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Assignment is about new business development of e-Carbuy dealing with buying & selling of cars on an online platform

Home, - Business plan for e-Carbuy

Details of the service to be delivered by e-Carbuy.

The new business which is to be set up is named as e-Carbuy and it will deal in buying and selling of cars on an online platform which will be specially designed to make the customers indulge in e-commerce through this platform. Second hand cars will be available online with the help of this web portal and customers will be able to have a look and feel feature on the website. The customers will also be provided the option of trading online or offline according to their choice. All the specifications regarding the car which is to be sold will be presented online so that the customer will be able to get a proper insight into the product according to the requirements of the customer. (Ridyard, 1988)

There will also be an option for selling cars on this online portal in which the seller will to post the picture and specification of the vehicle on the web portal. The management staff will visit the customer premises to check the car for sale and it will be bought if the deal is good.

The service will also include customisation of the car which is to be purchased by the customer. If any added features are required by the customer which are available at our organisation, the customisation will be provided.

Potential market for the given product or service

Since, the demand for four wheelers is always on the rise and it has become a basic amenity for everyone living in big cities. However, most of the people cannot afford top class luxury car in a go and may not have the budget to buy a brand new car initially, so they opt for a second hand car which is suitable according to their requirements. People can choose from various options available on the portal as they range from small cars to sedans. A second hand sedan is the most sought after option for a middle class family. As the cost of a second hand car suits most of the potential customers in the market, it is a good option for setting up business in this respect. The most important aspect in this business is the trust of customer in the service provided by a company. If the customers are provided a good product with guarantee, then this venture surely has an upbeat in the market.

So, in this regard the buying and selling of cars online will prove to be a good business given that the customers are provided quality service on a reasonable cost.

Organisation of the business

There are various steps involved in organising a business when it is to be started afresh. The organisers of the company will have to look out for various dimensions related to the business before the business can be set up. The most important in this regard is the organisational structure of the company which includes the owners of the company, the percentage of ownership by each person in the business, profiles related to the management team of the organisation etc. (Gibb & Ritchie, 1982)

It will also include an explanation regarding various tasks which are to be done by different personnel in the organisation as well as the incentives offered by the organisation to its employees. So, following is the detailed organisational structure of the company.

· Owners of the company: The company will be owned by Mr. Wilson While along with a 40% partnership with his friend Mr. Jack Burrow. The partnership is according to the money put in by both the owners of the organisation. Mr. Wilson will serve as the CEO of the company and Mr. Burrow will serve the purpose of managing director of the company owing to their partnership in the organisation. The share in profits earned by the company will be divided in the ratio 3:2 which is agreed upon by both the partners of the company. While the CEO will supervise the tasks which are to be performed y various personnel in the company, the MD will be responsible for integration of all the operations running in the organisation.

· Management staff: The company will employ a team of five members who will be responsible for management activities of the organisation. They will look after the buying and selling of cars through the portal. Under the management staff, a team of other employees who will include automobile engineers as well as sales and marketing staff will be deployed. So, the structure of the company will be divided into three layers which will help in running the operations of the organisation. (Davis Browning, 1991)

· Tasks allotted to different personnel: There will be various personnel employed for performing different tasks in the organisation. The management personnel will look after the buying and selling of cars with the help of dealers involved in it. The engineers employed will look after the technical aspects for example automobile engineers will look after mechanical aspects of cars and software engineers will maintain the online web portal of the company. A staff of sales and marketing department will indulge in visiting the customer's premises for buying and selling.

Financing of the business

Although the business will be financed mostly by the two owners of the company, some of the finances of the organisation will be fulfilled with the help of loans from a bank. Since, this organisation does not need a huge amount of capital, most of it will be generated by the two owners of the organisation. Rest of the finances will be incurred from a bank which provides loans for small businesses on EMI basis. In this way, all the requirements for setting up the business in this area will be met which are the basic requirements for running a small scale business in the market at an introductory basis. (Cunningham & Bates, 1965)

Conclusion

It can be concluded from the above report that for starting up a new business in a competitive market a good business plan is to be developed by the business organisation so that the goals and objectives of the organisation can be met in an efficient manner. A strong business plan is the basic requirement for setting up a new business and all the steps which are to be followed are based upon this business plan. So, it is recommended that the business plan should convey the very structure of the organisation in a lucid manner so that every person who is involved in the business of e-Carbut gets a clear cut view of what is to be done and what are the roles and responsibilities of persons involved.

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