Market Factors Affecting the Business

Question:

Discuss about Creating the Online Site and selling the arts through it.

The selling of goods and services are already there in the market where the valuation of the good is based on the market price. The good which they sell in the market they actually acquire from the market at a lesser price due to purchase from the direct retailers[1].

Mission

The missions of “Monalisa” are as follows:

• To provide the correct product, at a correct price and at a correct customer.
• To retain the customer by promotional activities.
• To analysis the method of the customer needs and wants.

Vision

The visions of “Monalisa” are as follows:

• To encourage the innovation of the system.
• To be at the peoples first preference.
• To build and analysis the relationship with the customers in the long run.

Political factors – The political factor is that the organisation is having a huge customer based on the market and the organisation also has customer segmentation on the basis of the government policies and norms basis.

Economic factors – Australia currently entering in the market of the globalization and the pollution is also increasing continuously therefore we can easily that that the organisation is having a huge financial and economical advantage in the long run.

Social factors- The customer is increasing on the day to day basis. The social factor also remains that the organisation is having a CSR policy which would be helping in the long run. 

Technological factors- The modern method of using the customer would be helping in the technological factors also. The target customer is already based on the market that usually uses the internet on the daily basis.

Legal factors – The legal factor is like that the organisation is going to establish on the based on the company policies. They are going to have the mortgage on the basis of the legal factor which would be effecting in the long run.

Environmental factors – The environment factors are like that they know how much the customer is based on the day to day business. The organisation also going to have a policy on the day to day factors in the long run.

• Strengths –
• The market is perfect and therefore the market needs to change as per the needs and wants.
• As a startup the company also provides the need and wants about the market target based customer. They know how much the customer is affiliated in the market.
• The market is based on the profile of the customer representative in the long run. The based customer is diversified and majorly affected in the long run.
• Weakness –
• They don`t have any proper background of the information in the market.
• The market is weak and the significant depends upon the value based by the seller. Therefore the correct value of a particular product is varies from one person to another.
• The market is also diversified and long run effectiveness. Therefore they need a policy which is effective in the process. They are lacking of the long run strategy currently.
• Opportunities –
• The government policy is effective and also inspires the startups. There is a tax benefit of the product in the long run.
• The globalization era also helps to encourage to bring the innovativeness in the long run.
• Threats –
• The market is majorly dominated by the few players, therefore the sustain would be an issue in the long run.
• The international players are also coming in the market therefore the government needs to issue some policy to control the domestic players in the market.

Internal environment of the company Bean Cup can be analyzed with the help of Porter’s five force analysis.  They are mentioned below:

Competitive rivalry – The competition is very high in the market. The major players in the market are Kunstmatrix, Best in American Made, Artpal, Vango and Art Square are providing a huge competition in the market[2]. Therefore the competitive rivalry is high from the point of the competitors.

Bargaining power of buyers- The bargaining power is buyers are high. Due to there is no correct price for a particular product, therefore existing sellers are using the method of the skimming price method for that purpose the organisation is going to face a high end bargaining power from the suppliers [3].

Internal Environment Analysis using Porter’s Five Forces

Braining power of suppliers – The bargaining power is low from the end of the suppliers. The reason is due to the product is the same and they also having a customer based on the section of the same.

Threat of product substitution – There is low threat from the point of the product substitution. The substitution is based on the product diversity. The valuation of the product is certainly nil due to there is no proxy for the art.

Threats new entrants – There is a threat of the moderate one. The entrance is high and therefore the Australian government policies are also significant and moderate.       

Product – The product is unique and the market is not that much versatile that it should be. Therefore the organisation need to analysis about the current scenario in the long run. The market is huge and the customer is based on the competitions analysis. The market segmentation is also based in the market fragmental analysis.

Price – The price is based on the skimming pricing strategy. The product is almost the same but it is magnificent on the product analysis. Therefore the market is huge and the pricing methodology is also based on the current market scenario.

Place – The market is Australia in well diversified and also affected in the long run aspect. The place is majorly dominated by the customer restrictions limited on the daily basis[4].

Promotion – The organisation is going to analysis about the needs and wants about the customer. The valuation of the word of mouth is majorly effected in the long run scenarios.

People – The person knows the value of the product and also has a majorly affected in the daily basis.

Process – The process is certainly based on the online market. Therefore the use of the process is diversity and long run basis. The process also varies from the day to day business in the long run[5].

The name of the company is Brand Bucket as because all the quality equipment and brand would be available there. The best proposal also suggested that the organisation is having a motto to maintain its quality for the life long period of time.

The motto for the company is –

“To make you feel proud by looking at your wall”[6]

To be able to provide a large and wide range of products at a reasonable amount so that it can be afforded by people of all income groups.

• To increase the market share both in Australia and Worldwide[7].
• To be able to retain its business position in the business market.
• To retrieve the goodwill and able to set a new parameter in the banking sector.

Start-up funding	In Australian Dollars( $ )
Start up expenses to Fund	1,00,000
Start up assets to Fund	30,000
Total	1,30,000
Assets (Transportation)	1,40,000
Non-cash Assets from start up ( Reserves and Surplus )	1,50,000
Cash requirement from start up	80,000
Promotional Expenses	3,00,000
Cash balance on starting date	75,000
Total	8,75,000

Sales Estimation

(Source: Created by Author)

Start up requirement	Amount ($)
Start up Expenses
Legal	15,000
Consultants	12,000
Insurance	7000
Rent	50,000
Maintaining and Repair Expenses	7,000
Miscellaneous Expenses	1,000
Total	92,000
Start up assets
Cash required	50,000
Start-up inventory	10,000
Current assets	0
Long-term assets	67,000
Total assets	127,000
Total requirement	2,19,000

(Source: Created by Author)

Liabilities and Capital		Amount ($)
Liabilities
Current borrowing		1,20,000
Long term liabilities		1,75,000
Account Payable (Outstanding Bills)	0
Other Current Liabilities (interest-free)	0
Total		2,95,000
Capital
Planned investment		75,000
Other investors		85,000
Total Planned investment		1,60,000
Loss Start up		20,000
Total Capital		1,80,000
Total Funding		8,15,000

(Source: Created by Author[8])

The expenses which would be the prime are as follows –

• Transportation Costs.
• Setting up the Business Expenses Costs
• Promotional Costs.
• Reserve and Surpluses for the emergency purposes.

The following assumptions where made in estimating sales:

The total sales would be around 40 % of the investment in the current year and increases at a rate of 2 % per annum[9]

The valuation of art is difficult therefore the sales are based on the method the customer background and their preferences. The overall impact of the sales can be taken into three times based on their time and importance of the art in their day to day life[10]

Particulars	Month 1	Month 2	Month3
	1st Quarter	2nd Quarter	3rd Quarter
Market Research
Define Specifications
Overall Architecture
Project Planning
Detail Design
Test Plan
Findings and Analysis
Conclusion

                                                                                       (Source: Created by Author)

                                                                                        Involvement in the project   

It was really a great opportunity to be a part of this project and particularly in such a field where analysis how the modern technology would change a face of the country economy[11].

The technology is changing on the day to day basis. The needs and wants are also changing[12]. The modern people values the time more than their money. The organisation is offering a wide range of products with an exclusive pricing on the products. 

Well the additional included in the business proposal may be the corporate social responsibility towards to the needy people

Conclusion

In a Nutshell we can state that this business plan would be helpful to not only a particular area of people, but in an overall aspect. The initiative would be another step of the change in the daily life. The proposal of this change would be time saving, more accurate and overall reliability in the long run

Reference list

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Australian Indigenous Art, “Protecting Australian Indigenous Art: ownership, copyright and marketing issues for NSW schools.”. in Australian Indigenous Art, , 2017, <https://Protecting Australian Indigenous Art: ownership, copyright and marketing issues for NSW schools> [accessed 9 August 2017].

 Booth, J, “Understanding buyer behaviour in the primary market for Aboriginal and Torres Strait Islander art.”. in Unisa.edu.au, , 2014, <https://search.ror.unisa.edu.au/record/UNISA_ALMA21104929990001831/media/digital/open/9915891731001831/12146679470001831/13146672560001831/pdf> [accessed 9 August 2017].

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Heath, L, & J Pascoe, “Mapping the Australian Craft Sector.”. in Visualarts.net.au, , 2014, <https://visualarts.net.au/media/uploads/files/Mapping_Australian_Craft_Sector.pdf> [accessed 9 August 2017].

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Jie, W, “THE ART MARKET IN 2015.” in mgpublic.artprice.com,, 2016, <https://imgpublic.artprice.com/pdf/rama2016_en.pdf> [accessed 9 August 2017].

Outdoor & Tactical (NT) Pty Ltd, “BUSINESS PLAN.”. in cpaaustralia.com.au, , 2012, <https://www.cpaaustralia.com.au/newsletters/pyoe_2007_winningplan.pdf> [accessed 9 August 2017].

Pollard, V, & E Wilson, “THE “ENTREPRENEURIAL MINDSET” IN CREATIVE AND PERFORMING ARTS HIGHER EDUCATION IN AUSTRALIA.”. in researchgate.net, , 2014, <https://www.researchgate.net/profile/Vikki_Pollard/publication/281198335_THE_ENTREPRENEURIAL_MINDSET_IN_CREATIVE_AND_PERFORMING_ARTS_HIGHER_EDUCATION_IN_AUSTRALIA/links/56e884f008ae9bcb3e1cd4fa/THE-ENTREPRENEURIAL-MINDSET-IN-CREATIVE-AND-PERFORMING-ARTS-HIGHER-EDUCATION-IN-AUSTRALIA.pdf> [accessed 9 August 2017].

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Verbauwhede, L, “Legal Pitfalls in Taking or Using Photographs of Copyright Material, Trademarks and People.” in Wipo.int, 2015, <https://www.wipo.int/export/sites/www/sme/en/documents/pdf/ip_photography.pdf> [accessed 9 August 2017].

Vincent, G, & J Cloud, “Art & Finance Report 2016.”. in deloitte.com, , 2016, <https://www2.deloitte.com/content/dam/Deloitte/at/Documents/finance/art-and-finance-report2016.pdf> [accessed 9 August 2017]

U.S. Commercial Service, “Cosmetics & Toiletries Market Overviews 2015”, in Trade.gov, , 2015, <https://trade.gov/industry/materials/ita.fsc.cosmoprof.2015_final2.pdf> [accessed 9 August 2017].

hiscox.co.uk, “The online art trade”, in hiscox.co.uk, , 2017, <https://www.hiscox.co.uk/sites/uk/files/documents/2017-05/hiscox-online-art-trade-report-2013.pdf> [accessed 9 August 2017].

J Booth, “Understanding buyer behaviour in the primary market for Aboriginal and Torres Strait Islander art”, in Unisa.edu.au, , 2014, <https://search.ror.unisa.edu.au/record/UNISA_ALMA21104929990001831/media/digital/open/9915891731001831/12146679470001831/13146672560001831/pdf> [accessed 9 August 2017].

G Vincent & J Cloud, “Art & Finance Report 2016”, in deloitte.com, , 2016, <https://www2.deloitte.com/content/dam/Deloitte/at/Documents/finance/art-and-finance-report2016.pdf> [accessed 9 August 2017].

Outdoor & Tactical (NT) Pty Ltd, “BUSINESS PLAN”, in cpaaustralia.com.au, , 2012, <https://www.cpaaustralia.com.au/newsletters/pyoe_2007_winningplan.pdf> [accessed 9 August 2017].

L Verbauwhede, “Legal Pitfalls in Taking or Using Photographs of Copyright Material, Trademarks and People”, in Wipo.int, , 2015, <https://www.wipo.int/export/sites/www/sme/en/documents/pdf/ip_photography.pdf> [accessed 9 August 2017].

W Jie, “THE ART MARKET IN 2015”, in mgpublic.artprice.com, , 2016, <https://imgpublic.artprice.com/pdf/rama2016_en.pdf> [accessed 9 August 2017].

australiacouncil.gov.au, “Visual arts”, in australiacouncil.gov.au, , 2014, <https://www.australiacouncil.gov.au/symphony/extension/richtext_redactor/getfile/?name=daaf1afd6d719315db5e5e174a1da961.pdf> [accessed 9 August 2017].

Industry.gov.au, “A market analysis of the Australian book industry”, in Industry.gov.au, , 2012, <https://industry.gov.au/industry/IndustrySectors/booksandprinting/BookIndustryStrategyGroup/Documents/PwCCovertoCover.pdf> [accessed 9 August 2017].

V Pollard & E Wilson, “THE “ENTREPRENEURIAL MINDSET” IN CREATIVE AND PERFORMING ARTS HIGHER EDUCATION IN AUSTRALIA”, in researchgate.net, , 2014, <https://www.researchgate.net/profile/Vikki_Pollard/publication/281198335_THE_ENTREPRENEURIAL_MINDSET_IN_CREATIVE_AND_PERFORMING_ARTS_HIGHER_EDUCATION_IN_AUSTRALIA/links/56e884f008ae9bcb3e1cd4fa/THE-ENTREPRENEURIAL-MINDSET-IN-CREATIVE-AND-PERFORMING-ARTS-HIGHER-EDUCATION-IN-AUSTRALIA.pdf> [accessed 9 August 2017].

Australian Indigenous Art, “Protecting Australian Indigenous Art: ownership, copyright and marketing issues for NSW schools”, in Australian Indigenous Art, , 2017, <https://Protecting Australian Indigenous Art: ownership, copyright and marketing issues for NSW schools> [accessed 9 August 2017].

L Heath & J Pascoe, “Mapping the Australian Craft Sector”, in Visualarts.net.au, , 2014, <https://visualarts.net.au/media/uploads/files/Mapping_Australian_Craft_Sector.pdf> [accessed 9 August 2017].