PRODUCTO INTEGRADOR DE APRENDIZAJE Nombre de la Unidad de Aprendizaje: Fundamentals of Management Nombre del proyecto: International Business Project Programa educativo: Licenciado en Negocios Internacionales Semestre: 1 Grupo: 1Ii Nombre del maestro: Jorge G. Treviño Montemayor Nombre de los integrantes del equipo: López Cano Jesús Salvador 1875967 Mendieta Ledezma Fernando 1732837 Miranda Escobedo Adrián Abelardo 1896091 Montemayor Oyarvide Jesús Sebastián 1847790 Contenido mínimo a evaluar Cumplimiento Índice Introducción .- incluye valores UANL aplicados Análisis y emisión de juicio Conclusiones individuales Conclusión del equipo Actividad en inglés Calificación PIA: San Firma del maestro Nicolás de los Garza, Ciudad Universitaria de Nuevo León a 25/10/2019 1 INDEX Introduction...........................................................................................................…3 General information about the company………………………………… …… 4 Company operation …………………………………………………………… … 5 Organization chart………………........……………………………………………………………….… 8 Analysis of the organization’s environment ……………………………….. 18 Ethics Code …………………………………………………………………… … 21 Development of the strategic plan ……………………………………..… … 23 Decision making strategy …………………………………………………... ... 25 Stablish a plan of objectives ………………………………………………………….. 31 Business Plan........................................................................................................ 32 Conclusion............................................................................................................. 50 2 Introduction Starting a small business is one big scary step into the unknown and just by considering the option, you have taken already the first crucial step. In this final project we are going to see how to manage a company, being successful and make your company worldwide. But first of all let’s go back to starting your business; if you’ve never done this before or it is your first time experiencing this, you’re likely would feel a little nervous and possibly overwhelmed, however, don’t let these feelings stop you. Being a small business owner is not easy at all and it comes with a lot of Responsibilities and risks, and if you are wondering how to start a business, you have probably hear stories about business failures. But if you are brave enough and willing to take the chance, there are great rewards to be gained from taking this risk, the salary that you can earn will be higher than the nationwide average American worker, plus you get to be your own boss, potentially create jobs, and contribute to your local economy and community. Now all of these characteristics is from an individual, imagine creating your own company but with some partners and friends. Team work is the best value to work with since you have more than one opinion and idea, and the process can be quicker since you are not alone anymore. At the end if your project does not work, you have to face the Truth and move on, get new ideas, and do not stop there. You have already the idea of how a company will work, you have people supporting you with ideas. When you are successful it becomes a real challenge. You have to keep your business on point, covering all aspects that we are going to see in this project which involves management, the way you will structure your company. International business that refers to the trades with other countries. Law which requires that your company must be following the rules and norms and also that your employees behave within your company, they would need to have Respect to each other. Statistics, to measure how your product is going 3 with the community by showing results. And Accounting, to know your financial situation and keep records of your money. These topics are the main ones in order to start your company successful and in this project we will show you how, four students, started a big company. General information about the company. Name of the company: Olimpo Mission: Decrease the pregnancy and sexually transmitted diseases rate eventually around the world giving the people the chance to decide and raise awareness about the measures of protection to prevent undesired events. Vision: Being the most important and efficient producer of preservatives and products related with throughout the world. Values: -Honesty. -Respect. -Integrity. -Transparency. Objective: As every preservative made around the world, to avoid the fecundation within the women’s body attempting to give them the major comfort when using our product, as well as making the people know If at any time of the sexual intercourse the preservative got ripped. 4 Company operation Financial sources: In addition to the beginning capital raised by the main founders of the enterprise, we have got different stockholders supporting the idea with the raising of funds, investors well known by investing at the healthcare market area. Also, in order to get the majority quantity of money, diverse bank loans were done by the company. Financial resources: In total all our financial resources add up to be $223,400 U.S. dollars. Target market: Our targets with our products are people around the ages of up to 17. Expected growth time line: Main costumers: The main costumers of our product are people from around the age of 22-25 Payroll: 2023: More 2027: New products locations 30,000+ where we sell our products. Online service available. are being created and are attracting the atention of several countries. 2025: We start making trades and deals with other countries to expand our sales. 2030: Oficially our company becomes worldwide. 5 President: $33,000 CEO: $22,000 COO, CMO, CFO: $19,000 CCO, CDO, CIO: $17,000 Finance and administrative manager: $15,000 Accountants: $10,204 Treasurers: $11,454 Lawyers: $2,874 Marketing and Sales Manager: $14,000 Websites: $7,000 Publicity: $6,000 R&D: $7,000 Production Manager: $14,000 Engineers: $8,500 Lab workers: $8,000 Logistics Manager: $13,000 Quality Personnel: $6,980 Dockers: $5,274 Human Resources: $13,000 Customer Service Manager: $13,000 Recruitment Researcher: $7,000 Training Officer: $6,200 Drivers: $4,000 Fixed Costs: Prepaid Rent: $60,000 Salaries Payable: $260,000 Accumulated Depreciation: $133,596 Taxes: $394,569.9 Variable Costs: Cost of goods sold: $1,382,900 6 Interest Income: $20,080 Expenses: Administrative Expenses: $344,546 Selling Expenses: $389,000 Interest Expense: $90,000 Income tax expense: $394.569.9 General information on investors: Rodrigo Herrera Aspra is the current Chairman of the Board of Directors and CEO of Genomma Lab, has degrees at the Universidad Anahuac, and his history as a disciplined and reckless investor is already turning him into a legend in Mexico. During the last months he has appeared as one of the “sharks” in the Shark Tank Mexico program and has been characterized as a protagonist by investing in innovative and future Mexican companies. 7 Organization Chart 1. Organization chart o Main positions. o General functions. Talent required for the main operational functions 8 CEO -Masters of Business Administration or Finance -10 years of experience -Domain of three languages -Communication skills -Economy Diploma COO -Masters of International Business -7 years of experience -Domain of three idioms CMO -Masters of Marketing -7 years of experience -Domain of thee languages CFO -Masters of Economy -6 years of experience -Domain of three languages CCO -Degree in Organizational Communication or International Business 9 -6 years of experience -Domain of three languages CDO -Digital business degree 4 years of experience -Domain of two languages CIO -Degree in Systems Engineering 6 years of experience -Domain of two languages CTO -Degree in Technology’s Information -5 years of experience -Domain of two languages CHRO -Psychology’s degree -5 years of experience -Domain of two languages CLO -Law degree 10 -5 years of experience -Domain of two languages Finance and Administrative Manager -Administrative or Finance degree -3 years sales experience -Domain of two languages Marketing and Sales Manager -Degree in Marketing -3 years of experience -Domain of two languages Production Manager -Degree in Business Administration -3 years of experience -Domain of two languages Logistics manager -Degree in International Relations or Business 11 -3 years of experience -Domain of two languages Recruitment Researcher -Degree in Psychology -1 year of experience -Domain of two languages Training and development officer -Degree in Psychology -2 years of experience -Domain of two languages Accountants: -College degree accountant-Accountant certificate. -The ``Examen Uniforme de Certificación (EUC)´´ must be passed. Treasurers: -Bachelor's degree in finance or accounting. -10+ years of progressively responsible treasury experience for a major company. -Should have a thorough understanding of derivatives, hedging, investments, bank account management, and international funds flows. Lawyers: -Lawyers must have a law degree. 12 -Pass a state’s written bar examination. Web sites: -A relevant diploma in related field. -Proficiency in graphic design software including Adobe Photoshop, Adobe Illustrator, and other visual design tools. -Proficiency in front-end development web programming languages such as HTML and CSS, JQuery, and JavaScript. Publicist: -Creative -College degree in administration -2 years of experience. R&D: -Computer skills. -Leadership. Communication. -knowledge of Mathematics. -Analytical ability. -Multi-tasking. Foreign trade -3 idioms -Degree in international business. -Great communication. Engineers: 13 -Creativity -Math skills Mechanical skills. -Problem-Solving. -Teamwork. -Listening skills. -Communication skills. Lab workers: -Degree in biology, biochemistry, chemistry or physics. -Proven experience as Lab Technician or relevant position. -Excellent physical condition and endurance. -In depth knowledge of QHSE Systems, preventative measures and laboratory best practices. Quality personnel -high school diploma. -Strong written and verbal communication skills. -QA process skills. -Knowledge of safety requirements and legal standards Dockers -Product management skills. -Leadership 14 -Analytic skills -verbal communication skills Drivers: -Minimum of one year driving experience within 30-mile radius of store. -Ability to manage time and routes for a streamlined delivery experience. -Work well independently. Strength to lift up to 70 pounds plus bending and twisting. Open and transparent communication. President: is tasked with providing strong leadership for the company by working with the board and other executives to establish short and long-term goals, plans and strategies. CEO: They are the highest-ranking executive at a company. They make major corporate decisions, manage the company's overall resources and operations, and communicate with the board of directors, management team, and corporate operations. COO: oversees a company's business operations and reports to the CEO. A COO ensures the company has effective operational and financial procedures in place. CMO: is responsible for overseeing the planning, development and execution of an organization's marketing and advertising initiatives. CFO: manages the company or organization's finances and are responsible for financial reporting. CCO: Is an executive-level role, with the holder being responsible for the commercial strategy and the development of an organization. 15 CDO: is a C-level corporate executive who is responsible for an organization's data governance. CTO: makes all executive decisions with regards to the technological interests of a company. They are responsible for outlining the company's technological vision, implementing technology strategies, and ensuring that the technological resources are aligned with the company's business needs. CHRO: designing and evaluating career paths, overseeing all HR functions and crafting strategies that meet our business goals. CLO: is an expert and leader who helps the company minimize its legal risks by advising the company's other officers and board members on any major legal and regulatory issues the company confronts, such as litigation risks. Finance and Administrative manager: Is in charge of checking if everything in the administrative area and finance area is correct. Accountants: Provides financial information to management by researching and analyzing accounting data; preparing reports. Prepares asset, liability, and capital account entries by compiling and analyzing account information. Documents financial transactions by entering account information. Treasurers: Is responsible for corporate liquidity, investments, and risk management related to the company's financial activities. Lawyers: They are tasked with ensuring a company's transactions comply with corporate laws and regulations. Marketing and sales manager: Is in charge of checking if the marketing is being done correctly and sales are doing well. Web sites: They are in charge of creating all of the ads in different web sites Publicity: They in charge of all publicity. 16 R&D: They are responsible for research, planning, and implementing new programs and protocols into their company or organization and overseeing the development of new products. Foreign Trade: They are responsible for the trading outside the country. Production manager: It is in charge of checking the making of the product(s) and checking if they are good to go. Engineers: They analyze, develop and evaluate large-scale, complex systems. Lab workers: performs tests and analyses in a laboratory. Logistics manager: supervises the movement, distribution and storage of supplies and materials in a company. Quality personnel: Provides other units, responsible for analyzing, defining and improving operating procedures and company processes, with the necessary backup to implement the Quality System. Dockers: Implement and improve monitoring and alerting. Drivers: The ones in charge of delivering the products to stores. Customer and service manager: is responsible for providing a productive and motivating working environment, and addressing any issues/disputes from customers or clients. Recruitment researcher: They check different profiles from different people, to see if they meet the required profile for the company. Training and development officer: They prepare the new employees to have an idea and be prepared of what they will face in their new job. 17 4. Analysis of the organization’s environment Internal Environment Internal behavior of an enterprise shows a overall sample of the enterprise work at the majority of its aspects showing from discipline of the people working together to the ways to carry out certain crucial things to take in count when we encompass the development of procedures within the company. Discipline, taking part of the strongest pillar of the general performance of an industry it could be studied since many perspectives, however, there are two main aspects that are totally which go hand in hand to make a deep analysis of the general behavior of any kind of organization or institution: The real culture ad values that are practice around your environment. Here in Olimpo Company we are pretty aware about how important is the discipline and the values managed by everyone at a same society to reach a harmonic coexistence among each person taking part of it. In order to have a great and outstanding performance of each area of our enterprise we encourage a disciplined and hardworking culture as those ones we used to practice in our daily life: We acknowledge the hardworking of our laborers and we are always motivating all people that are surrounding us to carry out a great performance helping each other, as well as we cannot tolerate bad behaviors and attempts of tricky movements regardless of the intended goal, always being honest and transparent in any action we do, teaching our employers and employee’s always doing what is better to proceed to everyone at a same level avoiding egocentric ideas, following an ethical decision making. In addition to the general behavior showed by an enterprise there’s another special ambit which is quite profound to keep in mind that is affecting a company development is the climate in which the organization is settled, for instance, having 18 bad conditions to work are rather related to the progress a brand might reach. We are willing to open our own factories in other cities and If possible we would go abroad in a future, but to accomplish our long term goals, first we need to think about our present and keep feet on ground, so being set in a pretty much troubling city such as Monterrey with their sudden climate changes depending on the season of the year might cause some occurrences due to the weather uncertainty and establishing your enterprise here running many a lot of risks being exposed to hard time with the climate. Competitive Environment As human beings, we are totally full of different kind of qualities that make us what we are nowadays, natural qualities that we were born with, not only the ability to do any sort of activity we like but also attempting to demonstrate to everyone we are the best performing it. Rivalry, an inevitable and pretty common relation that we can see in our daily life almost in every part, from two kids trying to overcome and outshine each other to show who’s better playing soccer to huge companies competing to acquire the bigger quantity of people to become the biggest and the more successful firm around the world. A competitive environment is fundamental and a crucial point because it permits people to think and stimulate their imagination to come up with better ideas and performances little by little, encouraging them to strive on their area. In Olimpo Company we are pretty aware about the challenge size this meant at the beginning when we came up with our original idea, being disposed to deal with it. Though the list of companies developing the same product as us is long, Prudence, Sico, M Force, Trojan and some other companies not included in this brief list, are those strongest ones that are the main rivals to compete since the long time they have submerged in this branch of the market. Including the new entrants which might appear along the way of the way to success that a could give us hard times now and then. 19 Plenty of brands have their own signature and stamp when talking about the particularity of their products and the way they implement them, giving us another strong point to take in count: The supplier. Quality is important at every time we are trying to offer and sell our product, but we as a company we take advantage the kind of suppliers we receive our raw materials to work on, since differentiation of our brand will give us an extra step above our rivals. Another big opportunity that we have the biggest percentage of clients getting our products is the sale of complements that would increase profits and give us the chance to extend our list of products to sale, in this case, we seize on the usage of lubricants to support the sale of the preservatives to offer a better experience to our customer. Being one the most important, rather, the most important points among all former aspects, talking about all those people that make the growth of a company possible: Buyers or Customers. Keeping customers on your side is almost taking for granted a sure progress of your brand, therefore, always keep the clients opinion is crucial to remain at a constant advance of your enterprise. Here in Olimpo, we care about our customer and we are always intended to fulfill their needs, giving them to best service and products. Macroenvironment In business world there a lot of things that might engaged in the development of your company as all those mentioned previously being a complete new world hard to handle, but besides those ambits affecting the general performance of your firm, affecting every firm equally, being impossible to hide from: Macroenvironment. The macroenviroment is a huge combination of different ambits which in a certain way are connected working as a big web that is totally a country’s affair you are setting you business on. Showing up next the main factors that must be considered as a general environment and its definition to grasp them at all: - The economy of the country, overall how the currency of the country is and how well balanced is in the international market, how susceptible the economy in general 20 terms is to go down suddenly and the like, as well as the level of technology has been reached by the country and how much developed is. -Staying ahead of competitors regarding technology to innovate through the market with top-notch equipment and techniques, always acquiring the best tools to get right on the work not only effective but also efficiently always according to the country’s limits regarding how developed the nation is with technology. - To be careful not breaking laws and following determined and established rules to keep on business such as taxes, economic policies, international trade rulings and the like. Laws and regulation are an important part that ought to be followed since is basically one of the pillars that leads an enterprises being in charge to give them the freedom to act. -Demographics being, basically, the measure or study to know from the average age of the people to their level of education to develop proficient and well-structured human resources strategies. -Social Issues is about knowing the situation among people to meet their "current needs" to be empathic with them and get their confidence with you, in addition to help to make profound decisions - Keep in mind the natural ecology and responsible use of natural resources not to trouble citizens and environment knowing that we depend on these ones. Besides, involving you into a legal problem in certain places as well. Ethics Code In Olympus we intend to establish the basic principles of good values with people, be humble with each and every one of the workers of the company, respect so that they respect us, these values are essential for us to have a better work environment and performance time to work 21 Our Code of Ethics is a guide for all employees of the company, so that in the event of any conflict the right decisions are taken in accordance with our values, it also guides us to respect our work environment and act in an ethical and comprehensive manner. Honesty: As the straight and honest conduct that leads to observe norms and commitments as well as to act with the truth, which denotes sincerity and correspondence in what is done, in what is thought and in what is said. Respect: This value is of vital importance within the organizational development considering its taxative and value-generating nature in the company. In addition, respect improves work communication and teamwork. Integrity: Being honest, honest, feels respect for others and for himself, direct, appropriate, responsible, who exercises emotional, punctual, loyal, neat, disciplined, congruent and firm control in his actions. Transparency: Increase trust among those who have a relationship with the company, be it employees, customers, shareholders or suppliers. Through transparency, the company lets society know how it acts, opening the way to possible criticism or value judgments. Regulation • Discrimination is prohibited: Work in a relaxed environment where there is no discrimination and respect for employees is encouraged and treated so that everyone can obtain the same results regardless of the particular factors that condition each individual. • Do not invade the personal area: Respect the work area of employees so that their performance is not limited. • Be honest: It is that honest person, whose behavior is both ethical and moral, who does what he says and does not try to take advantage of others. • Hygiene and safety: The Company will adopt the Health and Safety measures it deems appropriate to guarantee and safeguard the life and physical integrity of 22 workers and third parties by preventing and eliminating the causes of accidents, as well as the protection of facilities and properties of the institution. • Be self-sufficient: As a worker you must leave the past behind, and get the most out of the future. Development of the strategic plan Setting a business up might be seen to be the hardest part of business by plenty of people since collecting all the necessary materials might be tough at the beginning, but not only buying your dream is sufficient to go straight towards the success path but also remain at the same way not being neither distracted or misplaced by some occurrences that might come up from different places and reasons. A well-structured company is always defined by the capacity the response to any sort of problem and the way to handle with it, thus, a strategic monitoring and process must be followed in order to attain the accomplishments of these ones, calling this procedure: Strategic Planning of a company. Strategic planning is a process that gives us a better broad framework to go ahead in every decision we make to carry it out, having three essential points that must be consider to develop a proper strategy of business and to support a good growth of the enterprise and the market such as: The globalization, the sustainability present in every company decision and a well balance of actions in business environment, being essential points to keep in mind to attain an any goal we’d have. Showing up next we will attempting to encompass the most import aspects of the previous environments mentioned before to stay clear and explain in an easier way how in Olimpo we will achieve a great performance to develop these ambits to carry out a properly process of decision making regarding a strategic plan. Globalization When we mention globalization we mean the great endeavor of a lot of countries that have been trying to achieve an integrated economy in the last decade 23 throughout the world further the barriers and any other obstacle that could come up. Globalization have been affecting us since many different perspectives unconsciously, being almost impossible to hide from. For instance, in Olimpo we have been hit in a positive way by this world phenomenon by taking advantage of it acquiring the raw materials which are so much cheaper than other ones as well as seizing on the communication platforms we have nowadays to keep on the research of the people’s needs to keep ahead from our competitors. In brief, we would explain the strategy of this point seeing globalization as a good change and opportunity to keep an equal growth taking advantage of the services of other nations which we are requiring. Sustainability Now, talking about the quality signature of our product that we have above all the other ones is using materials totally environmental friendly not polluting at all, having materials that are capable to dissolve as time goes by. Here in Olimpo we are pretty concerned about the future of our planet so that’s why every decision we make have at its core the original idea we are trying to keep in all our products, which is not to harm the environmental as well as using recycled material as much as we can, making our clients know that they are contributing to the pollution problem by getting what we offer them. Business Environment Since the free settlement of enterprises in the most of the countries worldwide due to the purpose of attaining a better business environment to increase the quality in an eternal service fight to decide who’s better candidate to offer what they are supposed to sell to the people, many of marketing strategies have emerged in order to convince clients they are their best option to get the service from overcoming rivals easily. And that’s what we have focused on, the technology and quality offered by our firm attempting to outshine any other product. For instance, taking back the 24 previous point, we take advantage on the environmental friendly signature we offer as a company as strategy of marketing which besides helping the pollution issue in a small scale little by little until it becomes a bigger proposal we would innovating among our competitors by offering new ideas that supports to solving of problems like that one, which technically, has been the name of the game ever since we started this company. In brief, I addition to the normal marketing campaign the companies use to promote their services such social networks, advertisement and the like, we use the innovation of our ideas talking on behalf of us. Decision making strategy. As we all know, in life there are different situations where we got to decide and choose among a long list of options that perhaps will not be that easy to select since sometimes and decision making process goes beyond than just think, should I? Or should not I? Having several factors that might make harder to go on some side. The business world is not the exception, having a bunch of issues coming up almost every day which have to be treated with absolute care and concern, getting more than just one person that is in charge to carry out the choice. In order to avoid turmoil situations we were intended to define any sort of objective and goal of the company dividing it in three areas to structure the organization of it: 25 Strategic decision making Financial Goals Revenue Growth Productivity Growth -New Markets -Reducing expenses -New Products -Increasing efficiency -Increasing value to existing customers -New customers President (Chairman) CEO Chief Executive Operations) COO (Chief Operations Officer) CMO (Chief Marketing Officer) CFO (Chief Financial Officer) The strategic decision making committee of Olimpo is composed by the top level managers which are those ones who are in charge of the overall state of the company. The decision making which is carried out at this level is led at its majority for the chairman which is the president of the company who has the total power over anyone 26 else including the TLM committee (CEO, COO, CMO, CFO), being those last ones those who are in charge to brainstorm to give ideas to the president to approve it. They are responsible to deliver the main objectives and goals to lower levels to give the whole enterprise a steady way to follow. Putting the decision making at this level would be effective when trying to decide where we should extent our market towards for instance having the R & D department making some research to support the brainstorming to then discuss about it with the whole top department and try to convince the chairman to implement it. Tactical decision making Customers Goals Operational excellence -Competitive pricing -Product quality -Speedy delivery Customer Intimacy -Exceptional service -Effective solutions CCO (Chief Communications Officer) CDO (Chief Digital Officer) CHRO (Chief Human Resources Officer) CLO (Chief Law Officer) Product leadership -Product functionality -Product features -Product performance CIO (Chief Information Officer) CTO (Chief Technology Officer) 27 People located at this level are all those ones are in charge of communicating the principle goals and ideas to the lower level being the middle level of manager, are the bond that work as a bridge, also being in charge of the overall service of the company to make it most efficient possible according to the higher levels order, as well as solving internal problems within the company that are underneath their position. Every decision taken at this level must consulted first by the top middle level managers who are the previous ones showed before, to then having the higher positions to approve it. A situation that lately has been challenging the capacity managers of this level for example, it’s been the ups and downs in the efficiency aspect delaying the speed of the manufacturing of products because the constant failures of machinery needing to acquire new equipment to enhance the production department. To proceed as we said before, we would need to talk with the higher and lower levels to implement a solution whichever the affair is since it will be affecting both edges of the company organization, having all members of the committee talking about what the best choice would be deciding everything by voting without more power than others. 28 Operational decision making Internal Goals Innovation Increased customer value -New products/ services -Deepened relationship with existing customers -New market segments Operational Improvements -Lower cost -Higher quality -Greater speed Good corparate citizenship -Effective relationships with employees, suppliers, regulators Finance and Administrative Manager Marketing and Sales Manager Production Manager Logistics Manager Human Resources and Customer Service Manager 29 Generally, managers at this level are those ones who deal with the operations of the organization being named as the supervisor of their department and directly involved with non-management employees and struggles. For example, a problem that is pretty common at this level is the lack of empathy of employees to interact across boundaries causing problems of communication, therefore, a bad organization at a general development of the operational area getting bad outcomes in profit and general growth. This is where managers got to carry their main function as supervisors implementing plans at the decision making process to figure out these kind of situations such as encouraging the original values of the firm and decide to create a more comfortable ambiance among employees to make them feel with more trust to work on. It depends on what department of how much is affecting the whole operational line to set the who are going to be the principal managers with stronger power to decide unlike the other levels, supposing the empowered manager dealing with an issue on its side knows more how to deal with these situations above all the other ones. 30 Stablish a corporate image that identifies and positions the organization in the market. Slogan ``Olimpo: Feel like a god´´ Logo 10 Stablish a plan of objectives Short term: Do well in sales over a period of 3 months, so we can plan future strategies and products for our company and gain more sales. Mid-term: Open an online store and make special offers for customers who buy from there. Long-term: Make the company international, and thus gain more popularity around the world and have more profits. Identify at least one other business that is parallel 31 We decided to affiliate with SICO to create an innovative and easily accessible product, a new type of condom for women, that is more comfortable and with more sensitivity for greater enjoyment, the advantages that we would gain as a company is, in part, a huge boost both of popularity as of earnings, we would make ourselves known in a very big way. This alliance was carried out when seeing complaints that a percentage of women had about condoms, complained of side effects (ranging from irritation to allergic reactions) in the product. Attachments Business Plan I. Executive Summary Description of the Business concept and the business Starting a business up which is intended to help people to prevent undesirable events such as a unwanted pregnancy avoiding the fecundation and warning you If the preservative for some strange reason got ripped. Olimpo’s company is an enterprise focuses on products that are related with the intimate moments. Reaching the best quality, technology and comfort for our clients is the name of the game of our enterprise. Opportunity and Strategy Statically, people start having sexual intercourse ever since the 17 years old talking about general data around the world, but in addition to not always having these private moments are intended to proceed towards something further such as would be having children, the majority of people rather using protection not to run risks getting sexually transmitted diseases, hence, the health care embracing sexual intercourse is a huge chance to start a business up since contraceptive methods will be always demanded by people. Target Market and Projections 32 Although there is no a specific age or sort of clients which is more likely to have sexual intercourse, we might focus on the teenagers customers area since they might have more chances to look at our product due to the average rate of intimate contact, thus, having young costumers will increase our profits in the future getting their confidence for a long while keeping us high above our competitors. Competitive advantages Even though there’s a long list of companies offering almost the same service as us, innovation and unique products are things you are not going to find everywhere; using our brand will ensure you using a product totally environmental friendly being biodegradable at all, besides the special service of making you know If the preservative got ripped along the usage of it. Costs The production of a totally environmental friendly and pretty good quality product might a little bit expensive from the other ones that are not, but in order to continue with original idea the remained with the same idea, having the enough capital raised by each contribution made by our stockholders and some bank loans that we got, we’d proceed successfully for a long time and to wait and see profits increasing. Sustainability Developing a condom made out of organic latex we are solving the issue of continue polluting the environment being one of our strongest points as a special company as well as the other materials we use to manufacture the other products we offer. The team 33 CEO, COO, CMO, CHRO, CAO, CTO, Nurses, Workers, drivers, accountants, lab workers, janitors, warehouse managers and auxiliaries, CS, CFO, department head, vigilantes, Dockers.. The offering As the name of the game of the creation of our top notch product, we giving you the option the get a preservative and some other products to make the most pleasurable the experience along usage of our product as well as the high technology in every condom you can get at every drug store or retail market you like going to. II. The industry and the company and its product(s) or service(s) The industry Olimpo is a secondary industry, we are involved in the manufacturing of our product and we have new products in our market, for example new contraceptive and health care products, in terms of companies we are better than ever, 4 new companies have come into our companies, but 2 companies have left our company, one thing we are optimistic about are the sales. The company and the concept As we said before, our enterprise is a firm totally concentrated on the health care of the intimate moments, manufacturing condoms and some products that could make the moment more comfortable, competing against some other brands that are already set up here in our country. A company created by Mexicans concerned about the sexually transmitted diseases and overpopulation around their nation and the world motivated them to start handle with problem, attempting to set the main idea of its company that is taking these affairs as something serious since the 34 majority of people do not care about what might happen when not using the proper protection, even including a set of instructions and warnings when getting our product and working it on. The product(s) or service(s) Our product is a condom capable of detecting if it is broken, it looks like a regular condom, but it is made of biodegradable materials, and the people who have already tried it are fascinated with it, the product is of easy accessibility, you can find it in any pharmacy at a very good price, people should start buying our product since is biodegradable and is capable of detect if it is broken. Entry and growth strategy Obviously If wanting to go straight for a big part of the customers looking for their attention you should hit and make the market tremble by any way you could do it no matter how big or small is your hit. In this case, the environmental friendly products have been used as a key entry strategy that plenty of companies have used to get the majority quantity of people buying their products, therefore, trying to sell them the idea that using our products means helping the environment would increase the number of sales eventually. As a first step to make our idea publish we’d be giving condoms for free to certain group of people going to strategic points to deliver them ensuring them and showing them the benefits of the usage of a nonpolluting and very efficient product. III. Market research and analysis Costumers The long list of customers goes from men since women without any type of exception at all since the purchase of preservatives has no bias including the range 35 of age and preferences perhaps having more sales among the teenagers clients because the ease that our product is offering not struggling that much to know If something went wrong when got the sexual intercourse. Mark size and trends The contraceptive methods industry is hard talking about providing confidence to their clients since it is impossible to create one which is working at its 100% and plenty of times. Accidents occur along the way due to many different reasons, losing a great part of your customers’ confidence as fast as you could picture. Going straight towards this branch of the market might be a little risky, but having innovation and good quality on your side, things tend to be much easier and as time goes by will be totally willing to fulfill the market’s needs as much as they ask for it innovating in our products implementing more options to choose. Competition and competitive edges Our company has a lot of things the competition don´t, for example, our low production cost give us an economic advantage, because we use more cheap and easy to produce products, our product is innovative in the market we are in, we also count with a lot of employees with a high level of skills and abilities in many of the areas required, the quality we offer in our products is one of the best in the market, so people fell attracted to it. Estimated Market share and Sales In Mexico, 150 million condoms are sold annually in the country, we as a company expect to be able to obtain a 10% of the sales of this market ($85,000,000). 36 Ongoing Market Evaluation We expect to be a company from $ 85M to a $119M company in 4 years, growing a 10% each year. Lowering prices and giving our customers a 25% discount in one of the most demanding months (February) for each purchase they make so our revenue can increase even more and we will target those customers who have a relationship or they are sexually active so they can benefit from this offers of marketing that we are making. IV. The economics of the business Gross and Operating margins Gross Margin = Revenue – Cost of sales Gross Margin = 3,493,599 – 1,382,900 = 2,110,699 Gross Margin % = Gross Margin / Revenue Gross Margin % = 2,110,699 / 3,493,599 = 0.604 = 60.4% Net Income = Total of General Expenses – Total of Financial Expenses – Income Tax Expenses General Expenses Administrative Expenses Selling Expenses Total of General Expenses Income from operations Financial Income and Expenses Interest Expenses Interest Income Income before Taxes Income Tax Expenses Net Income 344,546.00 389,000.00 733,546.00 1,377,156.00 90,000.00 28,080.00 61,920.00 1,315,236.00 394,570.20 920,665.80 Profit potential and durability I x (P-E) = PP, where: 37 I = inventory or potential demand, in units P = sale price per unit E = expenses per unit PP = profit potential PP = profit potential Product Condoms Lubricants Revenue Product Condoms Lubricants Expenses Revenue Calculation Demand Sales Price Revenue 21835 $ 120.00 $2,620,199.25 9704 $ 90.00 $ 873,399.75 $3,493,599.00 Expense Calculation Demand 21835 9704 Product Condoms Lubricants Profit Potential Expenses $ $ 47.50 35.62 Total Expenses $ 1,037,175.00 $ 345,725.00 $ 1,382,900.00 Profit Potential Calculation Demand Profit Potential Total Profit Potential 21835 $ 72.50 $ 1,583,037.50 9704 $ 54.38 $ 527,703.52 $ 2,110,741.02 38 Fixed, variable, and semi variable costs Fixed Costs Semi Variable Costs Rent Wages Paid in Capital Accumulated Depreciation Expenses Payable Variable Costs Costs Offide Supplies Inventory $3,500 $60,000 260,000 Bank Loans 40,000 850,000 Interest Expenses $90,000 Interest Income 28080 133,596 Accounts Payable $874,910 Notes Payable $300,225 $92,950 Sundry Creditors Long Term Debt Cost of goods sold $88,200 $800,000 $1,382,900 Months to breakeven 39 We would need to sell 6,256 units in order to cover your fixed costs. If our sell your anticipated 21,835 units then your profit/loss would be $1,129,442. V. Months to reach positive cash flow Design and development plans Development status and tasks As the manufacturing of any product you got to have very specific materials to produce it, needing more than anything else the service of the organic latex to make our product environmental friendly, as well as the perfect production and care of the condom to be sure that really works changing the color to make you know If got ripped. Estimating a long time to be through with every phase the creation of our product we are needing two whole days (48 hours) to complete a production of 10,000 preservatives due to the hard task the analysis of the product at each step. In addition to the special material we use to produce the biodegradable condoms we need high prepared people to carry out the process this production needs. People with high knowledge in chemical engineer, industrial engineer, sexologists and a biologist to handle with the appropriate machines and tasks. Difficulties and risks: A lot of competition from all parts of the world, it is going to be difficult to enter the competitive area. The risk we take is not knowing if we will sell well by introducing an innovative and new product to the condom industry 40 Product improvement and new products The original idea we came up with besides the preservatives business was to start up a lubricants business too, to add this as a complement to our product and make easier the sale of these ones. Costs Costs at the beginning might be high when implementing the environmental latex on the market since is hard and expensive to come up with a new idea and sell it by the first time. The cost of production is high trying the keep the business of the organic latex on our side not acquiring it from another enterprise, that’s why we’re expecting to start with high revenue by offering a new and innovative product. VI. Manufacturing and operations plan Operating cycle First, we produce our organically latex, made out of fats, waxes, and various gummy resins, then we analyze that the organic latex is good Geographical location We are stablished in Mexico, Monterrey, Nuevo León. Ave. Madero, entre las calles Juan Méndez Nte y Reforma. Facilities and improvements Our facilities will be all over Spain and México, the main ones will be in pharmacies. We plan to improve our market to be sell as well in “Kioscocity” , “Tienda 24/7” and “Open25” which are the best convenience stores in Spain and “Oxxo” and “7 eleven” in Mexico. 41 Strategy and Plans We have the plan of making ourselves known through commercials and banners in (almost) all around the city. Regulatory and Legal issues Dissatisfied customers can file class action lawsuit against our company. Also the competitors might think that our product can be similar to them so they can demand us for copyright. And another issue can be if one of our recruitment teams hire a person with bad records or that they are against the law, causing this an issue within our company. VII. Management team Organization Teams and Groups can contribute a lot to organizational effectiveness. In fact the grouping of people into teams by an organization can greatly improve the effectiveness of an organization. Key management personnel -President (1) -CEO (Chief Executive Officer) (1) -COO (Chief Operating Officer) (1) -CMO (Chief Marketing Officer) (1) Department head (1) Sellers (13) -CS (Customer Success) -CFO (Chief financial Officer) 42 -CTO (Chief Treasury Officer) (1) Treasurers (4) -CDO (Chief Digital Officer) (1) -CIO (Chief Informational Officer) -CCO (Chief Communication officer) -Accountants (4) -Workers (27) -Janitors (4) -lab workers (10) -driver (3) -Vigilant (4) -Nurses (1) -Dockers (5) -Training officer (1) -Lawyers (2) -Human resources and custom service manager (1) -Employees of human resources area (4) -Finance and administrative manager (1) -Marketing and sales manager (1) -R&D (1) -Websites (2) -Publicity (1) -Production Manager (1) 43 -Engineers (7) -Logistics Manager (1) -Quality personnel (2) -Recruitment researcher (1) -Training officer (1) Management Compensation and ownership We are compensating our shareholders by giving them all the money they lend us and a 13% interest, the shareholders don´t own a big part of the company Other investors Employment and other agreements and stock option and bonus plans Board of directors Other shareholders, rights, and restrictions Supporting professional advisers and services 44 Vlll. Overall schedule VIII. Critical risks, problems, and assumptions One of the potential risks that our company face is the competitive area, there are a lot of companies that sell this type of product, so it is not easy for us to make ourselves in the market, and the personnel may not be the greatest one in the market. The problems may start if our product suffers a delay, the competition may take advantage of this, and the assumptions are that, people may not be interested in a new condom, because they are used to the ones in the market. IX. The financial Plan Actual income statements and balance sheets Income statements Gross profit: $ 2,110,699.00 Income before taxes: $ 1,315,233.00 Net income: $ 920,663.1 Balance sheet Total of assets and total of liabilities plus owners´ equity: $ 4,701,518 Breakeven chart and calculation We predict that we only have to sell 356,200 condoms to reach a breakeven point in our company X. Proposed company offering Desired financing 45 PROJECT TITLE START DATE Product ``condom´´ PROJECT 04/01 DURATION PROJECT MANAGER in days Adrian Abelardo Miranda WBS NO. 1 1.1 1.1.1 TASK NAME PROJECT CONCEPTION AND INITIATION – Project Charter –– Project Charter Revisions 88 06/27 Escobedo STATUS ASSIGNED TO In progress START DATE END DATE DURATION in days 04/01 04/19 19 Complete Adrian 04/01 04/09 9 Complete Jesus 04/04 04/12 9 1.2 – Research Complete Fernando 04/03 04/08 8 1.3 – Projections Complete Salvador 04/09 04/13 4 1.4 – Stakeholders Complete Miranda 04/07 04/14 7 1.5 – Guidelines complete Escobedo 04/10 04/17 8 1.6 – Project Initiation In progress Mendieta 04/13 04/19 7 2 PROJECT DEFINITION AND PLANNING In progress 1 2.1 – Scope & Goal Setting Complete Jorge 04/17 04/22 6 2.2 – Budget Complete Eli 04/19 04/25 7 2.3 – Communication Plan In progress Alan 04/23 04/28 6 2.4 – Risk Management Not started Emiliano 04/24 04/30 7 01/05 05/28 144 3 PROJECT LAUNCH & EXECUTION In progress 3.1 – Status & Tracking Complete Marcelo 05/01 05/09 9 3.2 – KPIs Complete Doustin 05/07 05/13 7 The cash flow we have at this moment is very high, but, the sales in this time of the year are low, the money we would need in a 3 year period for us to stop relying on loans so often is $1,500,000, but at this moment we only need $600,000 to maintain in a good position. 46 3.2.1 –– Monitoring complete Treviño 05/12 05/17 6 3.2.2 –– Forecasts On hold Miriam 05/15 05/23 9 In progress Iveth 05/20 05/25 6 In progress Esmeralda 05/22 05/28 7 05/29 06/27 30 3.3 3.3.1 4 – Project Updates –– Chart Updates PROJECT PERFORMANCE / MONITORING In progress 4.1 – Project Objectives Complete Valeria 05/29 06/04 7 4.2 – Quality Deliverables In progress Kassandra 06/06 06/15 10 4.3 – Effort & Cost Tracking On hold Sebastian 06/17 06/23 7 4.4 – Project Performance In progress Raphael 06/20 06/27 7 Offering Olimpo offers multiple health related products, but the one that stand out the most is our biodegradable condom, the others are lubricant and intimate cleaning products. Capitalization The capitalization comes from every member of the company, but with the Use of funds Half the money lend to us will go directly to improve and produce new products for our company, the other half will be distributed into marketing and equipment. Investor´s return Our investor buy $900 worth of stocks and sells the shares two years later for $1122.2. The net profit from the investment would be $200 and the ROI would be 22.22%. 47 XI. Appendix At our company, we think about our clients and their needs, we produce our products putting our clients comforts first, at our company we want that, when thinking about us, safety, comfort be the first impression and to acquire that we innovate the way condoms are viewed and done 48 Conclusion Jesus Sebastian Montemayor Oyarvide 1847790 It’s curious, don’t you think? How people rather not buying his dream because the fear of not achieving what we are supposed to reach If wanting to be a triumphant in life, therefore, never give it a shot to leave their dream withering away. The dream of starting a business up is a pretty common craving plenty of people always wanted to give it a shot, but never wanted even daring to go ahead into the business environment because a lot of factors that freaked them out, from the money you need to invest to start it to the uncertainty of the accomplishment of the main objective of setting a business up which is to get success. Is it true that anyone can their own business and little enterprise? Indeed, dreams and ideas are quite vast surrounding and us wherever you could turn your head, the problem here is, are you capable enough to keep it alive and build your own path through the business world?. Setting a business up might be a tough challenge that involves a bunch of aspects such as: keeping the correct way to manage it regarding money, the accounting itself of the business, deal with people working for you perhaps If you are permitted to get it financially talking, and the like. Not only having the hard challenge of dealing with an internal environment full of new world of tasks is something that we shall keep on mind but also all the external ambits that straight or indirectly affects the growth and the development of your company like the rivalry varying among branches and markets. If willing to go into the business world and being ready to offer your product you got to be disposed to suffer the things this involves such as dealing with extreme endeavors to lift your idea among the other ones, sometimes having to do stuff you never thought you were able to do. Along the development of this project I was taught not only how a business is managed but also all the great quantity of external and internal aspects that somehow would define the path of your enterprise and the great importance of communication among the members of a company, being of the essential parts of a business and some other stuff never walked around my head, being a complete mystery the future of your company with certainty . Want to know something funny? My dad is a person that had to start up a little franchise since he was fired from his job, I used to watch him pretty concerned about things which in those times I couldn’t understand, talking about large quantity of numbers, materials and kind of important people, always listening to him that what he did was a coin flipping in the air though he really strived a lot to get what he has got currently. As time went by I started to realize the great effort he was putting on it to keep our family in goods conditions. “My dad is going crazy” I used to think. Dad, I know you are not going to read this, but now I get more why you used to be absent so much time when I was a kid. 49 References How to Start a Business: Your Complete 10-Step Guide to Starting a Small Business. (2019, 18 octubre). Recuperado 26 octubre, 2019, de https://www.fundera.com/blog/how-to-start-a-business AGCAS editors. (s.f.). Recruitment consultant job profile | Prospects.ac.uk. Recuperado 26 octubre, 2019, de https://www.prospects.ac.uk/jobprofiles/recruitmentconsultant?fbclid=IwAR2yHOkPEVhqFafL6mvYE9Utr8BZGC310SMf_TcsF8aFEuLVxv 0KY8PqctA Gresham Harkless Jr, H. G. (2012c, 21 octubre). Business Plan 101: Overall Schedule. Recuperado 26 octubre, 2019, de https://teach.ceoblognation.com/2012/10/21/business-plan-101-overallschedule/?fbclid=IwAR1W3QolNBqHnwBhD6y5TlqZ10mbCODQMTnJIjD89gdg1d2ABqJ3bsjnZ4 50
