For this week's assignment you are tasked with completing a sales forecast for your chosen business.
All numbers you provide and all assumption you make must be explained in detail. Write your explanation into the second tab titled “Explanations”.
Make sure you explain what you are basing your numbers on.
Choose two different areas from your sales forecast and use descriptive statistics (graph or table) to display both areas. Make sure that anyone looking at your graph/table understands what you are displaying. If necessary, write a short explanation next to it.
Use the Excel Spreadsheet provided to you (In the attach file) and save the template under firstname_lastname and submit in the designated area. Do not change the formulas! Just enter your units/selling price for each month and each year. The spreadsheet is set up to do the calculations for you. You must do research to come up with realistic numbers! Do not just enter any numbers you think are reasonable. Under the explanation tab, you must provide the rationale (sources) behind your numbers!
The business is E-booksYou answers should be of the excel file that I have attached, they are two pages ( Sales forecasting and explanation ).
36 Month Sales Forecast 36 Month Sales Forecast 36 Month Sales Forecast Fiscal Year 12020 2020 JanFebMarAprMayJunJulAugSepOctNovDecTotals Product NameEnter Product/Service Name Here Units0000000000000 Selling Price Total Sales$0$0$0$0$0$0$0$0$0$0$0$0$0 % of Total0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% 2021 JanFebMarAprMayJunJulAugSepOctNovDecTotals Units Selling Price Total Sales$0$0$0$0$0$0$0$0$0$0$0$0$0 % of Total0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% 2022 JanFebMarAprMayJunJulAugSepOctNovDecTotals Units Selling Price Total Sales$0$0$0$0$0$0$0$0$0$0$0$0$0 % of Total0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% JanFebMarAprMayJunJulAugSepOctNovDec 01234567891011 &C© Copyright, 2010, JaxWorks, All Rights Reserved. This worksheet forecasts 3 years of product sales. The first two key data entries that you need to make are the first fiscal year and the first month of the forecast. With the first year and month entered, the spreadsheet will automatically enter the remaining years and months. Your next step is to enter the number of units and selling price for each month. This worksheet will print Centered and in Black & White. Enter Start Month Here. Explanations Running Head: BUSINESS COMMUNICATIONS1 BUSINESS COMMUNICATIONS 2 BUSINESS COMMUNICATIONS Table of Contents Introduction3 Business Plans & Strategies3 Conclusion4 References6 Introduction After completing my MBA at SSU and acquire experience in management in different companies, finally, I decided to start my own business and with keeping the thing in my mind that whatever the business I will keep this thing in my that my company will be ecofriendly and will also create some positive social impact. I just want to have some kind of different experience with this business. Business Plans & Strategies During the first six months, I decided that I would be going to focus on the value proposition and synthesize it into a business plan. Alikram (2018) mentioned that after this duration, the company will automatically start formally and come in the flow and I can expect the growth of a company in the next upcoming years. I know very clearly that the next 3 years for me will be going very hard and I have to put all my time and efforts with a full of energy towards my business and then there is a chance of becoming successful in my business. I have to be very confident in what I have built and what I am expecting. The expectation I have from my business is the only thing that will give me motivation. I feel good when the employees of my company will invest their time and efforts in the company and they will give me output, as I need. I will feel that I am doing well while doing well. When I will be in my 4th year I will be very frustrate and I know it will be very hard for me to deal with all these things. I will be going to face many difficulties because Turner and Endres (2017) claimed that it will be very hard to compete with those competitors who are in the market for a very large time and this competition will be going to be very hurtful for my company. For proving myself in the market, that my company will be sustainable, and it will be a competitor for others in the upcoming time, now to prove myself in the market I need that investor for my company and when I fund the investor then they become the shareholder of my company and that too of 75%. Therefore, now they appoint me as a CEO of the company and now I have to fulfil their demand, which, as discussed by Turner and Endres (2017), is of meeting the level of profitability with higher than 15% per year. If my company will fail to meet their expectation then my shareholder will replace and this will be the biggest loss for my company. Now to meet their expectation I made a 5-year strategy plan, which is as follows. In the first year, I will focus on doing the advertisement of the product of my company so that more people will know about my product and even I will tell them why my product is unique and different from other products. In the second year, I will focus on my hiring team that what type of employees our company need and what are qualities that we need in an employee. In the third year, I will focus on the profit that customers will get after buying a product from our company. In the 4th year, I will try to make my clients and customers happy so that they can trust our brand and be loyal customers and in the last 5th year I will monitor and ensure that everything is going smooth in the company ad what is the change that we need to bring in a company. I will always focus on how the shareholders will see my company and how the customers will see my company. On the other hand, I will keep in mind that my business will not harm the environment and the business should be innovative and learning. There is always a need in the company for innovation to increase the growth of the company. Conclusion From this plan, it could be inferred that there are some important factors, which a company should keep in mind and those are the customers, consumers, shareholders, loyalty, trustworthiness, quality and affordability. Those companies who are ecofriendly send a positive response to the customer and attract them to use the product of the company. It will also show the social responsibility of a company and that will increase the reputation, recognition and as well as sales of a company. The best way to have the right to show my views on any conflict in a company is by becoming a shareholder of at least 50% that will give me the right of equity with others shareholders. References Alikram, N. H. (2018). The Efficient Preparation of Mechanism of Business Plans by Using Pricing Criteria in the Application of Investment Strategies in the International Capital Market. In Economic and Social Development (Book of Proceedings Vol. 2/4), 55th International Scientific Conference on Economic and Social, 263 Turner, S., & Endres, A. (2017). Strategies for enhancing small business owners' success rates. International Journal of Applied Management and Technology, 16(1), 3 RUNNING HEAD: SWOT ANALYSIS AND ANSOFF’S MATRIX1 SWOT ANALYSIS AND ANSOFF’S MATRIX2 SWOT ANALYSIS AND ANSOFF’S MATRIX Business Idea In recent times, using of E-books has been increased dramatically. People are more opting for e-books rather than the paperback book as its instant deliverable, price-effective, and easily available. To read e-books, people usually prefer e-book reading devices such as Amazon Kindle and Kobo Clara. However, there is a prominent issue that has been found among e-book readers related to “eyestrain”, “Blurry vision”, “Headaches” and others (Ichhpujani et al. 2019). The main reason behind such issues is direct contact with UV rays. To deal with this situation, a business idea is developed. A zero-optical power lens will be developed which will be capable enough to secure the reader's eyes by preventing UR rays. Based on the customer's preference color and optical power will be integrated. The company will be called "SecSight", here "Sec" stands for "Secure" and Sight refers to eyesight. SWOT Analysis Strength Weakness · Unique concept · The existing issues among the e-book readers will be resolved · Can be customized according to customer’s preference · It Will be sold online, hence, customers from across the country will get the product · Only e-book readers are the customer here, as the segment is very restricted · 2 years will be the maximum life-span of each lens · Price will be variable for adding optical power Opportunities Threats · Opportunity to expand in the international market · Franchising business model will be helpful for the business to expand across the nation · Partnership with established e-book reading vendor will help the company to do its marketing · Companies like Amazon might come up with their own UV-ray lens · Production and marketing costs will be higher Table 1: SWOT analysis Ansoff Matrix Diversification Market development Product development Market Penetration New Existing New Existing Market Products Figure 1: Ansoff Matrix (Source: Loredana, 2017) There are several companies involved in developing similar products however, as a partnership business model will be followed by the company, therefore, the "Market Penetration" strategy of the Ansoff matrix will be followed. Marketing mix Price The management team of “SecSight” will follow the principles of Price penetration strategy. In this strategy, the initial price of the product will be lower (Walther & Skousen, 2009). Once people started opting the product price will be increased. As per the current estimation, $100 will be the price of one pair of lenses. After 6 months, the price will be increased to $120 per pair of lenses. Product The product will be available in the form of a pair. The base product will come with zero optical power and no color. However, if the customer wants to add color and optical power then they will have to place a customized order from the company's website. Promotion Social media will be used as a key marketing tool for advertising the product. The company will share a regular post on Facebook and Instagram disclosing its features and price. Paid promotion in form of PPC (Pay per click) will also be done on Amazon’s site. Place Only online sales channels will be used for selling the product across Canada. The company will sell its product through the company's own site which will offer customization. Or else to get base product will be sold through Amazon. References Ichhpujani, P., Singh, R. B., Foulsham, W., Thakur, S., & Lamba, A. S. (2019). Visual implications of digital device usage in school children: a cross-sectional study. BMC ophthalmology, 19(1), 1-8. Loredana, E. M. (2017). The use of Ansoff matrix in the field of business. Annals-Economy Series, 2, 141-149. Walther, L. M., & Skousen, C. J. (2009). Using accounting information. Bookboon.