Analysis of E&A Stationery Shop Company

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23 November 2021

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Strategy, Aims & Objectives

Objectives have to be created according to the SMART acronym. Specific: The business has the objective to extend its gross sales by November since that is when the Term 1 starts for universities. Measurable: From the start of the business (July) enhance the sales by 3 times until November Achievable: The goal of the business (to increase sales till November) is achievable, since it is the time period when the Term 1 starts for both universities, and it might be essential for them to buy stationery.

Realistic: The resources the company owns would allow the corporate to truly reach their goal of increasing it’s sales. Time-specific: As stated before, the enterprise has the target to extend its sales by 3 times from the interval of beginning the business (July) till November. The enterprise strategy of E & A Stationery shop is to sell low-cost stationary, which would be obtainable to any scholar from the Lancaster University and University of Cumbria.

However, on the same time the E & A stationary must hold their high quality underneath management, and poor quality products are not appreciated by most of the students.

Organizational construction and HR

No employees could be employed simply yet, because the enterprise will just start-up and will not have massive amounts of revenue to afford using others. The two companions might be running the business by themselves. The companions would principally be motivated to work by the revenue, since it’s the driving purpose of opening up the enterprise, so motivation just isn’t an issue to contemplate but.

As a well-known American businessman Robert Kiyosaki said: “Passion is the begging of success.” and we’re passionate and optimistic on the start of our enterprise.

Financial plan and legal structure

Partnership, since it’s simpler two arrange in case of two individuals opening up the business, rather than an ltd. ltd might require extra costs and a company tax, while partnership is simple to set up (no any difficult paperwork), and doesn’t require a cost of company tax (only revenue tax of 20%) However, partnership could be worse off than the private limited business, since in that case the business and the house owners are the same authorized identity, and they are the guarantors of any risks, i.e. they would have to pay any banks loans again from their own capital if the business makes a loss or goes bankrupt. Financial Plan is an funding of private funds, 8000 GBP from every of the partners.

Cash flow forecast may be seen below. All figures are in GBP.

Based on the money flow forecast, we will see that there is fixed pattern of constructive closing stability ranging from November. The enterprise closes its October month with a unfavorable closing stability as a result of a excessive price of promoting, nevertheless the gross sales increase continuously, because the retail outlet will get extra clients, and by the tip of June the enterprise is estimated to have a 2016 GBP closing steadiness. Furthermore, the annual lease of the enterprise is split into the 12 month time interval, as it is extra preferable for the business to pay it that means. However, the cash circulate forecast has a few drawbacks.

Firstly, it is not very dependable, because the numbers are simply estimates, even though some of them have been found from real places (e.g. utility bills). The forecast ignores all of the qualitative factors. Stock of 2000 GBP will be bought each month, except from the primary two months, when the enterprise will purchase uncooked supplies of 3500 GBP in July as it has simply began up and will need inventory, since it will be working under JIC, which may also be utilized in August with further purchase of raw materials of 500 GBP.

SWOT analysis

Strengths: * Located on King Street (city centre) in Lancaster, which is a pupil city, i.e. there is a giant inhabitants of scholars * Cheaper prices than in other stationery shops in Lancaster, which is helpful for the students * Vouchers given to the scholars, which is in a position to encourage further gross sales * Facebook page will maintain the potential customers informed concerning the promotions upcoming * The two factors above might improve loyalty for the customers, which may lead to an increase in sales for a further period of time| Weaknesses: * Already present competitors in Lancaster. * There is no buyer base established, due to this fact some cash ought to be spent on the promoting of the shop| Opportunity: * If the shop’s gross sales improve and it has a great popularity, a possibility to open an on-campus retail outlet may be considered| Threats: * The present competitors may have an already existing customers base, the place the customers may be loyal to the enterprise and nonetheless buy their products instead|

Operations planning

* The suppliers of the business might be manufacturers of stationery merchandise in China. The cause to decide on this supplier is as a outcome of the merchandise available in China are at cheaper prices, which can give E & A Stationery store the opportunity to sell their merchandise at cheaper costs. * The products might be bought in bulk from the suppliers, which can give the enterprise the opportunity to realize a bonus over the economies of scale, and yet again sell the merchandise at low-cost prices * The only downside that may happen with the suppliers is the supply occasions, nonetheless if the time is managed effectively, there might be no issues.

Marketing planning

Target Market: Students of Lancaster University and University of Cumbria, as nicely as students from primary/secondary/high schools. Products: Pens, pencils, pencil cases and accessories, notepads, post-cards, diaries and calendars, recordsdata and folders, residence and workplace decors. Pricing: Pricing strategy of this retail outlet might be a market based pricing technique. Promotional pricing is the best suited to opening up a enterprise of this sort, since this pricing strategy supports an opening of a new retailer. This technique will help E & A Stationery retail store to gain market share and enhance gross sales (it will assist the achieve the target of accelerating the sales by thrice till November) with low costs. Low prices would even be helpful for the university college students, since in that case all of them will be ready to afford the merchandise of the E & A Stationery store.

Secondly, the business is contemplating utilizing the psychological pricing technique, since it is very common for retailers to set the necessary thing value ranges in order to make the prices seem lower than it’s. Promotion: Above the road promotion will be accomplished by the enterprise, by method of advertising, which will be informative (giving info to the potential customers). The advertising costs are included in the cash move forecasts. It will help the enterprise to spread the word about its existence in Lancaster metropolis, which will hopefully result in larger gross sales. Below the line promotion may also be done. It will be in the form of giving the students, vouchers and coupons, e.g. getting a voucher of 5 pounds in case of shopping for merchandise of more than 30 pounds on the identical time. Furthermore, the enterprise is planning to create a Facebook page, which will certainly help them to increase its popularity. Students shall be invited from both of the universities will be invited to the Facebook page.


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  2. Energy Price Comparison Service powered by UK Power [online] Available at [08 November 2012]
  3. 1 January 2012. Lancaster Online 2012 Advertising Options [online] Available at [08 November 2012]
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