An electronic company is facing a problem of decling market share due to increased competition from other new and existing players in the market. Its competitors are introducing lower price models for mass consumers. Who are price sensitive? For quality conscious consumers company is introducing new model with added features and new technological advancements.
(i) Prepare a model business plan for this company. Specify which type of plan you are preparing.
(ii) Identify the limitations of such plans.
(iii) How will you remove these limitations?

Explanation

Model business plan for 'C Limited
(i) Objectives
(a) To arrest the declining market share in short-term, and to gradually increase the market share in the long run.
(b) To understand and master new auto technology and adopt it.
(c ) To increase the goodwill and brand value.
(d) To keep the new product affordable
(ii) Strategies
(a) To come out with many variants of the same model with different features and appropriate price differentials
(b) Variants should cater to various segments of market
(c ) Designing marketing strategy for each segment
(iii) Policies
(a) Recruitment policy for attracting and retaining competent people for the company
(b) Credit policy for large customers/dealers
(c) Purchase policy and vendor policy (d) Corporate governance policy for transparent and ethical managerial decisions
(e) Dividend policy to keep the stakeholders happy
(iv) Procedures
(a) Recruitment procedure
(b) Purchase procedure
(c ) Decision-making procedure
(d) payment and collection of receivable procedures
(v) Methods
(a) Training methods
(b) Method of granting discount to a large buyer
(vi) Rules
(a) Rules for recruitment of people
(b) Conveyance, leave rules for the staff
(vii) Programmes
(a) Marketing programme
(viii) Budgets
(a) Sales budget
(b) Production budget.
(c) Marketing budget.
(d) Master budget