Running head: INNOVATIVE COMPUTERS BUSINESS PLAN
Innovative Computers
Business Plan
GB601
MBA Capstone
Jaunary 17, 2012
Professor
John Martin
Team C
Vu Le
Cathy Hill
OlasunKanmi Mustapha
Aimee Montes
Anita Maney
1
INNOVATIVE COMPUTERS BUSINESS PLAN
2
Table of Contents.
2
Executive Summary
3
Overall Corporate Plan
a. Firm Name
b. Firm Members
c. Mission
d. Culture/Values
e. Problem Statement
f. Objectives
g. Financial resources
h. Competitive advantage
i. Controls
j. Organizational Structure
Strategic Analysis
a. Market and financial performance
b. Business Expansion
c. Competitor analysis
d. SWOT analysis
Year Two Strategy
a. Marketing Strategy
b. Manufacturing Strategy
c. Sales Channel Strategy
d. Human Resource Strategy
e. Financial Strategy
Exhibits
Q1-4 Pro forma Cash Flow
Q1-4 Balance Sheet
Q1-4 Income Statement
Q4 Market Share
Tactical Plan Chart
Organizational Chart
4
4
4
5
5
5
5
5
5
6
6
7
7
8
8
8
9
9
9
9
9
9
12
12
13
14
15
16
18
INNOVATIVE COMPUTERS BUSINESS PLAN
3
Executive Summary
We thank the Board of Directors for their time in reviewing Innovative Computers (IC) Business Plan. As you
know, IC is a start-up company with sights set on being the global leader in computer sales and manufacturing.
The following business plan details IC’s approach to starting and regularly managing the business. This plan
will provide insight into the qualifications of the executives, their beliefs, business approach and acumen.
To date, IC has been highly successful with 51% market share and more than $7.5M in net income through year
two. IC attributes this success to its laser-like focus on developing the right products for the right market
segments, attaching best-in-class marketing strategy. Manufacturing is running at or near full capacity, with
careful attention to expansion plans to continue to meet unmet demands. In addition, finance keeps close watch
on R&D investments to ensure monies are well-vested. Lastly, human resources continuously scour the market
for the best sales people and top-not factory workers combining the best people with the best-in-class
compensation packages. IC is strategically focused, well-poised and ready to launch into its next year of
business.
We look forward to receiving your input. Thank you.
INNOVATIVE COMPUTERS BUSINESS PLAN
4
Overall Corporate Plan
Innovative Computers, consists of five corporate executives with varied backgrounds. The members
are: Vu Lee, Cathy Hill, OlasunKanmi Mustapha, Aimee Montes, and Anita Maney. Innovative Computers is
bound for success because of the various strengths and qualifications of its members.
Innovative Computer Executive Profiles
Vu Le
Vu has a background in accounting and finance. He graduated from the University of California, Riverside
with a B.S. in physics. He brings excellent data analyzing capabilities and to guide the entire team and ensure
alignment in goals. Vu also has a 10-year career in the computer industry.
Cathy Hill
Ms. Hill has a 20+ year career in sales, marketing and merchandising in the homebuilding and business-tobusiness industries. She holds a bachelor’s degree in communication and urban and regional planning from
Florida State University. Her strengths are excellent communication skills and writing, executive level
management, extensive knowledge of merchandising and strategic and operational marketing, and strategic
planning.
OlasunKanmi Mustapha
Ola brings an enthusiastic attitude and solid communication skills. Ola has extensive business experience in all
areas marketing, sales, finance, accounting and human resources. Ola’s skills are highly varied and bring a
unique perspective to the business.
Aimee Montes
Aimee has an extensive background and education in sales, marketing and accounting fields. Aimee is a great
asset with her abilities to encourage people, organizational skills, forward planning capabilities and previous
administrative experience. Aimee’s strengths are patience, positivity, and flexibility, which will be beneficial to
Innovative Computers for reacting to competition and situational forces.
Anita Maney
She has an extensive background in Human Resources and her 20+-year career is varied as a community service
projects manager and manager of a fast-food franchise. Along with a bachelor’s degree in Social Work, she
brings to the company her ability to interact with persons of various backgrounds and educational levels. Her
background brings forth creativity and perspective to view challenges from all sides. As a fast-food manager,
Anita has truly honed her people skills bringing encouragement, support, flexibility and a focus on team work.
She also sees the success of the team as her own success.
Mission, Culture and Values
The Mission Statement of IC is to be the computer of choice for both business and casual customers, offering
innovative and cost-effective products and best-in-class service.
INNOVATIVE COMPUTERS BUSINESS PLAN
5
IC’s culture is a dynamic environment, where servant leadership reigns, associates strive to improve everyday
and reach for excellence in every aspect with a focus first on the customer.
Success for IC means a focus on values:
 Be Customer-Focused First
 Be Environmentally and Socially Conscious
 Be Fiscally Responsible
These values are integral to IC and each executive has signed a written pledge to uphold these core values as the
premise for delighting customers, handling decision making, and management of goods, resources, services, and
most of all, people.
Corporate Problem and Objectives
Statement: How will IC create a successful, profitable, up-and-coming brand as a start-up business in a highly
competitive, well-established industry?
IC will focus on the following objectives.
 To become the number 1 or 2 premier leader in the computer manufacturer industry in the markets
served.
 To grab market share through the use of savvy marketing, tight production controls, and well-paid and
trained sales professionals.
 To be fiscally responsible on behalf of its customers and employees
 To be environmentally conscious and practice sustainable methods.
Financial Resources
The financing of Innovative Computer came from seed capital (Investment Money) and $4million was also
raised from pledges of personal assets, family members and friends from Qtr 1 through Qtr 3. In Qtr 4, the
venture capital community was approached and granted $4 million for future company development. IC only
works with the $4 million received from venture capitalist and never borrowed money from the bank or any
other financial institutions. By the end of Qtr 5, IC’s revenue has reached $12,190,120, gross profit of
$7,184,391, and with a net income of $795,568. Finally, by the end of Qtr 6, IC has financial ratios of:
$18,362,463 in revenue, $9,248,356 in gross profit, and $1,584,766 in net income.
IC’s executives launched the company with $2M in seed capital and added from its own personal resources
$1M in Q2 and Q3. Next steps are to discuss obtaining $4M in monies from venture capitalists in Q4 to provide
funding for R&D and expansion.
Competitive Advantage
IC initially focused on creating the right products to obtain strong market share in the Workhorse segment, with
secondary emphasis on the Traveler and Mercedes segments. While IC’s initial foray into the Workhorse
segment was not a precise hit, its mere sole presence in the category helped launch its success. Having strong
brand management expertise within its team, IC developed products in all three segments, which became the
INNOVATIVE COMPUTERS BUSINESS PLAN
6
underlying premise of the company’s success. Each quarter thereafter, IC tweaked and honed its products
focusing with laser-like precision on the features for each segment until in year two it reached an overall market
share of 51 percent.
Yet products alone are not the sole success of IC. Savvy marketing is key and has propelled IC as a market
leader with the creation of well-designed ads, precise positioning, and high frequency media placements. These
tactics have helped IC literally lap some of its competitors as it leads the pack.
Business Controls
IC realizes that business does not just happen. People make business happen and strategy is necessary to
succeed. Toward that end, IC has established a number of benchmarks to not only reach, but to continuously
improve upon, while striving for excellence.
•
•
•
•
•
Marketing. Attain marketing effectiveness ratings of 70 or greater. Develop clean ads, with high
frequency of media placement to achieve a well-known brand and image.
Sales and Customer Service. Initially, IC targeted sales growth by a minimum of 30 percent during each
of its first 4 quarters and 20 percent each quarter in year two. After its explosive launch, IC will
stabilize its growth to a reasonable level of 10-15 percent annually. IC will focus on employing a large
sales team with proportionate customer service support to ensure high levels of customer satisfaction
and high volume sales.
Manufacturing. Attain plant productivity and efficiencies continuously above 70 percent. To do this, IC
will focus on well-managed facilities, well-trained and paid workers and strive toward maximum daily
outputs.
Human Resources. Develop compensation packages that consistently drive 70 percent or greater
productivity. Focus on paying people slightly better than market wages to retain associates and keep
morale high.
Finance. Strive to reach 15-20 percent net profits annually. Closely managed resources with a trend
toward taking risks. Invest periodically in R&D as profits permit or funding becomes available.
Organizational Structure
The organizational structure of IC is decentralized with management working in concert as a team. Each
department head has sole responsibility for the decisions made and the team meets regularly to review and
advise on crucial strategic moves. Each executive was placed in their respective role based on their experience
and capabilities. In addition, each department head has a backup associate who is cross-trained and kept
informed of the key metrics and strategy of the unit.
An organizational “structure depends entirely on the organization's objectives and the strategy chosen to achieve
them” (Organizational 2011). In organizations such as IC, there is a team leader, but the power to make the
decisions is distributed amongst all of the departmental VPs. An organizational chart demonstrates how the lines
of communication and authority are delegated
.
Vu Lee is the business leader with responsibilities in strategy and marketing research. Cathy Hill is the VP of
Marketing and Manufacturing, Aimee Montes is the VP of Sales with responsibilities in Finance, Anita Maney
INNOVATIVE COMPUTERS BUSINESS PLAN
7
is the VP of Human Resources with responsibilities in Marketing and OlasunKanmi Mustapha is the VP of
Accounting and Finance with responsibilities in Sales.
Market and Financial Performance
In the 2nd year, starting inventory and production for Qtr 5 and Qtr 6 were 16,685,082 and 19,379,743
respectively while the ending inventory for each Qtr 5 and Qtr 6 were 1,772,069 and 2,589,650 respectively.
These figures shows drastic improvement in cost of goods sold for the 2nd year.
The gross profit for the 2nd year was over $40 million with a net income of about $11 million closing with
earning per share of $95 (An increase from $40 in Qtr 5 to $95 in Qtr 6).
IC’s first year financial performance is well-above its targets. Through prudent investments, savvy marketing,
tight production controls and efficiencies, IC reached Q4 EBITA of $5,964,572 and net income of $4,175,200.
IC proved early on it could manage its resources and funding well, demonstrating positive cash flow of
$221,500 at the start of Q2.
IC’s Equity Investment and Funding is $4,000,000 in Common Stocks during 4th Quarter with Cash Ending
Balance that more than tripled in Q4 from 2,497,012 to $10,261,434. In addition, earnings per share turned
positive in Q3, ending at $52/share in Q4.
These results placed IC in ideal position to continue its expansion plans, investments in R&D, brand design and
marketing. The strong financial position in its first year also allowed the company to increase its compensation
packages to ensure strong sales, retention and customer satisfaction.
In the second year of business, Human Resources increased the compensation and benefits greatly, which cost
the company more money initially, but resulted in a much higher productivity rate. In its second year of
business, blah blah blah…..—detail what IC did here.
Financial results, earnings per share, cash flow, revenue, net income, EBITA, etc.
Update gross margin info
Lastly, IC also brings in solid financial performance with gross margins in Q4 for products sold:
• Synergy III 46%
• Synergy 44%
• Genius Iii 63%
• EZGO II 58%
Cathy will update market data section
Market Demand: In the Workhorse segment, IC serves almost four times the demand compared to its
competitors. For IC, demand is relatively equal in the Mercedes segment and almost double in the Traveler
brand compared to competitors.
Market Share: IC holds a big lead in market share in the Workhorse brand with 61.1%. Market share is
roughly even for the Mercedes brand mainly because all competitors were targeting that segment. The market
share for IC in Traveler is 43.1%, with Netlink Solutions closing in next at 22.9%.
INNOVATIVE COMPUTERS BUSINESS PLAN
8
Brand Judgment: IC holds the #1 position in brand judgment in each of its market segments, surpassing its
competition by approximately 10% in each category. In addition, IC has reached or surpassed its controls for
brand judgment in Q4. The products IC manufacturers with the Q4 brand ratings in parenthesis for three
segments of the marketplace are:
• Traveler Segment, EZGO and EZGO II (70)
• Workhorse Segment, Synergy, Synergy II (79) and Synergy III (70)
• Mercedes Segment, Genius and Genius III (82)
IC also leads the market in market share outpacing the competitors with a Q4 overall share of 45%. The
segmented 4Q market share for IC is as follows:
• Workhorse—61%
• Traveler—43%
• Mercedes—28%
Business Expansion—Aimee review for accuracy
Expansion into the four key markets was critical to the company’s success. IC’s analyzed the four potential
markets, Tokyo, Paris, Toronto and New York to decide where to launch first and then ranked the remaining
markets according to attractiveness and potential for growth. IC relied upon Price PricewaterhouseCoopers
(PWC) annual “Cities of Opportunity” report, which rates 26 cities in 10 major categories using 66 variables in
areas of economy, quality of life, political environment, ease of starting and conducting business, and much
more (PWC). The report ranks Toronto and New York amongst the top five, whilst Paris and Tokyo fall in at
#8 and #18 respectively. Toronto continues to be the city that impresses ranking first in workforce management
risk, with New York following, Tokyo at seventh and Paris twelfth (PWC 2011).
As a result of the research, IC first launched in Paris, then expanded into Toronto, New York and lastly Tokyo.
This order of growth expansion was in alignment with IC’s core values, a 12-month potential demand analysis
and an in-depth market analysis identifying the key social and political climates of each country.
Based on results in years one and two, IC has a thorough understanding of each market segment and geographic
market area. Furthermore, careful review of IC’s mission, vision, values, objectives, resources, costs and
potential competitive advantages; proved expanding beyond Paris, to Toronto, New York and Tokyo proved to
bring strong company growth and opportunities. IC’s Core values of being customer-focused, financially
accountable and environmentally responsible are shared and implemented within each expansion area.
Competitor Analysis—this area needs the most work; needs more quantitiative details and perspectives
about the details. Vu to add information,
IC’s competitors are: NetLink Solutions, TTP, Incorporated and SmarTech. The balanced scorecard shows that
IC has far outperformed its competitors in nearly every field. IC does realize its competitors are gaining
ground, and has reasonably assumed that they have also invested capital in R&D in the 4th Quarter. As such, IC
invested in R&D in an accelerated fashion in a continued attempt to stay ahead of its competitors. The
company currently holds a huge advantage over its competitors, and as such IC will continue its aggressive
nature in future investments.
SWOT Analysis—all please read the strengths and weaknesses, add any additional that you saw in year 2
INNOVATIVE COMPUTERS BUSINESS PLAN
9
Success can be fleeting and IC is fully aware of the competitive nature of the computer industry. As such, IC
has fully prepared a SWOT Analysis to ensure it understands its current position. In addition, IC executives
have made a commitment to reviewing the SWOT Analysis each quarter to address market changes and
fluctuations.
IC Came right out of the box to take the lead and has many strengths, which are:
1) Strong Brand Design, Ad Design and Placement
2) Large sales force
3) Well-paid factory and sales people
4) Strong production and demand forecasting
5) Well-managed finances
Naturally, weaknesses exist within the company. Some of these occurred early on and have since been
corrected:
1) Initial insufficient ad placements
2) Initial lack of sales people
3) Initial lower than projected productivity
All to redo opportunities and threats—based on external factors. All to add one bullet to each list.
Yet, opportunities for the future abound at IC, which are:
1) With excellent compensation and benefit packages, will be able to recruit top talent
With IC’s success, competition is focused on copying best practices. Threats abound:
1) There comes a point when money ceases to motivate. HR will need to find programs that will meet the
needs of employees.
IC believes it has the strategy in place to monitor its strengths and weaknesses and focus on its opportunities. In
addition, by reviewing and updating the analysis quarterly, IC can assess and address possible competitor
threats.
Looking Ahead, Strategic Moves for Beyond Year Two
One aspect IC realizes is that the market continually changes. To stay ahead of the pack, IC has developed the
following objectives:
•
•
•
•
Marketing. Keep marketing expenditures below 5% of sales revenue. Continue to focus on clean ads
and high frequency.
Manufacturing. Focus on plant expansion to maximize plant capacity and continuously stay above
70%+ productivity.
Sales channel. Hire and continuously train sales team on new features to ensure strong sales and
customer satisfaction.
Human resources. Gather market data quarterly to monitor compensation packages (including employee
assistance programs) accordingly as business grows to ensure hire and retain best players.
INNOVATIVE COMPUTERS BUSINESS PLAN
•
10
Finance. Continuously invest in R&D to stay ahead of competition, always keeping at least 51%
majority share. Look to creative methods of financing such as governmental grants.
Conclusion—Cathy will add conclusion before submittal
INNOVATIVE COMPUTERS BUSINESS PLAN
11
References
Author Unknown (2011), “Price Waterhouse Cities of Opportunities Report” PWC.com,
retrieved on December 4, 2011 from: http://www.pwc.com/us/en/cities-of-opportunity
Organizational Structure, (2011). Retrieved January 6, 2012 from: BusinessDictionary.com at
http://www.businessdictionary.com/definition/organizational-structure.html
INNOVATIVE COMPUTERS BUSINESS PLAN
Exhibits to Follow
Q1-6 Pro Forma Cash Flow
Q1-6 Pro Forma Balance Sheet
Q1-6 Pro Forma Income Statement
Q6
Market Share
Tactical Plan Chart
Organizational Chart
12
INNOVATIVE COMPUTERS BUSINESS PLAN
13
Cash Flow
' Beginning Cash Balance
' Revenues
'- Rebates
'- Production
'- Research and Development
'- Advertising
'- Sales Force Expense
'- Sales Office and Web Center
Expenses
'- Marketing Research
'- Shipping
'- Inventory Holding Costs
'- Web Marketing Expenses
'- Income Taxes
'+ Interest Income
'- Interest Charges
'+ Licensing Income
'- Licensing Fees
'+ Other Income
'- Other Expenses
'= Net Operating Cash Flow
Quarter 1
Quarter 2
Quarter 3
Quarter 4
0
221,500
359,236
2,497,012
'Receipts and Disbursements from Operating Activities
0 1,726,725 8,645,525 22,651,522
0
26,750
103,000
542,325
0
822,605 3,759,786
8,433,491
120,000
60,000
120,000
4,301,725
0
235,990
378,661
944,704
0
218,777
354,251
843,008
32,844,574
638,975
16,418,519
7,516,978
1,783,751
1,607,943
40,328,880
687,225
17,607,674
5,856,979
2,205,765
1,978,350
490,000
15,000
189,019
26,656
211,800
1,789,372
0
0
0
0
0
0
4,864,422
870,000
15,000
248,988
177,207
314,410
1,378,743
0
0
0
0
0
0
1,874,060
650,000
15,000
306,998
258,965
420,450
3,273,967
0
0
0
0
0
0
7,067,507
' Fixed Plant Capacity
'= Total Investing Activities
'Investing Activities
1,100,000
600,000 1,100,000
1,100,000
600,000 1,100,000
1,100,000
1,100,000
2,000,000
2,000,000
0
0
' Increase in Common Stock
'+ Borrow Conventional Loan
'- Repay Conventional Loan
'+ Borrow Emergency Loan
'- Repay Emergency Loan
'- Deposit 3 Month Certificate
'+ Withdraw 3 Month Certificate
'= Total Financing Activities
'Financing Activities
2,000,000 1,000,000 1,000,000
0
0
0
0
0
0
0
0
0
0
0
0
100,000
0
0
0
0
100,000
1,900,000 1,000,000 1,100,000
4,000,000
0
0
0
0
0
0
4,000,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
10,261,434
10,135,495
17,203,003
221,500
560,000
15,000
24,367
0
27,000
0
1,500
0
0
0
0
0
-262,264
Quarter 6
10,135,495
610,000
15,000
82,444
83,912
135,210
865,484
0
0
0
0
0
0
2,137,777
' Cash Balance, End of Period
460,000
0
0
0
0
0
1,500
0
0
0
0
0
-578,500
Quarter 5
10,261,434
359,236
2,497,012
INNOVATIVE COMPUTERS BUSINESS PLAN
14
Balance Sheet
Quarter 1
' Cash
'+ 3 Month Certificate of
Deposit
'+ Finished Goods Inventory
221,500
100,000
0
Quarter 2
Quarter 3
Current Assets
359,236 2,497,012
'+ Net Fixed Assets
1,100,000
100,000
0
0
839,118
Long Term Assets
1,654,167 2,683,333
'= Total
1,421,500
2,113,403
6,019,463
'+ Common Stock
'+ Retained Earnings
2,000,000
-578,500
Debt
0
0
0
0
Equity
3,000,000 4,000,000
-886,598 2,019,463
'= Total
1,421,500
2,113,403
' Conventional Bank Loan
'+ Emergency Loan
0
0
6,019,463
Quarter 4
Quarter 5
Quarter 6
10,261,434
10,135,495
17,203,003
0
266,563
0
1,772,068
0
2,589,649
3,666,667
5,504,167
5,258,333
14,194,664
17,411,730
25,050,985
0
0
0
0
0
0
8,000,000
6,194,664
8,000,000
9,411,730
8,000,000
17,050,985
14,194,664
17,411,730
25,050,985
INNOVATIVE COMPUTERS BUSINESS PLAN
15
Income Statement
Quarter 1
' Revenues
'- Rebates
'- Cost of Goods Sold
'= Gross Profit
' Research and Development
'+ Advertising
'+ Sales Force Expense
'+ Sales Office and Web Center
Expenses
'+ Marketing Research
'+ Shipping
'+ Inventory Holding Costs
'+ Depreciation
'+ Web Marketing Expenses
'= Total Expenses
' Operating Profit
'+ Licensing Income
'- Licensing Fees
'+ Other Income
'- Other Expenses
'= Earnings Before Interest and
Taxes
'+ Interest Income
'- Interest Charges
'= Income Before Taxes
'- Loss Carry Forward
'= Taxable Income
'- Income Taxes
'= Net Income
'Earnings per Share
0
0
0
0
Quarter 2
'Gross Profit
1,726,725
26,750
822,605
877,370
Quarter 3
Quarter 4
Quarter 5
Quarter 6
8,645,525
103,000
2,920,668
5,621,857
22,651,522
542,325
9,006,046
13,103,151
32,844,574
638,975
14,913,013
17,292,586
40,328,880
687,225
16,790,093
22,851,562
120,000
0
0
'Expenses
60,000
235,990
218,777
120,000
378,661
354,251
4,301,725
944,704
843,008
7,516,978
1,783,751
1,607,943
5,856,979
2,205,765
1,978,350
460,000
0
0
0
0
0
580,000
560,000
15,000
24,367
0
45,833
27,000
1,186,967
610,000
15,000
82,444
83,912
70,833
135,210
1,850,311
490,000
15,000
189,019
26,656
116,667
211,800
7,138,579
870,000
15,000
248,988
177,207
162,500
314,410
12,696,777
650,000
15,000
306,998
258,965
245,833
420,450
11,938,340
-580,000
-309,597
3,771,546
5,964,572
4,595,809
10,913,222
'Miscellaneous Income and Expenses
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-580,000
-309,597
3,771,546
5,964,572
4,595,809
10,913,222
1,500
0
-578,500
1,500
0
-308,097
0
0
3,771,546
0
0
5,964,572
0
0
4,595,809
0
0
10,913,222
0
0
0
0
886,598
2,884,948
0
5,964,572
0
4,595,809
0
10,913,222
0
-578,500
0
-308,098
865,484
2,906,061
1,789,372
4,175,200
1,378,743
3,217,066
3,273,967
7,639,255
-29
-10
73
52
40
95
INNOVATIVE COMPUTERS BUSINESS PLAN
Market Share Through Year 2
16
INNOVATIVE COMPUTERS BUSINESS PLAN
17
Tactical Plan
Tactical Plan
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Segments Targeted
2
3
3
3
Sales Offices Opened
0
1
2
3
Sales Office Expense
$260,000.00
$400,000.00
$450,000.00
$330,000.00
Web Centers Opened
0
1
1
1
Web Center Expense
$200,000.00
$160,000.00
$160,000.00
$160,000.00
2
3
2
3
Number of New Brands
Names of New Brands
Synergy &
EZGO
Synergy &
EZGO II, Genius
Synergy II,
Genius II
Genius III,
Synergy III,
EZGO II
Brands for Sale & Price
2
3
3
4
Brand Feature R&D Projects
Brand Feature R&D Expense
2
0
0
0
$4,121,725
Advertising Budget
$0
$145,990
$288,661
$824,704
Web Marketing Budget
$0
$27,000
$135,210
$211,800
Factory Worker Compensation
$0
$22,679
$26,043
$26,433
Average Sales Person Compensation
$0
$42,907
$45,103
$45,763
Number of Office Sales People
0
7
14
36
Unit Demand per Office Sales Person
0
60
125
148.08
Number of Web Sales People
0
4
7
9
Unit Demand per Web Sales Person
0
55
126.43
297
Projected Demand
0
640
2583
5490
Average Selling Price
$0
$3,495
$3,495
$3,307
Sales Force Salaries
$0
$35,000
$33,000
$33,000
Cost to Hire New Sales People
$0
$56,236
$56,236
$209,864
Total Sales Force Expense
$0
$117,994
$236,791
$514,834
$0.00
$2,027,875.00
$8,764,050.00
$16,615,000
50
25
50
50
New Investment in Fixed Capacity
0
0
0
0
Available Fixed Capacity
0
50
75
125
Starting Inventory
0
0
0
599
Planned Production Volume
0
780
4225
8125
Available Inventory
0
0
748
184
Projected Ending Inventory
0
0
0
0
% Lost Capacity Due to Employee
Morale
0
31
24
20
Projected Revenue
Addition to Fixed Capacity
INNOVATIVE COMPUTERS BUSINESS PLAN
Operating Capacity to Satisfy Planned
Production
18
0
69
76
80
$0.00
$1,576.67
$1,190.33
$1,255.75
$0
$822,605
$2,920,668
$9,006,046
Total R&D Cost
0
0
0
$4,121,725
Conventional Bank Loans
0
0
0
0
Emergency Loan
0
0
0
0
Total Debt Level
0
0
0
0
Equity Investment
0
0
0
0
$0
$2,113,403
$6,019,463
$14,194,664
Actual Unit Sales for Quarter
0
535
2455
6926
Projected Demand
0
625
2590
5000
Actual Unit Demand for Quarter
0
1106
2507
8004
Projected Revenue
$0
$2,027,875
$8,764,050
$16,615,000
Actual Revenue
$0
$1,726,725
$8,645,525
$22,651,522
Average Unit Production Cost
Total Production Cost
Total Assets
INNOVATIVE COMPUTERS BUSINESS PLAN
19
Vu Lee
Team Leader and
Marketing
Research
Cathy Hill
VP of Marketing
and
Manufacturing
Aimee Montes
VP of Sales
Anita Maney
VP of Human
Resources
OlasunKanmi
Mustapha
VP of
Accounting and
Finance