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Follow all the assignment instructions to complete the Business plan. A sample format is attached.
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INSTRUCTIONS:
1. This is an individually written assignment.
2. Please use New Times Roman font 12 when type-writing your assignment, 1.5 spacing.
3. This assignment carries 80% towards your final assessment.
4. Word count: 2000 + financial projections, Reference: APA.
QUESTION:
You are a business consultant to a small size trading company in Malaysia. The company is
interested to expand its business to USA. The industry is depending on your own interest.
Prepare a comprehensive business plan focusing on its business potential in that new market.
***END OF QUESTION***
Business Plan
ABC Furniture Sdn Bhd
Business Expansion to the USA
No 123, Jalan ABC,
12345 Kuala Lumpur
03-987654321
[email protected]
www.abcfurniture.com
1.0 Executive Summary
ABC Furniture Sdn Bhd, a small-sized furniture trading company with a big vision in business
based in Malaysia, is seeking to expand its operations to the lucrative market of the United
States. With a solid reputation for providing high-quality, stylish, and affordable furniture, the
company aims to capitalize on the growing demand for unique and well-crafted pieces in the
USA.
1.1 Company MOTO
Empowering Homes, Enriching Lives
1.2 Vision Statement
Our vision is to be the foremost provider of exquisite and innovative furniture solutions that
transcend the ordinary.
1.3 Mission Statement
To enhance the living spaces of our customers by offering a diverse range of high-quality and
affordable furniture, while consistently delivering exceptional customer service.
1.4 Company Background
ABC Furniture Sdn Bhd was established in 2001 and has since become a recognized player in
the Malaysian furniture market. Specializing in solid wood furniture, the company has built a
reputation for its commitment to quality, innovative designs, and customer satisfaction.
1.5 Products and Services
Our product range includes all types of solid wood furniture, designed to cater to various tastes
and preferences. In addition to providing furniture, we offer customization services to meet the
unique needs of our customers.
1.6 Business Objectives
i.
Market Penetration: To establish a strong presence in the USA furniture market
within the next three years.
ii.
Product Diversification: To introduce new product lines tailored to the preferences
of the American consumer.
iii.
Operational Excellence: To streamline logistics and supply chain processes to
ensure efficient and timely delivery.
iv.
Brand Recognition: To build brand awareness through strategic marketing
campaigns and partnerships.
1.7 Management Team
(Kindly refer Appendix 1 for our Management Team)
2.0 Market Analysis
USA Furniture Market Overview
i.
Size and Growth
The USA furniture market is a substantial and growing industry, with an estimated
value of USD62 billion in 2023. The demand for stylish, durable, and affordable
furniture continues to rise, presenting a significant opportunity for new entrants.
ii.
Trends and Preferences
Consumer preferences in the USA include a preference for eco-friendly materials,
space-saving designs, and customizable options. Keeping abreast of these trends
will be crucial for ABC Furniture Sdn Bhd to gain a competitive edge.
iii.
Competitive Landscape
Key competitors in the USA market include Woodland, Delta, and Alpha.
Understanding their strengths and weaknesses will inform ABC Furniture Sdn
Bhd’s strategy for differentiation.
3.0 SWOT Analysis: Furniture Expansion to USA
a. Strengths:
Quality Craftsmanship: ABC Furniture Sdn Bhd is renowned for its commitment to
producing high-quality and durable furniture, giving us a competitive edge in a market that
values craftsmanship.
Diverse Product Range: Our extensive range of furniture products, allows us to cater to
various preferences and trends in the diverse American market.
Established Brand in Malaysia: The positive reputation and brand recognition earned in the
Malaysian market provide a strong foundation for a successful entry into the USA market.
Customization Services: Offering customization options enables us to meet the unique and
evolving preferences of American consumers, enhancing our appeal in a market that values
personalization.
b. Weaknesses:
Limited USA Market Knowledge: Lack of in-depth understanding of the American market
dynamics, consumer behaviour, and regional preferences may pose challenges in tailoring our
products and marketing strategies effectively.
Logistical Challenges: Managing an efficient and cost-effective supply chain, dealing with
customs regulations, and establishing distribution channels may present initial logistical
hurdles in the new market.
Brand Recognition in the USA: Despite our success in Malaysia, building brand awareness
in a new market requires significant investment and strategic marketing efforts.
c. Opportunities:
Growing Furniture Market: The USA has a substantial and growing furniture market,
presenting a significant opportunity for expansion and increased revenue.
E-commerce Growth: Leveraging the increasing trend of online furniture shopping allows us
to tap into a broader consumer base and adapt to changing retail landscapes.
Sustainability Trend: The rising interest in sustainable and eco-friendly products aligns with
our commitment to quality and could be a unique selling point in the American market.
d. Threats:
Intense Competition: The USA furniture market is highly competitive, with well-established
local and international players. Competing with established brands requires a strategic and
differentiated approach.
Economic Factors: Economic downturns or fluctuations in consumer spending habits can
impact furniture purchases, posing a risk to our sales projections.
Regulatory Compliance: Stringent regulations regarding safety standards, environmental
considerations, and import/export regulations may pose challenges and require thorough
compliance efforts.
4.0 Marketing and Sales Strategy
a. Target Market
We had identified and target specific customer segments within the USA market, such as urban
millennials, homeowners, and interior designers. Tailor marketing messages to address their
unique needs and preferences.
b. Marketing Channels
We would like to utilize a multi-channel marketing approach, including online platforms, social
media, partnerships with influencers, and participation in trade shows and furniture exhibitions.
c. Sales Strategy
We will implement a direct-to-consumer (DTC) model through an e-commerce platform,
complemented by partnerships with established furniture retailers in key cities.
5.0 Operations Plan
a. Supply Chain Management
we wish to establish relationships with local and international suppliers to ensure a steady and
cost-effective supply of raw materials. Implement efficient inventory management systems to
prevent stockouts and minimize storage costs.
b. Distribution
We will explore partnerships with local logistics providers in the USA for timely and costeffective delivery. Establish distribution centres strategically to reduce shipping times and costs.
c. Regulatory Compliance
We are fully understanding and comply with regulations related to importing and selling
furniture in the USA. This includes adherence to safety standards and environmental
regulations.
6.0 Financial Projections
a. Revenue Projections
We foresee and projected a positive growth in our financial projections for the next three to
five years, taking into account market trends, marketing strategies, and operational costs.
Include break-even analysis and return on investment projections.
b. Funding Requirements
We also present take into all the consideration of the amount on funding required for the
expansion, outlining how the funds will be utilized for marketing, operations, and other
relevant areas.
c. Risks and Contingency Plans
We had identified potential risks such as economic downturns, supply chain disruptions, and
regulatory changes. Develop contingency plans to mitigate these risks and ensure business
continuity.
(Kindly refer to Appendix 2 for P&L Projection 2024 – 2026)
7.0 Conclusion
In conclusion, ABC Furniture Sdn Bhd is well-positioned to successfully enter and thrive in
the USA furniture market. By focusing on quality products, strategic marketing, and efficient
operations, the company aims to become a key player in the industry. This business plan serves
as a roadmap for the successful expansion of ABC Furniture Sdn Bhd into the USA market,
and we are confident in our ability to achieve our objectives and deliver value to our customers.
APPENDIX
Appendix 1
ABC Furniture Sdn Bhd Management Team
Appendix 2
ABC Furniture Sdn Bhd Projected Profit and Loss for the next three years (2024 – 2026)
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