Success Strategies And Implementation Plan For SWOT Analysis

SWOT Analysis

What are the success strategies and Implementation plan for SWOT Analysis?

For every flower shop, the maintenance of the flowers, to keep the flowers looking beautiful and to keep them fresh for the customers is the most important factor. Therefore, we will also put main focus on these factors, such that many customers can be attracted. SWOT Analysis has been performed below in order to analyze the market position of the Exquisite Skills Floral and also to identify its strengths, weaknesses, opportunities and threats.

Strengths – The internal capacity of Exquisite Skills Floral will provide it strength in order to exist successfully in the competitive market. The target customers of Exquisite Skills Floral are the businessmen and businesswomen and it has been found that the total numbers of the target customers of this business are huge in numbers, it has been noted that about 77 % people are working. Thus, the increased numbers of target customers will act as strength for our business. We will employ best-trained florists in our business and will also provide exotic flowers to our customers. These will also act as the strengths for our business. We will serve various types of products to our target customers i.e. businessmen and businesswomen like custom floral designs and various selections, unique containers and vases, green and flowering house plants and gourmet chocolates. Exquisite Skills Floral will provide and serve all these unique products and services to our customers that are rarely served and provided by other companies in the competitive market. Thus, this will also be considered as the strength of our business. In addition to this, the location of the business in centre of the Dallas-Fort Worth metropolitan area and its increasing population of 6,812,373 in 2013 will also add strength to our business.

Weaknesses – Our business does not have much weakness except its size. As our business is in the initial stage, the size of the business is also small and the competition in the market is much high. Therefore, it can be said that to enter into a new market is quite tough for us as there are many other competitors in the similar market.

Opportunities – The businessmen and businesswomen are the primary targets of our business and our location is in centre of the Dallas-Fort Worth metropolitan area. This indicates a densely populated area as it has been found that the numbers of population in this area for the year 2013 was 6,812,373 and it has been noted to be increasing with the passage of time. Thus in other words, it can be said that the numbers of our target customers are also increasing. This is an opportunity for us as the businessmen and businesswomen are our target customers. We are going to sell custom floral designs and various selections, unique containers and vases, green and flowering house plants and gourmet chocolates to our customers. All these products are not sold or served by other competitors of the business. Thus, this will also act as an opportunity for our business Exquisite Skills Floral.

Success Strategy and Implementation Plan

Threats – The opportunities might act as threat for our business, as the popularity of our product might compel the other businesses to serve or produce the similar products and lesser cost might take away the target customers of Exquisite Skills Floral to its competitors. The other weaknesses include the maintenance of the flowers, with the climatic change the flowers should be kept fresh and nonetheless the customers cannot be attracted by the business. This incurs a huge cost and thus the high operation cost of the business will act as a threat. In addition to this, there is also a threat of new entrant in the industry.

Exquisite Skills Floral will be totally different from the traditional florists. This difference will be made based on the development of the consumer intimacy. The consumer intimacy is built up on the basis of the personalized relationships, which will save time of the male customers and will also reduce their anxiety that is associated with the buying process of the gift. Our business Exquisite Skills Floral will achieve its goals through the following:

Firstly, we will use various modern technologies in order to make the floral purchasing experience easy for the consumers. This will make our business enable in identifying and tracking its consumer base.

Secondly, the arrangement of a new fresh flower purchasing experience for the target consumers.

Thirdly, we will offer additional self-indulging products. This includes – gourmet chocolates and unique vases and containers.

Fourthly, we will offer artistic and exquisite arrangements to our customers.

Fifthly, the customer database will be build that will help in identifying contact information and also the preferences like – vases, colors, pets, allergies, frequency, anniversary, birthday, children or spouse and many more.

Lastly, we will adopt the proactive consumer service policies for the benefit of the business. This we will do by contacting each of the members of the Frequent Flower Gift Program through e-mail or phone call within 48 hours of the scheduled delivery and also by giving call to the commercial clients. This will be performed after every delivery in order to ensure satisfaction of the customers.

Our business Exquisite Skills Floral is not like a traditional florist. Therefore, it will not offer the following as a traditional florist. These include:

Weddings – Floral services especially for weddings are considered as a special area of traditional florist. In order to maintain its focus on the objectives of the Frequent Flower Gift program, Exquisite Skills Floral might select in order to refer the potential clients of wedding to the other competitors of the area.

Strengths

Teleflora wire services or FTD – The recreation of the arrangements as defined by other competitors also limits creativity.

Funerals – The florists provide services for funerals. It is counted as a special area for the traditional florists. In order to remain highlighted on the objectives of the Frequent Flower Gift Program, Exquisite Skills Floral might select in order to refer the potential clients of funerals to the other competitors of the particular region.

Balloons and stuffed animals – The traditional florists also sell balloons and stuffed animals as they provide services for weddings.

Wide Delivery Services – Exquisite Skills Floral will cater its services only in the centre of the Dallas-Fort Worth metropolitan area. However, the other competitors of the business will serve throughout the city, workers and residents.

Exquisite Skills Floral considers the website of the business as a dynamic tool for marketing that helps in sales and also direct e-mail marketing. Thus the aim of the business is to develop a useful website which will give information regarding arrangements, new product lines and plans for the business. This website will also help in communicating the news of company in order to develop and maintain good public relations with the people of online community.

The businessmen and businesswomen who generally work in the centre of the Dallas-Fort Worth metropolitan area will trust on Exquisite Skills Floral and thus it will emphasize the services of the business in order to keep love and romance alive.

We will make people giving flowers to their loved ones as it is an effortless and automatic process.
We will make the process of purchasing flower easy and it will provide an easy and fun experience.
We will shift the purchasing responsibility of the flowers from the women to men.
We will make the flowers a habit to the people by encouraging them to take the flowers at home on a regular interval of time that is routinely and not for only some special purposes.

The main programs that will be organized by the business Exquisite Skills Floral in order to earn more customers include –

We will maintain good public relations.
We will arrange for advertisement as by advertising through various media, the business can prosper.
The business will arrange for co-marketing efforts
We will directly mail or send postcards to the customers in order to keep a good relation with them.
We will e-mail our targeted and potential customers on a routine basis in order to keep a good and close contact.
We will use proper marketing materials for brand recognizing.
We will develop our own website and will make it attractive in order to attract more new customers and also to retain the existing customers.

It is a common thought that there are not many florists across the country – rather there are many florists who are of similar type. It has been found that a florist who has a well defined niche market for business can easily flourish. Therefore, the marketing strategy of our business Exquisite Skills Floral includes development of independent and specialized niche business which centers on the programs of the Frequent Flower Gift and characterizes the quality products, outstanding personalized consumer service and custom designs.

Exquisite Skills Floral requires establishment of a reputation as automatic and simple way in order to purchase foster romance and flowers with the loved ones, particularly with the affluent men who are busy in their work life. A specific and measurable objective involves initiation of the marketing efforts. It will have a minimum of 25 male customers in the program of the Frequent Flower Gift at the time of the opening of the stores.

Weaknesses

Exquisite Skills Floral will develop itself as a creative source for the office tenants and the retail in the centre of the Dallas-Fort Worth metropolitan area which requires weekly arrangements of flower. The specific and measurable goals of our business are to have six offices that will be signed up for deliveries on a weekly basis. It is an expectation that we will get these orders of weekly delivery by the time of the opening of the store. Exquisite Skills Floral has to develop brand recognition in order to attract the customers.

Exquisite Skills Floral will offer an upscale program of Frequent Flower Gift having a target to meet the demands of the featuring custom, affluent businessmen and businesswomen, personalized service and high-quality floral arrangements. In addition to this, we have planned to develop a unique shopping experience. For this we have decided to design a floral gallery that will be located at the centre of the Dallas-Fort Worth metropolitan area.

Exquisite Skills Floral has planned to serve the businessmen and businesswomen who work in the centre of the Dallas-Fort Worth metropolitan area. Therefore, the marketing efforts of the business will mainly highlight on the targeting customers and as a promotional program of giveaway and a by-product of deliveries, we have planned to secure the commercial accounts. The overall approach of the marketing of this business is to create brand awareness by public relations, targeted advertising and a website. This helps in generating leads by the efforts of co-marketing with e-mail or traditional direct mail, events and select venues.

Reasons for Purchasing from Exquisite Skills Floral by businesspersons

To reduce ‘forgetting’ regarding anniversaries, birthdays and any other special dates.
To promote romance with floral gifts for spouse.
To spend more time with the loved ones and also to reduce the timing for shopping for their loved ones.
The process is convenient and also easy.
The service is personalized.
We provide unique floral arrangements and quality flowers.
The delivery is free of cost.
The gourmet chocolate is available in addition to the flowers.

We will implement both the direct and indirect sales strategies in order to run our business Exquisite Skills Floral successfully and efficiently.

It has been noted that in present days more than 90 % of the people of the country state word-of-mouth as best source of information and ideas. In the country, the word-of-mouth is considered as the most important method of communication that advertises about the services and the products of the company and also adds more value to the business. Exquisite Skills Floral plans to perform direct sales by offering a unique and high level of personalized service to the target customers to build loyalty and finally the word-of-mouth will work as referrals to their colleagues. Exquisite Skills Floral will gather and maintain the database of all its customers, their name, e-mail addresses, residential addresses and preferences. This will help in e-mailing or direct mailing and also to develop customer loyalty among them. Exquisite Skills Floral has also intended to offer 24 * 7 services to all its customers in order to maintain customer loyalty and retention. These services will include return or exchange policies and also free delivery of the ordered flowers.

Exquisite Skills Floral can obtain the opportunity of establishing a referral service and also to get partnered with several essential florists who can serve these services. Thus, we will gather a flat percentage of every referral sale along with amount payable at end of every month.

The scheduled milestones that will be implemented with time are as follows:

Task Description	Start Date	Planned Finish Date	Date Completed	Assigned To	Deliverable	Budget	Cost to Implement	Value to Company	Priority	Days to Finish
Bank loan application	12/25/16	12/31/25	1/24/17	Ralph	County, city business license	$500	$500	$500	1.000	30
Apply for licenses	7/9/16	7/14/16	8/8/16	Frank	Bank loan	$200	$300	$150,000	3.000	30
Contract with builder for leasehold buildout	8/12/16	9/31/2016	12/10/16	Cindy	Lease	$500	$1,000	$63,000	2.000	120
Negotiate lease	10/12/16	10/22/16	11/11/16	Chris	Renovated leasehold	$25,000	$30,000	$30,000	4.000	30
Purchase computers, software	10/12/16	10/30/16	11/1/16	Julie	Functioning network	$20,000	$30,000	$30,000	5.000	20

Task Budgetary Summary

Tasks	Total	Percent on Budget	Percent Value to Cost
Budget	$46,200.00
Cost to Implement	$61,800.00	133.77%
Value to Company	$273,500.00		442.56%

Task Completion Status


Total assigned tasks	5
Total completed tasks	5
Percent completed	100.00%

The forecast regarding the human resource specifies the recruitment of the candidates who are already related with the business purposes. The particular business has to keep it in mind that according to the expertise and experience of the people, candidates should be employed. The required workforce for the business is as follows:

Types of Staffs	Requirement in Year 1	Requirement in Year 2
Store in-charge	4	6
Accountant	1	2
Sales Persons	5	8

Payroll Summary

	Year 1	Year 2	Year 3

Direct Cost of Labor	$219,525	$427,955	$636,385
Payroll Operating Expense	$947,525	$947,525	$947,525

Total Payroll Expense	$1,167,050	$1,375,480	$1,583,910

Exquisite Skills Floral will be organized in three primary functional areas – design, sales and administrative. We have already assigned the jobs as per the experience and designation. Nevertheless, we have decided to help each other in different departments as per necessity. The owner spontaneously checks the development plans of this business and cooperates in development of products and services. She also suggests for the betterment of the business. It is expected to have a continuous growth in salary of the employees as this plan will become successful and will also be profitable.

The start-up funds required for this floral business is $ 140,000. The owner of the business i.e. Ms. Anderson will invest $ 50,000 from her savings and remaining $ 90,000 will be invested by her close friend as well as sports bar owner Marcus Holt. The lease amount for the shop per month is estimated to be $2500 and there is an option of expansion of the lease amount after every 6 months afterward.

Exquisite Skills Floral
Statement of Operations



	2016	2017	2018
Revenue
Sales	4,000,000	4,000,000	4,000,000
Cost of Goods Sold
Direct Cost
Direct cost of materials	100,000	100,000	100,000
Direct cost of labor	100,000	100,000	100,000
Freight	100,000	100,000	100,000
Inventory Adjustments	100,000	100,000	100,000
Purchase Returns And Allowances	100,000	100,000	100,000
Cost of Sales	$500,000	$500,000	$500,000
Gross Margin	$3,500,000	$3,500,000	$3,500,000

Operating Expenses
Advertising Expense	50,000	50,000	50,000
Auto Expense	50,000	50,000	50,000
Bad Debt Expense	50,000	50,000	50,000
Bank Charges	50,000	50,000	50,000
Commission Expense	50,000	50,000	50,000
Insurance – General	50,000	50,000	50,000
Interest Expense	50,000	50,000	50,000
License Expense	50,000	50,000	50,000
Interest Payments	4,644	7,044	10,243
Maintenance Expense
Meals And Entertainment	50,000	50,000	50,000
Office Expense	50,000	50,000	50,000
Payroll Expense	$1,167,050	1,375,480	1,583,910
Postage	50,000	50,000	50,000
Printing	50,000	50,000	50,000
Professional Fees	50,000	50,000	50,000
Rent	50,000	50,000	50,000
Repairs Expense	50,000	50,000	50,000
Shipping Expense	50,000	50,000	50,000
Supplies Expense	50,000	50,000	50,000
Taxes
Federal Income Tax	5,000	5,000	5,000
State Income Tax	5,000	5,000	5,000
Sales Tax	5,000	5,000	5,000
Other Tax	5,000	5,000	5,000
Utilities Expense	50,000	50,000	50,000
Depreciation and Amortization Expense	6,764	6,764	6,764
Other	50,000	50,000	50,000
Other	50,000	50,000	50,000
Total Operating Expenses	2,198,458	2,409,288	2,620,918

Income From Operations	$1,301,542	$1,090,712	$879,082

Non Operating Income
Item 1	100,000	100,000	100,000
Item 2	100,000	100,000	100,000
Item 3	100,000	100,000	100,000
Total Non-Operation Income	$300,000	$300,000	$300,000

Net Income (Loss)	$1,601,542	$1,390,712	$1,179,082


EBITDA	$1,378,306	$1,167,476	$955,846

Exquisite Skills Floral
Balance Sheet


	Start Up	2016	2017	2018
Assets
Current assets:
Cash	94,000	2,899,356	5,677,312	8,432,068
Accounts Receivable
Inventories
Pre-paid Expenses
Other short-term investments
Other 1
Other 2
Other 3
Total current assets	$94,000	$2,899,356	$5,677,312	$8,432,068

Other Non-Current Assets
Property, Plant and Equipment	122,000	122,000	122,000	122,000
Other 1
Other 2
Other 3
Less Accumulated Depreciation		6,764	13,528	20,292
Total other assets	$122,000	$115,236	$108,472	$101,708
Total assets	$216,000	$3,014,591	$5,785,783	$8,533,776

Liabilities and owner’s equity
Current liabilities:
Accounts payable
Other 1
Other 2
Other 3
Total current liabilities	$0	$0	$0	$0

Non current liabilities:
Long term debt	120,000	200,000	255,000	290,000
Other 1
Other 2
Other 3
Total non-current liabilities	$120,000	$200,000	$255,000	$290,000

Total Liabilities	$120,000	$200,000	$255,000	$290,000

Shareholder’s equity:
Common stock, no par value
Paid In Capital	120,000	120,000	120,000	120,000
Retained earnings	(24,000)	2,694,591	5,410,783	8,123,776
Other 1
Other 2
Other 3
Total owner’s equity	$96,000	$2,814,591	$5,530,783	$8,243,776

Total liabilities and owner’s equity	$216,000	$3,014,591	$5,785,783	$8,533,776

	Balanced	Balanced	Balanced	Balanced
	–	–	–	–

Exquisite Skills Floral
Statement of Cash Flows




	2016	2017	2018
Beginning Cash Balance	$94,000	$2,899,356	$5,677,312
Cash Received
Cash from Operations	4,000,000	4,000,000	4,000,000
Cash from Non-operations	300,000	300,000	300,000
New Current Borrowing
New Long-term Liabilities	100,000	100,000	100,000
Sale of Other Current Assets
Sale of Long-term Assets
Other
Total cash received	4,400,000	4,400,000	4,400,000

Exquisite Skills Floral
Breakeven Analysis

Units Sold	Net Revenue	Total Operating Expense	Variable Cost	Total Cost	Total Profit
0	$0	$1,081,609	$0	$1,081,609	-$1,081,609
8,000	$800,000	$1,081,609	$50,000	$1,131,609	-$331,609
16,000	$1,600,000	$1,081,609	$100,000	$1,181,609	$418,391
24,000	$2,400,000	$1,081,609	$150,000	$1,231,609	$1,168,391
32,000	$3,200,000	$1,081,609	$200,000	$1,281,609	$1,918,391
40,000	$4,000,000	$1,081,609	$250,000	$1,331,609	$2,668,391
48,000	$4,800,000	$1,081,609	$300,000	$1,381,609	$3,418,391
56,000	$5,600,000	$1,081,609	$350,000	$1,431,609	$4,168,391
64,000	$6,400,000	$1,081,609	$400,000	$1,481,609	$4,918,391
72,000	$7,200,000	$1,081,609	$450,000	$1,531,609	$5,668,391
80,000	$8,000,000	$1,081,609	$500,000	$1,581,609	$6,418,391

Image 4

Exquisite Skills Floral
Financial Ratios and other Indicators



	2016	2017	2018
Ratios
Acid Test	0	0	0
Current Debt to Total Assets	6.90%	4.49%	3.44%
Current Liabilities to Total Liabilities	0.00%	0.00%	0.00%
Debt to Equity	7.11%	4.61%	3.52%
Net Worth	$2,814,591	$5,530,783	$8,243,776
Return on Equity	85.93%	43.69%	29.27%
Sales to Net Worth	142.12%	72.32%	48.52%
Total Assets to Sales	75.36%	144.64%	213.34%
Working Capital	$2,899,356	$5,677,312	$8,432,068

Balance Sheet
Cash	$2,899,356	$5,677,312	$8,432,068
Total Current Assets	$2,899,356	$5,677,312	$8,432,068
Other Non-current assets	$115,236	$108,472	$101,708
Total Assets	$3,014,591	$5,785,783	$8,533,776

Current Liabilities	$0	$0	$0
Accounts Payable	$0	$0	$0
Non-current Liabilities	$200,000	$255,000	$290,000
Total Liabilities	$200,000	$255,000	$290,000

Statement of Operations
Sales	$4,000,000	$4,000,000	$4,000,000
Cost of Sales	$500,000	$500,000	$500,000
Gross Margin	$3,500,000	$3,500,000	$3,500,000
Operating Expense	$1,081,409	$1,083,808	$1,087,007
Advertising Expenses	$50,000	$50,000	$50,000
Total Payroll Expense	$150,000	$150,000	$150,000
Income From Operations	$2,418,591	$2,416,192	$2,412,993
Net Income (loss)	$2,718,591	$2,716,192	$2,712,993
EBITDA	$2,495,356	$2,492,956	$2,489,757

Exquisite Skills Floral
Assumptions



Market Share
		Assumptions and Sources
	What percent of market share will you convert to business in year 1, 2, 3	70%
	What is a conservative, moderate and aggressive estimate of the market share you will convert in year 1, 2, 3	40%, 55%, 70%
	What is the logical, statistical basis for the estimate of market share conversion	revenues earned from the business

Sales
		Assumptions and Sources
	What is the percent growth rate for yr 1,2,3 etc	10%, 20%, 30%
	How many customer sales per month	12,000
	How many customers are repeat customers	55%
	Average annual sales volume per customer	60
	What is the average revenue per customer per sale	$65
	What percent of your sales will be for ‘house accounts’ belonging to large regular customers. What kind of terms will the have	30%
	What sales, use or excise tax rate applies to your sales	10
	Other

Property Plant and Equipment
	Equipment	Assumptions and Sources
	What is included in the ‘standard’ equipment for each class of employee:
	Desk, chair, side chair, file cabinet, table, other furniture	1000
	Automobile, auto insurance, gas card, mileage allowance	10000
	What equipment will you purchase
	Computer, laptop, software, desk phone, cell phone, email account, printer, fax, scanner	20000
	Tools, devices, test equipment, other	12000
	Cash register, barcode scanners, merchant account input devices	15000
	How much equipment is necessary in relation to increasing sales	$75,000
	Other

	Inventory	Assumptions and Sources
	What is your estimated inventory turn rate	10%
	How many different items will be stocked	10
	What is the estimated stock replenishment time	24 hour
	Capital Equipment	22000
	How much capital equipment is necessary to produce 3 years sales volume	$65,000
	How many years will you use to depreciate this equipment	5
	What is the installation and facilities preparation cost for the equipment	6
	Other

	Facilities	Assumptions and Sources
	How many square feet per dollar volume of sales is necessary for the business	100
	How many square feet for ‘operations, production’	500
	How many square feet for ‘ sales, customer interaction’	500
	Will the facilities be leased or purchased	leased
	Who will guarantee the lease	owner
	Other

Employees and staff
		Assumptions and Sources
	How many salespeople per $$unit of sales	5
	How many support people per number of salespeople	4
	What is the annual salary for each employee class	15000
	Personnel agency fees	12000
	Other

Expenses
		Assumptions and Sources
	Legal fees	500
	Accounting fees	8000
	Business formation fees and expenses	$15,000
	Audit Fees when using investor funds	9500
	Brokerage Fee to raise capital	5000
	Licenses	$1,000
	Travel expense	$2,560
	Required professional memberships.	$500
	Which expenses will the founders have to personally guarantee	loan and lease amount
	Other

Cash Flow
		Assumptions and Sources
	Interest payment on investment capital	12%
	Will there be sufficient cash on hand until the cash flow is positive	yes
	Other

Event Industry
		Assumptions and Sources
	How many customer events per year, month, week	12000 p.m.
	How many customers per event	6000
	How much will these events increase your ‘normal’ estimate for sales	45%

Turn in your highest-quality paper
Get a qualified writer to help you with

“ Success Strategies And Implementation Plan For SWOT Analysis ”

Get high-quality paper

NEW! AI matching with writer

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order