Dr.

Guillermo Wilches

Group Assignment BUSM50065 (30% Grade)

Groups of 4 to 5 Students

This assignment requires you to undertake an exploratory approach to a real business scenario
and will be based on the practical application of relevant material covered during this course in
order to enhance your skills as a “business analysts”. In addition, this project will help you
improve your data analysis skills, particularly secondary data research, business data analysis,
and business processes analysis.
This assignment will be completed in groups of 4 to 5 students, Arial font, 12 pts.; maximum 12
to 15 pages. APA 6th Ed. Formatting ONLY. All citations are to be formatted according to
APA 6th Ed.
Your group will appoint a “Communications Officer” who will be responsible for the primary
contact with the instructor to avoid miscommunication.

Note: “DO NOT INCLUDE THE QUESTIONS IN THIS INSTRUCTIONS IN YOUR REPORT”

The Assignment Description

Your mission this term is to plan a start-up company, and conduct a feasibility study of the
launching, stablishing and success of such enterprise. This project will include business
secondary data analysis, environmental scanning, market assessment, business strategy and
positioning, company structure, revenue streams, and financial analysis of the business and its
operation.

It is critical that you conduct business secondary data research and analysis through out the
term in order to complete successfully this group project assignment. I recommend that you
start working on this project as soon as possible, early on in the term. Therefore, you will avoid
late submissions. For this, you have plenty of resources available at Sheridan College (e.g.,
online library, Summon Search Engine, online journals, Euromonitor, ABI/INFORM, Statistics
Canada, WTO, IMF, etc.). You can also book an appointment with one of the Pilon School of
Business’ Librarians who would guide you on how to use these resources, and how to formulate
the right questions for a fruitful investigation.

The main Sections

Executive Summary
The executive summary is really a sales pitch—it’s the investor or management’s first
impression of your ideas/analysis. Therefore, write in a clear and professional way. Once you
have written all the document, write the executive summary, copy and paste it so that it comes
at the beginning of your report, as the very first element. The executive summary is nothing
else than a summary for the executives.
 Dr. Guillermo Wilches

1. Description of the Start-up Business Company

2.

Provide a description of your business and give details on the following points.

1.1. Business Name

Hint: When you think of the name of your business, make sure that it captures the spirit of the
business you’re creating.

1.2 Description of Business

What will your business do? Hint: Imagine that you are explaining your business to a family
member or a friend. The business should be easy to explain. Keep your description here to about
30 words or less.

1.3. Form of Business Ownership

What form of business ownership (sole proprietorship, partnership, or corporation) will your
business take? Explain why did you choose this form?

1.4. Ideal Customer

Briefly describe your ideal customer. What are they like in terms of age, income level, and so on
…?
1.5. The Business Advantages
Explain in detail why will customers choose to buy from your business, instead of your
competition? Hint: In this section, describe what will be unique about your business. For
example, is the product special, will customer service be exceptional, or will you offer the
product at a lower price?

1.6. Ethical Issues

All businesses have to deal with ethical issues. One way to address these issues is to create a
code of ethics. List three core (unchanging) principles that your business will follow.

1.7. Social Responsibility

A business shows social responsibility by respecting all of its stakeholders. What steps will you
take to create a socially responsible business? Hint: To help you consider issues of social
responsibility, refer to the discussion of social responsibility in Chapter 3. What steps can you
take to be a good citizen in the community? Consider also how you may need to be socially
responsible toward your customers and, if applicable, investors, employees, and suppliers.

1.8. Global Issues

Do you think that you’ll sell your product in another country? If so, what countries would you
choose, and why? What challenges will you face? Hint: To help you consider issues of global
business, refer to Chapter 5. Consider how you will expand internationally (i.e. independent
agent, licensing, etc.). Do you expect global competition for your product? What advantages will
foreign competitors have?
 Dr. Guillermo Wilches

2. Managing the Business

In this section you would include the organizational structure; managerial and leadership styles;
how many employees would your start-up need; strategic management practices; evaluation of
employee performance; compensation and benefits; incentive and motivation systems, etc.

2.1. Mission Statement

Provide a brief mission statement for your business. Hint: Refer to the discussion of mission
statements in Chapter 6. Be sure to include the name of your business, how you will stand out
from your competition, and why a customer will buy from you.

2.2. Business Goals

Consider the goals for your business. What are three of your business goals for the first year?
What are two intermediate to long-term goals? Hint: Refer to the discussion of goal setting in
Chapter 6. Be as specific and realistic as possible with the goals you set. For example, if you plan
on selling a service, how many customers do you want by the end of the first year and how
much do you want each customer to spend? If you plan on selling a good, how many do you
hope to sell?

2.3. SWOT Analysis

Perform a basic SWOT analysis for your business, listing its main strengths, weaknesses,
opportunities, and threats. Hint: We explained above what factors you should consider in your
basic SWOT analysis. Look around at your world, talk to classmates, or talk to your instructor for
other ideas in performing your SWOT analysis. The SWOT MUST be done after you complete
section 3 of the report, Industry Analysis.

Strengths Weaknesses Opportunities Threats

2.4. Management
Who will manage the business? Hint: Refer to the discussion of managers in Chapter 6. Think
about how many levels of management as well as what kinds of managers your business needs.

2.5. Organization Chart

Show how the “team” fits together by creating a simple organizational chart for your business.
Make sure that your organizational chart indicates who will work for each manager as well as
each person’s job title.

2.6. Corporate Culture

What do you see as the “corporate culture” of your business? What types of employee
behaviours, such as organizational citizenship, will you expect?
 Dr. Guillermo Wilches

2.7. Leadership Philosophy

What is your philosophy on leadership? How will you manage your employees day-to-day?

2.8. Job Descriptions

Looking back at your organizational chart in Part 2(a), briefly create a job description for each
team member. Hint: As you learned in Chapter 8, a job description lists the duties and
responsibilities of a job; its working conditions; and the tools, materials, equipment and
information used to perform it. Imagine your business on a typical day. Who is working and
what are each person’s responsibilities? (Note that if your business is very large, you should ask
your instructor how many positions he or she would like you to create job descriptions for.)

2.9. Job Specifications

Next, create a job specification for each job, listing the skills and other credentials and
qualifications needed to perform the job effectively. Hint: As you write your job specifications,
consider what you would write if you were making an ad for the position. What would the new
employee need to bring to the job in order to qualify for the position?
Insert Job Title #1:
Insert Needed Skills/Credentials/Qualification for Job:

Insert Job Title #2:

Insert Needed Skills/Credentials/Qualification for Job:

Insert Job Title #3:

Insert Needed Skills/Credentials/Qualification for Job:

2.10. Training Employees

What sort of training, if any, will your employees need once they are hired? How will you
provide this training?

2.11. Compensation
A major factor in retaining skill workers is a company’s compensation system—the total
package of rewards that it offers employees in return for their labour. Part of this
compensation system includes wages/salaries. What wages or salaries will you offer for each
job? Why did you decide on that pay rate?

2.12. Incentives
As you learned in Chapter 8, incentive programs are special programs designed to motivate
high performance. What incentives will you use to motivate your workforce?

3. Industry analysis

It is critical to understand the business environment where your company will operate in order
to identify the position of your company or potential issues it will be facing. Your job is to
obtain reliable and up-to-date information about the business environment to set up the
 Dr. Guillermo Wilches

adequate strategies that will lead to a successful operation. Consider the following main
aspects:
Note: Each student who is a member of the group project team MUST provide 8 to 10 citations
(Note: only reliable sources are consider good citations, e.g., peer reviewed journals, Stats
Canada, Euromonitor, WTO, IMF, UN, etc)

3.1. Consumers variables and trends

3.2. Economic factors
3.3. Technological factors
3.4. Policy and regulatory forces
3.5. Main Competitors

You are required to use charts, graphs or statistical data to help support your findings, and
analysis (all these need to be done in Excel).

4. Managing Marketing

4.1. Target Market

Describe your target market in terms of age, education level, income, and other demographic
variables. Hint: Refer to Chapter 12 for more information on the aspects of target
marketing and market segmentation that you may want to consider. Be as detailed as possible
about who you think your customers will be.

4.2. Product Features and Benefits

Describe the features and benefits of your product or service. Hint: As you learned in
Chapter 12, a product is a bundle of attributes—features and benefits. What features does your
product have? What does it look like and what does it do? How will your product benefit the
buyer?

4.3. Product Differentiation

How will you make your product stand out in the crowd? Hint: There are many ways to stand
out in the crowd, such as a unique product, outstanding service, or a great location. What
makes your “great idea” special? Does it fill an unmet need in the marketplace? How will you
differentiate your product to make sure that it succeeds?

4.4. Pricing
What pricing strategy will you choose for your product, and what are the reasons for this
strategy? Hint: Refer to Chapter 13 for more information on pricing strategies and tactics. Since
your business is new, so is the product. Therefore, you probably want to choose between price
skimming and penetration pricing. Which will you choose, and why?

4.5. Place (Distribution) Issues

Where will customers find your product or service? That is, what issues of the distribution mix
should you consider? Hint: If your business will sell its product directly to consumers, what types
 Dr. Guillermo Wilches

of retail stores will sell your product? If your product will be sold to another business, which
channel of distribution will you use? Refer to Chapter 13 for more information on aspects of
distribution you may want to consider.

4.6. Advertising
How will you advertise to your target market? Why have you chosen these forms of
advertisement? Hint: Marketers use several different advertising media—specific
communication devices for carrying a seller’s message to potential customers—each having its
advantages and drawbacks. Refer to Chapter 13 for a discussion of the types of advertising
media you may wish to consider here.

4.7. Promotions
What other methods of promotion will you use, and why? Hint: There’s more to promotion than
simple advertising. Other methods include personal selling, sales promotions, and publicity and
public relations. Refer to the discussion of promotion in Chapter 13 for ideas on how to promote
your product that go beyond just advertising.

5. Financial Analysis

(See Appendices for an example)

5.1. Facility and Equipment Requirements

Detailed list of capital expenditure items specific to entering the market.
5.2. Sales Forecast
numbers of units to sell, price/unit, total sales (three to five year forecast, provide monthly
details for year one).
5.3. Cost of Goods Sold
Number of units cost/unit, total cost of goods sold.
5.4. Projected Income Statement
Sales less cost of goods sold and overhead expenses to obtain projected net profit.
5.6. Projected Cash Flow
Expected expenditures of cash and receipt of cash
5.7. Breakeven Analysis
Number of units and dollar sales to cover cost of goods and overheads.
5.8. Financing Requirements
Identify term financing and working capital requirements, equity contribution and collateral
available to secure needed financing.

Financial Data Resources

Export Development Canada
http://www.cbsc.org/servlet/ContentServer?pagename=CBSC_AB%2Fdisplay&lang=en&cid=10
81945316895&c=Mandate_Mandat
Canadian Commercial Corporation
 Dr. Guillermo Wilches

http://www.cbsc.org/servlet/ContentServer?pagename=CBSC_AB%2Fdisplay&lang=en&cid=10
81945317525&c=Mandate_Mandat
Innovation Financing Solution
http://www.cbsc.org/servlet/ContentServer?pagename=CBSC_AB%2Fdisplay&lang=en&cid=10
81944213805&c=Finance
Export Financial Assistance
http://www.cbsc.org/servlet/ContentServer?pagename=CBSC_AB%2Fdisplay&lang=en&cid=10
84286444485&c=Finance
Chartered Banks
 Dr. Guillermo Wilches

6. Appendices

Appendix A: 12-Month Income Statement (Profit & Loss Statement)

S J
Ju J A O N D F M A M YE
e a
n u u ct o e e ar p a AR
p n
e ly g . v. c. b. . r. y LY
t .

Revenue
(Sales)
Category
1
Category
2
Total
Revenue
(Sales)

Cost of
Goods
Sold
Category
1
Category
2
Total
Cost of
Goods
Sold

Gross
Profit

Expense
s
Rent
Expense
Salary/W
age
Expenses
Supplies
Expense
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Advertisi
ng
Expense
Utilities
Expense
Telepho
ne/Inter
net
Expense
Insuranc
e
Expense
Interest
from
Loans (if
applicabl
e)
Other
Expenses
(specify)
Total
Expense
s

Net
Profit
 Dr. Guillermo Wilches

Appendix B: Balance Sheet

Assets

Current Assets
Cash in Bank
Cash Value of Inventory
Prepaid Expenses (insurance)
Total Current Assets

Fixed Assets
Machinery & Equipment
Furniture & Fixtures
Real Estate / Buildings
Total Fixed Assets

Total Assets

Liabilities & Net Worth

Current Liabilities
Accounts Payable
Taxes Payable
Notes Payable (due within 12 months)
Total Current Liabilities

Long-Term Liabilities
Bank Loans Payable (greater than 12 months)
Less: Short-Term Portion
Total Long-Term Liabilities

Total Liabilities

Owners' Equity (Net Worth)

Total Liabilities & Net Worth

Dr. Guillermo Wilches – Pilon School of Business

 Dr. Guillermo Wilches

Dr. Guillermo Wilches – Pilon School of Business