Porter's 5 Forces and PESTEL Analysis - Persuasiveness of The Business - Accounting and Finance Assessment Answer

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Internal Code: 1AHEJA

Accounting and Finance Assessment Answer

TASK: Discuss the potential profitability of the business and explain how this would be attractive to investors. Support your discussion with information derived from your financial analysis (this should include 5 years’ worth of projections—including cash flow statements as well as profit and loss reports). This section should include information about likely returns on investment, initial development or start-up costs, projected payback periods and projected growth targets for revenue/profits, etc., based on the market size and market share. Write a report to show the research and business case for your business. The report must include:
  1. Executive summary (max length 1 x A4 page; not a separate part of the word count).
  2. Introduction.
  3. Description. Describe the business, its social impact and an explanation and justification for your choice. Your discussion should include information and research from your external and industry analysis (this should include a Porter's 5 Forces and PESTEL analysis), explaining why your team has selected the business.
  4. Proposed strategy and justification.
    • Explain the business strategy and marketing positioning you propose.
    • Begin by explaining your market position through the use of a perceptual map (or similar) and discussing competitors (showing their existing market share, weaknesses and strengths—and how you will beat them. This should include a 3Is competitor’s analysis).
    • Identify and discuss your market potential and marketing mix strategy—describe the target market and develop the 4Ps or 7Ps.
    • Explain your launch strategy and what you will do to get the brand known. Will you sell the business/franchises off paper? Will you set up the first outlets as company-owned stores; i.e., as working models to sell future investors and for training?
  5. Pitch of profitability. Discuss the potential profitability of the business and explain how this would be attractive to investors. Support your discussion with information derived from your financial analysis (this should include 5 years’ worth of projections—including cashflow statements as well as profit and loss reports). This section should include information about likely returns on investment, initial development or start-up costs, projected payback periods and projected growth targets for revenue/profits etc., based on the market size and market share. Detailed information for this section should be attached as an appendix.
  6. Stakeholder charter. Develop a stakeholder charter for your business and explain how the points developed for your stakeholder charter will be applied in the business. You should include 8 principles in your charter that are specific and tailored to your business. At least 4 of these should come from the Global UN Compact.
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