accidents Through the adoption of the advanced technology within the transport sector this will ensure that there is a reduction in the accidents. For the adoption of the new technology it will be using algorithms regulating the precise stop distances from one vehicle to the other. Through the adoption of the technology, it will ensure there is a reduction in the number of accidents which are encountered within the sector. Reduction in carbon emissions Through doing away with the old technology and adopting to the new one it is expected that this will ensure that the emissions will ensure there is reduced carbon emission. Through the adoption of the new technology. Stress free parking Through the adoption of the autonomous vehicles the passenger can be drop at their destination and the vehicles can be able to park where they find space. Through this it will ensure that time wastage by looking for parking spot is reduced and the people are able to concentrate on their work. Disadvantage Through the adoption of the technology where we have got self-driven cars there is doubt which exist concerning their effectiveness and scalability. Some of the problems which will be faced comprise: Costs Transition from using human being to technological advancement where they use robots requires massive investments. The costs for technology and the software’s is recouped with higher sales prices. For the consumers they do not want to pay more as a result of advancement in the technology. Scalability Not everybody is ready to adapt the advancement in the technology. Having self-driven cars will not come as good news to all. There is still safety concern with the new models since there was death of the passenger when the car collided with tractor. Economic disparity Losing jobs is inevitable resulting to increase of reliance on the technology where most of the workers are left lacking any income means. Through adopting autonomous vehicles, the drivers lose their jobs plus unemployment having hike which results in the economic disparity. Cost and Pricing Through the published forecast for the autonomous cars, according to the report by the Forbes they are going to cost $5000. In this we will have a premium price till the year 2030. Having vehicles that are full autonomous its still has got a decade away where for some of the predictions till the year 2040 is when we will have them on roads. For the current version of the autonomous cars they are using laser mapping technologies. It is expensive and they are predicted to decrease to $2,000 by the year 2030. Having breakthrough in solid state device could have system prices for low hundreds of dollars (Earl,2020). In U.S. the cost for having a new car is over $30,000. In past two decades, prices for average vehicle sold has increased less as compared to inflation rate. For the autonomous cars they are still going to sell at a premium to conventional cars where on average the prices will be between $40,000 and $50,000. For Tesla they are working on a system of low cost which does not rely on the LIDAR. For this they are predictions which are being made on basis of the data which is available thus it could be used for reference purposes. In pricing we are going to use the competitive pricing plus penetration pricing strategies to be able to stay competitive in market besides having a larger customers base. When there is a good base of customers then it will charge premium. It is difficult to coming up with the exact costs plus prices for products while costs for the production of the basic models is close to $40,000 up to $45,000 besides depending on prices has to begin at $50,000 to $55,000. The funds for this project will be from the venture capitalists, loans among others. For technology which is being applied its appealing and will be a reality in coming years. This provides confidence to the investors which will make it easier to get funds required for the project. References Arbogast C., (2017). “Experiments Show That a Few Self-Driving Cars Can Dramatically Improve Traffic Flow.” Phys.Org, Phys.org, phys.org/news/2017-05-self-driving-cars-traffic.html. Earl J. (2020). “Self-driving automobiles: How soon and how much?”, Forbes. 21st May 2019. Web. 11th Nov 2020. Global status report on road safety 2015. (2018). World Health Organization. https://doi.org//entity/violence_injury_prevention/road_safety_status/2015/en/index.html
Objectives On successful completion of this assessment, students should be able to: prepare a summary of a business idea clearly indicating the business purpose, consumer need, and potential for profi
ENTREPRENEURSHIP 7 Entrepreneurship Name of student Name of Institution Date Maximizing success and profit is the goal of all companies across the globe. No company would like to make losses. Therefore, for any company to be successful and be on the right track of doing business, it is significant for such companies to focus on five main areas, which entails: short versus long term investment strategies, cash flow and financial plan, marketing plan, market research and analysis, and competitive analysis. Below are a broad explanation of the five mentioned areas. Competitive Analysis According to Allen et al. (2020), the primary goal of the competitive analysis is to determine competitors’ weaknesses within the market. Research provides both the context of defensive and offensive strategies to identify threats and opportunities. In addition, it helps the business to evaluate potential markets accurately and to identify potential customers. Albastics & Hamdan (2019) show that competitive analysis helps companies find a place for their competitors compared to potential customers. The importance of customer comfort and time will be helpful when setting up a business somewhere. However, the essential purpose of conducting a competitive evaluation is to identify value propositions for a business or company competitors. Analyzing these suggestions can help you determine what you need to gain customers’ value for your proposals. Market Research and Analysis The primary purpose of conducting market research and analysis is to describe the market situation or situation that the business wants to enter into. As Srinivasan & Venkatraman (2018) has pointed out, it includes a description of the market the business or company is entering, how other companies have failed or succeeded in the past, and the current needs in the market. Therefore, direct market research and analysis, the more basic information, the better. The basic premise is for a company or business to make sure that it is clear from the world’s perspective and that the business and potential partners or stakeholders agree on market speculation. As Allen et al. (2020) reported, market analysis compels the business to become familiar with all the defining market features. The company can be placed in that market. It is always good for companies to reduce target markets to a manageable size as many companies make the mistake of trying to recruit more targeted markets (Albastiki & Hamdan 2019). The company should do thorough research and include the following information about the targeted market: What percentage of the market share and the number of customers do you expect to find in a specified area? Target market size – How much market share can you earn? Are there seasonal shopping trends or cycles that could impact your business? What are the demographics of the group, and where are they found? Are those needs being met by current competitors? Distinguishing features – What are the critical needs of your potential customers? Marketing plan Customers are the lifeblood of any business worldwide, and marketing creates new customers and keeps existing ones (Srinivasan & Venkatraman 2018). The marketing plan is an opportunity for the industry to explain how it will change things. From this point on, the company decides what to do with the results. It is the same process that a business will introduce various products and services to the market. Therefore, any business needs to articulate its marketing strategy clearly. So it is at the heart of a modern business plan. According to Allen et al. (2020), the main reason for launching a project is to change something, and the business needs to know what it will do and how it will affect the company and customers. However, the overall marketing strategy should include four distinct components: Market penetration strategy The most important part of a marketing strategy for a business is winning its initial customer base and where most new businesses fail. It is also essential for the industry to develop a system that will help it earn and maintain the corporation or business reputation (Albastiki & Hamdan 2019). Growth strategy Business growth is essential for all businesses across the globe. Therefore, some of the strategies that the company can use to build its brand and grow entails: how you will take customers from competitors, a franchise strategy for branching out, an acquisition strategy such as buying another business, and how to increase your human resources (Srinivasan & Venkatraman 2018). Channels of distribution strategy The business may have different distribution channels, including retailers, distributors, internal sales force, and original equipment manufacturers (OEMs). Communication strategy The business aims to identify customers with their various products and services in their area. Companies come up with a combination of strategies to reach different customers. These include printed items such as flyers, catalogues or brochures, marketing, social relations, advertising, social media, and promotions (Allen et al., 2020). Financial plan and cash flow The last part is about money. A business aims to make a profit, and profit is money. Companies should ask themselves details about what the cash flow plan looks like, how it will be used, and how much it needs (Albastiki & Hamdan 2019). Therefore, the two components of a financial plan will make or break your business. These are probably the essential factors in a business failure. The first is an estimate of the business’s income as a part-time job, determining how much it will need to continue its operations (Srinivasan & Venkatraman 2018). The second is how long it will take for the company to reach a state of consistent stability, and this includes comparing all business operating costs with the revenue earned. Focus on budget versus actual An entity needs to take steps to ensure that it makes a good budget update compared to the actual at least once a month through cash flow, expense, and sales (Allen et al., 2020). After analyzing the market and setting clear objectives, an entity should develop a speculative financial category. After doing this, the company will allocate resources appropriately to the business’s operations. Whether they are just starting or growing, all companies will be required to provide potential financial data. Business debtors will often want to see what they expect promptly. Annual documents should include capital expenditure budgets, cash flow statements, balance sheets, and predicted revenue statements (Albastiki & Hamdan 2019). In the first year, the business should set monthly estimates. Once a company has made assumptions in its forecast, it is essential to summarize all beliefs. Short versus long term The business offers two additional essential recommendations. The first focuses on the short term and the short term, and the short term is between eighteen and twenty-four months. It is important to note that three to five years should be issued if the potential partner or business lender needs it. However, it is challenging to predict any certainty over two years. The second step is to make the business plan a living book. An entity should review its financial plan at least monthly. However, Srinivasan & Venkatraman (2018) recommends weekly for the first two months of a new start-up business. Some parts of the plan should be reviewed and updated quarterly, especially if any problems are identified in the financial system review results. References Albastiki, N., & Hamdan, A. (2019, September). Financial illiteracy and entrepreneurship success: a literature review. In European Conference on Innovation and Entrepreneurship (pp. 28-XVIII). Academic Conferences International Limited. Allen, J. S., Stevenson, R. M., O’Boyle, E. H., & Seibert, S. (2020). What matters more for entrepreneurship success? A meta‐analysis comparing general mental ability and emotional intelligence in entrepreneurial settings. Strategic Entrepreneurship Journal. Srinivasan, A., & Venkatraman, N. (2018). Entrepreneurship in digital platforms: A network‐centric view. Strategic Entrepreneurship Journal, 12(1), 54-71.