Zara and Vilna Café Business Plans Comparison

Both Zara Fashion House and Vilna Café will take advantage of technological advances compared to the Student Studio. Zaria expects increased sales due to increased online shopping. Meanwhile, Vilna installs WiFi servers and air conditioners to meet the demand of customers for internet service and fresh air with a cup of coffee. The requirement for previous work experience is a significant business opportunity for Student Studio. This is different for Zaria and Vilna. Zarya business relies on constraining disposable income of the consumer that would force them to shop for cheaper apparel alternatives while Vilna Café targets high demand for a cup of coffee after work and classes among the office workers and students respectively.

In the Zaria business, there is a great need for cheaper clothes due to low disposable income and consumer confidence. The business will also stock high-quality and varied products, and improve continuously to be competitive (Stevenson and Hojati 2007, p. 76). Moreover, Zaria will rely on online buyers and physical retail stores to make good sales to sustain the business. Therefore, there is a good business opportunity for Zaria Fashion House to succed.

The target customers in Vilna business have recognized the need to have a cup of coffee after work and classes for rejuvenation. Further, there is a significant need for café shop that offers varieties of coffee and advanced services at affordable prices in Mascot Town (Ozgen and Baron 2007, p.184). They will enhance customer’s experience by providing fresh air, the internet and quality services. Therefore, it is a great business opportunity.

Student Studio intends to meet the great need of prior relevant job experience in the labor market. Further, the business has a variety of education services where the students can choose to engage themselves (Gunasekaran et al. 2008, p.558). However, some students might not afford the services, and therefore, this business might not survive.

Sales and Marketing Strategies

In all the three business plans, there is an intention of using price, people, and promotion and place (4P’s) marketing strategies to attract and retain their customers. Further, on the implementation of the promotional strategies, all the enterprises will be using social media for advertisement and engagement of its clients to promote their businesses.

However, Zaria business is intending to utilize multiple channels of distributions to reach their customers, which is different with Vilna and Student Studio, as Vilna will only sell within its outlets while Student Studio will only target urban learners. Further, Zaria and Vilna businesses have a designated sales and marketing workforce while Student studio does not have a task force to deal with such activities.

Stocking variety and high-quality clothing line for all genders, age and social groups and catering for their unique needs and preferences of will attract and retain more customers leading to high sales. The use of online shopping and social media will enable the business to reach potential market segments (Agatz et al. 2008, p.343). Therefore, this Zaria‘s sales and marketing technique plan effectively.

The use of social media platform and provision of loyalty cards and gifts will help promote the business. Selling variety coffee and tea products and lowering their prices will enable the company to widen its market segment (Nath et al. 2010, p.321). Further, the business will be strategically located, will enhance massive inflow of guests. Therefore, this is an ideal sales and marketing strategy.

Reduced fees for first-year learners will make it attract customers for Student Studio business. Advertising using Facebook will attract more customers because students are primary social media users (Vinerean et al. 2013, p. 68).The target market is viable because most of the urban families value education and they afford other training programs for their children, which makes this marketing and sales strategies to be ideal.

Operational Strategy

In all the business plans, there is an application of functional organization structure with the Chief Executive Officer (C.E.O) to be the head of the entire operations of the venture, and he/she will receive assistance from the departmental managers. Further, all the businesses are having intentions of hiring professional subordinate staffs to assist in the daily routine operations.

Zaria Fashion House and Student studio are both likely to experience operational challenges due to the low-skilled workforce as compared to Vilna Café, which is liable to face market risks as result of drastic price changes and unsuitable business location. Further, Zaria business has strategic plans of conducting training and motivational programs to improve the skills of the workforce to operate efficiently, which is lacking in Vilna and Student Studio business plans.

Zaria is having a grand strategy of reducing the cost of operations by conducting market research before contracting eligible suppliers at an affordable price. Further, the present of skills personal will enhance excellent customer service and experience (Kabulanga et al. 2012, p.97). Moreover, the business will conduct market research to obtain credible information, make business networks and improve market initiatives to overcome competitive risks. Therefore, the operational strategy is effective.

Vilna business has plans of achieving improved service delivery through application technology in the supply chain, which increases the capabilities of inventory analytics (Vanhaverbeke, 2008, p.254). Further, the firm intends to solve the price changes risks and business locations by being conversant with the demographic insights about the area of operations. Therefore, the operational techniques is perfect.

Student Studio has all the necessary suppliers and technical workforce to enhance efficient operation of the business. The company has also recognized that are entering into an entirely new industry and there are high chances of new challenges as well, which they intend to overcome them by initiating their technology and operations (Vanhaverbeke, 2008.p.256). Therefore, the operation strategy is ideal for the success of the business.

The Financial Plans

Both Zaria and Student Studio enterprises depend on owner’s contribution and long-term loans to meet start-up cost as compared to Vilna, which has an additional source of capital from the sale of shares to other potential investors. Further, Zaria will also depend on crowdsourcing of capital where funds will be raised from the donors to fund the start of the business, as compared with Vilna and Student Studio have no such plans. Moreover, Zaria and Vilna are projecting a profit of $118 and $32041 respectively during the first year of operation, which is different with Student Studio that is anticipating for a loss of $ 108,600.

Zaria business plan will achieve optimum utilization of funds as it has all the cost of expenses covered adequately without wastage, which makes the venture to be profitable. Further, the financial statements are easily understandable and manageable, which increases the chances of securing funds from the potential investors (Nunn et al. 2010, p.95). However, the business has a less flexible financial plan, which makes it difficult for the workforce to receive salary in the subsequent month.

Vilna Café has a foresight financial plan that anticipates future changes in the operational expenses such as future salary growth rate. Based on the evaluation of the business worth and risk tolerance of the market, the rate of return will be fair to meet the financial targets (Francis, 2010). Nevertheless, the plan has not indicated any form of tax payment plan, which can lead to consequences.

Student Studio’s financial plan has all the necessary details indicated, which increases the chances of securing the expected loans and also funds from incubators. Further, the business has a reasonable percentage of cash, which will make the business to manage the payment of routine and incidental expenses (Nath et al. 2010, p.328). Therefore, the financial plan is ideal.

Part B

Recommendations

Zaria should include offering awarding discounts to customers whenever someone buys in bulk. It will help to boost the sales of the business. The business should also advertise through T.V and Radio channels to reach more potential customers. Further, technology should be used in the payment methods such as having electronic teller machine to enhance customer experience. The start-up funds for paying business premises and salary of the workforce should be at least three months because profits will not be earned immediately (Nunn and McGuire 2010,p.95). Moreover, in the assumptions, the anticipated rate of taxation should be included in the projected expenses.

Vilna Café business should consider including office delivery of coffee and tea products to customers who would like to order. It is a strategy that will help to boost sales. Vilna should also be ready to attract minor business meetings that the clients would like to organize within the on the premises (Nath et al. 2010, p.319). They are one of the great sources of revenues for the most food and beverage establishments. Moreover, the business should include the contingency expenses which is crucial in case of incidental monetary needs arises.

Student studio business should also consider targeting suburb market where wealthy people are living. Further, the enterprise should rely on the provision of online educational service, apart from the physical classroom attendance. It will help the business to reach a wider market and also reduce the cost of operations (Agatz et al. 2008, p.349). Moreover, taxation payment plan and contingency funds should be included in the financial projections.

Bibliography

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