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Executive Summary of Creative Bricks Business Plan

Category: Corporate Governance Paper Type: Report Writing Reference: APA Words: 3600

                    Creative Bricks will be a UAE company that provides products and services to its customers within the geographical area of the UAE. In this paper business plan is presented that emphasis on integration and innovation of the company in the market through sustainable business practices and strong commitment. Furthermore, it also makes sure that the company will have higher standards for accountability that concerns with the needs of targeted customers when customers in the selected market patronize their products. An important consideration for the company is to ensure that all visitors at (factory area) are given first class treatment. The targeted market of Creative Bricks is based on a wide range of clientele in and around the geographical region of the United Arab Emirates (UAE). The company is familiar with small and large competitor companies that are also serving the same market. The company also researches to collect information about feasibility and market requirement

Introduction of Creative Bricks Business Plan

                Creative Bricks will be a manufacturing company in UAE having an ideal location in the market that is the best option for manufacturing business. Current product line and services of the company are capable of leasing a facility that is highly required by the market to be offered or launched. The Company will manufacture various sizes which suitable for the size of the façade and different aesthetic forms. By using our products will provide the cost of finishing the facades of buildings. Creative Bricks serves in and around the market of United Arab Emirates (UAE). Having understanding towards competitor companies in the selected segment, Creative Bricks Company conducts research studies to check out feasibility for the business operations with the support of market survey.  The products which will be manufactured in Creative Bricks are compatible with the UAE’s encouragement to innovation in the field of sustainable environment, Leadership in Energy and Environmental Design (LEED) program and will also contribute to the construction and design of green buildings to be environmentally friendly around the world.

Product Offering of Creative Bricks Business Plan

            The new business plan of Creative Bricks represents various kinds of products and services in the UAE market with the purpose to earn a profit in return of operations. The company will be continuously delivering high-quality services and high-quality projects related to manufacturing in the market  (Barney, 2012). Creative Bricks Company is aimed to do all efforts and activities that are allowed by the UAE law to accomplish their goals, aims, and mission of the company.

Current services and product offerings are enlisted below;

Concrete blocks manufacturing

Concrete bricks manufacturing

The Vision Statement of Creative Bricks Business Plan

The vision of Creative Bricks is to become the market leader in the UAE in the bricks manufacturing industries.

The Mission Statement of Creative Bricks Business Plan

        Creative Bricks will establish its mission statement according to which the company will secure a strong position as world-class cement bricks manufacturing companies around the world, not only serving in UAE market only but also other countries around the world.

The Business Structure of Creative Bricks Business Plan

        The company is not intended to start up the business of cement bricks manufacturing like other usual cottage type businesses; the company is concerned with the start of cement bricks manufacturing as a standard business that is expected to deal with the export of concrete products in various countries around the world. The managerial staff at the company is responsible for making sure that the right structure is adopted by a company that has the capability to support growth and accomplish the aims of the company.

In the business, managerial staff will make it sure that only customer-centric, honest, highly skilled, and qualified people are hired in staff that is ready to support the organization to develop prosperous business benefiting all the stakeholders in the society. Actually, arrangements related to the profit-sharing will be made available to all the top level and senior managerial staff that will represent the overall financial performance of the company in ten years (or more) duration. However, the company will decide to hire highly skilled and qualified employees at these enlisted below positions:

CEO (Chief Executive Officer)

Factory-level Manager

Administration Manager and Human Resources Manager

Manager of Marketing and Sales

Cement Bricks Machine Operators

Cashiers and Accountants

Front Desk Officer (FDO) and Customer Services Executive

SWOT Analysis of Creative Bricks Business Plan

            According to the SWOT analysis, it is clear that business will leverage profit, earn maximum output, and strong market position while mitigating the risk factor and confronting threats and working on the opportunities and strengths. Strength maximization will benefit the company in dealing with efficiently and successfully in the market. However, the company has recruited two experts a business analyst and an HR manager to assist us in conducting a SWOT analysis of the overall operations and resources of the company.

The following headings represent the SWOT analysis of the company:

Strength of Creative Bricks Business Plan

        The high quality of manufactured goods is the core strength of the company (Bakker, Boonstra, & Wortmann, 2010). Other than this art of manufacturing concrete bricks and pipes is also a strong factor for the company. Experienced staff members and highly trained worker at each level of the company are also a strength that provides a gateway to earning success in the highly competitive market with this competitive advantage. The company also offers unique products such as concrete pipes and blocks that are not easily available in the market. Strong positioning and positive image developed in the market of UAE that attracts customers to buy products from Creative Bricks Company is also a strong factor.

Weakness of Creative Bricks Business Plan

        The main weakness of the company that may count against the business growth of the company is the reality that the company is new in this market, therefore, they have limited financial capacity to deal and compete with the competitor companies of the United States (and other areas of the world that operates and serve the market of UAE) having assets of multi-million dollars'. As a result of this limitation, the company is not enough capacity to run millions of dollar promotion campaigns as other competitor companies do.

Opportunities of Creative Bricks Business Plan

        The company is going to operate in the UAE market that has a high demand for products offered by the Hollow Cement Brick Company. High demand and UAE market potential ensure wide opportunities for business growth (Bakker, Boonstra, & Wortmann, 2010). The company has the capability to become capable enough of organizing feasibility studies and market survey to get an idea about who are potential customers and what kind of products they are looking for. A new business plan is also focused on these opportunities to enhance profitability and growth.

Threat of Creative Bricks Business Plan

        In the economic downturn, the company will face some threats. One of the major impacts of the downturn is a negative influence or changes in the buying and selling power of the targeted customers. The arrival of new competitor companies in the same market will also possess threats for the company.  Somehow, there is also the possibility that changes in government policies and unfavorable policies will affect the business of Hollow Cement Brocks manufacturing company.

Market Analysis of Creative Bricks Business Plan

Market Trends of Creative Bricks Business Plan

        Over the last half a decade, Creative Bricks Manufacturing industry is leveraging with the improvement in the construction-related activities and production sector. According to the analysis of market and fluctuation in the condition of the company, Creative Bricks manufacturing company faced problems caused by the economic downturn and as a result of this economic problem revenue stream was declined. During the last 20 years, several changes are incurred in the market as a result of which Hollow Cement Brick manufacturing company faced changes. They became more organized and turned into the leading company from the smaller enterprise. As a result of this growth, a trend the company is comfortable to sell out their services and products in the national and international market.

The Target Market of Creative Bricks Business Plan

        The target market of Creative Bricks manufacturing company in UAE will include all areas of this geographical region. The business will be concerned with the personal distribution channel to deliver products in the targeted market. Moreover, the company conducts market research and feasibility analysis to collect information regarding customer’s demand and requirements from the company.

The Competitive Advantage

        The company is going to launch a standard business for Cement Brick manufacturing that will become the preferred choice of UAE customers. The key part of the competitive advantage is upstream vertical integration and capability to maintain the total supply chain.   The current location of the company is really attractive as it is the most suitable place for a company dealing with the manufacturing of the construction-related product. One important consideration that needs to be taken into mind is that products such as concrete pipes, blocks, and bricks need to meet international standards. The most important business goal is to make the company a one-stop cement bricks manufacturing company for construction cum civil engineering companies.

        The various payment options, online store, excellent customer service culture and highly secured facilities will work as a competitive advantage for the company. Finally, workers will be given the best welfare package. The business is highly concerned with the goals and aims that will be accomplished in the light of this business plan. The business will also provide freelance sales agents to earn benefits.

        The Creative Bricks recognized Emcon Company as a tough competitor company in this field. The Emcon Company famous as the top manufacturer & supplier of concrete blocks, hollow bricks, paving tiles & interlocking stones in UAE - DubaiSharjah, Ajman & Abu Dhabi. However, the Creative Bricks Company will deliver high-quality products for the customers to defeat the reputation of the Emcon Company and to be on the list of top manufacturer company in the business.

Sales and Marketing Strategy of Creative Bricks Business Plan

Sources of Income of Creative Bricks Business Plan

        The Creative Bricks will develop and maintain relations with the different retailers and manufacturers to provide services. The business of Creative Bricks manufacturing company is developing to generate maximum profit. The business ensures the objective and goals for the development of the business. The source of income is important for the retailing and manufacturing process provided by the company (Baines, Fill, & Page, 2013). The goals and objectives of the company are generating maximum profits. In the real sense, the source of income of the company is based on the manufacturing and retailing of different products at different shapes and sizes of concrete blocks, and cement bricks and the processes are affordable for the customers regarding the price of products (Bakker, Boonstra, & Wortmann, 2010).

Sales Forecast of Creative Bricks Business Plan

        One of the important things in the business development of cement brick manufacturing company is the network of company and business that attract the customers towards their sales and translate the business strategies to improve revenue generation of the business. The business can overcome the available market of UAE due to the optimistic approach (Baines, Fill, & Page, 2013).  Different strategies that develop to achieve the goals are all helpful in generating profits. In the first six months of operation, the business grows beyond the expectation and services are provided to the clients of the USA and other countries of the world.  The business plan is developed to critically analyze the manufacturing process of hollow cement block manufacturing company (Bakker, Boonstra, & Wortmann, 2010).  Different opportunities for the business in the industry are analyzed by considering the sales forecast. The sales projection can be determined by including the information’s assumptions about the processes. The list provided below provides information about the financial years of Creative Bricks Company.

        The production is analyzed by considering the obtainable goals of the company and conceding the exemptions of major economic meltdown and major competition in the industry.  There is some uncertainty in the above-mentioned projection, but it can be higher or lower as compared to the provided production. The projection is analyzed by considering the obtainable goals of the company are conceding the exemptions of major economic meltdown and major competition in the industry.  There is some uncertainty in the above-mentioned projection, but it can be higher or lower as compared to the provided production (Bakker, Boonstra, & Wortmann, 2010).

Payment Options

            Inclusive payment strategy is developed by Creative Bricks Company, and it prefers different payment processes according to the requirement of the time. The company shows that regulation and financial rules of us are developed in the manufacturing process (Bakker, Boonstra, & Wortmann, 2010).  There are different types of payment processes that are provided by the company and processes are listed below.

Payment by bank transfer

Cash payment

Credit card payment a payment by the point of sale machines

Payment by online bank transfer

Payment in the form of a cheque

The mobile money transfer process

Bank draft for the payment

        There are difference banking processes that can be selected by the company enable the clients to provide payment on the services and after purchasing blocks and bricks of Creative Bricks Company. The bank account number of the company is provided in the advertisement as well as on the website of the Creative Bricks Company (Bakker, Boonstra, & Wortmann, 2010).

Marketing Strategy and Sales Strategy of Creative Bricks Business Plan

            In order to improve brand awareness, the location should be selected for the Creative Bricks Company to the analysis of feasibility and market survey. The analysis includes the consideration for the process of penetration of the company in the market of UAE. The detailed information and data of the business can be used to define the structure of the business and to attract the number of customers for the services (Baines, Fill, & Page, 2013). The business can be improved by attracting customers.  The experts in the management of Creative Bricks Company can hire efficient workers to improve the strategy and manufacturing process of the product. The manufacturing department requires efficiency services and can help in the business development process and to achieve the goals and objectives of the company in the UAE (Aileron, 2011).

        In a summary, the business can grow by adopting different strategies of marketing and sales and approaches to win customer attention.

        Send the introductory emails to introduce the cement brick manufacturing company.  Distribute the brochures of a construction company in different areas of UAE.

 Ensure the variety of services that provide different sizes of products including pipes, bricks, and blocks.

Ensure the distribution of bills and flayers to increase brand awareness in the customers and key holders of UAE.

Developer complete planning and strategy for the position of banners in the UAE.

Develop a plan that includes the reward for the regular customers for their services and acknowledges your work.

Develop a list for the products and business services on a yellow page ad.

Use of social media and internet services for the promotion of business

Engage the sales and direct marketing department together.

Join the local Chambers of a business industry the development of marketing strategy and to develop a network of strong relations (Baines, Fill, & Page, 2013).

Publicity and Advertising Strategy of Creative Bricks Business Plan

            The location of the cement bricks manufacturing company induces impact on the growth of the business, and it can intensify the business publicity. The business development process utilizes all types of business facilities to promote the business of cement bricks manufacturing company (Baines, Fill, & Page, 2013). The intensive plan of the distribution channel is long term plan of Creative Bricks, and it can be extended to all locations of key cities in the United States. The business deliberately develops a complete brand that can be equally acceptable in UAE before venturing out. In the business, the strategy of advertising and publicity the services works to improve the customer relationship with the services, but besides it, effective communication improves brand awareness. Some platforms can be used by the business intended leverages for the promotion and advertisement of the business developed by Creative Bricks company (Bakker, Boonstra, & Wortmann, 2010);

Participation in exhibitions related to construction and real estate.

The advertisement can be done through the stations of TV and radio and newspapers.

Loyal customers should be encouraged (Bakker, Boonstra, & Wortmann, 2010).

The promotion of business through different platforms such as Facebook, Twitter, LinkedIn, YouTube, and Google+ can improve the business.

The policies of business advertisement should be through the billboards and banners to promote the business.

Improve brand awareness by distributing handbills and players.

Advertise the products or services on the official website and use the strategy to pull the traffic on the website.

Improvement awareness by using the official cars and trucks and ensure that management staff for wearing the shirts and caps with the logo of the company on a regular basis.

The Pricing Strategy of Creative Bricks Business Plan

            Besides the quality factor of the product, the pricing of products is a key factor that provides higher leverages to the manufacturing company. The customers reach the selling point of cement, pipes, bricks, and blocks and purchase the products at lower prices. The economical prices of the products attract loads of clients. The new business is not capable of competing with the leading companies in the UAE, but it can improve the quality and prices of the products. The business ensures the competitive advantages that are highly obtainable in the cement bricks manufacturing companies. The business develops contracts with the government departments and some of the construction giant to improve brand awareness for the blocks, cement bricks, and pipes. In such case of contracts, the bidding prices template ensures the business trend and the template contracts.

Financial Plan of Creative Bricks Business Plan

Balance sheet

PRO FORMA BALANCE SHEET

YEAR 1

YEAR 2

YEAR 3

Assets

Current Assets

Cash

$8,427

$9,364

$10,404

Other Current Assets

$2,648

$2,943

$3,270

TOTAL CURRENT ASSETS

$11,076

$12,306

$13,674

Long-term Assets

Long-term Assets

$90,174

$100,194

$111,326

Accumulated Depreciation

$1,250

$1,389

$1,543

TOTAL LONG-TERM ASSETS

$88,924

$98,805

$109,783

TOTAL ASSETS

$100,000

$111,111

$123,457

Liabilities and Capital

Current Liabilities

Accounts Payable

$11,998

$5,915

$5,361

Current Borrowing

$0

$0

$0

Other Current Liabilities

$0

$0

$0

SUBTOTAL CURRENT LIABILITIES

$11,998

$5,915

$5,361

Long-term Liabilities

$0

$0

$0

TOTAL LIABILITIES

$11,998

$5,915

$5,361

Paid-in Capital

$6,864

$4,825

$3,917

Retained Earnings

($3,452)

$49,040

$68,501

Earnings

$84,591

$51,331

$45,678

TOTAL CAPITAL

$88,002

$105,196

$118,096

TOTAL LIABILITIES AND CAPITAL

$100,000

$111,111

$123,457

 

Income statement of Creative Bricks Business Plan

PRO FORMA PROFIT AND LOSS

YEAR 1

YEAR 2

YEAR 3

Sales

$112,000

$124,444

$138,272

Direct Cost of Sales

$22,400

$24,889

$27,654

TOTAL COST OF SALES

$22,400

$24,889

$27,654

Gross Margin

$89,600

$99,556

$110,617

Expenses

Payroll

$7,298

$8,109

$9,010

Marketing/Promotion

$109

$121

$134

Rent

$2,089

$2,321

$2,579

Utilities

$139

$155

$172

Insurance

$22

$24

$27

Payroll Taxes

$0

$0

$0

Research and Development

$740

$822

$914

Outsourced Offshore Labor

$1,523

$1,693

$1,881

Website/Server/Hosting Expenses

$381

$423

$470

Contracts/Consultants

$218

$242

$269

Total Operating Expenses

$12,519

$13,910

$15,455

Profit Before Interest and Taxes

$77,081

$85,646

$95,162

EBITDA

$77,081

$85,646

$95,162

Taxes Incurred

$23,124

$25,694

$28,549

Net Profit

$53,957

$59,952

$66,613


Cash flow budget
of Creative Bricks Business Plan

PRO FORMA CASH FLOW

YEAR 1

YEAR 2

YEAR 3

Cash Received

Cash from Operations

Cash Sales

$14,797

$11,161

$10,053

SUBTOTAL CASH FROM OPERATIONS

$14,797

$11,161

$10,053

SUBTOTAL CASH RECEIVED

$14,797

$11,161

$10,053

Expenditures

Expenditures from Operations

Cash Spending

$964

$770

$707

Bill Payments

$5,693

$6,277

$5,449

SUBTOTAL SPENT ON OPERATIONS

$6,657

$7,047

$6,156

Dividends

$0

$674

$1,094

SUBTOTAL CASH SPENT

$6,657

$7,721

$7,250

Net Cash Flow

$8,140

$3,440

$2,803

Cash Balance

$8,427

$9,364

$10,404


Break-even analysis
of Creative Bricks Business Plan

BREAK-EVEN ANALYSIS

Monthly Units Break-even

1,506

Monthly Revenue Break-even

$43,941

Assumptions:

Average Per-Unit Revenue

$35.67

Average Per-Unit Variable Cost

$7.13

Estimated Monthly Fixed Cost

$35,153


References of Creative Bricks Business Plan

Aileron. (2011, October 25). Five Steps to a Strategic Plan. Retrieved May 19, 2017, from https://www.forbes.com/sites/aileron/2011/10/25/five-steps-to-a-strategic-plan/#3a632f7f5464

Badiru, A. B. (2011). Project Management: Systems, Principles, and Applications, Second Edition. CRC Press.

Baines, P., Fill, C., & Page, K. (2013). Essentials of Marketing. OUP Oxford.

Bakker, K. D., Boonstra, A., & Wortmann, H. (2010). Does risk management contribute to IT project success? A meta-analysis of empirical evidence. International Journal of Project Management, 28(5), 493-503.

Barney, J. B. (2012). Purchasing, supply chain management and sustained competitive advantage: The relevance of resourcebased theory. Journal of supply chain management, 48(2), 3-6.

Daft, R. L., & Marcic, D. (2010). Understanding Management. Cengage Learning.

 

 


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