EVALUATION OF BUSINESS PLANS
Pioneer Consulting
Vs
Athlete Foot Store
For the Program – Diploma in Management
2. Table of Contents
3. Executive Summary
Pioneer Consulting:
Target market: Small businesses that can hardly afford the cost of contracting the services of a
marketing firm – when they can’t afford, they will not be motivated to spend for the services
provided by Pioneer Consulting
Location: Not mentioned in the executive summary
Competition: Not mentioned in the executive summary
Ownership: 5 graduates from the Marshall School of Management at State University.
Marshall's Marketing Program is ranked in the top 15 in the country.
Objectives: Not mentioned in the executive summary
Chart Highlights:
Sales
Gross Margin
Net Profit
Net Profit/Sales
Year 1
$ 23,850
$ 23,850
$ 9,570
28.09%
Year 2
$ 35,000
$ 35,000
$ 6,420
12.84%
Year 3
$ 52,000
$ 52,000
$ 10,770
14.50%
Interpretation: The net profit / sales in first year is expected to be pretty decent but in the
second year it has been reduced to more than half of the first year and is then slightly increased
in the 3rd year implying that the business is still profitable in 2nd and 3rd year but not as much as
in its initial year.
Overall strengths of business plan:
•
Very concise yet well defined, to the point customer oriented mission statement
•
Keys to success were explicitly stated.
Overall weaknesses of business plan:
•
There was no competition analysis
•
JDs of the staff was missing
•
Financial plan lacked interpretations and explanations
Athlete’s Foot Store:
Target market: Well researched facts and figures regarding target market. 2 well defined target
markets – school aged children enrolled in different athletic programs + adult runners of age
between 20 and 54
Location: Well define location and surrounded by all youth oriented businesses
Competition: Minimal, malls are there but limited service and lack technical knowledge or
expertise for running shoes
Ownership: A worldwide chain will be family owned and operated.
Objectives: 3 well defined business objectives regarding customer service, promotion and sales
target.
Chart Highlights:
Sales
Gross Margin
Net Profit
Net Profit/Sales
Year 1
$ 450,000
$ 193,500
$ 28,238
1.84%
Year 2
$ 600,000
$ 258,000
$ 65,050
6.56%
Year 3
$ 700,000
$ 301,000
$ 86,983
9.37%
Interpretation: Since this is a startup business, yet it achieves slight profit in its beginning year
but has grown drastically in its second year which continues to the 3rd year as well.
Overall strengths of business plan:
•
The target market was well researched and very comprehensively defined.
•
Gap analysis was discussed with details and explanations
Overall weaknesses of business plan:
•
Lengthy texts without proper headings
•
Financial plan lacked interpretations and explanations
4. Company Description
Pioneer Consulting:
Mission Statement: Very concise yet well defined, to the point customer oriented mission
statement
Keys to success: Technical expertise, teamwork, meeting deadlines, innovative strategies
Company Summary: business – not defined in this section, location – not mentioned in this
section, value proposition – not discussed, competition – not stated, ownership – five masters
students.
Startup summary: Cost elements – marketing material, cell phone and messaging service
Startup Investment: $1000 in total; each co-owner investing $200
Athlete’s Foot Store:
Mission Statement: Very long and detailed description of business and no proper mission
statement
Keys to success: Missing
Company Summary: business – athletic footwear, location – Florida, value proposition –
customer service, competition – none, ownership – family business.
Startup summary: Cost elements – store, inventory control, food scanner, opening inventory,
franchise fee
Startup Investment: $242,000 in total
5. Industry Analysis
Pioneer Consulting:
Model: No any industry analysis model i.e. Porter five forces, SWOT or PEST analysis has been
identified properly in the business plan yet these are the findings from the text
Demand: 10% annual growth of city and number of startups increment suggests a huge and
potential market
Business Model: Being responsive to unique client demands, assisting them in achieving their
future sales goals
Gap analysis: Underserved market segment
Sales and Marketing strategy: Focused marketing approach
Number of competitors: Not mentioned
Athlete’s Foot Store:
Model: No any industry analysis model i.e. Porter five forces, SWOT or PEST analysis has been
identified properly in the business plan yet these are the findings from the text
Demand: lack of demand for high-priced basketball shoes
Business Model: The "superstore" concept in the sale of athletic shoes has proven to be
unsuccessful
Gap analysis: Successful athletic shoe stores must also offer shoes in all price ranges, to assure
that the entire family can be satisfied
Sales and Marketing strategy: Aggressive approach
Number of competitors: 3 in the vicinity
6. Market Analysis
Pioneer Consulting:
Market Segmentation: two groups – small startup companies and existing small businesses.
Structure: Lacks market analysis portion
Content: Lacks research
Athlete’s Foot Store:
Market Segmentation: two groups – athletic adult and athletic participant children – subdivided into further sub-categories, namely “Runners” and “Non-runners”.
Structure: Lacks headings – lengthy text.
Content: Very comprehensive and well researched based on facts and figures.
7. Marketing Plan
Pioneer Consulting:
Competitive Edge: Untapped market, broad range of services
Sales strategy: systematic person-to-person contacts with new and growing businesses
Marketing channels: Not defined
Athlete’s Foot Store:
Competitive Edge: Initially, recognition of the brand then customer service
Sales strategy: sales incentive bonus program, long-term salesperson relationships
Marketing channels: directly to the customer through mailings, phone calls, league
presentations, and Internet/email contact
8. Management & Organizational Structure
Pioneer Consulting:
Management: 2 co-founders – project managers
Staff: five members – the co-founders
Roles & Responsibilities: 1 Dynamic Marketing Research, 1 Media marketer, 1 Internet and Email marketing head, 2 marketing assistants
Athlete’s Foot Store:
Management: Owner
Staff: six members
Roles & Responsibilities: 1 Owner, 1 assistant manager, 1 key associate, 3 part time associates
9. Operations Plan
Pioneer Consulting:
Though there is no any operational plan mentioned in the business plan, yet these are the
findings and assumptions taken from the text:
Key performance indicators: Number of clients reached and retained, word of mouth,
customer satisfaction and loyalty
Key targets: Approaching SMEs and small business startups through digital marketing
Key resources: Management/ marketing team, cell phone, messaging service, digital marketing
channels to approach target customers
Key partners: Staff members, customers
Athlete’s Foot Store:
Though there is no any operational plan mentioned in the business plan, yet these are the
findings and assumptions taken from the text:
Key performance indicators: Customer satisfaction and retention, annual sales of 33% in first 2
years and then 15% increment
Key targets: Children participant athlete, Adult athlete
Key resources: Store, Merchandise inventory, PC
Key partners: Employees, Customers, and The partnership suppliers like Adidas, Nike, Reebok,
Fila, Brooks etc.
10. Financial Projections
Pioneer Consulting:
Year 1
Year 2
Year 3
$23,850 $35,000 $52,000
$0
$0
$0
SALES
Less: COGS
Equals: GROSS
PROFIT
Less: EXPENSSES
Equals NET
PROFIT
Gross profit
ratio
net profit ratio
expenses ratio
$23,850 $35,000 $52,000
$14,280 $28,580 $41,230
$9,570
$6,420 $10,770
100
100
100
40.125786 18.342857 20.711538
59.874214 81.657143 79.288462
Athlete’s Foot Store:
SALES
Less: COGS
Equals: GROSS
PROFIT
Less: EXPENSSES
Equals NET
PROFIT
Gross profit ratio
net profit ratio
expenses ratio
Year 1
$450,000
$256,500
Year 2
$600,000
$342,000
Year 3
$700,000
$399,000
$193,500
$258,000
$301,000
$165,262
$192,950
$214,017
$28,238
$65,050
$86,983
43
43
43
6.2751111 10.841667 12.426143
36.724889 32.158333 30.573857