Business Plan S.C.

MOBSTAR SRL

1. Business Summary 1.1. Business Overview

MOBSTAR company has founded in January 2011 and has as main object of activity the production and the comercialization of the furniture. The company is situated in Vatra Dornei, street Argestru, no. 6, and the factory where actual production takes place, is located on the outskirts. Our products are distributed in their own shops also situated in Vatra Dornei.
Societatea are un capital social n valoare de 80000 din care 50000 aport al asociatilor (2 cladiri, un teren, 20000) restul de 30000 obtinute dintrun imprumut la banca ING, sume investite n producia i distributia mobilei. Asociatii societatii sunt Pop Ioan i Popescu Mihai, ambii avand studii superioare si experienta de peste 5 ani in comert. Acestia si-au propus ca in termen de 3 ani sa-si acopere investitia si sa obtina un profit de cel putin 150000.

1.2.

Product Features

The basic principle supported by the company is to obtain a product from very good to excellent. The main objective is to launch as many models on the market and increase product quality using dry raw material and finished to a higher standard. Market launch of a product to earn consumer admiration for its quality, but also by a lower price than the competition, the company's policy reflects the fundamental idea. MOBSTAR product line addresses to all types of consumers, hoping to answer at all their wishes and include the following products: Bedrooms adults; Bedrooms youth Living room Kitchens; Parts for office;
1.3.

Market Analysis

Vatra Dornei has a population of 20,000 inhabitants, a number that isnt a too large the sales market, but considering the fact that Dorna is a major area tourist area of Romania,

where the construction industry is very developed, there is demand for furniture, especially from owners of guesthouses in the area. 1.4. Key objectives and Financial Owerview

Ensuring stability while sales Generate Income Customer satisfaction National and international market expansion

2. Detailed Plan 2.1. Market Analysis

The target market of Mobstar is the furniture market from Suceava county, and by extension, the Romanian furniture market. Services and products offered by the company will present the following advantages to buyers: production to customer order, the company creating products with unique character; good looks and modern products; concentrating them in one place (compaction offer); reasonable prices as reported; Products and services offered by the company will differentiate itself from competitors primarily through the quality and modernity, price and promptness. Geographical area of business markets will be represented, for the beginning of Vatra Dornei City, and then (begining with year 2)the company will extend its business in the towns Campulung and Suceava and then to the entire market. For starters the company will do retail and wholesale direct from the store located near town center. The product is aimed at individuals and companies, with an average level of income, but with special demands on quality and product design. There have been no rigorous survey conducted among potential clients to define very well the characteristics of markets on which is the company, but we can say that: a) In terms of clients (individuals) is the weight of their educated people with an education of aesthetic tastes. b) In terms of customers undertakings (companies) they consist of small and medium units. They hold the largest share, representing a special interest for the firm.

2.2. Competition Since the company "has both the activity of the furniture manufacturing and retail activity of these products should be considered closest competitors in both sectors. Thus, in the production of furniture closest competitors are: Company Montana Campulung Moldovenesc - 50 km.

In the retail business of furniture products competitors are: S.C. "Bucovina" sa S.C. "Julius" srl Shop luxury. All companies listed are located in the city Vatra Dornei.

Woodworking has always been a basic occupation of the romanians peoples, and this tradition has been preserved from generation to generation. 2.3. Product At the heart of any marketing mix are product companies, that supply other components and features are subject to its existence. Any business, to resist the external environment, tough and continuous motion and transformation must always renew the offer, make it increasingly more attractive. The company aims to fill a position in the coming years on Romanian market of furniture. To achieve its goals, the company should leave the market with a competitive product both in quality and price as, a product that is consistent with last noutati in the field. Tastes are in constant change, everything new is beautiful, more stylish and practic from old products. Furniture that are embedded electronics and appliances are very practical and fashionable, it manages to save space and look very elegant. In rooms with little space can be easily folding furniture that saves more space and offers all facilities Product Line Mobstar company, adapting to the news on domestic and international market, has created a line of competitive products for the Romanian market, products that can compete at any other products on the market, including those brought from outside. For starters the company decided to produce five models of bedrooms, six living-room and two plates (because kitchens are very different sizes) in the production process using different materials - wood fiber laminate (melamine), hardwood fiber (and expensive - oak, mahogany, etc.. - for luxury products), aluminum, textile and plastic. Company also makes furniture especially for restaurants and accommodation which require a large number of products of the same type, but for individuals who want a certain type of furniture that doesnt exist among the models offered by the company.

2.4. Marketing Strategy The rationale for any economic activity is profit, so Mobstar company must attach particular importance to determine pricing to maximize profit. To attract customers, marketing furniture company decided the following prices: - Adult Bedroom: price between 300 and 1,000 - Youth Bedroom: price 200 and 500 ; - Living room: price 500 and 2000 ; - Kitchen: price between 250 and 2,500 ; - Piece of office: the price between 50 and 500 ; The firm will practice temporary price reductions for a period of one month for living room and bedrooms designed to give adults a better adaptation to market pressures, since consumer applications. For legal firm is 15% reduction in the purchase of furniture worth over 3,000. Publicity and promotion actions are the most important way to attract new customers. In order to promote the company has resorted to advertising in magazines and newspapers, including those with specific interior design (Lux House, Honey, etc. Monitor Suceava.) TV and radio ads on the Internet. 2.5. Product production Furniture Factory is equipped with the latest technology and tools acquired from Germany. Company purchase their raw materials for furniture (wood, chipboard, aluminum, etc.) from Kronospan Brasov company, renowned internationally for processing wood products. The company has 14 employees, mostly 40 years and qualified. Each has its important role within the company. Seven of the employees working in the factory as workers at the pieces of furniture, and the rest occupy the following positions: - 2 sales advisors - 1 administrator - 1 sheet - 1 driver - 2 managers

Earnestness, dynamism and professionalism of staff leading to the smooth functioning of business and customer satisfaction and loyalty. Interest is stimulated and how staff payroll with a fixed salary and a percentage of the commission made. 2.6. S.W.O.T. Analysis

Strenghts - diversity - high quality products

Weaknesses

Opportunities - the possibility of expanding foreign markets

Threats - increasing prices of raw materials - experienced competitors on the market

2.7. Business Structure This business is a partnership between Pop Ioan and Popescu Mihai. They are managers of the firm and all major decisions are taken only by they. In their company practice a democratic style of leadership, that even if they have the final say in decision making, and always take into account employees suggestions and opinions.

2.8.

Financial Information

2.8.1. Establishment Costs - modernization of the building costs 10000 - expenditure on equipment and machinery 20000

o space planning costs (interior design, furniture, utilities, workers) 5000 o costs of recruiting, training employees and staff salaries 8000 o advertising 2000

TOTAL = 45000

2.8.2.First Year Projected Profit and Loss

Costs:
o

establishment costs - 45000

o costs/year with : the personal salaries 50000 acquisition of supplies 52000 Total costs- 147000 Income: o sales revenue) 200000

2.8.3. Cash Flow First year o cash receipts 2.500.000 o sales income 1.500.000 cash inflow 4.000.000 total cash available 4.000.000 o marketing 150.000 o cost of goods 2.000.000 o capital costs 1.000.000 o tax 8.000

o other payments insurance 30.000 +advertising 20.000 +salaries 240.000+supplies 300.000 total payments 3.748.000 net movement 262.000 closing bank balance 262.000

2.8.4. Balance sheet

o cash 242.000 o stock 500.000 Total assets 742.000 Net assets 742.000

2.8.5. Source of Finance A part of the invested capital comes from the firms two partners, namely the building, the land where the factory is , store and 100 million. The remaing capital is a bank loan from ING Bank. 2.8.6. Break-even Analysis

The result of Cash Flow shows a profit of . in the first year. The sum is not that big, compared to the costs, but we have to consider that we do can make profit. The development of our business will take a few years, but we are confident that it will work.

2.8.7. Return On Investment

The business will definitely provide a return on the investment. Competition is hight, the tastes of people are increasing in quality, and things are each day more modernized thats why we need to make changes all the time, to ensure the best quality products for our clients.

2.9. Action Plan Objectives/ Goals: o making profit o quality products at best prices o clients satisfaction o business development

Final point Company managers believe they will make a profit after the first year of activity and they will be able to develop business in the next three years. When they say these they consider that the entire staff is qualified, with experience, motivated and dedicated work tey performed.