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BUSINESS PLAN 1

Business plan

Anthony J Wolf

BSA 515

Tony Buenger

June 8th, 2020

BUSINESS PLAN 2

Introduction

Websites are essential marketing tools in businesses today (Eugenia, 2017). A well-designed

website captures the attention of readers, drawing their interest to the company's products and

services. This paper is a draft of a business plan, guiding the company on how to improve

marketing by having a modern website that has all useful information available to the customer.

Problem statement

The current website of HWE does not allow customers to access all relevant information, such as

the inventory and prices of commodities. Customers are forced to make inquiries directly from

the customer service, something that should be availed to the on the website. The current website

does not allow customers to make orders for products, and they are forced to walk into the store

to make purchases physically. The current situation has led to losing some customers who opt to

purchase accessories from competing firms where they can purchase goods from their homes,

and the company delivers promptly. It also makes sales agents spend a lot of time explaining to

customers about varieties of products available and their prices.

Analysis of the situation

The goal of the website is to increase sales by 25% within the first two years after the

implementation of the new site. The target market of the company is majorly youths, who are the

primary consumers of the products. 90% of youths access the internet and can easily browse

through the company website. The current products and services that HWE offers are tailored to

meet the needs of the target audience. However, our website, which is part of the marketing plan,

does not have modern features that websites owned by competing firms have. The company has

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well-skilled personnel that an upgrade the website, but lacks enough motivation. The company

should invest in motivating employees so that they upgrade the website and update all useful

information that customers want.

Cost-Benefit Analysis

The initiative to create a new website implies financial and time costs. However, when

implemented successfully, the business will enjoy huge financial and branding benefits. To

create a new website, the company will have to set aside an estimate of $ 5000. This amount will

be used to pay the website designers, train employees on how to update information on the

website and motivate sales agents who record-high sales. The company may also be required to

hire an extra person in charge of website management. Once this has been done, the company

will have a high internet and social media presence and a pleasant outlook. It will be easy to

attract new customers and retain old ones. Consequently, the sales will increase, meaning that

HWE will record-high profits. For maintenance, the company will incur $ 2,000 per year.

Preliminary Feasibility Study

The company has maintained a high customer retention rate for the past five years but has a

notable decline in the number of new customers. The new project requires more attention in

areas that capture the attention of the customers and be designed in a manner that capture the

attention of the customers. The new initiative is promising, and when implemented diligently, it

can transform the company to a higher level.

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Total Cost of Ownership

TCO=Initial cost +maintenance costs

Initial cost is $5000, the maintenance costs for five years is $ 2000 dollars per year, amounting to

$ 10,000

Therefore, TCO = $5000 +$ 10,000= $ 15,000

TCO =$ 15,000

Return on Investment

This investment is promising and can be achieved with the lowest cost possible (El-Halwagi,

2017). The TCO is $15,000. After five years, the sales will increase, and the company will

realize an approximate of $ 30, 000 per from sales accrued from the website. When the outcome

($30,000) is divided by the cost, the ROI amounts to a 50% increase.

Therefore, ROI is 1: 2

Solution Options

The first option would be to create a new website and design it to meet all the needs of the

customers. A highly skilled technician will be required to do this. It is also the most expensive

option. The second option is to upgrade the current website and add information related to the

prices of products and the inventory. This is cheaper compared to designing a new website but

may not accommodate or relevant information. It may also be irrelevant within a short time as

new website designs enter the market. The last option would be to remain with the current

website and find alternative methods of availing information to potential customers.

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Recommendations

The decision to create a new website is the best and has the highest ROI compared to the two

other alternatives. The company should hire a skilled website designer who will come up with

the latest make of a website, which should serve as a competitive advantage to the company. The

company should set aside the required money and commit to set up the website. The employees

should be well trained to handle the website and attend to employees who place their orders on

the website.

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References

El-Halwagi, M. M. (2017). A return on investment metric for incorporating sustainability in

process integration and improvement projects. Clean Technologies and Environmental

Policy, 19(2), 611-617.

Eugenia, I. (2017). Website-Tool of Marketing Strategy. Ovidius University Annals, Economic

Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, 0 (1),

302-306.