Table 3: Analysis of competitors’ products and services Marketing mix Sole operators Regional small firms National and building design firms Product/Service Specialist Greater range of architectural services Full planning, design and construct solution Price Fee based competition Fee based competition and contract work Percentage of total project value Place/Distribution Proximity to local markets. Proximity to local markets Firms based in major cities in Promotion Yellow pages, web, Yellow pages, web, industry contacts Yellow pages, web, client referrals, industry associations, related businesses People Experienced architects 20+ years Architects with different levels of experience Team of Architects, Engineers, Interior Designers and support staff that all access to ongoing training Process Varies from client to client and operator does not always have effective cost controls measures in place. Also, often no processes in place for a steady stream of work to assist with cash flow Invest in technologies that increase productivity and staff are able spend most of their time in their areas of specialisation Invest in labour saving CAD technologies as well as systems and budgets in place to control overall costs and documentation Physical evidence Home based business, or shared office space, competing for work on the basis of price and the image they project can vary Office space typically located outside the CBD where the staff project a professional image at all times Corporate attire, fees, office, printed material and websites etc. Elements of Success Target Market was selected as the primary market because it is a large city with a population of 1.8 million people. It is projected to grow by approximately 900,000 people (i.e. 50% increase) in just over two decades time. These growth rates are stronger than any other major city in . This has resulted in significant short to long-term demand for inner urban apartment developments to accommodate the large number of people who want to live in close proximity to the city. In addition, the Office of Economic and Statistical Research forecast in the next two decades the two main household types will be ‘Couple without children’ and ‘Lone-person’ households. Based on this information and affordability of these apartments, the target market will be working professionals who
Human Resource Management Organisational Chart Peter Drew – Business owner and architecture Owner/Operator Skills and Experience Table 11: Summary of owners’ knowledge, skills, qualifications, and relevant experience Name Position Knowledge, Skill, Qualifications and Experience Peter Drew Owner/Architecture Degree in Architecture and over 25 years experience in designing apartments, hotels and retail shops Industry Knowledge and Experience of Key Personnel Table 12: Details of personnel with specific industry knowledge and experience Name Position Knowledge, Skill, Qualifications and Experience Peter Drew Owner/Architecture Degree in Architecture and over 25 years experience in designing apartments, hotels and retail shops Human Resource Requirements Table 13: Analysis of human resource requirements Peter Drew – % of time for work activities Permanent Part Time Casual Staff Sub-Contractors Business Development 20% Architectural Services 70% 1-2 as required Business Administration 10% Total 100% Table 14: Staff and wages estimate Number of Staff Wages $ Current Year Next Year 1 Next Year 2 Current Year Next Year 1 Next Year 2 Administration Sales/Marketing
Product/ Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Low value work 3,000 4,500 4,500 3,000 1,500 4,500 3,000 1,500 3,000 Client 1 4,500 8,500 6,000 Client 2 10,000 15,000 Client 3 8,000 Client 4 22,000 28,000 Client 5 20,000 15,000 Client 6 40,000 Total Sales 3,000 4,500 9,000 13,000 9,500 26,500 18,000 29,500 20,000 18,000 6,000 40,000
Appendix 2: Situational analysis – internal environment Internal Environment Strength Weakness Factor (1-10) STRATEGY Competitive advantage - able to differentiate Yes 7 Key drivers of the business are known Yes 6 Strategy for growth Yes 7 Detailed action plan Yes 5 SALES & MARKETING Clear evidence of market need for your product Yes 10 Know your specific market & competitors in detail Yes 8 Know your target audience intimately Yes 8 Focus resources and efforts on current customers Yes 8 Competitive and profitable pricing strategy Yes 9 Your marketing plan and budget Yes 6 Measure, learn from and adapt your marketing activities Yes 8 STRUCTURE Business structure to maximise wealth and minimise risk (e.g. sole trader, company, trust) Yes 6 Organisational Structure Distribution and sales to target markets Yes 6 Are your buildings and facilities adequate? Yes Is your equipment effective and up to date? Yes 8 Able to protect your IP from being copied? SYSTEMS Information and management systems (e.g. CRM) Performance measurement and rewards Documented processes and systems Yes 5 Accounting and debt collection systems Yes Yes 8 Purchasing systems and inventory management STAFFING & SKILLS