(Status: Revision) Written Analysis (5 pages, 0 slides)
- Executive Summary
- Business Model
Famous Shoes Company is a regional company that manufactures and sells shoes in Western Europe region, especially among countries that are in the European Union. The company specializes in official shoes that ladies high heal shoes. Shoes made from Famous Company are unique since they have soles are made from wine chock. Since the company sells and manufactures shoes, it is in the Footwear Industry. In addition, since shoes made from wine chock are rare, they are sold as luxurious products in high end boutiques.
- Description of Purpose
Famous Shoe Company has decided to make shoes from wine chock in order to satisfy the market gap left by other shoe makers who have neglected individuals who want eco-friendly shoes made from recyclable products. Generally, the soles of the shoes will be made from recycled wince chocks. As a result, there will be less use of rubber and plastics, which pollute the environment, in the manufacture of soles.
- Competitive Advantage
The main competive advantage for Famous Shoe Company is price. Since the company will be using recycled wine chocks to make its soles, it will be able to price its products as a lower price than competitors. In addition, currently there has been an increase in the interest among most people for environmental conservation. As a result, there is an increase in the market for the shoes market. On the contrary, competitors will be affected by the fluctuations in the oil prices, which is used in the manufacture of plastic and rubber shoes.
- Overview of the Product’s Market
There is a huge and growing market for shoes made using eco-friendly products since more and more people are interested in the wellbeing of their environment. As a result, Famous Shoe Company has a large market for its products, a market that is also increasing in size. Interestingly, most of the consumer of the company’s products are wealthy since they are mostly more concerned about the environment than the poor.
- Financial Highlights
Below is the projected five years income and expenses for the business.
|Sole Making Plant||$150,000|
|Marketing and Distribution||$12,000||$15,000||$17,000||$20,000||$20,000|
|Leather for Shoes||$22,000||$35,000||$40,000||$45,000||$54,000|
|License and Insurance||$1,500||$1,500||$1,500||$2,000||$2,500|
|Office Expenses and Running Costs||$3,000||$5,000||$5,000||$7,000||$10,000|
|Revenue from Shoes||$140,000||$150,000||$180,000||$185,000||$215,000|
- Financial Request and Use of Money
The finances will be used in the establishment of a wine chock-sole making plant for the company. In addition, these finances will be used in marketing and distribution, acquisition of leather for making shoes, for acquisition of licenses and business permits and for general office expenses. The business request for $100,000 from shareholders. It will acquire $75, 000 loan from the bank to finance its other expense. Since some expenses such as office are not fixed, the business will pay and incur them as it operates.
2.0. Business and Industry Analysis