Experimental Evidence Business Plan Competition Essay

Question:

Discuss about the Experimental Evidence Business Plan Competition.

Answer:

Introduction:

Bryman and Bell (2015) opine that it is of great essence for an investor to decide what investments to make and in which project. The success of investment comes if right amount of money is invested in a particular project. In this case, the four business projects are:-

  • A coffee shop
  • Excel Delivery solutions
  • New business electric auto in Thailand
  • I-claim technology software

The total investment of the given four projects is $100,000. Therefore, the segment for the investment Accounting can be explained with the help of the following.

From the above graph, it can be inferred that the business plan of the coffee shop will get the higher investment, followed by I-claim technology software, followed by Excel delivery solutions and lastly the business electric auto plan in Thailand. This is mainly because the coffee shop business has a universal appeal and can cater in all the markets (McKenzie 2015). Due to its large scale appeal, it requires a higher amount of investment. The coffee shop is mainly targeted in Chinese market and it also has a wide range of packaging ideas. Due to this reason, it requires 35 percent of the total investment. The second most investment will be given to the business plan of I-claim technology. This software has a unique concept and is capable of gaining a higher return on investment as well. In addition to this, this product depends on a differentiation strategy; therefore, it can easily create a niche market segment of customers. On the other hand, the business plans Excel Delivery solutions and new business electric auto in Thailand will be given lesser preference. This is mainly because of the fact that from an investor’s point of view, it is of great essence to keep an eye on return on investment. Therefore, the first two business plans is expected to deliver more and on the other hand, it will cater a large section of customers and higher market segment. Due to this reason, a higher percent of the required investment of $100,000 will be given to the above two business plans in comparison to the other two. It can be also inferred that the business plan of the coffee shop will be cater in the Chinese market. It has been seen that the economy of China is one of the biggest economy of the world, therefore, it is also expected that the coffee shop will yield more revenue and profit. In this manner, the investment decision can be justified.

Comparison and evaluation of the business plans

The above four business plans can be compared with the help of their operating and business Accounting strategies. It can be inferred that the success of all the four business plans depends upon their effective implementation of their business and operating strategies. If their strategies is not effective enough, then, the entire business plan will be a huge failure.

The main target market segment of the business plan of the coffee shop is the Chinese Market. The main core competency of the coffee shop is its packaging style and selling coffee products at cheaper rates than its global business competitor, Starbucks. The business opportunity of the coffee shop is huge and it will yield more return on investment due to its core competitiveness (McKenzie 2015). It is also expected that the business plan will reach its break-even point within a span of two years and it will give 20 percent return on investment within 3 years. This can be considered as a perfect investment both in short-term and long-term purpose.

The given business plan of delivery solution is dependent on technology as it is a transport and logistics business. The main target of Excel Delivery solutions is to create a core competency in their logistics and operating system and is expected to grow based on this. The given business plan is expected to develop an effective yet simple sales and marketing strategy in order to cater new segment of customers (Schaper et al. 2014) It is expected that the organization will reach its break-even point within 3-4 years and it will grow in the long-term.

The business opportunity in the electric automobile can also be considered as a profitable venture for any investor. Therefore, it is expected that the given business plan can gain revenue within 2-3 years. This is mainly because of the selected market, Thailand, where the growth opportunity is huge, keeping a long-term view. Therefore, an investor can invest a considerable amount in this business plan (Wild, Wild and Han 2014)

The business plan of I-claim technology software can be considered as a niche market product. In addition to this, the marketing plan of this product is designed for a particular set of customers. Due to this reason, it is expected that the prices of the product will be huge and it can be termed as a high-street brand. The profit margin will be on the higher side, and so is the investment. It is also expected that the business plan will reach its break-even after 3-4 years and it will yield more profits after that.

These are the main business organizations of the above four business plans. The investor will invest according to the feasibility of investment.

References

Bryman, A. and Bell, E., 2015. Accounting Business research methods. Oxford University Press, USA.

McKenzie, D.J., 2015. Identifying and spurring high-growth entrepreneurship: experimental evidence from a business plan competition. Browser Download This Paper.

Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small business.

Wild, J., Wild, K.L. and Han, J.C., 2014. International business. Pearson Education Limited.

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