Executive Summary

 Develop an executive summary that highlights the key points for each section of the business plan.

1. You should not exceed 2 pages.

 

• The executive summary is a critical aspect of this assignment. Your ability to condense and highlight critical information about your chosen company to investors will determine whether they decide to invest in you and your company or not.
• See attached examples and other documents with information on company
•  Use subheadings for each section of the executive summary, just as in the examples
  use the Required subheadings in the Executive summary provided below.
  The Company
  Mission
  Product and Services
  Marketing and Sales Strategy
  The Competition
  Target Market
  Management
  Operations
  Stage of Development
  Financials
  Funds Sought and Utilization 

Script

Slide 2: Introduction

Earthly Elegance is committed to offering luxurious yet affordable self-care solutions that empower individuals while prioritizing environmental sustainability. By combining natural biological solutions with the work of experienced scientists, it is possible to offer consumables that would correspond to the challenge of providing modern society with materials that are suitable for the currently active approach to environmental protection (Moslehpour et al., 2021). The brand offers organic shampoos for the hair; body washes for the skin; natural fragrances with the finest scents; and good ecological accessories all aimed at meeting quality needs without harvesting the environment. Situated in a high-traffic retail location in Atlanta, we guarantee optimization through the use of advanced technology in our daily operations, well-organized inventory, and a competent staff. At Earthly Elegance, self-care is not just a habit-that is, a set pattern or behavior it is a process toward self-emancipation and an environmentally conscious lifestyle.

Slide 3: Target Market

Earthly Elegance is targeting conscious consumers aged between 18-45 years, majority of the consumers are women and men who are conscious of the environment. The customers are socially conscious, interested in self-care products of superior quality, and are willing to spend on environmentally friendly brands. They earn middle to high incomes and are out to spend middle to high amounts of money but avoid over-luxury. Psychographically they are health-conscious, trendsetters, motivated by ethical issues when it comes to their consumption behavior. Targeting geographically primarily the urban and suburban markets in the United States, starting with Atlanta as sustainability awareness and the demand for more premium products are more actively developing there (Khan et al., 2024).

Slide 4: Market Size

The global personal care market which was valued at US$ 59.3 billion in 2023 is expected to reach US$ 132.7 billion by 2032 at a compound annual growth rate of 9.5% (IMARC, 2024). The market for sustainable and organic self-care products is an enormous total addressable market (TAM), partially fueled by strong consumer interest in sustainable solutions and natural ingredients. Within the market of personal care with consideration of the environment, the SOM is rapidly growing as seen from Atlanta and another group of cities. These sustainable hygiene trends, biotechnology advances, and the integration of broader diversity into the industry represent a large growth area for companies to seize market standing in this developing sector.

Slide 5: Competition

The three main competitors in the sustainable personal care market are Proctor and Gamble, L’Oréal, and Burt’s Bees. Procter and Gamble has recently ventured into the production of biodegradable products marketing products like the Head and Shoulders and Olay that have natural ingredients. Killederbeauty L’Oréal boasts the “Clean Beauty” range and is also venturing into the sustainable beauty market with a focus on the diverse approach and biotech. Burt’s Bees is recognized for its use of organic products and its efforts towards seeking environmentally friendly packaging (Pool, 2020). The competitive advantage or what many marketers call a unique selling proposition (USP) is the firm’s commitment to integrating bio-technology and proactive care into 100% certified organic products to enable people to take care of their bodies in a proper way. It is something that all the others do not do and include using a direct-to-consumer approach where the consumer can adjust the products to suit his or her skin type; while also making certain that all our products are eco-friendly and not tested on animals, making us stand out in today’s world where people are becoming more and more conscious about what they are using.

Slide 6: Management Team

Earthly Elegance’s leadership team is a dynamic and experienced group committed to ensuring the company’s vision and sustainability goals are achieved. The Chief Executive Officer (CEO), holds over 10 years of experience in the retail sector also with an emphasis on sustainability, and serves as the chief executive officer of the entire company. The CEO is well versed in green retail guaranteeing the organization is the vanguard of environmentally friendly consumerism as it fosters business development. As a subordinate to the CEO, the COO has more than 8 years in managing operations and logistics such that supply chains would achieve optimality and that their products have quality. As a result, being a meticulous observer, the COO supervises the processes that occur within the enterprise and ensures that the provided services are both effective and inexpensive. The Marketing Director is skilled in the necessary fields having more than 5 years of experience in digital marketing. Some of the most significant activities that result in the company’s branding, customer reach and penetration, and market visibility are its creative strategy.

Slide 7: Management Team

The Finance Manager has sound financial knowledge in planning and controlling finance for more than five years. This individual also ensures the sustainability of the organization’s financial health and provides direction for leaning on sustainability-related decision-making for Earthly Elegance. The Store Manager ensures customer satisfaction through controlling customer flow in the store and managing a team to ensure the right image of the store is portrayed. The current role of the E-commerce Specialist is to handle the company’s online sales and to apply the knowledge in the spheres of IT and marketing to enhance the website and the SEO to boost online sales. Collectively, this highly credentialed and talented group provides Earthly Elegance with the right combination of line and staff functional strengths, marketing acumen, financial discipline, and e-commerce savvy needed for the company to thrive in the future (Kondo & Vicente, 2023). For this section, we shall post some pictures and simple descriptions of the people who are on the team to ensure that we show everyone the structure of organizations and their ranks.

Slide 8: Business Model

Earthly Elegance’s business model is focused on the practice of sustainable fashion and its sources of revenue are pluralistic to diversify in the future and constantly develop. The main source of income is earned from the products that are sold to the client base in the store, as well as those purchased online on the company’s site (Khandual & Pradhan, 2019). Profits from these sales will be generated from a range of clothes and accessories made from certified green fabrics. Further, Earthly Elegance also makes its money through its Online Store which is specified to enable customers to shop online due to factors such as convenience. Another one will be through subscription services and it will comprise different options for customers; one is exclusive offers, another is early access to a new collection, and, finally, the option of joining the membership program that will help customers receive discounts or gifts, based on their environmentally-friendly values (Mohamed, 2024). All these will not only generate a constant stream of income but also create customers who will repeatedly employ the services of the business.

Slide 9: Business Model

In order to attract more customers, Earthly Elegance adopted various online marketing tools: The company will promote active accounts in social networks through the paid campaign, improve its website ranking through content marketing, and use HubSpot CRM for sending promotional emails to prospective clients (Charles & Jackson, 2021). The company will also pay more attention to continued customer engagement through sustainability projects that will further unite customers to a common cause helping the brand to foster togetherness. Its cost model identifies both fixed costs associated with the leased retail space, personnel, and various technology tools and variable costs about inventory and production. Scaling will be realized through the online store, thus enhancing national and international expansion. Also, collaboration with other similar organizations and brands, popular or influential personalities, as well as members of the green certification organizations will assist the company in the consolidation of its brand’s recognition and the increase of its sales.

Slide 10: Financials

Revenue Forecast (1 Year)

As Earthly Elegance commences operations in the coming first year of its operations, the business expects stable increases in its revenues due to the ever-increasing customer preferences for eco-friendly clothes. According to the traffic on the footfall, the forecasts of sales through online portals, and the business requirement on a seasonal basis, the total earnings is $500,000. This will comprise both store and internet sales, with a high increase in business during holiday seasons and promotions. Its monthly sales are anticipated to be at about $40000 in a month but the amount is, however, higher in months of retail considerably.

$40,000

$40,000

$12,000

$40,000

$15,000

$12,000

$30,000

$10,000

$40,000

$32,000

$8,000

$40,000

$38,000

$15,000

$53,000

$45,000

Month	In-store Sales	Online Sales	Total Revenue
January		$30,000		$10,000						$40,000
February	$28,000			$12,000
March		$32,000		$8,000
April	$35,000	$47,000
May		$38,000			$15,000		$53,000
June	$55,000
July	$33,000		$45,000
August
September
October
November	$42,000	$18,000	$60,000
December	$20,000	$65,000
Total	$485,000	$135,000	$500,000

Slide 11: Financials

Key Expenses and Profit Margins

The major costs associated with the acquisition of Earthly Elegance are lease costs, wages, merchandise, light bills, and advertisement costs. The estimated monthly operating expenses are set at $15,000 with the $5,350 being charged towards the facility, $170,000 for personnel costs, and $2,500 for marketing. Of the above cost, the cost of goods sold (COGS) is estimated to be 40% of revenue which would be the price of eco-friendly materials from the suppliers and products. This leads to a gross margin of 60%. Taking out all the fixed costs and the cost of revenue, the company anticipates a net profit margin to be about 15%. Some other expenses for marketing are given in the table:

$500 per month

Marketing Vehicles Table
Marketing Vehicle	Frequency	Cost/Month
Social Media: Facebook and Instagram	3-5 times per week	$700 per month
TV Stations: Local Station	1 time per week		$500 per month
Free Samples	2 events
Website		$2000(one time cost)
Billboards	2 locally around town	$50 per month

Break-even Analysis

Earthly Elegance will first operate at a breakeven point after 10 months of its operation. The total revenues derived from the business will equal the total fixed cost and total variable cost. Since the lease is $3000, Salaries $4000, Utilities $1500, and Marketing $1500 where all fixed costs total $15000 fixed costs, net operating income is equal to 60% of total operating revenue. To meet the fixed cost of the month and variable selling costs, monthly sales need to be $25000. However, for the first year of its operation, Earthly Elegance expects to realize a gross profit of about $75,000 based on stable sales and cost controls.

Slide 12: Funding

Currently, Earthly Elegance aims at raising $300,000 for its start-up and its first year of operations. In return for this investment, 20% of equity is being provided by the company to the investors. The funds will be allocated across several key areas: A $120,000 would be used to purchase inventory and to continue the development of other products to help the company diversify its product base and keep the company’s product range sustainable, $50,000 for marketing costs and targeted customer acquisition to name the company and attract a loyal following of consumers, $70,000 for staffing, hiring, and overhead, including recruiting quality personnel and paying initial salaries out, and $60,000 for retail space this investment will help Earthly Elegance to grow and be profitable having a sustainable competitive edge in the environmental friendly fashion industry.

Slide 13: Summary

Earthly Elegance is a chance to invest in a new and promising sector, which is the market of eco-clothing. We have expert staff in sustainable retail environments, marketing, and operation to help the business succeed. As a result of ethical strategies and systematic policies in business activities and administration, new approaches for engaging customers in consumption of environmentally friendly products, our company is ready to answer the need of growing demand in this sphere. Being our client, you will be associated with an innovative brand that is striving to create a sustainable fashion industry get high profitability, and generate less waste. Join us in revolutionizing the fashion industry!

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Operations, Technology, and Management, and Social Responsibility Plan

November 20, 2024

BUS599 – Strategic Management

© 2024 Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of Strayer University.

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Operations, Technology, and Management, and Social Responsibility Plan

Operations Plan

The operations plan for Earthly Elegance prioritizes efficiency and sustainability, aligning with the company’s mission to deliver eco-friendly fashion. Included in the plan of the facility will be a front door to the business, a store room to store merchandise, and room for management, utilizing power-saving bulbs to cut expenses and pollution. Manufacturing systems will involve the use of ethical production materials besides implementing measures that would ensure that quality meets the consumer expectation. POS systems and appropriate shelves and storage equipment will enable the proper and efficient functioning of the business. Company employees involved shall include retail associates and store assistants, who will be trained on organizational values. It also creates a clear visionary map for daily management, to transform the company and establish its authority in the field of eco-fashion.

Facilities

Earthly Elegance will operate from a 2,000-square-foot leased retail space in midtown Atlanta, Georgia, a high-traffic area ideal for visibility and accessibility. This commercial space costs $4,500 monthly, which suits a startup retail business in this region depending on the expenses estimated for the space. Utilities include water and sewer $200, electricity $400, gas $150, and trash removal $100; giving a total of $850 for one month. These costs accounted for the total facility expense, of $5,350 every month.

The retail space will have a visually appealing storefront to attract customers and a well-organized layout to showcase merchandise effectively (Awais, 2023). The institution will comprise a stockroom for efficient storage of stock to meet the flow of customers and a small office for administrative and managerial work. In keeping with the firm’s responsibility towards the environment, the use of the products will entail the use of energy-efficient or green products like LED lighting products or fixtures, for instance. These features not only reduce the overall effects on the environment that the store imposes but also decrease the amount of costs for utilities in the long run as the store has worked in maintaining the ecological standard and efficiency. The incorporation of functional elements with sustainability measures will also help to improve the retail-based area for the customer while keeping with the ethos of the company to offer sustainable clothing.

Production Process/ Description of Operations (if service company)

As a retail company, Earthly Elegance will source sustainable materials and finished products from certified eco-friendly suppliers. The business will focus on the following operational processes:

1.
Inventory Management: Real-time tracking software will monitor stock levels, ensuring timely reordering to prevent overstocking or shortages (Mohamed, 2024).

2.
Merchandising: Display furniture and racks will showcase products attractively and effectively for customers.

3.
Quality Control: Each shipment will be inspected for quality and adherence to sustainability certifications, maintaining the company’s reputation for ethical practices.

The following equipment is necessary for operations:

· Display furniture and racks:
$3,000

· Point-of-sale (POS) system:
$2,500

· Security cameras:
$1,200

· Miscellaneous supplies (tags, reusable bags):
$1,000

· Total initial equipment costs amount to
$7,700

Personnel Needs in Operations

The success of Earthly Elegance depends on its dedicated and skilled workforce. The company will employ a total of five staff members:

1.
Store Manager: This role oversees daily operations, manages inventory, and ensures exceptional customer service (Kondo & Vicente, 2023). The annual salary for the manager is
$50,000.

2.
Sales Associates (4): These employees will handle customer interactions, assist with inventory, and operate the POS system. Each associate will earn
$15/hour, amounting to an estimated
$30,000 annually per associate.

Total personnel costs are projected at
$170,000 annually, inclusive of salaries and wages.

Earthly Elegance prioritizes operational efficiency, quality control, and a motivated team to deliver on its promise of sustainable fashion. By carefully managing facilities, production, and staffing, the company is positioned for a successful launch and steady growth in the competitive eco-fashion market.

Technology Plan

The technology plan for Earthly Elegance is designed to enhance operational efficiency, ensure smooth communication, and provide superior customer service. It is spent on software, hardware, and telecommunications to suit a modern retail business that is environmentally sensitive.

Software needs

1.
Point-of-Sale (POS) System
A robust POS software like Square will manage sales transactions, track inventory, and generate detailed sales reports (Charles & Jackson, 2021). This makes the business acquire accurate and efficient cloud-based plans at the checkout counter. Currently, Square POS costs $60 a month and a total of $720 per year.

2.
Customer Relationship Management (CRM) Software
HubSpot CRM will support customer engagement by tracking customer interactions, managing email marketing campaigns, and maintaining a database for loyalty programs (Khan, Akter, & Islam, 2024). In Customer Engagement, HubSpot CRM will assist in monitoring customer engagements, the sending of email newsletters, and the creation of a loyalty point database. This tool results in a specific customer experience that encourages returns to the business. It takes $50 monthly or $600 per year, to use the software.

3.
Accounting Software
QuickBooks Online will handle financial management, including bookkeeping, payroll processing, and tax preparation (Onuotu & Amaewhule, 2024). The financial compliance feature of this software ensures compliance with set financial legal requirements while real-time access to financial information is also made available. They made the subscription fee cheap at $85 per month or $1,020 per year.

4.
Inventory Management Software
Sortly Pro will enable the business to track inventory levels, monitor reorder points, and manage product information (Go, 2021). This tool helps in minimizing waste and at the same time helps to restock on time. The software costs $49/ month or $ 588 per year.

5.
Office Productivity Suite
Microsoft 365 will facilitate internal communication and document creation (Ilag & Sabale, 2022). This suite comprises popular applications, as it contains such means as Word, Excel, and Outlook. It costs $12.50 per user per month, and $150 per year to license one user.

Hardware Needs

1.
Computers and Monitors
Two desktop computers, such as Dell OptiPlex systems, will be installed for administrative tasks and store operations. These high-performance machines thus guarantee easy multi-tasking and effectiveness. The entire system costs $1,200 each and the two systems therefore would cost $2,400 in total.

2.
Tablets
Two iPads will function as mobile POS stations, allowing staff to assist customers directly on the sales floor. These adjustments provide greater convenience for the customer and greatly decrease the amount of time that must be spent waiting. The first and second tablets have a price of $500, so the final price will amount to $1000.

3.
Receipt Printers and Cash Drawers
Receipt printers and integrated cash drawers will be used for the POS system (Gicale & Dasargo, 2022). It makes going through the checkouts easier and safer in handling cash. They cost $450 each and the kiln requires two sets for $900.

4.
Barcode Scanners
Barcode scanners will simplify inventory management and ensure accuracy in tracking stock. Two units, costing $150 each, will be purchased for a total of $300.

5.
Networking Equipment
A high-quality router and modem will provide stable internet connectivity for operations, ensuring reliable access to cloud-based systems. The estimated cost for this setup is $300.

6.
Backup System
An external hard drive will secure data backups, preventing information loss due to system failures. This device costs approximately $120.

Telecommunication Needs

1.
Business Internet and Phone Services
A reliable internet is essential for running cloud-based software, processing transactions, and facilitating communication (Murthy, Shri, Kadry, & Lim, 2020). A high-speed internet plan for business use is $100 monthly and is $1,200 on an annual basis. An exclusive business phone line will address customer contact and supplier networking at $50 monthly or $600 yearly.

2.
Mobile Phones
To guarantee consistent availability and effective communication, the store manager and assistant manager will each have a cell phones. Each phone, including a data plan, costs $50 per month, or $1,200 annually for both.

3.
Email Hosting
Professional email hosting through Google Workspace will establish credibility and streamline communication with customers and vendors (Walizad, 2023). The service costs $6 user per user monthly with an annual subscription of $72 for one use.

Management and Organization Plan

The management and organization plan for Earthly Elegance focuses on assembling a skilled and experienced team to ensure efficient operations, strategic decision-making, and alignment with the company’s mission of providing eco-friendly fashion. In this section, information concerning the major management staff, the roles and responsibilities of the major stakeholders, and the organizational structure is provided to ensure efficient management and communication.

Key Management Employees

1.
Chief Executive Officer (CEO)
The CEO will oversee the overall vision and strategic direction of the company. In these three areas of business development, partnership, and integration of sustainability aspect, this role will involve. A bachelor’s degree in business administration and more than ten years of experience running retail establishments with an emphasis on sustainability are prerequisites for the CEO position. The gross annual remuneration package for this job is One hundred and twenty Thousand United States dollars.

Justification: The company will benefit from the CEO’s knowledge of sustainable retail and the ability to continue leading growth while staying true to being green.

2.
Chief Operating Officer (COO)
The COO will manage day-to-day operations, including supply chain management, quality control, and inventory oversight. This candidate is expected to be savvy in operation management with prior experience of 8+ years in logistics and vendors. It is $100, 000 a year.

Justification: The operational experience of this executive makes processes effective, and products of the highest quality at the least cost possible to the customers.

3.
Marketing Director
The Marketing Director will oversee the company’s branding, advertising campaigns, and customer engagement initiatives. This position demands a degree in marketing and relevant work experience of not less than five years in Digital marketing. The annual salary is $80,000.

Justification: To achieve the goals, the Marketing Director will work on the relevant campaigns for brands, which will raise brand awareness among the audience and develop its devotion to the businesses supporting it and paying for the ads.

4.
Store Manager
The Store Manager will supervise daily retail operations, manage staff, and ensure excellent customer service. This position requires a candidate having 3 years or more experience in retail management. The annual salary is $50,000.

Justification: Leadership by the Store Manager will ensure that the store environment contributes to customer satisfaction while ensuring staff efficiency guaranteed to encourage repeat business.

5.
Finance Manager
The Finance Manager will oversee budgeting, financial reporting, and cash flow management. This individual will have a degree in accounting and over five years of experience in the area of planning for finances. The annual salary is $75,000.

Justification: A specialized Finance Manager keeps the company financially healthy and uses market-quantifiable information for sustainable decision-making.

6.
E-commerce Specialist
The E-commerce Specialist will manage the company’s online store, optimize the website for user experience, and implement SEO strategies. To fill this position, a candidate must possess a bachelor’s degree in IT or marketing and experience working in e-commerce for 3+ years. The annual salary is $65,000.

Justification: In the position of the E-commerce Specialist, the company will have a chance to develop new extravagant markets and boost revenue

Management Hierarchy

Earthly Elegance’s organizational structure is designed for clear communication and efficient decision-making. There are several levels in this hierarchy and at the top sits the CEO, who is directly reporting to the COO, Marketing Director, and Finance Manager. The COO supervises the Store Manager as well as the E-commerce Specialist to enhance the coordination of most retail stores and online outlets.

The diagram below illustrates the organizational hierarchy:

Figure 1
: Organization Hierarchy

This streamlined structure ensures accountability while fostering collaboration across departments

Social Responsibility Plan

The Social Responsibility Plan for Earthly Elegance integrates ethical business practices that ensure a positive impact on stakeholders, the community, and the environment. CR management is a core component of the company’s brand, and this plan provides details on the following areas: Employee relations, customer considerations, suppliers’ interaction, community engagement, and environmental interactions.

Impact on Stakeholders

Employees:
Earthly Elegance recognizes the value of its employees and aims to create a positive and rewarding work environment. The company will provide a fair salary comparable with other entities and, of course, medical insurance, paid vacation, and a chance to gain new skills. An annual program for working flexibility will be introduced to follow the flexible working time arrangement that is favorable to employees’ work-life balance, particularly to administrative staff. Training for career development opportunities will be included for employees, where sustainability practices are adopted.

Customers:
Customers are at the heart of Earthly Elegance’s business, and the company is committed to providing high-quality, eco-friendly fashion that reflects the values of sustainability and ethical consumerism. The company will promote transparency in its operations and customers will be informed about the products available and assisted in making the right decisions. Social media also acts as another way through which customers will be reached to create a community of people who are concerned about engaging in environmentally friendly activities.

Suppliers:
Earthly Elegance will work with suppliers who share the company’s commitment to sustainability. Through these strategic partnerships the company will maintain good business relations with its suppliers, fair price will always prevail and this will guarantee consistent supplies to Earthly Elegance. Primary selection criteria include the suppliers’ adherence to sustainable environmental practices like the use of green raw materials and the amount of waste that a supplier discharges during the production process. Communication with suppliers will happen continuously and will involve the sharing of ideas and strategies toward achieving a low-carbon supply chain.

Community

: Earthly Elegance understands its responsibility to the communities in which it operates. The company will participate in local sensitization programs on the environment and the general welfare of society. This may include offering sponsorship for events with eco-theme, providing classes that teach fashion made from recycled materials, or working with local environmental groups. Another issue that will also be covered under the social responsibility umbrella by Earthly Elegance will be embracing charitable causes taking to environmental conservationism and social justice initiatives as embraced by most of the firm’s buyers, and workforce.

Environmental Impact

Earthly Elegance is deeply committed to minimizing its environmental impact across all areas of its operations. The company will incorporate various sustainable activities that will help curtail waste production, energy use, and emissions.

Minimizing Waste:

To reduce waste, Earthly Elegance will implement a zero-waste policy in its operations, including packaging and product production. Each pack of a product will be made from recycled material and the company will support customers to recycle or reuse packing material. The company will also engage suppliers in finding ways of minimizing waste on packaging materials and ways to package products to have low impact on the environment.

Energy Efficiency:

The company will make use of energy-efficient technologies, such as LED lighting and low-energy appliances, in its retail locations and administrative offices. Besides, more effort will be applied to minimizing energy utilization through the regulation of the heating, cooling, and lighting of the facility.

Sustainable Production:

Earthly Elegance will source materials for its products from sustainable suppliers who use environmentally friendly processes in the production of fabrics and accessories. This entails, for instance, employing organic cotton, recycled polyester, and natural dyes, all of which are less destructive to the environment than traditionally produced fabrics. The company will also arrange partnerships and contracts with manufacturers to guarantee that their production will be energy-saving and environmentally friendly.

Carbon Offset Program:

Earthly Elegance will offset its carbon emissions by investing in renewable energy projects and other environmental initiatives that help to balance the impact of the company’s operations. It will form part of the lengthy process towards the company achieving carbon neutrality in the long run.

References
Awais, M. A. (2023). Impact of Retail Layout and Design on Retail Business. Pmanagement Studies, 55-71. https://pmanagementstudies.com/poms/index.php/poms/article/view/30/30
Charles, N., & Jackson, N. (2021). Influence of Electronic Point of Sale on Inventory Optimization in Major Supermarkets in Nairobi City County, Kenya. Journal of Procurement and Management, 633-653. https://grandmarkpublishers.com/journals/42711Ndegwa%20Charles
Gicale, R. A., & Dasargo, C. D. (2022). GREENPOS: Electronic Receipt Issuance Using Android App for Online Sale. https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=4070270
Go, D. (2021). Improving inventory management to increase profitability. Doctoral dissertation. https://dspace.mit.edu/bitstream/handle/1721.1/139147/go-debcgo-mba-mgt-2021-thesis ?sequence=1&isAllowed=y
Ilag, B. N., & Sabale, A. M. (2022). Microsoft teams overview. Troubleshooting Microsoft Teams: Enlisting the Right Approach and Tools in Teams for Mapping and Troubleshooting Issues, 17-74. https://doi.org/10.1007/978-1-4842-8622-7_2
Khan, M. A., Akter, M. S., & Islam, R. (2024). Big Data Analytics And Predictive Analysis In Enhancing Customer Relationship Management (CRM): A Systematic Review Of Techniques And Tools. Journal of Machine Learning, Data Engineering and Data Science, 83-99. https://doi.org/10.70008/jmldeds.v1i01.44
Kondo, K., & Vicente, Â. J. (2023). The Coordination Imperative: A Comprehensive Approach to Align Customer Demand and Inventory Management for Superior Customer Experience in Retail. Doctoral dissertation. https://dspace.mit.edu/bitstream/handle/1721.1/152447/kondo-kochiro-mba-mgt-2023-thesis ?sequence=1&isAllowed=y
Mohamed, A. E. (2024). Inventory Management. https://doi.org/10.5772/intechopen.113282
Murthy, C. V., Shri, M. L., Kadry, S., & Lim, S. (2020). Blockchain based cloud computing: Architecture and research challenges. IEEE access, 205190-205205. https://doi.org/10.1109/ACCESS.2020.3036812
Onuotu, R. N., & Amaewhule, W. A. (2024). Influence of Automated Accounting System on Payroll Preparation of Small and Medium Scale Enterprises in Rivers State. Rivers State University Journal of Education, 212-220. https://rsujoe.com.ng/index.php/joe/article/download/217/186
Walizad, M. N. (2023). The Impact of Digital Marketing Strategies on the Growth of SMEs (based on OÜ Partnerway). Doctoral dissertation. https://elib.uacu.edu.ua/xmlui/bitstream/handle/123456789/121/BQW_Walizad ?sequence=1&isAllowed=y

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Operations

Brief Overview

Earthly Elegance is a luxury self-care business based on sustainability, providing organic shampoos, conditioners, face and body wash, deodorants, and makeup removers at the same time affordable. We offer a line of products that incorporates natural elements together with scientific advancements for health and eco-friendliness.

Facilities

In

 

order to have easier access to the distribution and major consumer areas, we currently operate out of a rented commercial space in one of California’s industrial areas. It costs roughly $3,000 a month. Utility costs are estimated to be $75 for water and sewer, $50 for gas, $200 for electricity, and $75 for waste disposal each month. The location is suitable for operations because it is easily accessible to suppliers and other transportation networks, which minimizes the cost of obtaining raw materials and diluting production costs (Cristini et al., 2022).

Production Process/Description of Business Operations

Purchasing basic organic ingredients, making mixtures, packing goods in containers, and conducting inspections are all part of Earthly Elegance’s production process. Small-scale blending and filling equipment is available, and its installation costs roughly $15,000. Our environmentally friendly and recyclable packaging costs about $800 a month. Additionally, we test batches and follow quality standards throughout the production process to ensure that the end product is of the highest quality and consistency (Alevizou, 2022The company only purchases raw materials for its operations in advance of demand, so it won’t buy more than it will use in a given month. Stock control means JIT adopted, which involves avoiding the holding of excess inventories.

 

Personnel Needs

Eight people work for the small, low-rise company: a production manager ($5,000), a quality control specialist ($4,000), three production workers ($3,000 each), and two packers ($2,000). Additionally, we have a $4500 monthly marketing and customer service specialist who manages online orders, customer inquiries, and the company’s social media accounts. The team’s organizational structure is adaptable and effective for handling daily tasks and client interactions, guaranteeing that we offer our clients excellent services and high-quality products.

Earthly Elegance wants to satisfy the rising demand for environmentally friendly self-care products while keeping a small, customer-focused business by emphasizing sustainable practices and effective procedures.

 
 

References

Alevizou, P. J. (2022). Sustainability claims in the luxury beauty industry: An exploratory study of consumers’ perceptions and behavior. In Sustainable Luxury: An International Perspective (pp. 173-196). Cham: Springer International Publishing. 

https://doi.org/10.1007/978-3-031-06928-4_9
Links to an external site.

Cristini, H., Kauppinen-Räisänen, H., & Woodside, A. G. (2022). Broadening the concept of luxury: transformations and contributions to well-being. Journal of Macromarketing, 42(4), 673-685. 

https://doi.org/10.1177/02761467221116779
Links to an external site.

Company Description and SWOT Analysis

BUS599 – Strategic Management

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024 Strayer University. All Rights Reserved. This document contains confidential and proprietary information about Strayer University. It may not be copied, further distributed, or otherwise disclosed in whole or in part without the expressed written permission of Strayer University.

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Company Description and Mission Statement

“Earthly Elegance,” a for-profit business, will provide self-care items that are made sustainably and with minimal impact on the environment. Earthly Elegance is a fitting name for the company, since it embodies both its mission and range of offerings. Customers can deduce the backstory of our products’ meticulous manufacturing without sacrificing sustainability and quality from the company’s name. The company’s name is derived from two words: “Earthly” represents the relationship our company has with nature, and “Elegance” denotes self-care.

We at “Earthly Elegance” provide an extensive selection of reasonably priced self-care items. Earthly Elegance is dedicated to offering organic personal care products that minimize their negative effects on the environment while prioritizing delightful client experiences. These personal care products will be made using natural, biodegradable raw ingredients in our production. Our goal is to satisfy our target market’s changing demands and tastes while providing the best personal care products possible.

The business will first present the following product lines:
a) A range of formulations, including options for hydrating, volumizing, and accommodating sensitive or complicated scalps, will be available for organic shampoo and conditioner.
b) A variety of formulas for face and body wash will be available, each catered to the needs and preferences of the consumer. Strictly forbidden from using any chemicals, these goods will only be made using natural raw materials. Because there won’t be any foam from the face wash, the skin will stay smooth and fresh for longer. Extensive research on various skin types will be carried out to ensure that our products yield positive outcomes.

c) To improve our clients’ everyday experiences, we will be introducing natural fragrances made from fruit and flower extracts.
d) In an effort to protect our valued clients’ skin, we will add makeup removers and skin care wipes to our assortment of personal care accessories.

e) Natural deodorants will be offered in stock and cream forms. They are made with fruit and flower extracts to give a pleasant feeling.

Our start-up’s initial product line will focus on offering a variety of self-care products. Our objective in developing an extensive range of items is to establish ourselves as the go-to destination for customers seeking personal care solutions. Depending on consumer feedback and sales performance in the first quarter following our launch, we intend to expand our self-care offerings with additional products.

“To create luxurious yet affordable self-care solutions that respond to consumers’ dynamic needs without compromising on environment sustainability” is the stated objective of the for-profit business. Self-care at Earthly Elegance is a means of achieving self-expression and confidence. We have combined natural ingredients with extensive research to create unique personal care products that empower people and increase their classic appeal. In today’s market, consumers emphasize environmental responsibility and are becoming more aware of the effects of their purchases. As a result, we provide them with environmentally conscious and self-care products that are sustainable and organic.

Our Mission Statement

“Nurturing People, Planet, and Beauty: One Sustainable Step at a Time.”

Our goal at Earthly Elegance is to completely transform how we take care of the environment and ourselves. Since we think that sustainability and beauty go hand in hand, we’re committed to making personal care products that are both environmentally friendly and will make you feel amazing.

Our promise

1. Using only the best, environmentally friendly materials, we will create products that are as kind to the environment as they are to your skin.

2. We’ll be creative and enlightening, always looking for fresh approaches to lessen our environmental impact and encourage others to follow suit.

3. We’ll create a community of people who are enthusiastic about coexisting with the environment and enable our clients to make decisions that are environmentally friendly.

This mission statement conveys the company’s dedication to sustainability and eco-friendliness while also being amiable, upbeat, and inspirational. It aims to resonate with clients who share the company’s values and inspire and energize the staff.

Trends in the industry

Customers monitor the manufacturing process of personal care items because they are aware of the impact these products have on their skin. Hygiene, sustainability, and individualized care solutions are highlighted in the latest personal care market trends. In the personal care sector, sustainable hygiene and self-care are becoming more popular as consumers become more conscious of their environmental impact and gravitate toward eco-friendly products. Customers are taking note of the sustainability principles that self-care companies uphold.

A recent study by Nosto indicates that 68% of consumers search for goods that are promoted and branded as “clean,” and 59% are swayed by goods that are described as “natural and organic.” According to Imarc (2024), the personal care and beauty products market is expected to reach a valuation of US$59.3 billion globally in 2023 and is expected to expand to US$132.7 billion by 2032. Numerous self-care companies are entering the market with the promise of producing and supplying sustainable, natural, and organic self-care goods. One of the biggest trends in the personal care sector is the emphasis on natural and organic self-care products. A recent poll found that 55% of consumers are prepared to pay more for organic and sustainable self-care products, and 65% of consumers are searching for brands that practice environmental responsibility (Howarth, 2024).

“Biotech innovations with a focus on sustainability,” the second trend in the self-care business, encourages scientists to identify natural beauty compounds and recreate them in labs to prevent natural ingredients from being destroyed or distinguished. This trend, which combines science and nature, seeks to meet the ever-evolving requirements of self-care without sacrificing sustainability (Howarth, 2024). In an effort to introduce sustainable ingredients and products to the market, a large number of skincare companies are testing this trend. International beauty firms like Unilever have taken notice of the biotech movement.

Furthermore, diversity and inclusivity are highlighted in the third trend in the self-care sector. Customer demand shifts to allow businesses to sell their products to a wider range of demographics. Enhancing customer trust in products can be achieved, for instance, by casting plus-size models and dark-skinned models with diverse sexual identities. It is no longer logical to test skin-care products on models with fair skin since customers already know the changes they desire. According to 43% of self-care industry customers, they like many types of attractiveness in advertisements. Dark-skinned people can benefit from this trend because they still need to choose a personal care brand that works for them. Brands’ market reach will also be increased by using models with darker skin tones (Howarth, 2024).

Strategic Position

The strategic position of our organization in the target market is known as the “differentiation strategy.” At reasonable costs, Earthly Elegance provides personal care products made with biodegradable raw ingredients without sacrificing sustainability or quality. This sets the business apart from its rivals in the personal care sector. “Natural and organic personal care products at affordable prices” is how the business set itself out from its rivals and hopes to dominate the market. Because established personal care brands offer pricey natural and organic self-care products, or vice versa, this would be the ideal positioning for Earthly Elegance.

In addition, our business is providing both in an effort to draw in additional clients. The business will differentiate itself from the competitors by putting this strategic position into practice. The business will successfully draw in more customers and maintain profit margins by providing reasonably priced natural and organic personal care goods (Laja, 2023).

Distribution

Earthly Elegance plans to use an online e-commerce platform to reach its target market and distribute its products. We want to employ social media platforms for marketing in addition to the e-commerce site. The e-commerce platform will make things available, let customers reserve products, and use the email to keep track of product availability. This platform was chosen to provide clients with ease and convenience. Online purchasing has become more popular over the past ten years and is predicted to continue. Recent estimates predict that by 2028, worldwide e-commerce revenues would total $58.75 trillion (Taheer, 2024). As a result, using this distribution strategy will give customers access and maintain sales growth.

SWOT Analysis

Strengths

1. Focus on environmentally friendly products
2. Use of natural, biodegradable materials
3. Strong emphasis on sustainability
4. Committed to transparent marketing

Weaknesses

1. Higher production costs for organic ingredients
2. Limited initial product line
3. Lack of brand recognition
4. Limited marketing budget

Opportunities

1. Growing demand for eco-friendly products
2. Increasing consumer awareness of sustainability
3. Expansion into global e-commerce markets
4. Potential for product line expansion based on customer feedback

Threats

1. Intense competition in the personal care market
2. Risk of supply chain disruptions for organic materials
3. Potential regulatory changes regarding natural products
4. Economic downturns impacting consumer spending

Earthly Elegance’s sales may be significantly impacted by the opportunities that the SWOT matrices revealed. For instance, demand for eco-friendly items will increase as more consumers place a higher value on sustainability when making purchases. The company emphasizes natural and environmentally friendly ingredients throughout manufacture, capitalizing on the current trends in the sector. The corporation can guarantee access to new international markets to increase sales and target large customer leads, given the expanding worldwide e-commerce sales. Additionally, the business may enhance its product range in the future by collecting newsletter responses from customers and listening to their input.

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Sources

Howarth, J. ( May 23, 2024). The top 6 trends in the beauty business for 2024 and 2025.Exploding Subjects.Trends in beauty: https://explodingtopics.com/blog/

Imarc. (2024).Market size for personal care and cosmetics items online: 2032. The global online beauty and personal care products market is expected to reach $9.1% of total revenue in 2022–2023.

P. Laja (2023).Differentiation strategy: definition, importance, and best practices. CXL. taken from https://cxl.com/blog/differentiation-strategy/amp/ on October 16, 2024.

Taheer, F. September 9, 2024.Statistics on internet shopping: How many people will purchase online in 2024?Online buying statistics can be found at https://optinmonster.com/. OptinMonster

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BUS599 – Strategic Management

Executive Summary Examples

Example 1

Company Description:

The Company name is Sherry Lee’s Mac N Cheese LLC, this is a family established small business restaurant, as we only have one restaurant location; however, we also have a food truck available for events. We sell different varieties of deep-dished macaroni and cheese and other foods such as smoke ham, smoked turkey legs, fried chicken, different sides and desserts.

Mission Statement:

Sherry Lee’s Mac N Cheese LLC’s mission statement, “Our mission is to bring the best deep-dish macaroni and cheese to your home, providing food that creates happiness, joy for the palate, and appetite fulfillment for any occasion through integrity, family atmosphere, and authenticity.

Stage and Development:

Our company is a startup business which was established in January 2021. As of January, we have already started selling our food products out of our Lithonia, GA location. projecting to make $68,178 in nets sales in the first three months of operation.

Products and Services:

Along with offering outstanding customer service, our business sells different varieties of deep-dish macaroni and cheese and other foods such as smoke ham, smoked turkey legs, fried chicken, different sides and desserts.

Target Market:

Lower middle to upper class consumers, ages 17-43, and lower middle to middle class families; moreover, our secondary market is college students and African American consumers.

Marketing and Sales Strategy:

Our plan is to attract customers who want a quick meal with gourmet restaurant quality, and not as expensive, but do not have time to dine-in, or simply just do not want to go in a restaurant due to the current pandemic. Families looking to get a good family sized meal on the go.

We will advertise through flyers, radio, social media applications, direct mail, and websites.
Competitors and Market Distribution:

We are aware of other restaurants, in our area, that sell similar food products on their menu as we do. Prior to entering the market, our business has identified all possible competitors within our restaurant location, what our competitive basis is, and how we compare to our competition. Our market is divided Caribbean, Mexican, and American food dine-in restaurants, and fast-food restaurants.

Competitive Advantages and Distinctions:

Our company will compete successfully through efficiently serving the best tasting soul-food fast which will be gourmet restaurant quality, yet affordable, and our business will use the most up to-date and effective technology software and electronic systems for operations of the restaurant.

Management:

Management positions are Chief Executive Officer (CEO)/President, Chief Operating Officer (COO), and Marketing/Sales Director. There are 30 total years of management experience and leadership between personnel in management positions.

Operations:

Our business will operate out of an office suite space located in a Stonecrest, GA plaza which is 1,500 square feet. The space will be on a three-year rental lease which will cost us $30,000 per year. All of the necessary utilities needed to operate the business will be water and sewer, gas, electricity, and trash removal. The approximate costs for these utilities will be $215 per month.

Financials:

Year 2021 Net Sales/Net Profit- $907,005/$71,096 Year 2022 Net Sales/Net Profits $1,321,006/$208,120 Year 2023 Net Sales/Net Profit- $1,978,528/$449,658

Funds Sought and Utilization:

Our company is seeking $135,000 in equity capital investments for a 20% share of the company. Funds raised will go towards equipment and expanding the number of employees.

Example 2

The Company

Special Angel’s Agency Services (SAAS) is an Applied Behavior Analysis (ABA) Agency.

SAAS offers ABA therapy services in three different settings: In-Home, Online, and In-Office. The target audiences are the parents of children with autism spectrum disorder (ASD) who live in Dublin, Ohio. The service focuses on breaking patients’ goals into mini achievable tasks to help them become independent, increase language and daily skills, and ultimately decrease harmful behaviors. Children diagnosed with autism rates are increasing, and the treatment market is growing with estimates at $1.85 billion for 2016 and expected to grow 3.9% annually.

The Mission

“Our mission is to provide unique and custom ABA therapy services to autistic children and improve their family member’s lives. SAAS is committed to the highest quality of services that we coordinate with the school curriculum to personalize Individualized Education Program (IEP) to achieve positive changes in children’s daily skills and educate family members with skills and knowledge to enhance their daily living”.

Product and Services

SAAS specializes in ABA therapy services to help autistic children and their families. The service focuses on breaking children’s goals into mini attainable tasks: self-care, daily social skills, and academic assistance. There are three ways that the service is delivered: In-Home, Online, and In-Office.

Marketing and Sales Strategy

SAAS’ approach is more personalized to each student’s needs. The agency employs quality certified staff who primarily interface face-to-face between the school and the target market parents. The company has a diverse Online marketing strategy that includes advertising its website, 89.7 NPR News FM Radio Station, exhibiting autism events and trade shows, and continuing active Facebook SAAS page.

The Competition

Haugland Learning Center, Hopebridge Autism Therapy Center, and Ability Matters are existing competitors. They have substantial financial assets which are highly striving with creativity management’s style. SAAS maintains the following advantages over these potential competitors; an increasing reputation for delivering highly effective ABA therapy customized to each child’s needs and outstanding customer support.

Target Market

SAAS’s target audiences are the parents of children with autism who live in Dublin, Ohio, ranging from 26 to 54, and obtain an average household income of $131,23.00 to $198,516.00. The children’s ages range from 3 to 21 before they exit school.

Management

The key management personnel are the owner and CEO who has over twenty years of experience overseeing autistic day-to-day operations companies by ensuring employees, clients, and children’s therapy success. Office Manager is the second key manager who has obtained a business degree in finance and has over ten years of intensive healthcare industry experience, handles human resource tasks, and manages public relations interacting with school intervention specialists. Also, there are three business advisors: Business Mentor, Legal Expert, and Investment Advisor.

Operations

The current SAAS employees include the company’s owner and CEO, One Office

Administrators, three ABA therapists, and one Behavior Coordinator. By the end of the second year, SAAS plans to expand to one Office Manager, two Office Administrators, five Behavior Coordinators, and twelve ABA therapists.

Stage of Development

SAAS began operations in Jan. 2021 and opened its first Online class therapy in Feb. 2021. Financials. SAAS’s financial strategy stresses reinvesting income for growth during the first two years of operation. The company intends to reach a capacity of 1 million by the end of the second year. The projected net profits are $119,315 for 2021 and $290,937 for 2022.

Funds Sought and Utilization

The company plans to raise funds of $50,000 from Venture Capitalists’ investors with a 5% equity giveaway in exchange for the funds. These funds will be used to expand company marketing and advertising on TV and social media Twitter. The remaining $30,000 to develop SAAS’s full and half a day fun summer program.

Example 3

The Company

KS Credit & More, LLC provides consumers with tools and assistance with handling all of their financial needs. We offer credit repair services, tax solution services, money management, as well as small business start-up services. All of the listed services are available within one company, providing yet another convenience for our clients.

Mission

Our mission is to educate individuals on how to gain control of their debts and maintain their debts. We aim to help people understand how their credit works, and how to repair it and keep it in a safe zone. Consumers have to file taxes on a yearly basis and companies on a quarterly basis and we are here to ensure these services are done correctly. We aim to ensure that once a consumer decides that they would like to gain financial freedom, or make the purchases they have always dreamed of, that goal is reached.

Product and Services

The services currently being offered are credit repair, individual and corporate tax returns, money management (budgeting, financial guidance, planning, investing), and small business start-up.

Marketing and Sales Strategy

We will market and advertise through many channels (local radio, tv ads, community events, and more). We will stand out because our strategy is to build genuine relationships with our clients. We work truthfully and with integrity. We are able to provide our customers with face-to-face interactions and provide a plan that gives options. Our customers always feel included in the services being provided for them.

The Competition

The competition we will encounter will come from companies such as Lexington Law and Edward Jones. What we provide that these companies are unable to provide is physical relationships. Our customers know who they will be working with each time they are getting assisted. They know who they are following up with, rather than getting a different person each time and holding while yet another person is researching their notes. Other than other small startup companies offering the services, KS Credit & More is the only place a client can get multiple services provided to them at one time.

Target Market

We are open and available to anybody that can use our services. We are specifically targeting people that range from the age 30-65 and have an income of at least $20,000. These are the only specifics regarding our target market.

Management

Management includes the CEO, which is me. We have 2 Client Support Representatives that work directly with determining the needs of the customers. A Marketing Support Agent has been employed to help with marketing, advertising, and community events.

Operations

We provide customer service so well that if we cannot provide what our clients need, we are willing to refer them to those who we believe can help them. We work based off knowledge, integrity, and confidence.

Stage of Development

KS Credit began operating as a home-based business in November 2019 and opened its first facility in January 2021.

Financials

Other than needing an initial investment, KS Credit & More, LLC will not need further financing. We are using most of the funds to develop our own software that we can run once our contract is up with the 3rd party we are using. We show profits beginning at $439,566 in year 1, $428,732 in year 2, up to $1,598,926 in year 5. All loan debt will be paid by the end of year 1.

Funds Sought and Utilization

We are seeking $120,000 to assist with developing our own software and providing training for the software, as well as achieving more marketing vehicles for the company.

© 2022 Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of Strayer University.

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