BUS 499 Grantham University Week 5 Business Law Business Plan Part III

Business Plan Part III

Part III of the Business Plan

Part III Requirements

1.Marketing Strategy

a.The marketing strategy should address how you will differentiate your company from competitors.

b.Frame your marketing plan to show potential investors what factors will make your product or service more desirable than those offered by the competition.

c.You should present information to show your plan is well-researched and includes reasonable assumptions.

d.In addition, the work should illustrate that the proposed company is not entering a declining industry or market segment.

e.Tables and figures must be introduced in the narrative.

f.The marketing plan should include:

i.Analysis of the business opportunity

g.Target market inclusive of potential customers and their location

h.Location of your business

i.Economic, demographic, and geographic factors which may influence the success of the proposed venture

2.Organizational Success Strategies

a.Present a  summary of the vision of the company’s success.

b.Show what strategies will be adopted to ensure the overall success.

c.Identify and ethical dilemmas of your strategies and how it will impact corporate social responsibility.

Running head: BUSINESS PLAN
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Business Plan
Grantham University
Mitchell Patterson
24 August 2022
BUSINESS PLAN
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Company Name P.G. logging
Type of business: retail, manufacturing, service (Trucking Service)
Proposed ownership/legal structure: LLC
Unique product or service you will offer: Logging Service
Company Background:
My business plan is named P.G Trucking LLC. The type of business that I am going to
offer is trucking service which is retail. I have chosen this type of business because it has many
advantages over others due to its low cost of entry and high profit margin potential. There are no
fixed costs for this type of business which means that all costs can be easily covered by the
revenue generated from clients using your services. The fact that there are no fixed costs also
means that any number of clients can be serviced without having to increase overhead costs by
hiring additional employees or purchasing new equipment etc.
Mission Statement:
Our reason for existing will remain unchanged over time. With over 20 years of family
experience are fundamental purpose here at P.G. logging company is to profitable help our
customers and suppliers succeed in the wood product industry. Are highly trained staff take pride
and ensuring we get the most money for your timber. We offer services such as clear cutting and
thinning for promoting future growth.
Goals and Objectives: To achieve my goals this year I will have to make sure that my
objectives are met in order to be successful in achieving my goals for this year and beyond! My
goals are not only related to business but also personal life as well. My first goal is to make sure
that I always provide excellent customer service so they will always want to come back again!
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Secondly, I would like to make sure that we are providing our customers with the best quality of
work possible.
Goals and Objectives:
1)To increase revenue through sales by 20% each year for 5 years until we reach a steady
state level of operation where sales are stable with minimal fluctuations in volume and pricing;
2) To decrease operating expenses by 15% per year until we reach an operating
breakeven point (no profit or loss);
3) To increase profits by 10% per year until we reach an annual net income.
4) Creation of long-term value for our shareholders.
5) Establish industry leadership within the regional emerging markets in the following
areas.
Chart Title
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40
20
15
10
10
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REVENUE
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3.3
3.3
EXPENSES
PROFITS
Series 1
Series 2
Series 3
CATEGORY 4
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Part II
1. Stakeholder Analysis
Key stakeholders in logging business include tree farmers, suppliers, customers,
environmentalists, and the local government. The business will operate at a retail level to ensure
tree farmers earn profit from their wood while running the business at a profit. Environmentalists
are other key stakeholders to consider in this era of climate change and global warming.
Environmentalists are everywhere, and it will be necessary to consider their minimal
requirements. Additionally, the US has strict environmental policies from the state of forests and
forestry that can lead to legal issues if violated. Other stakeholders include truck drivers and
staff.
With 20 years of family experience in the wood product industry, I am confident this is
an area in that I can run comfortably. I used to assist my father, who was operating the business
on a small scale using his truck. During this time, I learned the challenges in this industry while
identifying opportunities that can be explored to succeed. To perform better, I will also hire
experienced truck drivers, financial staff, and other employees to increase the success chances of
the business.
2. Industry Analysis
a. A brief overview and long-term outlook for growth
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The logging industry in the US has experienced tremendous growth in the last five years to
2019. Since most of the wood products such as woodchips, saw logs, and wood pulp are used in
the construction industry to make products such as wood panels and lumber, the construction
industry has always determined the success of the logging industry (Gendron, 2019). Growth in
the construction industry, therefore, reflects growth in the logging industry.
b. Review of industry size, trends, and target market segment.
According to IBIS World, the logging industry revenue hit $14.2 billion dollars in 2020, but the
figure is forecasted to double at the end of 2022 due to the resumption of constructions that were
paused during the pandemic (He et al., 2021). More than 40% of all lumber is used in
construction sites. The main market segment, therefore, remains sawmills and wood pulp mills,
although paper mills are another industry of interest.
c. Industry leaders in terms of:
•
Price
With its headquarters in Washington, Weyerhaeuser Company has the leading prices in the
logging industry. The top prices are reflected in terms of revenues which boosts the highest
revenues in the industry. It is followed by Rayonier Inc., which is believed to have the second
most top prices.
•
Quality
Potlatchdeltic Corporation slightly leads Weyerhaeuser in terms of quality. However, the
difference is not huge. Still based in Washington, this company is among the greatest
competitors.
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Market share
Weyerhaeuser Company dominates the market share. The company has diversified into four
notable industries; wood paneling manufacturing, logging, real estate investment trusts,
sawmills, and wood production. This makes it dominant with a huge market share.
3. Competitive Analysis
a.
Strengths and weaknesses of each primary competitor
Weyerhaeuser Company remains the primary market competitor. Its strengths include; a huge
brand, strong capitalization in the market, and running the whole industry chain from production
to retailing. However, critics from environmentalists for its poor waste management remain its
main weakness in the market. Rayonier Inc. and Potlatchdeltic Corporation are other
competitors; they have weak brands are a major weakness in the market.
b.
Sales, quality, distribution, price, production capabilities, reputation, and
products/services
The high market demand has made available competitors unable to match it. Supply capabilities
are low, and a lot of delays are witnessed. Competitors in this market are generally few, and
there are still a lot of opportunities to explore.
c.
The competitive business advantage.
The pricing for my logging services will be slightly lower than most of the competitors. This will
attract more customers hence acting as a competitive advantage.
d.
Forecast of the business in the next three years
The following is a forecast for the next three years in business.
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Trend for 3 yrs
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3
2
YEAR 1
YEAR 2
YEAR 3
Trend for 3 yrs
e.
Sales and Advertising Plans.
To meet the business objectives, it will be essential to come up with a good sales and
advertising strategy. The sales plan for my logging business will include prescribed call
sequences, sales meetings and appointments, and the implementation of an email-follow up
strategy. These are some of the approaches that will be used to improve sales. Additionally, the
use of social media adverts will be another strategy that will be used to market the brand and its
services.
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References
Gendron, J. (2019). Maine’s Forestry and Logging Industry Building a Model for Forecasting.
The University of Maine.
He, M., Smidt, M., Li, W., & Zhang, Y. (2021). Logging Industry in the United States:
Employment and Profitability. Forests.