Business

Business strategizing describes the careful analysis of the interaction between the internal aspects of the company and the external environment. This paper will analytically describe a business plan for Mikes Bikes organization. The business plan will identify company strengths, resources and propose a plan of achieving company goals.

For the Mike Bike organization, strategic placement is very critical when venturing in the industry. This is especially so given the huge costs involved and the low rate of production. The initial costs will be part of the start up capital and initial running costs (Sveiby, 1997). The strategy for placement will seek to minimize initial costs while maximizing on profits. To minimize cost further, Mike Bike will focus on producing value added bikes with an already established market. Initial production will be low and the company will adjust its operations to meet market demand. Market entry pricing will be adjusted to quality of the bikes and the competitive environment.

The first objective is to come away with a profit of 5 each year. To achieve this, Mikes Bikes will focus on reducing costs by maintaining an effective but low price for advertisement in television and magazines. The organization will leverage on the quality of the bikes to beat competition in the industry (Traverso, 2000). Another strength the company will use is the quality and dedication of its employees who will provide appropriate services to the customers. The second objective is to produce high quality products by ensuring that quality levels are above 85. This objective will be achieved by investing in research and development activities to enhance product reliability satisfy the customer and ensure that the product is user friendly. In addition, Mike Bike will ensure that the products have efficient performance and zero defect by implementing effective product management processes. The third objective is to ensure sales growth and sustainability by increasing customer loyalty to 80 within two years of operation. This goal will be achieved by enhancing customer satisfaction, customer support systems and advertisement and publicity activities. Market research and segmentation strategies will also be done focusing on satisfying the customer. Fourth objective is to contribute 0.5  of the total profits to educate the public on road safety. This will be done by collaborating with transport stakeholders and the traffic department.

This assignment will greatly benefit my future career in business. I have learned fundamental concepts of formulating and identifying business objectives and the successful implementation of plans to achieve the objectives. I have also learned the application of internal company strengths in business strategizing and the matching of the internal capabilities with the external business environment.