Description of the business
Cisco Systems, Inc. will sell and market information distribution systems, technical services, electronics and computer hardware, and consumable supplies in the United States of America. The company will be a single source supplier of information systems and technology services. After having evaluated and analyzed our products and services in order to determine our competitive edge, we will focus on digital products and information systems ( Inc - Cisco Services Inc ., 2016). As we focus on transitioning our business to the technology market, we will enter merger with market leaders in IT, and this will help in rounding up our service and product line. In general, Cisco Systems Inc. aims at helping its major customers select the best information technology hardware and software along with electronics, at the lowest price that either meets or exceed their expectations.
Description of the industry
Cisco operates in the electronics, networking, and communications technology industry, which is an industry that’s greatly growing in the United States of America. The industry mainly relies on technological advancement and income growth of people to develop and sustain its growth. The opportunity of establishing an electronics, networking, and communications technology firm is linked with the changing lifestyles respectful to mainstream America, and with the increased demand for the service products due to population growth. Most Americans enjoy associating themselves with new electronics, appliances, and computer devices, and their demand for these products and services is expected to rise with time and as technology advances. A sharp increase in the number of retail shops offering electronics, networking, and communications technology products and services is a reflection of increased demands for the products and services (Mullins, 2012). Many retail outlets have opened many outlets to ensure that the products and services are conveniently available to all consumers in the United States of America. The increasing demand for new electronics and appliances is an implication that people in the United States of America are deviating from the more traditional products and services for the new and advanced ones, offered by firms such as Cisco Systems, Inc.
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Advanced global technology has greatly transformed the traditional industry such that the conventional technological appliances and electronics no longer exist. Information and communication systems have advanced in the United States of America as a result of the emergence of the technology of convergence. Several changes in the telecommunication industry are major drivers with regards to technology of convergence ( Inc - Cisco Services Inc ., 2016). Cisco Systems, Inc. will ensure that the technology of convergence is the main theme of its marketing strategies, planning, and vision. We will engage in the technology and information systems industry with the objective of establishing the most effective workflow solutions to all of our esteemed customers while still, engaging in the business of value addition. Customer service and customer support will be given a priority which will assist the firm to earn reasonable revenue from the business. Our technology plan, therefore, will obligate that the firm establishes a strong customer service team to deal with the clients in the most appropriate way. The company will employ experienced personnel to conduct technological innovation and further, to ensure that the customers receive quality products and services ( Barringer, 2012).
Cisco Service Inc. will conduct an in-depth evaluation of all available marketing research before establishing a marketing plan. The marketing of electronics, networking, and communications technology appliances will play a great role in the mobilization of the targeted population in the United States of America, especially in the California region. Marketing options will comprise of site advertisement, coupled with promotional activities to create a strong public awareness of the products and services offered by Cisco Service Inc. Before the product is launched in the market, Cisco will ensure that marketing channels and segments are determined, and therefore, a market information search will be conducted to establish the market dynamics. This will be important with regards to designing the products and also, respectful to advising the management on appropriate promotional strategies to use to ensure that the company is able to attain a larger market share as opposed to that of the major competitors in the market ( Inc - Cisco Services Inc ., 2016).
The general marketing principle that will be adopted by Cisco Services Inc. will be to sell quality products at the right time, and to ensure that the products and services are availed to customers with the help of appropriate promotional techniques. This will also ensure that the products are directed to the right markets, with the right customers. However, Cisco Services Inc. anticipates that there will be other socio-economic factors that they may influence the production of goods and the selling process. The success of the marketing approach taken by the firm will, therefore, be determined by the extent to which the firm will handle these socio-economic factors in the long run (Mullins, 2012).
The bellow sections display important financial information of Cisco Services Inc.
|Current Interest Rate
|Long-term Interest Rate
The Break-even analysis will be used by Cisco Services Inc. to show the sales revenue that will help the firm to reach the break-even point.
Break-even Analysis-Amount in $
According to the break-even analysis, Cisco Services Inc. will be able to be break even immediately after having attained sales revenues of $8000. Cisco Services Inc. is seeking $900000 to fund the purchase of electrics, and hardware and software, and to offset staffing costs, and office costs amongst other technology related costs. Additionally, the company will spend $2 million to develop web-based applications and other software applications. The projected revenue for year one and year two respectively will be $10 million and $13.5 million. The trend shows that there will be an upward movement in terms of an increase of revenue generated by the company for the initial years of its formation ( Barringer, 2012).
Cisco will have a production line that will control the role of the managers, supervisors, and all employees. The company will have two production lines such that one will involve products while the other will entail the provision of information and communication services to our clients. The company will produce electronics of the highest quality ranging from house hold goods to commercial goods. Every good produced will have to undergo a quality check to ensure that the products produced are competitive enough such that they have a competitive edge over those products produced by the competitors in the industry ( Inc - Cisco Services Inc ., 2016).
The two founders of the organization will serve financial and operational responsibilities of the firm. The CEO of the company will report to the founders and will, therefore, oversee the operations of the entire organization. The managers will report to the CEO while the supervisors will report directly to the managers. The managers will have the responsibility to monitor the progress and productivity of every employee (Mullins, 2012).
In order for the company to reach the breakeven point as soon as possible, the executive team will not receive bonuses and other benefits. We are aware that the new product and services will require legal advice and technical support and this will be facilitated by various consultants in the United States of America. Cisco projects that the executive management will close all sales of the first year to pave the way for a new sales associate. The company will operate mainly in California and the neighboring states in the United States of
Barringer, B. (2012). Entrepreneurship: Successfully Launching New Ventures, (2012) .
Mullins, J. (2012). The new business road test: What entrepreneurs and executives should do before writing a business plan . Pearson UK. Teton Valley Home Services - Cisco Services,
Inc – Cisco Services Inc . (2016). Cisco Services Inc . Retrieved 15 December 2016, from http://ciscoservicesinc.com/