Business Plan of Living Workshop In Taipei (Taiwan)
Living Workshop is an arising accumulated abode with start-up business in the ever-broadening bazaar of home merchandise. We advertise accomplished articles of home capacity and accompanying field, which avowal of all-embracing standards. Mr. Eric Wang is the buyer of Living Workshop and Mr. Christian Lee active its operations.
To beforehand our company, operation diplomacy are to accommodate the afterward strategies:
To accomplish alien funding
To expend added abundance locations
To actualize banking action articulation that controls banknote trend
Living Workshop has ability in managing a massive about-face of affection articles in the breadth of home commodity with according weight on ability and chump service. The ambit of articles is calmly fabricated accessible at one abode giving consumers’ interests the foremost priority. There are in absolute four basic capacity of our business which re abundant beneath in a abundant format:-
Bedding: - sheets, pillows, shams, comforters, mattress pads, ensembles, dust ruffles, blankets/throws, bedspreads, daybed covers, bedding accessories.
Bath: - towels, anhydrate warmers, bathing ensembles, caddies, curtains, blind rods, battery heads, tub accessories, shelving, bath furniture, hardware, bathing rugs, cabinets, shelving, mirrors/hampers, kids bathing range.
Furniture: - seating, emphasis furniture, tables, appliance for office, media, wine accumulator equipments, accumulator furniture, appliance for the kids, kitchen carts, luggage, headboards/beds.
Home Decoration: - aliment alertness gadgets, acid boards, baking wares, bore wares, aroma racks, kitchen textiles, kitchen rugs, baptize filtration equipments, cookbooks.
Living Workshop relentlessly works on allowance our baby barter acquaintance the best affection of lifestyles by accouterment premiere home décor items and a accomplished ambit of accomplished domiciliary bolt conceptualized by the best designers and developed by the best craftsmen. We are consistently anxious about chump achievement and every moment accessible to bear with the best accessible solutions to the needs and queries of our barter whom we accede the best adored assets of our company.
The aggregation of Living Workshop has assertive specific and accepted goals to authorize itself as a arch action in the breadth of world-class home commodity products, which are abundant beneath –
To serve the barter by accouterment them with a accomplished ambit of options for home capacity articles of all-embracing standards.
To continuously strive for developing newer and diversifying the ambit of products.
To aboveboard ensure the qualitative aspects and aspect of admiration of chump services.
To accommodate a advantageous ambiance for the advisers to assignment and prosper.
To whole-heartedly ensure the connected acceptable beforehand of the company’s business in adjustment to accent on the interests of the stakeholders.
The Business Pyramid:
Good Administration Practices
Corporate Albatross & Excellence
The accumulated ancestors of the Living Workshop whole-heartedly believes in the aloft anatomy of business pyramid. It maintains that cerebration and applying aural the abstract framework of the aloft pyramid is compulsatory for developing a acceptable business, and comestible it in the continued run with adherence in all spheres of functions, befitting both the barter and advisers annoyed and blessed (Beckwith, n.d. pg 1-2). The ample articulation at the abject of the pyramid signifies assertive regulations for the employees, which are absolute basic to accept and chase sincerely. The advisers will be connected themselves to the basal laws of the company, befitting alone interests behind, and advice the adolescent workers to actualize and beforehand a advantageous ambiance to work. They charge to aim for practicing ambiance affable abstruse expertise, and application to accomplish in the amphitheatre of assay and development, which will appropriately advice the aggregation to confidently booty assisting cardinal decisions.
Taiwan is the official name of the Republic of China (R.O.C.). It is anchored in the East Asian bounds off the littoral strips of China. Its breadth is southwest of the assumption isles of Japan and north-northwest of the Philippines. The amphibian island nation of Taiwan is 245 afar continued and 89 afar advanced (Taiwan Geography, 2005). Taiwan consists of abrupt mountains and aloft genitalia of the country are covered by frondescence of close and subtropical affectionate (World Factbook, Taiwan, 2000). Its altitude is abyssal close in general. Accustomed hazards like typhoons and earthquakes are accustomed in the country. Taiwan’s absolute citizenry abreast the end of 2008 was 23,016,257 (The China Post, 2008).
The abridgement of Taiwan is absolutely backer in framework (NationMaster, Taiwan Economy, 2009). It is chiefly led by the exports of high-end appurtenances and casework (Asia Newscast, 2009). The aloft technologies of Taiwan are centered on bike manufacturing, laptops, semiconductor accessory artifact and biotechnology.
Source: Schive, 2007; TAIWAN ECONOMIC FORUM, 2007, p. 8
The aloft diagram is a graphical representation of anniversary gross beforehand as a allotment of gross civic artefact (GNP) in Taiwan’s economy. It reveals change in the bulk of gross beforehand from the year 1997 to 2007. Gross beforehand comprises of both accessible and clandestine investment. A notable aspect in this attention is an about abiding bulk of beforehand in gross beforehand in Taiwan in the accurate three-year aeon amid 2005 and 2007. There has been a connected bulk of beforehand of about 20% in the absolute bulk of assets invested as a allotment of GNP (Index Mundi, 2008). This indicates able signals for business and business to flourish, as the ambiance of bazaar abridgement is accordant and in a arresting beforehand path. The Living Workshop will analyze this actuality added and appropriately adapt its beforehand diplomacy in the approaching to aggrandize its business in alternative genitalia of Taiwan. For approaching endeavors, the Living Workshop has Kaohsiung Burghal and Hsinchu in the radar.
Source: Lan, 2008, p. 7
In adjustment to accept the abridgement of Taiwan in added depth, it is acute to appraise the abstracts about per capita GNP of the country. The diagram accustomed in the antecedent folio is a graphical representation of absolute bulk of per capita GNP of Taiwan (at accepted prices) in US $. It shows the almost bulk of the Taiwanese per capita GNP in the aeon amid the year 1997 and 2007. In a four year aeon amid 2004 and 2007, as appear by the graph, Taiwan’s per capita GNP has added from an almost akin of US $16,000 to US $18,000, which is a acceleration of an enviable 12.5%. The anniversary aggrandizement bulk in Taiwan in the budgetary 2007-2008 was in amid 1.5% and 2% (Economist, Taiwan Bread-and-butter Data, 2009), i.e., on the lower side. A audible bread-and-butter estimation can be fatigued from this bearings that the purchasing ability of the Taiwanese bodies who are earning is on the rise, as whole, because the apocalyptic abstracts of per capita GNP and the aggrandizement rate.
The Competitors of Living Workshop:
After allegory the bazaar for home capacity articles in Taipei, it has been apparent empiric that, as said before, there are two abstracted segments of companies, which will attempt with the Living Workshop in this field.
Allegory IKEA - Aboriginal of all, it is acute to anatomize the business of IKEA; the Sweden based All-embracing Corporation in the apple of home capacity products. It has got 4 shops in the burghal of Taipei and one warehouse. It is absolute ascendant in the European bazaar of home capacity products, with a absolute bazaar allotment of a massive 76%. But in the ambience of the Asian market, alone 6% of its absolute sales were generated from the arena (IKEA, 2006). The Taipei Burghal bazaar is acutely an alike added miniscule antecedent for IKEA for the bearing of sales revenue. The alternative two accumulated houses in the business of home capacity products, MUJI and Working Abode are not so able like the IKEA, admitting does a ample business in the Taiwanese market, abnormally in Taipei.
(Thompson, Strickland &
Strict aliment of the amount arrangement and giving the absolute antecedence to the customers’ needs as per the all-embracing standards.
Conveniently provides a accomplished ambit of affection home capacity beneath one roof.
Targets barter of every age.
The home capacity articles will be competitively priced.
Original artefact designing concepts are used.
New aspirant in the Taiwanese bazaar of home merchandise.
Prevalence of the agency of a ample time lag in incurring the antecedent costs of ambience up business in home merchandise.
Presence of the aspect of blindness apropos the cast name of the Living Workshop.
It is not yet accepted that consumers are activity to adopt the articles of the Living Workshop over those of its rivals.
Finding abeyant and demography advantages of the anytime expanding bazaar for home capacity bolt in Taiwan.
Scopes for putting focus on the about-face of home commodity products.
Prevalence of abundant accomplished competitors in the breadth of home commodity articles in Taipei City. This can abate the accumulation margins. Moreover, the battling companies can abduct the business account and concepts of the Living Workshop.
Taiwan is decumbent to accustomed adversity and abominably Taipei burghal is not barred from this radar. Breadth of Taiwan is in the subtropical zone, as able-bodied as in the seismic belt. Strong typhoons or adverse earthquakes could accident the diplomacy of logistics, appropriately business.
Organizational Structure: -
Chief Controlling Officer
This tree-structure defines the company’s controlling arrange while biting the market. The arrangement apparent aloft provides the functions and the responsibilities of the altered wings in a hierarchical approach. Actuality the declared bristles best important departments like the Departments of Finance, Human Resource, Marketing, R&D and Technical Support and assuredly the Operations are declared to address to the CEO of the aggregation about the approved updates and the advancements in anniversary of their corresponding fields. The business anatomy as planned by the CEO and the top administration crave these advice to pave their way through and beforehand appear the expansionary motive of the company. The Operations Department, as apparent above, should be anon in acquaintance with the three stores, which are to be launched, amenable for the administration of the same, acquisition the facts and accouterment them to the CEO.
Structural Overview: -
The abettor and the albatross agreement of the assorted departments can be presented in a audible structured format, which should be followed to ensure the absolute compassionate of the duties imparted to anniversary of the mentioned departments. The architecture is shaped in a way as accustomed below:
The advice apropos the types of the food and the costs associated with the amplitude rentals and accomplishment are bare for adopting apt policy-decisions in ascertaining the locations and cost-effective zones in establishing the stores. There can be two kinds of locations breadth these food can be set up—Traditional and Non-traditional. The acceptable breadth can be authentic as a business apriorism or a abundance with a abundant or cogent admeasurement (say for an archetype a abundance anatomy up on 10000-15000 sq. anxiety acreage area) and advised in such a way so that by actualization it will be able to allure best citizenry anticipation their tastes. The analytical appearance to be congenital in the designing allotment are the consumers’ choices, different characteristics of the articles acceptable the demands of the abeyant consumers etc. This requires all-encompassing research, able acknowledgment and able publicizing of the bolt that the aggregation markets forth with the best of able locations diplomacy in best aggregate of crowd. Therefore the best-suited locations should be aloft burghal centers or some band basic centers acceptance to the sub-urban regions. Again the Non-traditional business bounds can be advised as a abundance which runs its business by absolute beneath or by accumulation itself with some alternative primary business house, or may be aural some institutional establishments like schools, colleges, universities, supermarkets, arcade malls, airports etc. (“Item 1. Business: Background of Jamba, Inc.”, 2007). The allowances associated with these setups are that there about exists a audible abundance of army in the mentioned spots, which commonly does not diminish, and so there is absolute little adventitious of abatement in the cardinal of abundance visits.
By the timeline the aggregation will set up a acting ambition date in account of back to accessible up the abundance by bit-by-bit accomplish undertaken from a few canicule afore the absolute admission of the store, and should try to accept by that.
Should get completed by June 2nd, 2012.
1. The enactment of Living Workshop, Taiwan.
2. Collection of Capital.
3. The government allotment process.
1. CEO and the top management.
2. The Administration of Finance.
Should get completed by July 10th, 2012.
Recruitment action for the operational positions such as the Duty Manager and the Part-time employees.
1. CEO and the top management.
2. Human Resource Department.
Should get completed by August 1st, 2012.
The training programs in the fields of Operations and Technical processes.
Communication and acquirements of company’s cultures and values.
1. Human Resource Department.
2. R&D and Technical Support.
Should get completed by August 18th, 2012.
The antecedent bureaucracy of the Living Workshop store.
Installations of all the equipments.
Operation of the in-store equipments by the abundance staffs.
R&D and Technical Support.
Should get completed by August 25th, 2012.
The admission of the promotional activities.
Posting of advertisements in 7-eleven food and in the aloft chase engines.
1. The Administration of Marketing.
2. Operations Department.
Should get completed by August 31st, 2012.
1. Probational operation—from August 26th to 31st, actionable aperture of the store.
2. Arena should be kept accessible in September.
The Administration of Marketing.
Ground accessible on September 1st, 2012.
The aboriginal Living Workshop Abundance arena accessible in Taipei City, Taiwan.
Every departments and Partners.
Focusing on the company’s admired artefact ambit and communicating with the barter through able architecture up of its cast angel should chase the business strategy. The plan charge and should be complete in such a way so that with ability and accomplished abetment of the company’s amount ethics and cast image, there can be assimilation in the market. This will depend aloft some aloft factors like the chump behavior, the geographic and the cultural base of the territory. In Taiwan, the bazaar is fragmented, and so there is according befalling for all the companies who are rivals and diplomacy constant products. “Fragmented industry environments are usually ideal for focus on a categorical bazaar niche” (Thompson, Strickland, and Gamble, 2007, p. 247). There are abounding strategies that can be undertaken depending aloft the bazaar action like absorption on a accurate geographic area, acceptable a bargain operator, specializing on a accurate artefact or chump blazon etc. The aftermost two behavior can’t be adopted as the aggregation is aggravating to aggrandize and advance into bodies acceptance to every age accumulation allegory their tastes and affair the demands.
Motivation, Call to Action
Ongoing Amount Perception Communication
Compelling Offer, Value, Continuity
Financing & Banking Operations:-
The basic anecdotic affection of this administration is to accommodate the banking letters to the top administration afterwards administering all-encompassing banking analyses. It should accept the albatross apropos the tax affairs, pay roll, and the accounts, which are receivable and payable. All the accounts reconciliations are able and advised forth with the banknote breeze and this administration manages banking budgeting. There is huge lot of absolute and abstract absolute assets of the enterprise, which charge to be transacted with expertise. The affairs are mainly based on these banking securities, which includes basic appurtenances like machineries, shares, bonds and varieties of alternative specialized securities. The banknote generated by these assets and the loans that can be acquired by the aggregation by diplomacy these assets are affairs of 18-carat administration and the Banking Manager of the aggregation who is additionally the arch of the Administration of Finance assumes operations apropos these managements.
So the Banking Manager undertakes the cogent decisions apropos the banking and beforehand policies. The absolute anatomic anatomy of the banking anatomy can be apparent with the advice of a diagram as accustomed below:
The sales forecasting is done based on the antecedent basic beforehand of 4 actor US$. A simplistic access has called in admiration the sales acquirement becoming by Living Workshop. The ambition is to ability the breakeven akin of antecedent beforehand by the third budgetary year at most. The beforehand bulk as can be apparent from this diagram, from the 1st to the 2nd budgetary accomplished 50% and from the 2nd to the 3rd witnessed 66.67% of acceleration in the acquirement earnings. So at the end of the 3rd fiscal, the aggregation is extensive its ambition of breakeven akin of sales.
Fixed Cost (Rent, Wage, etc.)
Variable Cost (Advertising, Incentives, etc.)
Start-of-year Book value
Book Bulk of Return
The aloft table shows a accessible anatomy of the Income Account of the company. The assemblage advised actuality is actor US$.
Cost of Revenue
Selling Accepted and Administrative
Total Operating Expenses
Operating Income or Loss
Income from Continuing Operations:
Total Alternative Income/Expenses Net
Earnings Afore Interest And Taxes
Income Afore Tax
Income Tax Expense
Net Income From Continuing Operations
Effect Of Accounting Changes
Preferred Stock And Alternative Adjustments
Net Income Applicable To Common Shares
The table beneath shows a accessible anatomy of the Income Account of the company. All units are in US$.
The Banknote Breeze account is accustomed beneath as it should be reflected during the consecutive years of ablution of the Aggregation (all abstracts are in US$)
Operating Activities, Banknote Flows Provided By or Acclimated In:
Adjustment to Net Income
Changes In Accounts Receivables
Changes In Liabilities
Changes In Inventories
Changes In Alternative Operating Activities
Total Banknote Breeze From Operating Activities
Investing Activities, Banknote Flows Provided By or Acclimated In:
Other Banknote Flows from Investing Activities
Total Banknote Flows From Investing Activities
Financing Activities, Banknote Flows Provided By or Acclimated In:
Sale Purchase of Stock
Other Banknote Flows from Financing Activities
Total Banknote Flows From Financing Activities
Effect Of Exchange Bulk Changes
Change In Banknote and Banknote Equivalents
The Balance Sheet can be provided in a agnate manner. It is accustomed as below:
ASSETS: Accepted Assets
Cash and Banknote Equivalents
Short Term Investments
Other Currents Assets
Total Accepted Assets
Long Term Investments
Property Plant and Equipment
Deferred Continued Term Assets Charges
LIABILITIES: Accepted Liabilities
Short/Current Continued Term Debt
Other Accepted Liabilities
Total Accepted Liabilities
Long Term Debt
Deferred Continued Term Accountability Charges
Misc. Stocks Options Warrants
Redeemable Preferred Stock
Other Stockholder Equity
Total Stockholder Equity
Net Absolute Assets
Here we see that the amicableness of the aggregation is gradually demography a abrupt backpack added than acceleration itself from the 2nd to the 3rd budgetary year. That agency the acceptability of the aggregation is accepting congenital up and we can see from the Absolute Stockholders Equity trend that the beforehand is additionally aerial with a agnate trend of accepting an accretion bulk of growth. But with that the absolute accountability akin is additionally accepting added which should be controlled, as because alike if there is a aerial akin of return, there is additionally a aerial accident associated with it. So there is no botheration in extensive the breakeven ambition by the 3rd budgetary but the accountability will absolutely be a amount of concern.
Asia Newscast, 2009:Taiwan, accessible at: http://www.newscast.in/asia/taiwan.php (accessed on April 5, 2009)
Economist, 2009: Taiwan, Bread-and-butter data, accessible at: http://www.economist.com/countries/taiwan/profile.cfm?folder=Profile-Economic%20Data&CFID=49104817&CFTOKEN=27038654 (accessed on 2.04.2009)
Schive C., 2007, Rising Phoenix: An Unfinished Story of Taiwan’s Bread-and-butter Development, accessible at: http://126.96.36.199/search?q=cache:oCiOXucJyasJ:cc.shu.edu.tw/~schive/DOCUMENT/Rising%2520Phoenix(mofa).ppt+gross+investment+as+a+percentage+of+gnp+OF+TAIWAN+IN+2007&cd=3&hl=en&ct=clnk&gl=in&client=firefox-a, (accessed on 4th April 2009).
Lan K., 2008, Chinese Taipei, accessible at: http://188.8.131.52/search?q=cache:2wCc1bHk2gYJ:www.pecc.org/labor/papers/NEA-Chinese-Taipei-Ke-Jeng-Lan.pdf+GNP+per+capita+of+taiwan+1997-2007&cd=9&hl=en&ct=clnk&gl=in&client=firefox-a, (accessed on 4th April 2009).
Gallagher M.C., 2004, Why Red Hook Ikea activity should be rejected, BROOKLYN HEIGHTS - DOWNTOWN EDITION, accessible at: http://www.barwrite.com/pdf/brooklyn_paper.pdf, (accessed on 4th April 2009).
Gallagher M.C., 2004, Why Red Hook Ikea activity should be rejected, BROOKLYN HEIGHTS - DOWNTOWN EDITION, accessible at: http://www.barwrite.com/pdf/brooklyn_paper.pdf, (accessed on 4th April 2009).
Global Security, 2005: Taiwan Geography accessible at: http://www.globalsecurity.org/military/ops/taiwan-geo.htm (accessed on 2.04.2009)
Index mundi, 2008: Taiwan, accessible at: http://www.indexmundi.com/g/g.aspx?v=66&c=tw&l=en (accessed on 2.04.2009)
IKEA, 2006: Case analysis, accessible at: http://184.108.40.206/search?q=cache:TTnphIEIBxwJ:220.127.116.11/download/materials/2006s/discipline/international_business/IKEA%2520case%2520study.ppt+market+share+of+ikea&cd=3&hl=en&ct=clnk&gl=in&client=firefox-a (accessed on April 5, 2009)
Item 1. Business: Background of Jamba, Inc., 2007, edgar-online, accessible at: http://sec.edgar-online.com/jamba-inc/10-k-annual-report/2007/04/02/Section3.aspx##, (accessed on 4th April 2009).
“Item 1. Business: Background of Jamba, Inc.”, 2007, edgar-online, accessible at: http://sec.edgar-online.com/jamba-inc/10-k-annual-report/2007/04/02/Section3.aspx##, (accessed on 4th April 2009).
Mercer's 2008 Cost of Living analysis highlights, 2008, mercer, accessible at: http://www.mercer.com/costofliving?siteLanguage=100#Cost_of_living_top_50_cities, (accessed on 3rd April 2009).
Nation Master, 2009: Taiwan, Economy, accessible at: http://www.nationmaster.com/red/country/tw-taiwan/eco-economy;b_define=1;all=1 (accessed on 2.04.2009)
The China Post, 2008: Taiwan citizenry hits 23.01 actor mark, accessible at: http://www.chinapost.com.tw/taiwan/national/national-news/2008/11/08/182335/Taiwan-population.htm (accessed on 2.04.2009)
Thomson A., Strickland A.J. ;Gamble J., 2007, Crafting ; Executing Strategy, NY: McGraw-Hill/Irwin.
World Factbook, 2000: Taiwan, CIA, accessible at: http://www.authorama.com/world-2000-e-43.html (accessed on 2.04.2009)
Order a unique copy of this paper