Capstone Business Plan Project Instructions
The format of your analysis will be a Comprehensive Business Plan in sections based on the data you collect from your research written in APA style. The business plan will be a new business proposal -- a new product, service, and/or market and MUST be related to your area of concentration.
The final business plan will be an APA formatted capstone paper of at least 20 pages with a clearly defined introduction, body, and conclusion. There will be both in-text and full references. There should be a minimum of 10 full references listed that are scholarly and academic in nature. In the appendix will be historical financial data, three years of pro formas, charts, and graphs. See complete grading rubrics in the DocSharing portion of the classroom.
In addition: You will create a presentation to support your plan. You have a submission of 25 – 30 PowerPoint slides presenting your Capstone project comprising of all the sections and references
The Business Plan Topic: APPLE, Inc. is developing new technology using the retina display and touch screen features on the iPad in order to help disable children receive education and medical treatment. It provides services much like guide dogs do.
Week 2 Portion of the Business Plan Assignments (THIS IS ALREADY DONE)
The format of your analysis will be a Comprehensive Business Plan in sections based on the data you collect from your research written in APA style.
• Marketing analysis
Week 3 Portion of the Business Plan Assignments - (THIS IS ALREADY DONE)
During the Week Three you will work on Legal strategies and planning of your Comprehensive Business Plan. Also, you will complete the
• Financial and Accounting Analysis (Pro forma – future 3 years)
Must be In APA format with 3 references.
Weekly 4 – Business Plan -- will be done the week of March 25
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During the Week Four you will work on the products and services planning of your Comprehensive Business Plan.
Weekly 5 – will be done week of April 1 (pending)
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During the Week Five you will work on the technology and web planning of your Comprehensive Business Plan.
Weekly Assignments will be done week of April 8 (pending)
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During the Week 7 you will work on strategy and implementation of your new product/service/market of your Comprehensive Business Plan
Weekly 6 continue working will be done week of April 15 (pending)
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Weekly 7 will be done the week of April 22
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During the Week 7 you will work on strategy and implementation of your new product/service/market of your Comprehensive Business Plan. XXXXXXXXXXKristi Kohler Keiser University MBA699 Dr. Mary Granoff March 17, 2013 XXXXXXXXXXMarket Analysis Throughout the market analysis, we will analyze the market and marketing strategies that will be adopted by the company for its new technology. The new technology will have the ability to monitor the child’s medical condition through retina display and by touch. It will also provide away for children that have disabilities the opportunity to be educated via virtual classroom setting and still offer the parents of security. Demographic Environment Apple, Inc. is a renowned company that has an existence across the country. They are known for taking their creativity of technology to places that know other technology company has been able to do before. The main targets for the proposed technology will be parents of disable children, education and the medical industry. The goal of the new technology will be to help disable children achieve their educational goals as well as to help in the medical area. Apple, Inc. focuses on making sure they understand the market and where the demographic opportunities are. By doing this, it gives them the chance to develop a different type of strategy. They only focus on technology in a vertically segmenting way. Age Group Percentage % 18 years and under 75% 18 – 24 years 10% 25 – 44 years 10% 45 years and above 5% XXXXXXXXXXMarket Segmentation Market segmentation is a technique in which to help company’s zoom in on the correct demographic market. Apple, Inc. uses segment marketing in order to achieve a large potential, as Apple has a strong market base with its differentiation strategy. The main focus of Apple, Inc. will be to establish and maintain customers: all while trying to maintain the customer’s desires in technology and what their preferences are. Apple, Inc will have a strong focus on helping disable children as well as helping the medical industry. With the focus on segment marketing, the company will be able to differentiate between the needs of the children and parents and the requirements of different segment identified; therefore they will be able to focus on designing its services accordingly. Target Marketing Apple, Inc. is an organization that is centered on customers and their needs. With the company’s innovation and technology, they will be able to improve the educational system for disable children as well as help them in the different areas of medicine that these children need. Even though Apple, Inc is a technological company, they place a strong focus on innovation. Innovation is one of the building blocks of the company on which the company moves. The company innovates in designing its products through different technologies. Apple believes in innovation and focused on delivering differentiated products to its customers. With innovation and technology, it is able to produce advanced products. With the new technological advancement, company is able to focus on customization of products, thus creating differentiation. (Porter & Miller, 1995) Apple, Inc focuses on establishing a large investment so that research and development is part of the expansion of the company. With the investment of research and development, this allows the company to be in front row for competition. This would be considered a differentiation strategy that would help the be competitive in the field of designing technology that could help the medical industry. Product Differentiation Apple, Inc has another strong focus, which is on differentiation and technology. Apple has been marked as the company in which it strongly focuses on innovation and technology. It marks its technology industry as the first one with an advantage in the technological segment. According to Apple, Inc (2013), they strive for a strong focus on their technology, innovation and human resources. The one of the most pieces of technology that Apple has, would be the feature to just use a finger or voice activation in order to achieve the needs that disable children have (Learmonth, XXXXXXXXXXBy do so, they are able to provide that competitive advantage in which they need to survive and focus on strategies. The product that is being proposed would be the iPad with new technology that can recognize the need for medical attention via the retina or by touch, much like a service animal would do for individuals. The product would also have technology that would give children the feel and the ability to interact in the classroom with their peers. This particular portion would be focused toward children that would be in hospitals and other medical types of facilities. In order for this type of technology to work, there would need to be skilled teachers and medical staff along with a strong support system (Congressional Testimony, 2000) that could help to establish this type of learning. With this product, Apple could earn a strong competitive advantage through Personnel Differentiation in helping disabled children and medical companies with the advanced technology. With this type of technology, there could be very little limits that a disable person or even caretaker could come up against. Positioning Apple believes in innovation and focused on delivering differentiated products to its customers. With innovation and technology, it is able to produce advanced products. With the new technological advancement, company is able to focus on customization of products, thus creating differentiation. (Porter, XXXXXXXXXXWith this new product the company will be able to cater to the diverse medical needs and opportunities that are required by the company in today’s time. It will help disabled children and medical organizations. Market analysis: Competition With its differentiated products, the company will not face any kind of competition as the products of the company are differentiated and new to the market. The company will create a breakthrough with this product in the market with a strong focus on helping people who needs support and respect on the medical aspect. This product will be designed for those children that have poor to little fine-motor skills, but will have the ability through technology to have a sense of independence (Shah, XXXXXXXXXXThe nature or the aggressive strength of the company is analysed on different parameters. Apple, Inc. need to needs to chart a course for an aggressive strategic plan in order to keep their products and technology in the competitive position. There needs to be the continued growth for the future as well as keeping up with what the individuals and the medical industry need XXXXXXXXXXReferences Congressional Testimony XXXXXXXXXXTechnology in Education: Tony Lee: Retrieved from http://elibrary.bigchalk.com.ezp-00rrw.lirn.net Learmonth, Michael XXXXXXXXXXHow the iPad Became Child’s Play-and Learning Tool. Advertising Age; Midwest region edition, (23), 4, Retrieved from http://elibrary.bigchalk.com.ezp-00rrw.lirn.net Porter, M. & Millar, V. (1995), How information gives competitive advantage. Harvard Business Review, (v73) no. 4. Shah, Nirvi (2011, March 02). Special Ed. Pupils Find Learning Tool in iPad Applications. Education Week, (22), 1, Retrieved from http://elibrary.bigchalk.com.ezp-00rrw.lirn.net Kristi Kohler Keiser University MBA699 Dr. Mary Granoff March 23, 2013 XXXXXXXXXXFinancial and Accounting Analysis The financial and accounting pro-forma statements are an important part of a business plan which can help in forecasting the expected revenue and expenses from the development of a new product (Ross, XXXXXXXXXXThe business plan is based on the new technology they have with retina display and the touch screens on the iPad. The business plan is based on a very specific piece of technology that will be able to help disable children with their medical needs as well as helping some disable children with their educational needs. The business plan is focused on the healthcare industry and how they can help to better the lives of disable children. In order for Apple to succeed in this type of technology, they will need to have a strong focus in research and development as well as a specific marketing area for this type of product. With the main target market being of disabled children and medical institutes, the company will be able to attain strong competitive edge in the market. Accounting and Financial Expectations As the company focuses on differentiated pricing, the company will mark the selling price of this product and technology as $2500, wherein the cost of sales will be estimated as $800. The other costs that will be incurred by the company will be in respect to the selling and administrative cost and research and development cost. The company needs to have a strong focus on marketing with which the company will be able to gain competitive edge in the market. The marketing expenses will be on the basis of the advertising expenses that need to be done by the company through different sources which will include radio promotion, television, campaign etc. (Porter, M. & Millar, V XXXXXXXXXXThey will also present this technology at trade shows as well as medical seminars to help encourage the medical industry that this new technology will be the help that all doctors, patients and families are looking for. Expectations The general expectations on the basis of which the company will forecast its financial statements will be based on the strong prospects of the products proposed by the company. As Apple has a strong brand image, there will be many early adopters who will buy the proposed products. The future prospects of the sales of the product will be strong and the sales will be expected to increase by 5% annually. The selling price of the product will be expected to decrease at 2% annually so as to attract more and more consumers. The other expenses will be based on the expected inflation of 4%. Forecasted Income Statement Considering the forecasted income statement we have to assume that the selling price of the product will decrease in few years with which the company will be able to penetrate its product. Income statement XXXXXXXXXXUnits XXXXXXXXXX XXXXXXXXXXSelling price $ 2,500.00 $ 2,450.00 $ 2, XXXXXXXXXXSales revenue $ 500,000,000.00 $ 563,500,000.00 $ 635,064, XXXXXXXXXXCost of goods sold $ 160,000,000.00 $ 184,000,000.00 $ 211,600, XXXXXXXXXXGross Profit $ 340,000,000.00 $ 379,500,000.00 $ 423,464, XXXXXXXXXXOperating expenses Research and Development $ 125,000,000.00 $ 122,500,000.00 $ 120,050, XXXXXXXXXXSelling and Administrative $ 200,000,000.00 $ 208,000,000.00 $ 216,320, XXXXXXXXXXOperating expenses $ 325,000,000.00 $ 330,500,000.00 $ 336,370, XXXXXXXXXXOperating income $ 15,000,000.00 $ 49,000,000.00 $ 87,094, XXXXXXXXXXTaxes $ 4,200,000.00 $ 13,720,000.00 $ 24,386, XXXXXXXXXXNet Income $ 10,800,000.00 $ 35,280,000.00 $ 62,708, XXXXXXXXXXThe net income from the product is expected to increase by more than 200% for the first three years because of its use and technology. Due to the decrease in the operating expenses, the sales are expected to increase by 5% each year. Forecasted Balance sheet Apple is known for its no debt policy, therefore they will follow the same no debt policy for this product as well. The funds will be raised through common stock. (Annual Report, XXXXXXXXXXBalance sheet XXXXXXXXXXAssets Current Assets Cash $ 10,500,000.00 $ 10,920,000.00 $ 11,356, XXXXXXXXXXMarketable securities $ 750,000.00 $ 765,000.00 $ 780, XXXXXXXXXXAccounts Receivables $ 500,000.00 $ 520,000.00 $ 45, XXXXXXXXXXInventories $ 780,000.00 $ 880,000.00 $ 1,050, XXXXXXXXXXTotal current Assets $ 12,530,000.00 $ 13,085,000.00 $ 13,232, XXXXXXXXXXLong term marketable securities $ 850,000.00 $ 750,000.00 $ 950, XXXXXXXXXXProperty, plant and equipment, net $ 12,500,000.00 $ 13,125,000.00 $ 13,781, XXXXXXXXXXGoodwill $ 4,800,000.00 $ 5,000,000.00 $ 6,000, XXXXXXXXXXAcquired intangible assets $ 8,750,000.00 $ 9,580,000.00 $ 7,850, XXXXXXXXXXTotal Assets $ 39,430,000.00 $ 41,540,000.00 $ 41,813, XXXXXXXXXXLiabilities and Shareholder's equity Liabilities Current Liabilities Accounts Payable $ 850,000.00 $ 833,000.00 $ 816, XXXXXXXXXXAccrued expenses $ 50,000.00 $ 50,000.00 $ 50, XXXXXXXXXXTotal current liabilities $ 900,000.00 $ 883,000.00 $ 866, XXXXXXXXXXDeferred revenue $ 1,050,000.00 $ 1,071,000.00 $ 1,092, XXXXXXXXXXTotal Liabilities $ 1,950,000.00 $ 1,954,000.00 $ 1,958, XXXXXXXXXXShareholder's equity Common Stock $ 26,680,000.00 $ 14,586,000.00 $ 4,854, XXXXXXXXXXRetained Earnings $ 10,800,000.00 $ 25,000,000.00 $ 35,000, XXXXXXXXXXTotal Shareholder's equity $ 37,480,000.00 $ 39,586,000.00 $ 39,854, XXXXXXXXXXTotal liabilities and shareholder's equity $ 39,430,000.00 $ 41,540,000.00 $ 41,813, XXXXXXXXXXConclusion The company will have a strong focus on its financials for the new product. With its brand image and well known technological products, the company will be able to provide the product to the medical industry, educational industry as well as to the general public without any resistance. With this strong commitment, the company will be able to attain profits within the first year of production. XXXXXXXXXXReferences Annual Report, (2012), Apple Inc, Retrieved from: http://files.shareholder.com/downloads/AAPL/2383281926x0xS XXXXXXXXXX/320193/filing. Porter, M. & Millar, V. (1995), How information gives competitive advantage. Harvard Business Review, (v73) no. 4. Ross S, Westerfield, R & Jaffe, J. (2010), Corporate Finance. (10th Ed). McGaw-Hill/Irwin