Discussion board #3 – the special events company

Discussion board #3 – the special events company

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Discussion board #3 – the special events company

Overview of the industry

Special Events Company falls in the events planning industry. This industry consist of the companies that offers services related to planning customers’ events such as graduation parties, wedding parties and anniversaries, birthday celebrations among other events that may require prior arrangement and preparations. In looking at the events organizing industry in general, we reveal the position of the Special Events Company (Allen, 2011). In overview of the whole industry, Special Events Company want to become a market leader by offering exceptional services that exceed the customers’ expectations hence put them ahead of the competitors. From the case study, little is mentioned of Government interference in the way the company carries its business hence the government has friendly policies for carrying the event organizing business (Ryans, 2000).

The life cycle of a business in the industry

Business cycle will consist of all stages of development that Special Events Company will undergo or has undergone since its inception to the future expected status or the current status. Each of the stages in the development is characterized by its unique characters, challenges and opportunities. Special Events Company will undergo the following five stages; the prestart, starting, managing cycle, growth cycle and exiting the business (Allen, 2011). At the Prestart stage, the managers decide on what kind of business to start and products to offer. The starting cycle is the stage when the business is launched to offer the services is intended to. On the managing cycle, the, owners of Special Events Company will apply all their key techniques to make the company established in the market. On the growth cycle the business experiences expansion of its customer’s base and the services it offers (Lal, 2006). The last cycle is only possible if the company is unable to establish its competitive advantage in the market and acquires customers who will enable the company generating enough revenues.

Discussion of each of Porter’s Five Forces

In line with the Special Events Company, the five Porter’s five Forces will apply as follows. The company is the right terms its suppliers to ensure continuous supply at the best possible prices. On the threat of new entrants, the company has loyal customers who will not switch their purchasing powers in the event a new competitor comes in (Lal, 2006). The company has partnered its products to avoid any likehood of substitutions. The offers unrivalled products hence the degree of rivalry is not a threat. The company has a control over its buyers and they are not a threat to the company.

Customer or a market of sufficient size to make the concept viable

From the forecast and analysis, the size of market is sufficient as their products are well differentiated and targeted at a particular part of the population. The company has an established forecast to serve at least 50 customers in a month (Allen, 2011). The company will also encompass two sets of activities, the normal event organizing and the offering of the promotional services to increase the revenues that is to be realized.

The estimates of sales and expenses for the first 3 years

This entails the estimates of the expenses is of the money that will be spend on the promotion of the of the company’s services, which is the money that will be spend in acquiring the consumers awareness of the services. On the estimation of the revenue, is the estimated earnings the company will receive for offering their services once in operations. These estimates will be calculated for the first 3 years. With the monthly target of serving 50 customers, the company expects to sell 50 units a month, translating to 600 a year and a total of 1800 customers or more at the end of the three years.

Needed for start up funding

These include the pre- operational and the operation finances that are required for the company to commence its operations. These funding are required to pay for those expenses that arises prior to the company commencing its operations to the funding that will be required once the company has commenced its operations. The funding is necessary to cater for those expenses that arise when the business is not able to generate its own stream of cash flow to sustain itself. The exact amount of these depends on the activity that the company plans to undertake.

Some important biblical concepts to consider in this part of the business plan

The preparation of the business plan and the subsequent launch of the business will be guided by the following biblical perception. Loving the customers and humanity as God loves us and having a clear vision for the company. For example, John 3:16 talks of God having so strong love for us that he gave its only son so that we will all have an external life and not perish. This will help us as a guide to love our customers, stakeholders by being honesty with our customer by always speaking the truth.

References

Allen, R. (2011). Launching new ventures: an entrepreneurial approach. Stamford: Cengage Learning.

Lal, H. (2006). Total quality management: a practical approach. New Delhi: New Age International Press

Ryans, A. (2000). Winning market leadership: strategic market planning for technology-driven businesses. New York: Wiley Publishers.