Discuss the strategic business plan for a new venture in a consultancy sector?
Cambridge Group is the new company that offers high level of expertise knowledge and services in the development of local market, channel development, marketing strategy, market identification and development, as well as distribution strategy for every kind of products and services (Bygrave and Timmons 1991). It will basically focus over the offering and satisfying various types of markets:
1. Offering market research to the domestic customers by viewing the developing business in order to enhance the competitive markets (Bygrave and Timmons 1991).
2. Offering services of market research towards overseas investors that are looking to invest in the domestic market.
As the business grows it will hire more employees and consulting job in the associated markets (Bygrave and Timmons 1991). It will also view the additional leverage through setting up the relationships as well as representations with global organizations of market research. Cambridge group is the Private Limited Company. The total stat up expenses and capital includes the stationary, legal cost; design of logo and other related expenses that make the budget of around is £150,000. Start-up assets include vehicles, office equipment, personal computers, as well as office furniture (Bygrave and Timmons 1991).
Cambridge Group provides quality information, reliable clients, development of market, development of channel, as well as business proposal development that will increase the business (Delmar and Shane 2003). The company also provides the in-house resources and provides high level of know-how, practical experiences, confidentiality as well as contacts. At Cambridge group, they offer comprehensive solutions related to the issues of clients, which will foster over the development of business (Delmar and Shane 2003). It is important that customers should understand that working at Cambridge group is professional, as well as less risk way towards developing the new areas. Cambridge group does not maintain the financial balances, and try to charge for the realistic value of the services through providing the high value to the customers (Delmar and Shane 2003). The basic focus is towards development of local market. The mission of the company is to endeavor towards understanding the business of customers and to provide the comprehensive solutions of the issues (Delmar and Shane 2003).
Cambridge group is working in the highly lucrative market. The company tries to foresee the strength of the company as the ability to respond towards market dictates and also try to offer market research services for custom design to the clients (Bird and Jelinek 1988). Along with this, by the help of aggressive marketing and management of quality, the company intends to become leader n the particular industry. The main personnel of the company also hold the knowledge about the local and global markets that could penetrate the market (Bird and Jelinek 1988). However, the company tries to acknowledge the facts, which key companies are aware about the real significance of the marketing and market research and contribute towards entire business strategy (Bird and Jelinek 1988).
The strength of the company lies in its market segmentation as well as implementation strategies (Bracker and Pearson 1986). The company also strength in diversified market segments, which tries to ensure about the lack of dependency in specific market. The company also combines the skills towards directorship, in which directors should intend towards joining for developing the strategy for business and long term plans that hold huge experience in market as well as produce know-how and even build strong financial management (Bracker and Pearson 1986). The company also set up and maintains the well known business, and takes aggressive and focuses campaign of marketing. The marketing plan of the company also has clear strategy and goal (Bracker and Pearson 1986).
The Cambridge group weakness lies in the solid well designed network of the market research area of the company (Bracker and Pearson 1986). Through the introduction of new practices of the company that has previously work to present the challenge to the company. Cambridge group also tries to set up internet in order to produce the technological issues (Bracker and Pearson 1986).
Cambridge group holds the opportunity in specific niche that includes appreciation of high quality and appropriate information (Castrogiovanni 1996). Through the introduction of the global financial services, it tries to present huge opportunity in both the local and global companies by looking over the information that might assist in entering the respective markets (Hammond, Keeney and Raiffa 2002). The present growth of the economy as compared to other economies might also present with an opportunity for enhancing the foreign investors in the market (Hammond, Keeney and Raiffa 2002). The present drive towards attaining localization is caused by enhancing the local individuals for investing as well as starting the business. The new generation of corporations, business owners, and professionals has also appreciated towards the requirement of relevant planning as well as information (Hammond, Keeney and Raiffa 2002). The company also has the opportunity in the field of internet marketing and sales. Cambridge group can also enhance the number of overseas firms in order to penetrate the local markets (Hammond, Keeney and Raiffa 2002). The company can also take financial assistance that is offered through the government over the business plan credibility. However the outcome of the review of policy analysis requirements need to be consider as it might scrapped or either replace the new scheme (Hammond, Keeney and Raiffa 2002). The company also has the opportunity towards existence of well set up government organs, which could directly deal with the all the aspiring entrepreneurs, both in the local and global markets and also present the network opportunity (Hammond, Keeney and Raiffa 2002).
The current growth of the economy might result through the enhanced market of business consultants that could lead towards increasing the competition and even confusing the clients (Morwitz 2001). This competition could even try to emerge through various sources like, setting up the huge market of consultant for developing the new lines and integrating in total for controlling the services needs through the client. The company also faces threat from the new marketing strategy and tactics through setting up the company (Pettit and Singer 1985). The company also faces threat from existing competition. The present plethora related to the business Consultancy Company also exists, and the company also faces threat from the other start-ups that also collect through the nationwide healthy economic growth (Pettit and Singer 1985). The company also faces threat from existence of well set up government companies, which directly deal with aspiring entrepreneurs, both in the overseas and domestic market (Pettit and Singer 1985).
It includes political stability condition that defines the new liberalization in the policy of economy that could support the company in flourishing the international market. Government owned firms has decided over consultancy projects companies (Busenitz and Barney 1997).
It includes fluctuation in currency, and prices of real estate. Reduction in real estate cost has also resulted into the decrease of rental expenses. Constant appreciation and depreciation in the value of rupee has created adverse effect over the export and import.
The social factors includes the language spoken by the people are English, which is also a acceptable in education system (Busenitz and Barney 1997). Therefore, this also boosts the country in terms of education. There are many universities and institutions in the country that provide technological education. Technological factors also include working population. Along with various languages, English is the most valid language for communication in corporate. It is noted that literacy rate has also increased (Busenitz and Barney 1997).
The growth of technology has also offered the huge opportunities for conducting research and development, and innovation in the quality along with cheap technology (Busenitz and Barney 1997). There is an ample growth in the area of consultancy business, which also includes global customers more accessible (Busenitz and Barney 1997).
A huge debate is conducted over the bond surrounding in which staff members are needed to work that is not required legally (Busenitz and Barney 1997).
The process and equipment of energy efficient includes the organizations that keep their focus over the water consumption, footprints of carbon, as well as utilization of energy (Busenitz and Barney 1997).
Threat of Substitutes- Various offshore locations like China, Europe as well as Philippines are emerging market that create threat for the IT industry, due to cost benefits (Gumpert and Stancill 1986). However, it is noted that there is an impact in the long run. The quoted price for all the projects could create key differentiator in the product quality (Carswell and Gunaratne 2005).
Bargaining power of customers- It includes huge IT companies for the projects that result into the high project competition. It has also face the huge reduction in expenditure in IT projects. The IT sector in India relies over the USA for the specific majority f revenue and through the current financial crisis (Carswell and Gunaratne 2005).
Rivalries- Competition increasing in It sector is intense. Other companies such as HP, Dell, and cognizant provides the commoditization of the technological products. These products also provide undifferentiated cost, which could lure the various customers (Carswell and Gunaratne 2005).
Bargaining power of suppliers- These is reduced demand for technological professionals due to the crisis in economy (Carswell and Gunaratne 2005). This kind of financial trauma has impacted the international technological outlook. There are many freshers as well as experience people, who are looking for a job (Carswell and Gunaratne 2005).
Barriers to entry- it includes ramping multinational companies capacity as well as strength of the employees. It also includes low capital need, as well as huge value chain for the enterprises (Carswell and Gunaratne 2005).
Threat of New Entrants- It includes supports of government and emerging organizations. It includes low capital investment as well as implications due to the value chain for the enterprises of SME (Carswell and Gunaratne 2005).
Cambridge group strategies emphasize over focus, and considered it as the key of success (Rowe and Wright 2001). Cambridge must focus over the specific services with the specific type of users. Initially Cambridge Group will stress over the domestic market and in the field of market findings and research. Target customers will also cover about the main decision makers in all the large, small, and medium sized organizations in the startup as well as in growth time (Rowe and Wright 2001). The company is presently building the image and trying to create the awareness by distinctiveness and consistency in the provision of service (Rowe and Wright 2001). The company also tries to focus over delivering quality service and towards end products that in turn tries to produce the referrals of goods that could generate revenue. The company also focuses over advertising of various media (Rowe and Wright 2001). Cambridge group also intend to have heavy components of personal selling in the marketing. Therefore, they intend to actively participate in personal relationship with customers and have strategic allies by keeping abreast of the requirements (Rowe and Wright 2001).
1. Profit- To create the sufficient profit in order to attain future growth and to offer resources for attaining the objectives of the organization. It is expected that the net profits will be 45% of the total sale in first year (Schwenk and Shrader 1993).
2. Growth- In order to expand the business in the manageable and challenging, the company needs to lead in the market of adaptability and innovation (Schwenk and Shrader 1993).
3. Citizenship- in order to social asset and intellectual towards the environment and community, the company need to contribute around 5 hours each week and work as volunteer, by also contributing 5% in charity from pretax profits (Schwenk and Shrader 1993).
For all the small as well as emerging business that are looking for the opportunities in order to enhance the chances for attaining success, Cambridge group tries to design services that could enhance the execution of business (Shane 2003). Just like the traditional management consultancy company, this focuses over supporting the huge clients exploring problems, this company stress over working with the small businesses in order to implement the concrete, short-term actions that will be designed for moving the business in correct direction (Shane 2003).
The present drives and stress over the government over industrial base diversification away through the mineral sector, by presenting the opportunities for Cambridge group to give their contribution for attaining the goal (Stewart, Watson, Carland and Carland 1999). This could even result into the implementation of techniques of market research and knowledge transfer. Through undertaking the comprehensive research, it is realized that there was a requirement for attaining specialized firm for market research, which stress over producing the report of market research that is tailored towards the needs of client (Stewart, Watson, Carland and Carland 1999).
Through placing the company together, it is required to attempt to offer services, which permits to demand through clients (Stewart, Watson, Carland and Carland 1999). However, it is noted that economics has offered us with the opportunities for the small business in which customers demand exist. The most significant factor is to develop the future services towards needs of the market (Stewart, Watson, Carland and Carland 1999). Our understanding towards the requirement of target market segment is the competitive benefits. It is quite critical to effort towards developing the correct new services (Stewart, Watson, Carland and Carland 1999).
The business strategy of the company move around the requirement to offer quality data related to different targeted customers in the process of satisfying their requirements (Venkataraman 1997). This might undertake by the recruitment of the marketing research professionals and the team of business consultancy, along with production of quality reports that will be designed for catering the needs of the customers (Venkataraman 1997). These proposals might be professionally designed and reflect about the companies intended reputation and image. The company might also positive itself as the provider of quality service, which strives towards offering the relevancy, accuracy as well as particular information (Venkataraman 1997). The company also intends to set up the rapport with every appropriate agency of government and private institutions that might refer to the aspiring entrepreneurs (Venkataraman 1997).
Human resources- Cambridge group needs a high knowledge level, expertise as well as analytical ability that implies it would not be easy to leverage in the similar consulting organization in which the partners could run the business and increase the sales that relates to it (Wilkinson 1987).
Marketing- the company interact with Key venture capitals, small business resources, as well as small business founders in the area of business resources (Bassellier, Reich and Benbasat 2001). The company also makes its clients through relationship and local newspapers. The company also takes part in local chamber of commerce that support in enhancing the exposure (Bassellier, Reich and Benbasat 2001). In every type of communication, Cambridge group tries to constantly reinforce our differential benefits:
Stress over supporting the small business in moving in correct direction
Actionable, business strategy as well short term marketing (Bassellier, Reich and Benbasat 2001)
Create domestic presence through reducing cost
In the present time we are experiencing the rapid increase in the economy, and the same has been brought through various other things, like the foreign exchange policies relaxation and the macroeconomic policies that are actually geared by the overseas investors in the country (Bassellier, Reich and Benbasat 2001). The monetary and fiscal policies of the government are also geared towards maintaining the economic growth along with the social justice, which contribute towards this and the same is evidence through the economy average growth rate of around 7% since the year 1990 and is high in global standards (Bassellier, Reich and Benbasat 2001). The present focus of the government over industrial diversification is away through the mineral sector, which creates and opportunity for Cambridge group in order to give contribution in attaining the goal (Bassellier, Reich and Benbasat 2001).
The domestic market of the consultancy is increasing at steadily rate in the last few years. By keeping this in mind, the company intends towards their marketing programs and expands the business accordingly (Busenitz and Lau 1996). The quality sales and marketing introduction tries to enable Cambridge group towards effective market and towards potential customers through the positive impression and images (Busenitz and Lau 1996). The company has projected the sales to rise, as the company continues towards setting the reputation, mainly in the area of market research. With the time over the internet and the local participation and regional trade and conferences, it is depicted that main milestones is to expand the sale and potential of marketing by using the new channels and exploring the potential customers (Busenitz and Lau 1996). Whole year, the company intends to follow regular evaluation of the marketing and business programs in order to ensure that the company line with intended objectives (Busenitz and Lau 1996).
Cambridge group will start setting up the alliances with the reliable as well as reputed suppliers (Busenitz and Lau 1996). The company will also prepare the sales report about in-house through the help of reputed organizational agency. The company also intend towards getting engage with the services of qualified consultants (Busenitz and Lau 1996).
It can be concluded that for the new venture, it is important to conduct market research and explore the challenges and benefits lying in that sector. This research is also helpful in knowing the strategic analysis of the company. The company has also set up its long term and short term objectives that will clear the vision of the company and initiate them to take appropriate actions, so that company could achieve its goals. The company has also included about implementation actions that will help in understanding how the strategies will be implemented and help the future researchers.
Bassellier, G., Reich, B. H., and Benbasat, I. 2001. Information technology competence of business managers: A definition and research model. Journal of Management Information Systems, 17(4), pp. 159-182.
Bird, B., and Jelinek, M. 1988. The operation of entrepreneurial intentions. Entrepreneurship: Theory & Practice, 13(2), pp. 21-29.
Bracker, J. S., and Pearson, J. N. 1986. Planning and financial performance of small, mature firms. Strategic Management Journal, 7(6), pp. 503-522.
Burke, L. A., and Miller, M. K. 1999. Taking the mystery out of intuitive decision making. Academy of Management Executive, 13, pp. 91-99.
Busenitz, L., and Barney, J. 1997. Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making. Journal of Business Venturing, (12), pp. 9–30.
Busenitz, L., and Lau, C. 1996. A cross-cultural cognitive model of new venture creation. Entrepreneurship. Entrepreneurship Theory and Practice, 20(4), pp. 25–39.
Bygrave, W., and Timmons, J. 1991. Venture and risk capital: Practice and performance, promises and policy. Boston, Harvard Business School Press.
Carswell, P., and Gunaratne, K. A. 2005. Exploring the role of entrepreneurial characteristics in determining the economic growth potential of an innovation. International Journal of Entrepreneurship and Innovation Management, 5(5, 6), pp. 1-441.
Castrogiovanni, G. J. 1996. Pre-startup planning and the survival of new small businesses: Theoretical linkages. Journal of Management, 22(6), pp. 801-823.
Delmar, F., and Shane, S. 2003. Does business planning facilitate the development of new ventures? Strategic Management Journal, 24(12), pp. 1165-1185.
Gumpert, D. E., and Stancill, J. M. 1986. How much money does your new venture need? Harvard Business Review, 64(3), pp. 122-139.
Hammond, J. S., Keeney, R. L., and Raiffa, H. 2002. Smart choices: a practical guide to making better decisions (1 ed.). New York, N.Y.: Broadway Books.
Morwitz, V. G. 2001. Methods for forecasting from intentions data. In J. S. Armstrong (Ed.), Principles of forecasting: A handbook for researches and practitioners (pp. 33-56). Boston, Mass.: Kluwer.
Pettit, R. R., and Singer, R. F. 1985. Small business finance: A research agenda. Financial Management, 14(3), pp. 47-60.
Rowe, G., and Wright, G. 2001. Expert opinions in forecasting: The role of the delphi technique. In J. S. Armstrong (Ed.), Principles of forecasting: A handbook for researches and practitioners (pp. 125-144). Boston, Mass.: Kluwer.
Schwenk, C. B., and Shrader, C. B. 1993. Effects of formal strategic planning on financial performance in small firms: A meta-analysis. Entrepreneurship: Theory & Practice, 17(3), pp. 53-64.
Shane, S. 2003. A general theory of entrepreneurship. Cheltenham: Edward Elgar.
Stewart, W. H., Watson, W. E., Carland, J. C., and Carland, J. W. 1999. A proclivity for entrepreneurship: A comparison of entrepreneurs, small business owners, and corporate managers. Journal of Business Venturing, 14(2), pp. 189-214.
Venkataraman, S. 1997. The distinctive domain of entrepreneurship research: An editor's perspective. Advances in entrepreneurship, firm emergence, and growth. Greenwich, CT: JAI Press.
Wilkinson, J. W. 1987. Effective financial planning model. Journal of Systems Management, 38(6), pp. 6-10.
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