Business Proposal AAPOLY Semister 1, 2017 Course Title: Strategic Enterprise Planning-BUMGT5928 Table of Content 1. Introduction 3 1.1 Company’s Background 3 1.2 Background of study 3 2. Research Methods 4 3. Organization’s Strategic Scope 4 4. Possible Challenges and Outcomes 5 4.1 Challenges 5 4.2 Outcomes 6 5. Tools for analytical Assessment 6 5.1 SWOT Analysis 6 5.2Porter’s five forces Model 6 5.3 PESTLE/STEEP or PEST 6 6. Recommendation 7 7. References 7 1. Introduction: This strategic plan is formulated of for the accommodation providers to the international students with the scope of “preference to their choice”. The aim of this strategic plan is for company XYZ to expand its market share at the first preference with not too much focus on the profit because of the early stage of life cycle, whereas at the same time competitors are at the maturity stage in the same industry. The main focus is towards capturing the international students who are already in Melbourne or are planning to come. 1.1 Company’s Background: The organization is about accommodating international students and providing them with the facilities required as to make them feel safe and secure in Melbourne region. Due to being far away from home there are lots of issues students will be facing which includes: finding affordable accommodation, jobs, transportation, food, adapting cultural changes and most importantly safety and security. Although Australia is one of those country where priority is given to human rights. As per End of Year Summary of International Student, (2017) there was around 414,292initiation (New enrolment) done in the year 2016, which is 10.9% higher than the consecutive year and got higher 14% as compared to the previous financial year of February 2016 ("INTERNATIONAL STUDENT DATA monthly summary (February 2017)", 2017). As the company is in its introduction stage there are very challenges company will face because the industry in which company is “accommodation for international students” the competitors are already at the maturity stage, where those are generating more profit. XYZ’s main focus will towards the market share to increase rather than more focus towards the profit. The company will not be able to generate more profit at the first years to reach itsbreakeven point. The XYZ Company is partnership of three persons could have problems with the person to choose having control of functions and other legal formalities are needed to consider avoiding issues. Company is outsourcing funds to start up could have issues with creditors or any issue within the partnership could lead to insolvency. 1.2 Background of Study: This strategic plan establishes a strategic process that will enable XYZ to capture a wider market by increasing its value and consumer offerings. The focus is on how XYZ will be able to capture target segment that will in effect to increase its market share to generate profit. In addition to the options available to the users that can be chosen from the services depending upon their willingness will be flexible way for students where they can choose to live near the college campus, within the area where there community members are living, with multicultural people to know more about the cultures etc. where this is the gap in the market that can benefit this business with positioning as “value for choices”. While evaluating the services provided by the competitors it is founded that there are the gaps which company XYZ can benefit by providing those services which are really needed by the customers. Surveys done by the company can be really helpful to know the expectations of customers. Where international students look towards the accommodation providers that they are here to help them, guide them, to make their live easier with so many expectations but at the same time management perceptions are not like that. Where XYZ is having the mission and vision to be focus on the customer expectations on first preference. As the XYZ is committed to work very closely to their customers for their basic needs like food, transportation guidance, laundry, cultural events updating, and flexible accommodation programs with lot of choices for place, food, room sharing, personal living etc. Based on the VRIN tool, it can be said that XYZ can perceive customer value by letting students chose flexible options accordingly they like with different options. Company having the valuable platforms to reach to it’s customers like universities, consulting agencies working in Melbourne etc. As the XYZ is mainly focusing on market share rather than profit like others so could not be imitate. The company XYZ is having strong emphasis on sustainability, where it is committed to managing and reducing impacts on environment. Company will have ethical practical mission and vision and is focusing how to provide value that have been committed? Organization is also has different competitors in the same field, but there are numerous aspect by which company is intended to develop point of difference and try to generate revenue. Company’s main objective is to focus students who are in the beginning of their education year and thus requiring facilities in order to save time and effort in order to focus on studies. The planning process will allow company to develop strategic pathway in order to capture more market share, offer unique facilities and to market the services to the desired segment. Strategic planning will also add such strategies that will develop market goodwill with the help of company’s stakeholder’s and partners. In order to put a step forward a unique point of difference required to be develop in comparison with the competitors.The findings in related to the market, demographics and kind of services needed by the new comers will allow organization to enhance its capacity to fulfil the requirement efficiently and effectively. As for being in the developing phase organization is intended to capture more market share and goodwill rather than giving importance to the monetary aspect in the first year. The upcoming years will be followed by the revenue and income generation, but for making the first year breakeven (no profit no loss), organization required to fulfil customer’s needs and also to be more flexible in their contractual commitments. 2. Research Methods: As to gather market data both primary (quantitative) and secondary(research articles, peer reviewed journals, etc) data collection will be preferred. As for the exact market understanding quantitative research methods will be realistic, but due to customization and flexibility in organization’s strategic path it is imperative to also accumulate qualitative facet. Surveys are developed for the quantitative research as discussion with the instructor and find helpful in developing results. 3. Organization’s Strategic Scope: After accumulating and comparison from the competitors businesses, which are Unilodge and University private accommodation services the first and foremost step is to develop a budget and required financial backing. In order to develop monetary strategies following information is required: a) Number of new enrolments in universities (derived from Department of Education and Training) b) Number of consulting agencies working in Melbourne c) Number of students enrolledwith consultants d) Cultural wise factsheet (no of people from different cultural background) e) What services are being rendered by the competitors? f) What discrepancies are in the services of competitors? g) How that loopholes of competitors will be an advantage for the organization h) Other tactics required to fulfil the strategic planning i) SWOT analysis j) PESTLE Analysis k) Porter’s Five Forces Model Second is to transform the above mentioned data into useful information. Information such as number of students with different cultural background can be of great advantage. Although Melbourne is a multicultural city, but if consider the demographics of the city there are common patterns, as in which suburb particular group of people resides in majority. Third is to identify the potential businesses related to the services organization required to facilitate, partnership with potential options will allow long term business growth to organization and will develop long term business relationship with them as well. Fourth is to develop marketing strategy with the help of demographics and quantitative data acquired by the questionnaire and Australian Bureau of Statistics. Organizations like Unilodge and Private university accommodation are accommodating students in the restricted territory/infrastructure which they had developed/bought for the purposes. Finally the major part needs consideration is to make appropriate strategic planning for the marketing, human resource, finance and collaborative business tactics for the services required to the international students community in Melbourne facing hardships regarding daily work. 4. Possible Challenges& Outcomes: 4.1 Currents Issues/Challenges: Challenges can be a helping hand for the organization to understand its hidden and real potential to outperform in countless ways, sometimes overestimation and underestimation are the hurdles in achieving organizational strategic goals and missions. The reason to understand a challenge is to find the place for self and to know where the organization can take a stand and what the potential areas of growth are. There are number of challenges this organization have and might face in future whilst on the way towards their success some of them are: a) Financial Planning (Budget) b) Marketing Strategies c) How much human resource help is required for support and services d) In any unwanted situations what will be SOP(standard Operating Procedures) e) What will be the year end success rate for the business f) Appropriate Information regarding the international students and their turnover rate g) Legal Complications (Housing and tenancy agreements) h) Needs and want of customers i) Target market and potential businesses j) How to develop business relations with other who has facilities business requires k) Competitors positioning and their next step l) Need to acquire break-even point in first financial years m) How to manage people with different cultural background in one of the diverse city of world All these stated above issues and challenges might not be that hard to tackle, but the real challenge is to anticipate with the current market scenario and to develop, grow and outperform while having lots of hurdles. All these challenges required a good analytical tools in order to pin point the exact information required by the business to further process its strategic mission. 4.2 Possible Outcomes: Due to having a start-up business there will be high chances for a business to face multiple challenges, but in order to avoid any hindrances, organization must perform in a way which allow the organization to at least meet the breakeven point in first year.Five year business plan is subtle to measure success in the sector. Other outcomes of the strategy will might be a failure in implementation stage, although studies, results and market survey are really opposite when it comes to the practical implementation phase. Thus it is possible that in the beginning we might face issues like financial deficit, human resource shortage, tactical advantage to solve problem, etc. 5. Tools for Analytical Assessments: 5.1 SWOT Analysis: The essential point of any planning is to ensure an organization’s balance with internal and external environment, also to maintain that balance over the time period for its longitivity and existence (Pava, 1983). Associations fulfil this adjust by assessing new projects and services with the plan of augmenting organizational performance. SWOT investigation is a preparatory basic leadership device that sets the phase for this work. 5.2 Porter’s Five Forces Model: The Porter's Five Forces device is a straightforward yet effective instrument for understanding where control lies in a business circumstance. This is valuable, since it helps you comprehend both the quality of your current aggressive position, and the quality of a position you're hoping to move into. (Ormanidhi, &Stringa, 2008). 5.3 PESTLE/STEEP or PEST: The PESTLE tool is one model which allows organizations to find the challenges on macro level, thus allow organizations to find best possible ways to develop strategic pathway for business regardless of the geographical boundaries they are working. 6. Recommendation: All the strategic directions, challenges, research outcomes, market demand, customers need and suggested outcomes will allow the organization to develop a suitable strategic plan, but it is imperative for the organization to have little flexibility in their policies and procedure. Flexibility will allow the organization to make further deviation if necessary and also will help in forecasting the future efforts and strategic direction. References: End of Year Summary of International Student. (2017). Retrieved 16 April 2017, from https://internationaleducation.gov.au/research/International-Student-Data/Documents/MONTHLY%20SUMMARIES/2016/12_December_2016_FullYearAnalysis.pdf INTERNATIONAL STUDENT DATA monthly summary (February 2017). (2017). Retrieved 16 April 2017, from https://internationaleducation.gov.au/research/International-Student-Data/Documents/MONTHLY%20SUMMARIES/2017/Feb%202017%20MonthlyInfographic.pdf Ormanidhi, O., &Stringa, O. (2008). Porter's Model of Generic Competitive Strategies. Business Economics, 43(03), 55-64. http://dx.doi.org/10.2145/20080305 Pava, C. (1983). Designing managerial and professional work for high performance: A sociotechnical approach. National Productivity Review, 2(2), 126-135. http://dx.doi.org/10.1002/npr.4040020204