Introduction
The Beatty Place is a company that will design and manufacture all types of jewelry for sales within and outside the UAE. The company will deal with different designs of earrings, pendants, and pins designed by Ali Fazul based in Riyadh, Saudi Arabia. It is a start-up anticipated to grow and break-even within the next two years and achieve a profit margin of 60% and 80% in the third and fourth years consecutively. The company will operate outside the UAE, in countries, such as the US and the UK, through direct importation.
Company Background
The Beatty Place is a UAE-based jewelry company, which will engage in the design and manufacturing of designer earrings, pendants, and pins. The company’s strengths are based on the design of the products by Ali Fazul, who is a known designer in the country. However, it has to deal with a great deal of competition because it is entering an already saturated market with competitors, such as Al Farasha Goldsmith Works, Al Fardan Arts & Jewellery Factory, and Samra Gold Factory.
Business Plan
The Beatty Place’s vision is to be one of the most accepted “affordable luxury” jewelry brands in the UAE and internationally.
The Beatty Place’s mission is to design and manufacture innovative jewelry products in the UAE and internationally.
The Beatty Place’s goal is to attract and maintain customers by providing high-quality jewelry.
Its core values include:
- Integrity
- Customer
- Commitment
- Honesty
- Trust
- Passion
- Fun
The company’s procedures will include design, production, sales, and marketing.
The Beatty Place’s policy is to always keep customers satisfied to generate loyalty.
The Beatty Place will operate within the legal guidelines in the UAE and global business environment.
Long term/short term plans
- To establish a business in jewelry design and manufacturing that exceeds the expectations of customers.
- To achieve the sale of jewelry manufactured by The Beatty Place in at least 30 retail shops in the UAE by the end of the first two years and in more than 100 shops globally by the end of five years.
- To sell its products to over 60% of target customers by the end of three years and 80% by the end of five years.
Type of Organization Structure
The Beatty Place will use a functional/matrix organization structure. The choice of the structure is informed by the need to group employees depending on the same set of roles or tasks, such as design, production, and sales and marketing (Berry, 2012). It will help the company to streamline its operations.
SWOT Analysis
Strengths
· Ability to configure the value chain to create value for consumers. · Ability to cut production cost sell its goods at a lower cost than most competitors. · Capacity to collect and store data about customers. · Well compensated talented and trained personnel |
Weaknesses
· The company is a start-up operating to break even. · A lack of physical access to the customers. · Low cash flow at the beginning. |
Opportunities
· Technology, including social media for marketing nationally and internationally. · Expansion to global market through direct exports. · Expanding local market
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Threats
· Competition · Environmental sustainability demands
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Organization Management and Levels
The company will be owned by Ahmed Ali, who is also the president. However, to achieve efficiency, he will hire and work with managers in three central departments, design, production, and sales and marketing. Gianos (2013) reveal the importance of a functional management structure to achieve the company’s objectives.
Decision making & Planning
Decision-making will involve all employees in the company, and communication will be in all directions. The management will use a participative leadership style because the president believes that every employee has a positive input in the success of the firm (Bodie, 2013). Generally, working together, the company will achieve its goals faster.
Forecasting
The management will use both financial and demand forecasting to predict the financial performance of the company in the short- and long-term (Demil, Lecocq, Ricart, & Zott, 2015). It will compare the business to real business data and numbers to establish whether it will be a loss- or profit-making venture. The following table shows the forecasts:
1st year 2nd year 3rd year 4th year 5th year
Potential Customers Growth CAGR
Individuals 10% 620,531 678,380 737,253 803,606 875,933 10.00%
Retailers (Galleries) 8% 9,469 10,132 10,841 11,599 12,413 8.00%
Other 0% – – – – -. 0%
Business Environment
Government policy will affect the business in various ways, such as ensuring environmental sustainability. Since it will operate locally and internationally, national and international environmental standards will affect its operations, as Chernev (2015) suggests the need to comply with all laws. The business will be registered in compliance with national business laws and comply with global policies when exporting its products to other markets.
Conclusion
The Beatty Place is a start-up in the design and manufacturing of precious jewelry based in Riyadh, Saudi Arabia. However, the company anticipates reaching an international market through direct exportation of its products. The owner anticipates increasing market reach over the years to ensure that the company sells its products through more than 100 retail shops internationally. The management expects to grow and break-even within the next two years and achieve a profit margin of 60% and 80% in the third and fourth years consecutively.
References
Berry, T. (2012). A Simpler Plan for Startups. BPlans (Undated). Articles. bplans. com/writing a-business-plan/a-simpler-plan-for-start-ups/39
Bodie, Z. (2013). Investments. McGraw-Hill.
Chernev, A. (2015). The marketing plan handbook. Cerebellum Press.
Demil, B., Lecocq, X., Ricart, J. E., & Zott, C. (2015). Introduction to the SEJ special issue on business models: business models within the domain of strategic entrepreneurship. Strategic Entrepreneurship Journal, 9(1), 1-11.
Gianos, J. F. (2013). A Brief Introduction to Ansoffian Theory and the Optimal Strategic Performance-positioning Matrix on Small Business (OSPP). Journal of Management Research, 5(2), 107.