final project up

A BUSINESS DEVELOPMENT PROPOSAL TO SET UP A

DIY HARDWARE STORE IN SALEM, INDIA.

A Major Project

Prepared by

SHIVANESAN MANIVASAGAM

0228OABOAB0216

MASTER OF BUSINESS ADMINISTRATION

CARDIFF METROPOLITAN UNIVERSITY

9th January 2017

08Fall

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EXECUTIVE SUMMARY

The world now is evolving where people are becoming expertise in everything and household

objects are the first things that they do. Mr. Fix It - The DIY Hardware Store is a new start

up, which is going to establish a DIY (Do It Yourself) Hardware store in Salem, India. The

main objective of this start up is to sell hardware components raging from tap fittings to pipes

and to doorknobs and all kinds of housewares, which can be assembled by the customer itself

and requires no advice from expertise. It is also conveniently located to serve the customers

better. The owner of the store will be Shiva and will be the sole shareholder. The owner will

fund the initial investment to the business and no bank loan or other external source of

funding will be used.

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Table of Contents

EXECUTIVE SUMMARY 2

INTRODUCTION 7 1.1 INDUSTRY AND COMPANY BACKGROUND 7 1.2 BUSINESS CONCEPT AND OPPORTUNITY 7 FFF1.3 PURPOSES AND RATIONALE 9 1.4 SIGNIFICANCE OF THE RESEARCH 9 1.5 TERMS OF REFERENCE 9 RESEARCH QUESTIONS 9 RESEARCH OBJECTIVES 10 RESEARCH FRAMEWORK 10

2.0 BUSINESS REVIEW 11

2.1 MARKET ANALYSIS AND MARKETING STRATEGY 11 2.2 HUMAN RESOURCE MANAGEMENT 12 2.3 BUSINESS PROCESS 15 2.4 FINANCIAL PLANNING 17

3.0 RESEARCH DESIGN 20 3.1 RESEARCH METHODS 20 EXPLORATORY 20 3.2 SAMPLE UNIT 21 3.3 SAMPLING METHOD 21 3.4 SAMPLING SIZE 21 3.5 SURVEY LOCATION 21 3.6 COLLECTION METHOD 22 PRIMARY DATA 22 SECONDARY DATA 23 3.7 ETHICAL ISSUES 23

4.0 DATA ANALYSIS 24 4.1 PRIMARY DATA ANALYSIS AND BUSINESS IMPLICATIONS 24 DEMOGRAPHICS 24 BUSINESS PROCESS 30 HUMAN RESOURCES 35 MARKET ANALYSIS AND MARKETING STRATEGY 40 FINANCIAL PLANNING 45

5.0 BUSINESS MODEL 50

5.1 BUSINESS MODEL CANVAS 50 5.2 BUSINESS MODEL ELEMENTS 52 PRIORITY CUSTOMERS 52 SUPER VALUE PROPOSITION 52 CHANNELS 52 KEY ACTIVITIES 52 VALUE CHAIN BASED RESOURCES 53 IDENTITY 53

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COMPETITIVE STRATEGY 53 RELATIONSHIPS 53 KEY PARTNERS 54 REVENUE STREAMS AND CASH FLOW 54 COST & COST BUDGET 54

6.0 BUSINESS PLAN 55

6.1 MISSION & VISION 55 MISSION 55 VISION 55 6.2 OBJECTIVES 55 6.3 MARKETING PLAN 56 SEGMENTATION, TARGETING AND POSITIONING 56 6.3.2 MARKETING MIX 58 6.3.3 STRATEGIC GROWTH (ANSOFF MATRIX) 61 6.4 ORGANIZATIONAL / OPERATIONAL PLAN 62 6.4.1 ORGANIZATIONAL STRUCTURE 62 6.4.2 HUMAN CAPITAL PLANNING 63 6.4.3 VALUE CHAIN ANALYSIS 65 6.5 FINANCIAL PLAN 69 6.5.1 3-YEAR FORECAST INCOME STATEMENT 70 6.5.2 3-YEAR FORECAST BALANCE SHEET 71 6.5.3 ASSUMPTIONS, EXPLANATION AND JUSTIFICATION 72 6.6 GANTT CHART 76 6.7 CRITICAL SUCCESS FACTOR 77 6.8 RISK MITIGATION AND CONTINGENCY PLAN 77

REFERENCES 81

APPENDIX 83 I ETHICS APPROVAL FORM 83 II QUESTIONNAIRE 89

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List of Figures

Figure 1.0 Increase in number of DIY stores in India

Figure 1.1 Research Frameworks

Figure 2.0 Hiring Decision

Figure 2.1 Maslow’s Hierarchy of needs

Figure 2.2 Business Process

Figure 2.3 The Financial Planning Process

Figure 2.3 Sources of Finance

Figure 3.1 Research Design

Figure 3.2 Collection Methods

Figure 5.1 Business Model Canvas

Figure 6.1 Company Logo

Figure 6.2 STP Process

Figure 6.3 Positioning Map of Mr. Fix It

Figure 6.4 Marketing Mix

Figure 6.5 Types of Promotion

Figure 6.6 Ansoff Matrix

Figure 6.7 Organizational Structures

Figure 6.8 Value Chain Analyses

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List of Tables

Table 6.1 Start-Up Costs

Table 6.2 ForecastIncomeStatements

Table 6.3 ForecastBalanceSheets.

Table 6.4 Sales Forecast

Table 6.7 Retained earnings

Table 6.5 Depreciation Calculations

Table 6.6 Assumptions

Table 6.8 Ratio Analysis

Table 6.9 Gantt chart

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CHAPTER ONE

INTRODUCTION

1.1 Industry and Company Background

The concept of DIY is well established in the western countries and also in most of the Asian

countries. Stores like IKEA and Mr. DIY have been running successfully and people find it

interesting to set up their own wardrobe or their taps and pipes in the washbasin. The

products come with all the instruction and also the necessary nuts and bolts to set it up. This

makes it even easier for the customers as they just need a screwdriver or a hammer to set up

the product.

The DIY industry does not to offer top-notch products with state of the art quality. The whole

concept is to make cheap products with good finish and easy to assemble. Prices were lesser

compared to the conventional way of making the products. The labor cost and the price of the

expensive materials were cut down. Ikea the main player in the DIY industry is the largest

player in the world with both hardware and furniture products. Started in 1947 is now the

main player in the DIY industry with global revenue of 32 billion Euros worldwide. Their

main competitive advantage was having the knowledge of what the customer wants. (Sayeau,

2009)

Mr. DIY in Malaysia is one of the competitors of IKEA but in a small scale. It sells DIY

products, which are imported from china, and they have outlets all over Malaysia but IKEA is

established in Kuala Lumpur only. They started only in 2005 but they already have 220

outlets all over Malaysia and they are planning to expand to Thailand. Though the concept of

DIY was new people started to like these kinds of products. This is evident from the revenue

gained by the two companies mentioned above.

The Concept is new and is expanding in an exponential scale.

1.2 Business Concept and Opportunity

The DIY Hardware Store is mainly going to deal with hardware products such as doorknobs,

tap fittings, pipes, showers, electrical products and car accessories which can be set up by the

customer itself and no separate expertise is needed. The DIY stores are new to India and not

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many people are going to be aware of such a store. So marketing will be the main thing that

we will have to pay attention to.(Sensis, White, and Hartnett, 2006) The price of the product

is going to end up cheaper and also setting up is going to be much easier. The main focus will

be on offering the customers what they want as soon as they enter the store.

The concept of DIY will be initially focused on the hardware products and will slowly start

offering furniture’s and other household products. Both B2C and B2B will be carried out.

The concept of DIY is not yet entered the South Indian market. So it will be a new idea and

people in India welcome new ideas. This makes our store stand out from others and since

there is less or even no competitors the opportunity to gain market share will be much higher.

(Group, 2016) The concept of blue ocean strategy will be what we are focusing on. Since the

concept of DIY is almost new to the south Indian market people would visit us at least to

look at the concept. . In India, there is certain group of people who does online purchase and

they might be exposed to the DIY concept. According to the FranchiseIndian Magazine the

number of DIY stores in India is increasing steadily. So the opportunity is wide.

Figure 1.0 Increase in number of DIY stores in India.

Source: FranchiseIndian Magazine (2015)

But having a physical store and this will make customers to have a physical look at the

products before the purchase. The main idea is to offer the lowest price possible.(Abrams,

2014)

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fff1.3 Purposes and Rationale

The prime purpose and rationale of this business plan is to set up a DIY store in Salem, India

under the name “Mr. Fix It”. The concept of DIY is new and exciting and will have a greater

impact in the society. There is increase in student population in and around that region who

look for cheap and quality products for their rental rooms. This store will be useful for

customer’s home and office use.

1.4 Significance of the Research

The research of setting up a DIY hardware store in Salem, India is done to find out the

important factors necessary to start and run a business successfully. Proper understanding of

the different strategies such as Marketing, Human Resource and Staffing, Financial plan and

Business operations and also how to apply these strategies in real time to start a business will

be the main objective.

1.5 Terms of Reference

Research Questions

1. How does Marketing strategy help to set up a new DIY hardware store in Salem,

India?

2. What impact does Human Resource management have on setting up a new DIY

hardware store in Salem, India?

3. How does Business operations lead to setting up, improving and expanding the new

DIY hardware store in Salem, India?

4. How does Financial-planning help in setting up a new DIY hardware store in Salem,

India?

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Research Objectives

1. To understand the effect of marketing strategy on setting up a new DIY hardware

business in Salem, India.

2. To analyze the effect of Human resource management on setting up a new DIY

hardware store in Salem, India.

3. To understand the influence of Business Operations on setting up, improving and

expanding a new DIY hardware store in Salem, India.

4. To examine the impact of financial-planning in setting up a new DIY hardware store

in Salem, India.

Research Framework

Figure 1.1 Research Framework

Abusinessdevelopment

proposaltosetupaDIYhardwarestore

inIndia

MarketAnalaysisandMarketingstratergy

HumanResourceManagement

BusinessProcess

Financial-Planing

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CHAPTER TWO

2.0 BUSINESS REVIEW

2.1 Market Analysis and Marketing strategy

The market or industry analysis is of utmost important for anyone who is keen to start up a

new business. Knowing the current scenario of the industry and the market is very important

to strategies the business accordingly. This becomes very vital because it decides the

performance and growth of the company in the future years. And also it is a type of

feasibility analysis to determine the substantial growth and sustainability of the business in

the competitive market. It also helps to decide on the target customer by knowing their needs

and demand. Market analysis is used by a lot of people to have a safe start in their business

endeavor. It gives a lot of information on how to take business decisions, which will be very

vital for a start up. Market analysis should be the first step before starting any business and it

also serves to be a forecasting tool on how the business is going to perform in real time. It

will give an overall view on the macro environment factors that can possibly have an effect

on the business.

According to Popovic, D. (2006), modeling the marketing strategy of a new business start up

is essential and vital. A though provoking analysis in required before starting up a business.

There will always be a gap in between Needs and Wants of a customer. An efficient

entrepreneur will find the gap in between and will create and communicate to fill in the gap.

Marketing should also meet the vision and mission statement of the company. Marketing a

product against the mission and vision statement will lead to bad impression on the business

and the company. The concept of DIY is new and not much people know it. Without

marketing none of the potential customers will be able to know about the products and

services offered. So to make people realize and make them aware of the whole business

marketing becomes very much necessary. The market is going to be the practical

environment where the business is actually going to happen. It is the place where lots of other

business and competitors prevail. This becomes increasingly important for new DIY

businesses to have a proper marketing strategy to sustain and gain profit in the market.

Modern marketing strategy has developed and evolved with time. It has also taken a different

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shape to adapt the modern business world. When a business with a completely new concept is

set to establish marketing becomes highly important.

According to Krstic, I. and Becic, S. (2011), marketing basically identifies the target

customers and then helps in selling the products to the customers. Since the concept of DIY

(Do It Yourself) is new, people with ‘willing to change and try new things’ attitude is needed.

The industry targets to invite people to try and encourage the new concept and will try to

make them long term customers. Reputation is one main things that makes the success of the

business. Marketing actually increases the brand name, the brand image and in turn builds a

strong reputation. So when the reputation starts to develop, the business expands and also the

sales rate becomes higher. Segmentation usually targets what kind of products and price

customers prefer. Since the level of competitors is lesser, the prospects of the business

flourishing are high. But marketing is a very important factor since the concept of DIY is new

to the market. The motive of DIY industry is to provide products at lower piece and at high

quality. But the local hardware and furniture shops might give some competition to the

business. To overcome this the Product, Price and Promotions are strategically aligned to

stand out from the local vendors. It will also provide an edge, as the infrastructure will be

more pleasing and welcoming unlike the traditional hardware shops. Marketing is very much

important for a business, but might turn out to expensive. At the first year marketing budget

might be as high as 30% of the total revenue, but will be very useful to develop the

reputation.(Abrams, 2014)

H1 Thus market and industry analysis have a positive effect on setting up a new

business.

2.2 Human Resource Management

To have the edge, right skilled people should be recruited for the job. This plays a major role

in delivering products and services on time to the customers. The process of recruitment

requires a proper plan in order to know what type of skill set is needed from the applicants.

The type of labor needed depends on lot of factors like client requirement, technological

developments, labor mobility etc. The DIY industry needs not only needs skilled manpower

but also people with uniqueness, as the products are different and easy to fix. This requires

out of the box thinking. The process of recruitment was a bit different. Skills were analyzed

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and thinking of the candidate was studied. The process of recruitment can vary from one job

to another and may also depend on the company profile. So a clear requirement should be

designed in order to attract the right skill. Also at certain times, there were performance test

at the end of the hiring process where the candidates will be put into real time scenarios or

real time work to test the ability of the candidates. (Werner, 2014) The hiring decision

depends on 5 dimensions Competencies, Adaptability, Motivation, Personal Characteristics

and References.

Figure 2.0 Hiring Decision

Having a diverse culture in the industry makes it even easier to get innovated products. After

the process of hiring and forming a team, the main thing is to motivate the team towards the

organizational goal. According to Taylor’s Theory of Motivation, the managers should have a

close look at their employees and should keep motivating them to prevent absenteeism and

better productivity. Employees are motivated by Salary hike and incentives, better

communication between employee and manager, working in groups, working conditions, job

security and recognition for their work.(McMorland, 1990)

The process of performance management will have a close supervision among all the

employees and it will result in knowing each of their performance. Since the work at the DIY

industry in challenging and stressful, attractive salary packages and allowances were given to

the employees to motivate them.

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Figure 2.1 Maslow’s Hierarchy of needs

According to Williams, S.L. (2002), having a positively motivated employee will result in

more innovation and higher profit. So not only attractive jobs were given but also work

recognition was put into play. DIY industry always had the motto of satisfying not only the

customers but also the employees. This made the industry flourish in the western part and the

culture follows. Also according to Maslow’s hierarchy of needs, satisfying the needs of the

employee is necessary to motivate them. A company offering all the 5 needs will gain the

loyalty of the employee and will also be a great motivating factor. And the business will also

gain more profitability if the employees are motivated towards the goal.

Offering training is also an integral part of human resource management and in DIY industry

it is very vital. The employees though are skilled they might need some level of training and

development in order to get in par with the ideas and concepts. The level of training and

development was offered within the allocated budget and most of it was used in R&D to

develop new ideas. The training helped the employee’s perform better and keeps themselves

up to date on the latest development and technology.

H2 Thus Human Resources Management has a positive impact on setting up a new

business.

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2.3 Business Process

Any business requires a process to perform their activities. And this process is the nucleus of

the business as everything revolves around these processes. According to Seethamraju, R.

(2012), business process is the main process that directs the employees and staffs towards the

organizational goals and objectives. Barros, O. (2007) says that business process is nothing

but a set of structured operations that are performed to meet the demands of the customers

and the goals of the organizations.

In a new business where the concept is also new, the process has to be streamlined

efficiently. Business process starts right from acquiring raw materials, processing and

manufacturing, inventory storing, in-store display of products, billing and payment and

sometimes until delivery (If the customers want the company to deliver to their house). So it

is not a one step process. The manufacturing process itself can be sub-divided into many

processes, as the concept of DIY requires so much of labor work.

Business process does not stop with just manufacturing and sales. It also includes employee

training and retention, after sales services and managing the financial processes. So business

process concerns the whole process of the business.

According to Vathanophas, V. (2007), the business process is a collection of both

organizational and operational business process. The implemented process should be a mix of

these two, which directs to the goals of the business.

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Figure 2.2 Business Process

Since the concept of DIY is new to India, the process of after service sales becomes vital and

necessary. DIY business concerns more with the designing of the products that are

manufactured. They have a unique design that can be assembled by the customer itself and so

it requires a lot of labor work than machine work. Since there is continuous advancement in a

DIY business, the business process should be made flexible and also a step-by-step process.

And also there should be a quarterly review on the business process and necessary changes

should be made to make it effective and outdated processes should be removed. So having a

flexible and step-by-step process makes it easier to make changes. Business process also

involves having a safe working conditions and protection of the resources of the company.(Seethamraju, 2012) Having a proper procedure, companies can ensure safety for employees

and company assets. And also since the business process keeps track of all the resources and

raw materials, there will be less wastage. Reducing wastage can improve the profitability of

the company. And since DIY industry involves complex designing there are high chances of

wastage due to negligence of the workers. So proper business process can avoid them

because everything is documented. It will also increase the feel of accountability. Since

everything is documented in a process-oriented way, deadlines have to be met, profit has to

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be achieved and by doing this whole process of the company becomes systematic. Being

systematic is one way of reaching to the success.

Business process on a whole is a bridge between goals of the business and the necessary

actions to be taken. Having a proper business process will surely make a business flourish

and gain competitive advantage.

H3 There is a significant relation between business process and setting up a new

business.

2.4 Financial Planning

Whether it is a joint venture or a new startup, having a proper flow of funds is the most

important aspect. In order for a business to sustain in this competitive market a proper

financial plan is needed. Lack of finance or a financial plan may lead to failure of the

company. According to Danford, D. (2011), a financial plan should be designed in such a

way to improve the profitability and the revenue of the company. To make money, money is

needed. Finances are needed in many times in a business. Right from back up during low

sales period or calamities to planning the marketing. Finances might not be important

compared to the vision and the products offered by the company, but to make all this happen

proper funding is needed. Finances are important for business cycles, growth and payroll.

According to Bensoussan, B.E. and Fleisher, C.S. (2009), every business should have a

proper financial plan to execute. The first and foremost step in the planning process is to

gather information about the current scenario that are needed for the financial plan such as

inventory needed, salary allocation, gadgets needed for the business etc. With these

information a proper objectives has to be set as to when to see break even etc.(Gregson,

2007) Then the actual plan has to be outlined right from how to gather funds to expenditure

on marketing to daily expenditure. The plan made will help the business owners evaluate the

fund needed to run the business and also to decide how much fund is needed from the outside

source. The plan should not only be implemented but also reviewed quarterly and there

should be a check whether the financial expenditure is going as per the plan. Changes should

be made as it depends on lot of factors like demand from customers, environmental

conditions etc. (Danford, 2011)

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Figure 2.3 The Financial Planning Process

Financial sources have been standard right from the beginning. It is internal or external. But

to be on the safer side quite a sum of money should be from the internal source such as

personal capital or from family and friends. Not that taking load from a bank or other private

financial agencies are not good for a business, but the level of risk involved is lesser when the

finance is from internal source.(Gregson, 2007)

Bank Loans one of the external sources of finance are the foremost source to look for after

internal sources. (Rennie, 1984)

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Figure 2.3 Sources of Finance

But looking at the risk, a security has to be given to issue a loan which is usually the over the

asset of the business. This makes the bank secure but puts the business owners at high risk.

And also, loans are not offered in a flexible manner. The required amount of money is not

given to the loan taker, rather a fixed set of loan amounts decided by the bank are the only

optional. So basically the business owners pay more interest on the excess finance they took

from the bank. Also the interest is high when finance is acquired from other external finances

and there is extra pressure on the business owner to pay the interest monthly. The financial

analysis part has to be carefully structured in order to sustain, to maintain the quality of

products and also to carry out the necessary R&D activities.

H4 There is a positive relationship between financial planning and setting up a new

business.

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CHAPTER THREE

3.0 RESEARCH DESIGN

3.1 Research Methods

According to Hair et al. (2007), deductive approach is where a theory is completely studied

without any focus on anything and then data collection is done. Now the data analyzed will

have specific level of focus to the theory. It is basically the reverse process of Inductive

approach. A deductive approach will have no risk whereas an inductive approach might face

a lot of risk, as there may be no theory to the data analyzed. Here in this project the

deductive approach is taken as the theory and the hypothesis, will be evaluated against the

data collected and also to mitigate risk.


Exploratory The business of Do It Yourself (DIY) hardware store is going to be a totally new concept in

the region where it’s going to establish. So there is going to be a lot of factors that needs to be

researched in order to start a business. There are also no empirical evidences proving the

success of a DIY hardware store in the particular region. So it becomes necessary to explore

in detail and lay the proper groundwork before proceeding further. Exploratory researcwhen

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done at the beginning of the research will be useful to determine the potential growth areas

and also to prioritize tasks to be performed. So in short exploratory research design is done to

explore in depth the theories and factors necessary to run the business. (Hair et al., 2007)

3.2 Sample Unit

Sampling unit for this research will be adults both and men and women who are aged over

20+. Since this business is a new venture and the concept of Do It Yourself (DIY) is used,

the respondents should be able to understand the concept. The respondents who are 20+ of

age will be selected from the region in and around where the store is going to come up i.e.

K.M.S garden, Salem, India.

3.3 Sampling Method

Judgmental sampling a type on non-probability sampling is used in this research. Since the

survey results are going to play a key role in designing the business plan, the answers to the

questionnaire are vital. So the respondents who have prior knowledge of DIY products are

selected and the questionnaire will be asked to answer by them. Selecting the right location is

the key.(Emmel, 2013)

3.4 Sampling Size

The sampling size will be vital. More the response, higher will be the possibility of success of

the business. The sample size will be 100 respondents who will be 20+ of age and will belong

to the same location where the business is going to come up.

A questionnaire will be circulated for them to answer. (Desu and Raghavarao, 1990)

3.5 Survey Location

The survey location will be the areas in and around KMS Garden, Salem. One of the main

reasons for surveying this location is that, the business is going to come up in this area and

also because the population in this area in much higher and diverse compared to the other

areas. So in order to cover larger crowd the survey location was set to KMS Garden, Salem.(Candau, 2008)

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3.6 Collection Method The collection method will be from two main data sources. The first one is primary data

source and the second one is secondary data source. (Pandiyan et al., 2011)


Primary Data According to Axinn, W.G. and Pearce, L.D. (2009), primary data is real time and very sure

about the source of information. Though it is time consuming, the results obtained will be

reliable and useful. There are numerous ways in which a primary data for the research can be

collected. Here I’m using self-administered Questionnaire to collect the data, which will be

the primary source of data. Using Questionnaire for data collection is faster and also has a

greater reach. Since the Internet and social media are playing a major role now, a digital form

of the questionnaire will be set up and will be made available for people to answer over the

Internet, so as to make the reach as wide as possible. A stall will be put up with the logo and

the brand name, and freebees will be given to people who will take up the questionnaire. This

is done to cover the population who has no access to Internet and social media. Also

personally meeting clients and getting the survey done will be one of the options. It’s more

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time consuming and requires higher cost. But the information obtained will be very much

useful and effective.

Secondary Data The secondary data are facts and Figure s already completed by other researchers and

recorded in the form of articles or books. The data from secondary sources are easy to obtain

and requires lesser cost compared to the primary data. These data can be collected from the

research of other DIY companies survey, databases, Internet search engines etc. They are

mostly past data and using them for a dynamic market may be misleading. SO care must be

taken on processing the information. These data obtained can be compared with the real time

primary data and can be used for comparative purposes. The might also be used to

completing the primary data.(Axinn and Pearce, 2009)

3.7 Ethical Issues

Utmost care has been taken by the researcher to convey all the relevant details about the

research that is required to be known by the respondents. The respondents will be informed

about whom will access their answers and also that the questionnaire is optional and who

doesn’t want to involve themselves can avoid them.

Ethical issues will be avoided and the reason for the survey will be only to use for the

research project undertaken and nothing else. The answers to the questionnaire will not be

leaked to other researchers or shared with any other person except the researcher himself.

Their identity will also not be disclosed to endorse any facts. If needed their identity will be

disclosed only with the permission from the respondent and only if he/she gives a no

objection. Every one who is approached to take the survey has the right to not take it and is

completely voluntary. All the information’s, theories and statistics referred from journals,

articles, websites, books etc. are properly cited with Harvard referencing and no one’s work

is copied or replicated. (Miller, Cross, and Hollowell, 2006)

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CHAPTER FOUR

4.0 DATA ANALYSIS

4.1 Primary Data Analysis and Business Implications

Demographics

1. Please state your gender.

Figure 4.0 Gender chart

Gender Responses

Male 67

Female 30

Total 97

Table 4.0 Gender Responses

Out of the 97 respondents, 56% were male and 44% were female.

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2. What is your age group?

Figure 4.1 Age chart

Age Responses

18-20 23

21-30 30

31-40 23

41-50 15

50andAbove 6

Total 97

Table 4.1 Age responses

Out of the 97 respondents that took the survey, the majority were among the age 21-30 with

31% and age group 18-20 and 31-40 have equal percentage of 24%. The lowest is the people

belonging to the age group 50 & above with just 6%.

Business Implication

This shows that people who were aged between 18-40 years old showed interest. And the

target market should be within this limit for a competitive edge.

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3. What is your employment status?

Figure 4.2 Employment status chart

Employment Status Responses

Student 36

Employed 30

Unemployed 15

Self-Employed 10

Retired 6

Total 97

Table 4.2 Employment status responses

The majority of the people who took the survey were students with 37%. And the next was

Employed class of people with 31%. People who are unemployed, self-Employed and retired

were 16%, 10% and 6% respectively.


Since the highest percentage were students and people who were employees. Our target

market should focus on these people. Having the right target customers will help the business

to perform better and knowing whom the products are going to reach helps the business to

have a competitive edge.

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4. What is your monthly income?

Figure 4.3 Monthly Income chart

Employment Status Responses

BelowINR10,000 39

INR10,000-INR29,999 33

INR30,000-INR49,999 15

INR50,000andabove 10

Total Responses 97

Table 4.3 Monthly income responses

Out of the 97 respondents 40% were earning below INR 10,000 and below. The next was

people who are earning between 10,000 – 29,999 were around 34%. The lowest was about

10% of people who ever earning 50,000 and above.


People with low to middle level of income were the highest in the survey. This shows that the

people with low level of income cannot afford products with higher price. And since the

target market are those, having a competitive and lower price is going to be an advantage to

gain the market share and also the loyalty of the customers.

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5. How much do you spend on Fixing Household items per month?

Figure 4.4 Amount spent Fixing Household items Chart

Amount Spent of fixing household items Responses

BelowINR100 10

INR100-INR299 33

INR300-INR499 15

INR500andabove 39

TotalResponse 97

Table 4.4 Amount spent Fixing Household items responses

Among the 97 respondents people spending more than INR 500 monthly on fixing household

items were high with 40% and next was between 100- 299 INR with 34%. The lowest was

just 10% where they spent below 100 INR.


People spending more on fixing household items are higher in numbers. This shows that, if

we offer products with lesser prices and with great quality as promised there are high

possibility of customers landing at our store. And also since the quality of products are at its

best, it becomes even more advantageous for the business.

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6. Do you fix household hardware & furniture’s?

Figure 4.5 Do you fix household hardware & furniture’s Chart

Do you fix household hardware &

furniture’s?

Responses

Yes 10

No 33

AtTimes 54

TotalResponse 97

Table 4.5 Do you fix household hardware & furniture’s responses

People who at times fix household items were higher with 56% and people with yes were low

with just 10% out of the total respondent. This shows that people are willing to fix items but

no proper products.


From the results it’s seen that people only fix household hardware and furniture’s at times.

People who told yes were minimum. Here at our store the concept of DIY is introduced. Do It

Yourself is a concept where the process of fixing is easier and the products comes with an

instruction sheet. Tools at every house are more than enough to fix these items. No expertise

is needed. Cheap and Best.

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Business Process

7. I prefer the purchase to be as quick as possible.

Figure 4.6 Bar chart

Response Percentage of response No. Of. Responses

StronglyDisagree 3.1% 3

Disagree 7.2% 7

Neutral 25.8% 25

Agree 25.8% 25

StronglyAgree 38.1% 37

TotalResponses 97

Table 4.6 Responses table

Among the 97 respondents, 38.1% strongly felt that they should have a quick purchase and

only 3.1% strongly disagreed to it. While 25.8% were neutral.


From the results we see that people who strongly agreed where higher in percentage. So

making the process of purchase as quick as possible and hassle free attracts more customers

and also makes them contended. Proper training and development and process

implementation is necessary to make the employees work faster and smarter.

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8. It is always better to mention the manufacture date on the products to make the product

more reliable.




Disagree 6.2% 6

Neutral 38.1% 37

Agree 23.7% 23


TotalResponses 100% 97


When asked about the mentioning manufacture date on the products, 38.1% were neutral to

it. 20.6% strongly agreed to it, 23.7% agreed to it, while only 11.3% strongly disagreed to it

and just 6.2% disagreed to it.


Mentioning the manufacturing date on the products does not affect the purchase behavior of

the customers to a great extend. But people who feel neutral about this were higher. And who

disagreed also seems to be lower. So it’s always better to have the manufacturing date on the

products to make the products look reliable to the customers and to develop a sense of loyalty

towards the brand.

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9. I would like to know/see how the products are manufactured.




Disagree 10.3% 10

Neutral 46.4% 45

Agree 16.5% 16




About 14.4% of the total 97 respondents strongly disagreed that they need not know/see how

the products are manufactured. About 10.3% disagreed, 46.4% were neutral to it, 16.5%

agreed to it and only 12.4% strongly agreed to it.


The percentage of people who reacted neutral to this also remains to be higher and rate of

disagree seems to be slightly high as well. This shows that not many are interested to see the

whole manufacturing process. Until the products are high in quality and durable, customers

don’t expect anything more. But having the chance to see the how the products are

manufactured would be an added advantage.

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10. Take measures to reduce energy consumption and recycling procedures.




Disagree 3.1% 3

Neutral 15.5% 15

Agree 33.0% 32




47.4% of the respondents strongly agreed to reduction of energy consumption and recycling

procedures. 33% agreed to it, 15.5% were neutral to it. And only 1% strongly disagreed to it

and just 3.1% disagreed to it.


From the results people feel that eco-friendly measures has to be taken by the business. As

part of the corporate Social Responsibility, energy consumptions and usage of plastic will be

considerable reduced. Renewable source of energy like solar panels will be used. Also

recycling procedures and proper disposable of waste will also be implemented. This will

make not only the customer loyal but will make the mother earth better

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11. Use of raw materials from overseas is attractive for the business.




Disagree 12.4% 12

Neutral 30.9% 30

Agree 18.6% 18




About 30.9% were neutral and almost 18.6% agreed and 17.5% strongly agreed.

But also 20.6% strongly disagreed and 12.4% disagreed to it.


Using of quality raw materials from overseas is a bit expensive and the people who took the

survey had varied views on this. But from the business point of view, to maintain the quality

of the products and also to maintain the price of the product certain imports from overseas is

necessary. It will definitely be a advantage after the customers start using the products.

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Human Resources

12. In Store staffs should be friendly and welcoming.




Disagree 5.2% 5

Neutral 10.3% 10

Agree 28.9% 28




Out of the 97 people who responded, 53.6%strongly agreed that the in store staffs should be

friendly and welcoming. Also 28.9% agreed to it and 10.3% were neutral. Only 2.1% and

5.2% strongly disagreed and disagreed respectively.


Any customer wouldn’t want the customers to be rude and impolite. From the survey it is

pretty much certain that they think the same. So selection of candidates for all the roles

should be dealt carefully and proper training and rule set should be set for the employees to

follow.

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13. The Staffs should be knowledgeable about the products and services offered.




Disagree 6.2% 6

Neutral 51.5% 50

Agree 17.5% 17




51.5% were neutral to staffs knowing about the products and services offered. 20.6% and

17.5% strongly agreed and agreed to it respectively. Only 4.1% strongly disagreed and 6.2%

disagreed to it.


Proper knowledge of the products and services becomes very much necessary for employees

so as to make the customers know about the product. The results proves that people think the

same as the percentage of disagree is lesser. This requires proper training of the employees

and keeping updated about the new technology implemented in manufacturing and

production. There should a communication bridge between the manufacturing department

and sales department to achive this.

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14. The sales and service team should have a good command over English and the local

dialect.

Fig4.13 Bar chart



Disagree 11.3% 11

Neutral 17.5% 17

Agree 26.8% 26




32% strongly agreed, 26.8% agreed, 15.7% were neutral, 11.3% disagreed and 12.4%

strongly disagreed. Seeing this data, people who have agreed are higher.


Customer cannot be limited to who visit the store. There will be different kinds of people

from different background. Tackling and serving all of them will be the main aim to achieve

and gain market share. Which in turn will benefit the company with more profit. So the

employees should be able to have good command over English and should be able to speak in

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the local dialect where the store is located. This will ensure total coverage of all the

customers.

15. The employees should not keep the customers waiting for long.




Disagree 7.2% 7

Neutral 14.4% 14

Agree 34.0% 33




40.2 % strongly agreed, 34% agreed while only 4.1 % strongly disagreed. And 14.4% were

neutral and 7.2% disagreed.


Any customer who is waiting to be attended by the staff will get furious and angry and that in

turn will put a bad image on the company and the brand value of the whole business. The

customer should be immediately attended by any of the staffs and should be directed. To

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ensure this happens a team of staffs called the hospitality team will be welcoming the guests

and directing them to the respective area where the products are.

16. The employees should be aware of the profit and loss that the company faces.




Disagree 21.6% 21

Neutral 33.0% 32

Agree 16.5% 16




33% were neutral and 23.6% disagreed and 15.6% strongly disagreed. Only 12.4% strongly

agreed to it and 16.5% strongly disagreed to it.


People who feel neutral about this are higher in percentage and also who disagree to it is

higher than who agree to it. This will not affect the purchase behavior of the customers. But

employees who know about the profit and loss of the company become loyal to company and

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will feel that their work is getting paid off. It will also help the employees more motivated

towards the goals.

Market Analysis and Marketing Strategy

17. I do research (check ratings, customer feedback, etc) about the store on social media

before trying out the place.




Disagree 16.5% 16

Neutral 10.3% 10

Agree 22.7% 22




This has got varied results where 20.6% strongly disagreed, 16.5% disagreed, 10.3 were

neutral, 22.7% agreed and 29.9% strongly agreed.


When social media and technology started taking over people had access to everything over

the Internet. Using this people read feedbacks and reviews about the place they are going to

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visit. So it becomes increasingly important for the business to market itself well. But there are

few people who still not into technology and that is seen from the results above. But social

media marketing is taking a strong stand nowadays

18. Offers and promotions play an important role when I'm choosing a place to buy.




Disagree 7.2% 7

Neutral 23.7% 23

Agree 40.2% 39




About 22.7% strongly agreed, 40.2% agreed, 23.7% were neutral, 7.2%disagreed and 6.2%

strongly disagreed.


From the statistics, we see that people do look into offer and promotions. So having offers

and promotions from time to time will increase the frequency of visit of customers to the

store and will also increase the purchase behavior. This will be very vital as the main revenue

stream is by sales and service.

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19. New or different type of products is definitely an attraction.




Disagree 17.5% 17

Neutral 27.8% 27

Agree 30.9% 30




Out of the 97 respondents 13.4% strongly agreed, 30.9% agreed, 27.8% were neutral,

17.5%disagreed and 10.3% strongly disagreed.


Here we see that people do need change. Change is the only thing that will keep the business

moving forward. So offering the same types of products and services will make it

monotonous for the customers. Innovation in products and services has to be one of key

objectives to sustain in the competitive field. SO it is important to have a strong R&D

department.

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20. Price is another factor that I consider before making a purchase.




Disagree 4.1% 4

Neutral 9.3% 9

Agree 36.1% 35




Here, Out of the 97 respondents 35.1% strongly agreed, 36.1% agreed, 9.3% were neutral,

4.1%disagreed and 15.5% strongly disagreed. So from these results it is proved that price

does matter to the customers.


Apart from when there is a need, people do look at the price to make a purchase. This is seen

from the results above. So it is increasingly important to have a nominal cost for the products

offered. Other operational costs have to be reduced in order to offer competitive prices for the

products. Offering a low price makes the purchase behavior even higher.

21. I wouldn't mind driving long to see a new store with new innovative products.

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Disagree 25.8% 25

Neutral 21.6% 21

Agree 14.4% 14







Having a prime location is one of the best strategies that is necessary for a start up business.

And also in country like India where the petrol prices are rising exponentially, nobody would

want to price to a far place just to purchase from a store. This is shown from the results

above, where 29.9% of respondents have strongly disagreed to it. So for a business to excel

having a prime location is necessary. KMS garden one of the city center is the location for

this business.

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Financial Planning

22. Proper financial strategy is necessary to run a business effectively




Disagree 2.1% 2

Neutral 12.4% 12

Agree 38.1% 37





2.1%disagreed and 0% strongly disagreed.


Any business needs to sustain in the market. To make this happen, proper financial strategy is

important. This is because funds are the core of any business. To maintain the funds are

flowing throughout proper financial strategy is necessary.

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23. Bank loan is one of the best options for start-up businesses.




Disagree 11.3% 11

Neutral 53.6% 52

Agree 12.4% 12




13.4% strongly disagreed, 11.3% disagreed, 53.6% were neutral, 12.4% agreed and finally

9.3% strongly agreed.


From the results wee see that the people who are neutral are high in percentage. It shows that

bank loan is not the best option. Since bank loan requires a lot of procedures and a guarantee

is required from the bank. And the seest of the business is usually given as one. So as far as

possible funding the business with internal source of funds is better than seeking external

source such as bank loans etc.

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24. Businesses will surely succeed if there is enough investment to maintain the quality of

products.




Disagree 6.2% 6

Neutral 15.5% 15

Agree 32.0% 31







Quality is the main thing that people see in any products after seeing the price. One of the

main reasons that business fail because they cannot keep up the quality of products in a long

run. But this is very vital because all the loyal customers will start searching for alternatives,

which is not healthy for a business. So quality of business has to be maintained. TO achieve

this proper investments are needed to manufacture the products with same quality. All the

sales and profits have to be streamlined and used properly.

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25. It is better for owners to fund their own business before seeking external funds.




Disagree 4.1% 4

Neutral 9.3% 9

Agree 36.1% 35





4.1%disagreed and 15.5% strongly disagreed. Funding their own business is always better

than any other options.


Yes it is always better to fund their own business because the risk involved is lesser than

other forms of external funding. But it depends upon the capacity of the individual who is

investing in the business. If internal source of finance is strong then no need of bank loans

and other external sources.

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26. Indian government/ NGOs offer a lot of financial support to young entrepreneurs.




Disagree 10.3% 10

Neutral 32.0% 31

Agree 23.7% 23




Out of the 97 respondents 12.4% strongly agreed, 23.7% agreed, 32% were neutral,



The Indian Government has started some new policies to develop to support start up business

Startup Intellectual Property Protection (SIPP), The Atal Innovation Mission (AIM), Self-

Employment and Talent Utilization (SETU) are some of the policies that aid new business

startup’s. They not only help with the funding, but also reward and recognize new innovation

and technology. Government wants to promote investment into the country though start up’s.

And this might just useful support for the business from the government side.

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CHAPTER FIVE

5.0 BUSINESS MODEL

5.1 Business Model Canvas

51

Figure 5.1 Business Model Canvas

NewBusinessDrivers

NewInnovationinhomefurnishing&hardwareproducts

PriorityCustomer

SuperiorValuePropositions

Channels

KeyActivities

ValueChainBasedResources

Identity

-Students-Singles-Smallfamilieswithlowerincome

- Value for money with highest quality

- Properly Targeted customers

- High level of customer service (After Sales)

- Redefining concept of small household fixes

- Website

- Email

- Social networks

- Events & Exhibitions

- Word of mouth

- Effective production and manufacturing of DIY (Do it Yourself) products - Top-notch customer service.

- Partner Suppliers and merchants – RS Suppliers

- Alias with recruitment agency

- Delivery networks with Truck solutions

- New concept called DIY – Do It Yourself. Quality products, which can be assembled easily. - Unique design. - User-friendly store.

Competition/CompetitiveStrategy- No competition as of yet in the state.

- International competition from IKEA, MR. D.I.Y

Relationships• Excellent

rapport with the suppliers

• Tie up with international vendors for product development

• High customer relation.

• DIT TEAM • Distributors

KeyPartnership-Rawmaterialssupplyingcompanies.

- Delivery and transportation companies.

Cost and Cost Budget We follow Flexible Budgeting Fixed Cost covered by investment Variable cost covered by revenue streams Mr. Fix IT is cost driven. Manufacturing, Human Resources, Operation costs.

RevenueStreamsandCashflow

• All Revenue from customers on purchase of Products and also on after sales services.

• Positive Cash Flow

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5.2 Business Model Elements

Priority Customers The main revenue are the customers in any business. For a new startup with a new concept (DIY)

that has never been in the market it becomes increasingly important to have proper target customers.

Students, Singles, small family with low-income levels are the main customers for Mr. Fix It. Low

cost and high quality will be the value offered.

Super Value proposition The main value proposition we offer is high quality products at prices as low as possible to benefit

the customers. Value of every penny the customer spends. Also We offer high level of after sales

customer service. We care for the customers and even after the purchase of the products maximum

satisfaction will be offered to the customers in the event of malfunction. The concept of DIY is also

one of the value we offer. It becomes easier for the customers to carry their products back home and

fix it with just tools available in house. With the instruction sheet with every product they purchase

it will be a fun filled activity for the customers to fix their own household items.

Channels

The distributing channels are the main source of advertising our products and service to wide range

of audiences. It is the main medium to make people aware of the products and also the after sales

services we offer. There are two main channels. One is internal and the other is external. We use

both types of channels here at Mr. Fix It. The internal channel will be the Website of the company

with A-Z details about Mr. Fix It. The external channels will be through distributors, Social Media,

events and Exhibitions.

Key Activities

The key activities of the company are nothing but the activities that the company needs to perform

to gain success. This includes the effective production of DIY products. The concept of DIY is

challenging because manufacturing a finished product is easier. But to manufacture a finished

product, which should be assembled later, is bit challenging and time consuming. So the main

activity is to manufacture and pack the products that can be transformed into finished goods by the

customer. The next activity is the after sales customer service. Preparing the customers mind about

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the new concept of DIY will be challenging in the initial phase. So providing state of the art service

to customers will be one of the main activity to gain customer loyalty and brand image.

Value chain based resources

The value chain based resources are the essential elements that are required to run the business. For

the raw materials partnership with RS suppliers has been taken into consideration. Professional and

healthy relationship with the supplier will be mandatory. The Truck Solutions are the well-known

transportation services in the state and an agreement is signed for the transportation of raw

materials, finished goods and delivery to far off places. Having a long tern relationship with them

will prove beneficial for the company. Apart from these two main resources, other partnerships,

which are needed, will also prevail when the need arises.

Identity

The main identity that Mr Fix It will have is the products we offer. The concept of Do It Yourself

(DIY) will be the main attraction for our business. Also the unique design and the slashed prices on

the products will also be eye-catching for the customers to buy in our company.

Also hardware shops and other household supplying stores are usually unapproachable and dirty.

Here at Mr. Fix It Store, we promise to offer a user-friendly environment to shop with a clean

environment.

Competitive strategy

Since Mr. Fix is the first ever-DIY store in the state, there will not be any potential competitors in

the market for sometime. Any potential competitors will not hinder the initial start to the business.

The local hardware and furniture and household selling vendors may be competing. But since our

concept on the whole is different from the conventional design we will be having the competitive

edge. International competitors like IKEA, Mr. DIY are the main potential competitors while trying

to expand globally in the future.

Relationships

Having an excellent rapport professionally will be very much beneficial for the business

development. At Mr. Fix It customer relation comes first. Service and Support to the customer will

be focused. Since raw materials also come from overseas, the relationship with international

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vendors is also necessary. Relationship with DEPARMENT OF INTERNATION TRADE (DIT) is

mandatory to import raw materials.

Key Partners

Mr. Fix It will run on single ownership and no partners. Other than owner ship the key to success

will be developing a proper relationship with the suppliers and vendors. Transportation and delivery

will need partnership with Truck solutions.

Revenue Streams and Cash flow

The main revenue for the company is by the customer purchase of products i.e. asset sale. Also

revenue stream will be from after sales service and delivery to customer place. Also media will be

contributing to the revenue stream through ads and promotions. Here at Mr. Fix It we thrive to

reduce operation cost to maximize profit and offer low price to the customers. There is a positive

cash flow.

Cost & Cost Budget

The cost for the company will be the Fixed cost that is spent on human resources and the

manufacturing unit, which is going to be recurring every month. This will be covered from the

investment. Then revenue streams will cover the variable cost like operational cost.

Mr. Fix It is cost driven and we follow Flexible Budgeting (FB) since it is start up company.

55

CHAPTER SIX

6.0 BUSINESS PLAN

Company Name

Mr. Fix It – The DIY Store

Company Logo

Figure 6.1 Company Logo

6.1 Mission & Vision

Mission To Bring Innovation in the field of Hardware and Household equipment’s to serve the

customers better.

Vision Our vision is to have the best quality products available to the customers at affordable price

with the use of cutting edge technologies.

6.2 Objectives

• Offer products with the best quality available

• Become the first recognized DIY store in the state.

• Build a strong customer relation

• Meet the desired sales quota and break even in 3 years time

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• Enter markets of different cities by franchise. (In 3 Years)

• Implement a highly organized business strategy for a steady growth

6.3 Marketing Plan

Segmentation, Targeting and Positioning

The most important aspect to make the business successful and profitable is to have a proper

marketing plan. The marketing plan is nothing but the collective measure of Segmentation,

targeting and Positing strategy.

Figure 6.2 STP Process

Segmentation

Demographic and Psychographic

Mr. Fix IT – The DIY hardware store is actually a new concept of do it yourself. The main

aim of this store is to make the customers fix most of the household products by themselves

and also easy to carry to places. So the target customers will be mostly aged between 18-40

ages that are college students, single working individuals or a small family who have moved

to a new place. These people require household things with good quality and low price. Also

57

students staying away from home need temporary things for their hostels and room with low

prices and easy to assemble products.

Since the concept of DIY (Do It Yourself) is a new, people with ‘try new’ attitude is

necessary. People who have the attitude of welcoming new innovations and concepts are

necessary to make the business grow. They will be the main marketers as they welcome and

try out new services and word of mouth marketing is very much powerful.

Targeting

Mr. Fix It – The DIY Hardware store targets audiences of both the gender (Male and

Female). Since the store is not something like a regular hardware store which may not be

pleasing to many. Here, the shopping experience is different and the products can also be

assembled by both the genders. Most of the target is on customers who are 18+ of age and

mainly on single working people and students who are staying away from home. Generally

the target market is for all race, all wage and all sexes. Making the target as narrow as

possible will make a direct hit and will help in gaining more reach and higher profit.

Positioning

The process of positioning is to make the customer move from the knowledge of the product

to actual purchase. The main aim of the store is to make products with high quality and low

price and which are easy to assemble. The position of the products in the market will be

crucial as the whole concept of DIY is new. Since there are no competitors the process of

positioning will be easy, but should be carefully strategized. The store is going to come up

with all these products, which are cheap, affordable, and in high quality. The design is also

unique and one of a kind. Also most of the people living around the store are either working

or studying and are from outside the city or state. Their demand for these products will be

higher with these people as it is cost effective and has a unique design.

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Figure 6.3 Positioning Map of Mr. Fix It

6.3.2 Marketing Mix

Having the right product at the right place with the right price is very important for a business

to excel. Therefore marketing mix becomes very important to develop and enhance the

business of Mr. Fix It – the DIY Hardware Store.

Figure 6.4 Marketing Mix

Price

The price strategy is one of the foremost priorities of the DIY business. Having the price low

with some amount of profit is going to be a very effective to gain market share and also to

HighQuality

LowCost HighCost

LowQuality

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gain competitive advantage. And also since the target market of the business has lot of

college students and fresh working candidates, having a comparative lower price is going to

make the purchase decision of the customer higher. Also having less number of workers at

the showroom and using other technologies to cut cost wherever possible will also make it

even easier to have lower price.

The products are going to be of equal quality under the brand and the prices are going to be

the same throughout all the products. This will create an impression that the products quality

doesn’t vary by price. Offering top-notch products and services with reliably low price will

make the customers retain to Mr. Fix It.

The payment methods for the business is going to be by cash and by point of sales

(Card Payment).

Product

The products are the key to our business. The range of household products is going to be in

the concept of DIY i.e. Do it Yourself where the customers will be able to fix their own

products without any professional help. Initially the products will be hardware and household

items such taps, pipes, tubes, bulbs, switches, rugs, tools, clothes storage bathroom storage,

lighting, small storage cabinets, beds & mattresses etc.

Also keeping the current business environment in mind, care will be taken to change the

product line from time to time to stay updated in the market. This will keep the products of

the brand up to date and also fresh. Updating to the current trend is a must to sustain in the

market. Also seeing the buying behavior of the customer, new products and services will be

introduced. This way we can have a variety of product line to satisfy the needs of the

customers and provide a wide range of products that they heavily rely upon.

Promotion

In India, the main source of promotion is through TV advertisement. About 75% of the whole

population watch at least 1 hour of TV on a daily basis. So this makes it very important to

make a proper advertisement on the television. Also other forms of ATL (Above The Line)

marketing promotions such as Newspapers, Radio, Cinemas will be considered. But since the

investment is very high in this type of promotion, the extend up to which promotion is done

in ATL is a bit less.

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Since social media is becoming the platform of marketing nowadays, we will target on it to

promote our brand. Investment is very low but the reach is going to be massive within lesser

time. Facebook, Twitter, YouTube adds and emails will be the target. Other most important

thing in our brand is that we offer promotions and discounts from time to time to attract more

customers. It is proven that discounts and promotions increase the buying decision of the

customer. So adapting this we will ensure that the customers gain maximum advantage from

our offers and discounts to grab the customers attention.

Figure 6.5 Types of Promotion

Place

The current location that has been decided is KMS garden, Salem. The location is comprised

61

of lots of hostels and bachelors residing and also has lots of colleges and a IT Tech park

nearby which is a source of our potential customers. The area is going to ideal because the

colleges and Tech parks are going to be there and the flow of people to this area is not going

to decrease at time soon. The buying power among the target people is also going to be

higher as the products sold are not luxury products but are necessities.

6.3.3 Strategic Growth (Ansoff Matrix)

Figure 6.6 Ansoff Matrix

Market Penetration

To sell more products to the customers and also to increase the loyalty of the customers is

what is called as market penetration. The business hours are not the traditional 9am to 5pm.

We have decided to extend business hours to make it easier for customers to enter the store

and buy the necessary products. Also for customers to buy products easier we have priority

lane for customers with lesser products and also for people who are physically challenged

and aged.

In the future looking at the demand, we are planning to have a snack bar at our outlet for

customers who would like to snack on while shopping. Also we will have a loyalty program

plan where people can use their cards while purchasing and loyalty points will be rewarded

(terms and conditions apply)

The points can be redeemed at the snack bar or for cash rebate on their purchase.

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By offering all these extra add on we can penetrate the market and sell more products to the

same customers.

Market Development

Entering a new market and focusing on a different target customer is what market

development is. Here in Mr.Fix it, we focus mostly on household articles for personal use

that is in smaller qualities and sizes. Seeing the demand for the DIY products in about 3 years

we are planning to enlarge the business by redefining the products for business purposes such

as hotels, Offices etc., which require products that are similar to household, uses. This way

we can capture the B2B market sector also. Expanding the business to other states and cities

by using the concept of franchise is also one of the long-term objectives.

Current B2C markets.

In 3 years time B2B market and franchise

6.4 ORGANIZATIONAL / OPERATIONAL PLAN

6.4.1 Organizational Structure

It will also be easier to see who to refer to when there is a problem or a need. The Figure

shown below will be the organizational structure of Mr. Fix It – The DIY store. Having a

proper organizational structure becomes important when there is a need to have an effective

communication with the top level and the bottom level management.

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Figure 6.7 Organizational Structure

6.4.2 Human Capital Planning

Human capital planning is one of the most vital aspects when starting a new business. It’s

with these people that the growth of the whole companies relies on. Though the customers

play a vital role in growth of the company, the employees of the company equally contribute

CEO

ManagingDirector&CFO

HeadManufacturing

R&DAnlayst

ManufacturingWorkers

QualityAnalyst

Head-MarketingandRetail

Promotion&Media

Marketanalyst

PublicRelation

Head-FloorManager

Cashier

SalesAssistant

Janitors

Head-HumanResource

Recrutingteam

Payrollteam

Traning&Developmentteam

PersonalAssistant(PA)

LegalAdvisor(Lawyer)

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to the development of the company. So right-minded and efficient people must be employed

in the company.

Recruitment and Selection

The human resource department will take care of the whole process of recruiting and

selecting candidates for each of the role. The Managing director will directly appoint the

Head of each department with the consent from the CEO of the company. The job description

and requirement will be given to the Human resources Head by the personal assistant of the

managing director and will be asked to develop a smooth and organized recruitment process.

The Job vacancies will be put up as ads on billboards, TV, social media and in the company

website. Since the process of manufacturing the DIY products require potential candidates a

wide range of talents are necessary. The resumes will be asked to be submitted online or at

the store physically and the shortlisted candidates will be called for further process.

The position under manufacturing alone will be sent to the CEO for the last stage on

interview while the Head of Human resources can directly appoint others.

Training and Development

Since the whole business concept is new and also the price of the products is lesser, new

technological advancements are necessary to have the best output. Due to this there will be

training and development sessions organized by each department monthly by the head of the

departments with the advice from the managing director. This will ensure keeping the

employees updated with the new technology and will also ensure to keep the integrity intact.

The process of training and development will be for 5 hours organized inside the meeting

room and at the inventory for the manufacturing department staffs.

Performance Evaluation

The business, which focuses on delivering the best to the people, needs totally dedicated

employees. Having this in mind the human resource department has been given a great task

of evaluating the performance of the employees by the process of continuous evaluation. This

will help to provide training and development to the employees and also to fire the non-

65

productive employees. Benchmarks will be set which is time bound for employees to achieve.

This will help the business to achieve the desired goals and objectives.

Employee Benefit and Incentives

Having said that the employees play a key role in the development of the company,

rewarding them with incentives and bonuses is necessary which will help them to stay

motivated and develop a sense of loyalty towards the company. Apart from yearly bonus and

increments, there will be incentives and awards for the employees who perform well and who

are found the best from the continuous evaluation process. Also, the employees can enjoy

15% off on all the products anytime in the year from the store. This cannot be clubbed with

the on-going promotion in the store.

6.4.3 Value Chain Analysis

The process of value chain analysis is nothing but a framework that helps to find out the

business activities that can help in creating value and also to gain competitive advantage.

Here in Mr. Fix It we have a properly designed value chain analysis as our mission and vision

will be reflected through how our business process is and how much justice we do to

customers satisfaction.

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Figure 6.8 Value Chain Analysis

Primary Activities

Inbound Logistics

The raw materials required for the manufacturing is received from different suppliers both

locally and globally. The personal assistant of the managing director maintains the

relationship with the suppliers. The raw materials are stored in the inventory for further

production process. The suppliers will be from Malaysia for the raw materials since there is

abundant source of raw materials that will suit the DIY concept. And locally from the state

and from the city materials will be shipped. Since the DIY concept lowers the cost on

packing the products it becomes easier to facilitate the inbound logistics.

Operation

The process of modeling out the raw materials happens in the factory near the inventory. The

factory is the heart of the business where the main operation of production happens. The

inventory is located very close to the factory to ensure reduction is transportation cost.

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Outbound logistics

The business operated from one store located in KMS Garden. The store will have all the

finished products and the customers will bear the cost of transportation of the products to

their places. Mr.Fix It also offers delivery services at nominal rates for transportation inside

the city. There are two types of delivery services. The first one is for products weighing 20Kg

and below. It will cost around INR 150 and for parcels 25Kg plus will be charged 300 and

above according to the weight and quantity.

Marketing and Sales

Marketing will be mostly on social media marketing with a digital catalog attached to it. We

rely mostly on the digital catalog as customers will have a view about what are the available

things in the store and this will be a potential marketing strategy, as the customer will know

where to get it when in need, rather than just checking out the store. Since the target

customers are students, singles and families with less income we try to keep the price as low

as possible. Apart from this there will be media advertisements, sale promotions and also Mr.

Fix It events organized to make people aware of what we sell.

Service

The most important aspect is service. The care we show towards the customer while buying

things will still be there even after they purchase. This will put a impact to the customer that

we still care for them and the products we sell. We have online and telephone customer care

services available during the business hours for any assistance. We also offer two days refund

policy where the customers can refund the products if its damaged or if they don’t find it

appropriate provided the products are in good condition as when bought.

Secondary Activities

Infrastructure

The organization has a hierarchical organization structure and the managing director with the

advice and words from the CEO runs the management. The personal assistant of the

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managing director with the help of the cashier deals the finance and accounting part of the

business. Quality control measures are taken seriously and the employees thrive to deliver

top-notch products. The Quality analyst will examine all the products from the production

and will be passed to sales only after test is passed.

Human Resource Management

The human resource department deals the whole process of recruiting and selection, training

and development. The process of HRM will be reviewed by the managing director every

quarterly to make changes that best suits the current market trend. By this way effective

employee management can be achieved which will also help in achieving the goals and

objectives.

Technology Development

One of the most dynamic areas is the technological development. Staying ahead in the market

is by implementing and using the current latest technology in every means possible. The

R&D team will be continuously looking for new technologies that hit the market and analyze

whether it’ll be best suited for the company. If so every quarter there will be a revise in which

the whole business is running. Also new products will be designed and developed adopting

the new technology.

Procurement

For the procurement of raw materials for the products, Mr. Fix It will be focusing on having a

very smooth relationship with the suppliers who are there both locally and globally. Having a

strong bargaining power with the suppliers will be our main focus.

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6.5 Financial Plan

Start up Cost

Table 6.1 Start-Up Costs

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6.5.1 3-year Forecast Income Statement

Table 6.2 ForecastIncomeStatements

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6.5.2 3-year Forecast Balance Sheet

Table 6.3 ForecastBalanceSheet.

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6.5.3 Assumptions, Explanation and Justification The financial plan for the project is designed and forecasted for 3 years assuming that there

will no natural calamities or disaster that might affect the business process and also the Indian

Economy will continue to be stable.

Startup Cost The DIY business requires a lot of start up items and other licenses. The cost for all of it is

mentioned in the table. The total investment needed for the business with back up funds for

the employees comes around INR 18325000. The total cost is invested by the owner which is

around INR1,90,0000. No bank loans and other external source of funds are taken to avoid

any risks.

Income statement assumptions

Table 6.4 Sales Forecast

The growth rate from is assumed as shown in the table above. The growth rate from 2017-

2018 is high. Since the products are new and marketing and promotional activities are high

the growth rate is rising. But from 2018-2019 it is decreased as the market is stabilized and

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only the targeted customers come. So after 2019 (3 years after the business startup) new

product line and strategies will be implemented.

Depreciation Expense

Table 6.5 Depreciation Calculations

Table 6.6 Assumptions

The residual value for PPE will be around INR 10,00,000 with a expected life of 15 years.

The delivery truck has no residual value but will have around 12 years of expected life. The

depreciation is calculated based on these assumptions, which is shown in the table above.

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Retained Earnings Statement The retained earning is calculated as shown in the table below.

Table 6.7 Retained earnings

Ratio Calculations

Table 6.8 Ratio Analysis

From the table, observing the liquidity analysis it is pretty clear that the assets are high and

therefore the liabilities will be covered.

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The profitability analysis shows the gross profit margin and the net profit margin. The net

profit margin is increasing which is a proof that the business is having a positive growth.

The Debt ratio shows the debt to assets and debt to equity. But there is one more important

ratio, which is gearing which tells about the financial risk involved in the business.

Gearing

Gearing Debt/ Debt+Equity 0.02 0.02 0.02

From the table we can see that the gearing for all three years is very less and hence the risk

involved with the business is low. The reason might be because the whole business is funded

from internal source.

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6.6 Gantt Chart

Table 6.9 Gantt chart

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6.7 Critical success Factor

For any new business to flourish critical success factors (CSF) are very important. To achieve

the objectives and goals of the business these success factors play a vital role. The success

factors should focus on the objectives of the firm and how to achieve them. The success

factors for Mr. Fix It store after properly analyzing are as follows

• Increase competitiveness against the other local business

• Highly successful relationship with the suppliers

• Staff retention

• Customer-focused training and development

• Increase Customer service and feedback

• Secure funds for future expansion

6.8 Risk Mitigation and Contingency Plan

After carefully studying the Indian market, there were certain risks involved in starting up a

business in India. No business is a cakewalk to success. There will be risks involved, which

can be tackled with efficient strategies. The following are the major risk factors, which might

affect the business.

1. Policy changes and Regulatory Risks

Degree of Risk High

Type of Risk External

India is prone to policy changes due to changes in government policies and change is

government. And also due to increase in corruption rate it becomes even more stressful to run

a business in the state. These changes in the policies can be fatal at times and it is necessary

to stay aware of the changes and to plan before hand.

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Contingency plan

The risk caused by macro environment is very hard to mitigate, as it is not under our control.

But having business policies and strategies that are open and centralized can help to reduce

the risk caused. Also motivating the employees to be more flexible to changes can also help

to recover from the effects caused by this particular risk. The legal advisor of the company

will take care of issues that have to be tackled legally and which are under the government

control.

2. Lack Of Internal Talents

Degree of Risk Low

Type of Risk Internal

Here in this business training and development is a must to all the employees particularly in

the Manufacturing department as the concept of DIY is new. Hiring and training the

employees is a must and investment is training and development is huge. Once the trained

employee feels that the company is not giving proper recognition, there are high chances of

losing the employee. And hiring a new employee will cost more and training them will take

time. This way we will loose the talent from the company and its impact is high.

Contingency plan

To avoid losing internal talents proper rewards and recognition is given to the employees in

our company. We have the motto “Employee first, Customers next”.

By saying this we will thrive our best to keep the employees happy and contended and will

make them feel that every work they do counts to the development of the company. And also

we have a proper ‘Continuous Assessment Appraisal’ methods to Asses the performance of

the employees from time to time.

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3. Technological Change

Degree of risk Medium

Type of Risk External

Technological risk can be vital to the business and threaten the assets. System breach,

network failure and all other suspicious activities happening around the business due to

technology lack can cause a huge damage to the brand reputation, can prevent from reaching

the goals and objectives and may even lead to a lawsuit. Also using new technology to

produce new and efficient products becomes necessary to be competitive.

Contingency plan

A separate IT team will be working on the technological aspects regarding the business.

Security testing, PCI testing, data protection and privacy testing will be updated from time to

time to check the software.

Also, the R&D department will be working on new technological innovation in the DIY

fields and will implement if it suits the market and the demands of the customer

4. Financial Risk

Degree of risk Medium

Type of Risk Internal & External

Credit availability, fluctuation in currency value, prices of commodity etc. are how financial

risk will arise. Also depending on more on lenders, suppliers will result in financial exposure.

Source of finance from external source will result in higher risk towards the business.

Contingency plan

The source of finance for the company is 90% from internal source (Partners) and only 10%

is from external source such as lenders, banks etc. This will considerably reduce the degree of

financial risk. Here at Mr. Fix It store we have an internal audit to analyze the and provide

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security against currency fluctuations, credit availability etc. Also necessary Hedging

strategies will be developed to keep the level of risk as low as possible.

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Shop, The.

Axinn, W.G. and Pearce, L.D. (2009) Mixed method data collection strategies. Cambridge:

Cambridge University Press (Virtual Publishing).

Barros, O. (2007) ‘Business process patterns and frameworks’, Business Process

Management Journal, 13(1), pp. 47–69. doi: 10.1108/14637150710721122.

Bensoussan, B.E. and Fleisher, C.S. (2009) The financial times guide to analysis for

managers: Effective planning tools and techniques. Harlow, England: Financial Times

Prentice Hall.

Candau, F. (2008) ‘ENTREPRENEURS’ LOCATION CHOICE AND PUBLIC POLICIES:

A SURVEY OF THE NEW ECONOMIC GEOGRAPHY’, Journal of Economic Surveys,

22(5), pp. 909–952. doi: 10.1111/j.1467-6419.2008.00553.x.

Danford, D. (2011) ‘Book review of “the business of life: An ‘Inside-Out’ approach to

building a more successful financial planning practice”’, Journal of Financial Therapy, 2(1).

doi: 10.4148/jft.v2i1.1336.

Desu, M.M. and Raghavarao, D. (1990) Sample size methodology. Boston: Academic Press.

Emmel, N. (2013) Sampling and choosing cases in qualitative research: A realist approach.

London: SAGE Publications.

Gregson, A. (2007) Pricing strategies for small business (numbers 101 for small business).

Vancouver, B.C.: Self Counsel Press.

Group, W.B. (2016) Doing business: Equal opportunity for all: 2017. United States: World

Bank Publications.

Hair, J.F., Money, A.H., Samouel, P. and Page, M. (2007) Research methods for business.

Chichester, England: Wiley, John & Sons.

Krstic, I. and Becic, S. (2011) ‘Implementation of marketing strategy: Factor of competitive

advantage’, Marketing, 42(2), pp. 118–126. doi: 10.5937/markt1102118k.

McMorland, J. (1990) ‘Who manages human resources?’, Asia Pacific Journal of Human

Resources, 28(4), pp. 80–87. doi: 10.1177/103841119002800409.

Miller, R.L., Cross, F.B. and Hollowell, W.E. (2006) Study guide to accompany the legal

environment today: Business in its ethical, regulatory, e-commerce, and international setting.

5th edn. United States: South Western Educational Publishing.

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Pandiyan, V., Sundram, K., Govindaraju, L. and V G R Chandran A (2011) Research

methods: A simple guide for business undergraduates. Shah Alam,, Selangor: University

Publication Centre (UPENA), Universiti Teknologi Mara.

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Measurement and Analysis for Marketing, 14(3), pp. 260–276. doi:

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16(3), pp. 493–495. doi: 10.1353/mod.0.0130.

Seethamraju, R. (2012) ‘Business process management: A missing link in business

education’, Business Process Management Journal, 18(3), pp. 532–547. doi:

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right customers through smart marketing and advertising. 2nd edn. Melbourne: Sensis, 2006.

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Appendix i Ethics Approval Form

CARDIFF METROPOLITAN UNIVERSITY APPLICATION FOR ETHICS APPROVAL

Applicationforethicsapprovalv2May2013 1

Whenundertakingaresearchorenterpriseproject,CardiffMetstaffandstudentsareobligedtocomplete

thisforminorderthattheethicsimplicationsofthatprojectmaybeconsidered.IftheprojectrequiresethicsapprovalfromanexternalagencysuchastheNHSorMoD,youwillnotneedtoseekadditionalethicsapprovalfromCardiffMet.YoushouldhowevercompletePartOneofthisformandattachacopyof

yourNHSapplicationinorderthatyourSchoolisawareoftheproject.

ThedocumentGuidelinesforobtainingethicsapprovalwillhelpyoucompletethisform.Itisavailable

fromthe Cardiff Met website.

Onceyouhavecompletedtheform,signthedeclarationandforwardtoyourSchoolResearchEthics

Committee.

PLEASENOTE:Participantrecruitmentordatacollectionmustnotcommenceuntilethicsapprovalhasbeenobtained.

PARTONE

Nameofapplicant: ShivanesanManaivasagam

Supervisor(ifstudentproject): Dr.VincentWee

School: WestminsterInternationalCollege

Studentnumber(ifapplicable): 0228OABOAB0216

Programmeenrolledon(ifapplicable): MBA

ProjectTitle: AbusinessdevelopmentproposaltosetupaDIYhardwarestoreinSalem,IndiaExpectedStartDate: 14/10/2016

ApproximateDuration: 12weeks

FundingBody(ifapplicable): NotApplicable

Otherresearcher(s)workingontheproject: None

WillthestudyinvolveNHSpatientsorstaff? No

Willthestudyinvolvetakingsamplesofhumanoriginfromparticipants?

No

Innomorethan150words,giveanontechnicalsummaryoftheprojectThe world now is evolving where people are becoming expertise in everything and household objects are the first things that they

do. Mr. Fix It - The DIY Hardware Store is a new start up, which is going to establish a DIY (Do It Yourself) Hardware store in

Salem, India. The main objective of this start up is to sell hardware components raging from tap fittings to pipes and to doorknobs

and all kinds of housewares, which can be assembled by the customer itself and requires no advice from expertise. It is also

conveniently located to serve the customers better. The owner of the store will be Shiva and will be the sole shareholder. The

owner will fund the initial investment to the business and no bank loan or other external source of funding will be used.

85



PARTTWO

ARESEARCHDESIGNA1Willyoubeusinganapprovedprotocolinyourproject? NoA2Ifyes,pleasestatethenameandcodeoftheapprovedprotocoltobeusedNotApplicableA3Describetheresearchdesigntobeusedinyourproject

CHAPTER THREE

3.0 RESEARCH DESIGN

3.1 Research Methods

According to Hair et al. (2007), deductive approach is where a theory is completely studied without any focus on

anything and then data collection is done. Now the data analyzed will have specific level of focus to the theory. It is

basically the reverse process of Inductive approach. A deductive approach will have no risk whereas an inductive

approach might face a lot of risk, as there may be no theory to the data analyzed. Here in this project the deductive

approach is taken as the theory and the hypothesis, will be evaluated against the data collected and also to mitigate

risk.


Exploratory The business of Do It Yourself (DIY) hardware store is going to be a totally new concept in the region where it’s

going to establish. So there is going to be a lot of factors that needs to be researched in order to start a business. There

86



are also no empirical evidences proving the success of a DIY hardware store in the particular region. So it becomes

necessary to explore in detail and lay the proper groundwork before proceeding further. Exploratory researcwhen done

at the beginning of the research will be useful to determine the potential growth areas and also to prioritize tasks to be

performed. So in short exploratory research design is done to explore in depth the theories and factors necessary to run

the business. (Hair et al., 2007)

3.2 Sample Unit

Sampling unit for this research will be adults both and men and women who are aged over 20+. Since this business is

a new venture and the concept of Do It Yourself (DIY) is used, the respondents should be able to understand the

concept. The respondents who are 20+ of age will be selected from the region in and around where the store is going

to come up i.e. K.M.S garden, Salem, India.

3.3 Sampling Method

Judgmental sampling a type on non-probability sampling is used in this research. Since the survey results are going to

play a key role in designing the business plan, the answers to the questionnaire are vital. So the respondents who have

prior knowledge of DIY products are selected and the questionnaire will be asked to answer by them. Selecting the

right location is the key.(Emmel, 2013)

3.4 Sampling Size

The sampling size will be vital. More the response, higher will be the possibility of success of the business. The

sample size will be 100 respondents who will be 20+ of age and will belong to the same location where the business is

going to come up.

A questionnaire will be circulated for them to answer. (Desu and Raghavarao, 1990)

3.5 Survey Location

The survey location will be the areas in and around KMS Garden, Salem. One of the main reasons for surveying this

location is that, the business is going to come up in this area and also because the population in this area in much

higher and diverse compared to the other areas. So in order to cover larger crowd the survey location was set to KMS

Garden, Salem.(Candau, 2008)

87



3.6 Collection Method The collection method will be from two main data sources. The first one is primary data source and the second one is

secondary data source. (Pandiyan et al., 2011)


Primary Data According to Axinn, W.G. and Pearce, L.D. (2009), primary data is real time and very sure about the source of

information. Though it is time consuming, the results obtained will be reliable and useful. There are numerous ways in

which a primary data for the research can be collected. Here I’m using self-administered Questionnaire to collect the

data, which will be the primary source of data. Using Questionnaire for data collection is faster and also has a greater

reach. Since the Internet and social media are playing a major role now, a digital form of the questionnaire will be set

up and will be made available for people to answer over the Internet, so as to make the reach as wide as possible. A

stall will be put up with the logo and the brand name, and freebees will be given to people who will take up the

questionnaire. This is done to cover the population who has no access to Internet and social media. Also personally

meeting clients and getting the survey done will be one of the options. It’s more time consuming and requires higher

cost. But the information obtained will be very much useful and effective.

Secondary Data The secondary data are facts and Figure s already completed by other researchers and recorded in the form of articles

or books. The data from secondary sources are easy to obtain and requires lesser cost compared to the primary data.

These data can be collected from the research of other DIY companies survey, databases, Internet search engines etc.

88



They are mostly past data and using them for a dynamic market may be misleading. SO care must be taken on

processing the information. These data obtained can be compared with the real time primary data and can be used for

comparative purposes. The might also be used to completing the primary data.(Axinn and Pearce, 2009)

3.7 Ethical Issues

Utmost care has been taken by the researcher to convey all the relevant details about the research that is required to be

known by the respondents. The respondents will be informed about whom will access their answers and also that the

questionnaire is optional and who doesn’t want to involve themselves can avoid them.

Ethical issues will be avoided and the reason for the survey will be only to use for the research project undertaken and

nothing else. The answers to the questionnaire will not be leaked to other researchers or shared with any other person

except the researcher himself. Their identity will also not be disclosed to endorse any facts. If needed their identity

will be disclosed only with the permission from the respondent and only if he/she gives a no objection. Every one who

is approached to take the survey has the right to not take it and is completely voluntary. All the information’s, theories

and statistics referred from journals, articles, websites, books etc. are properly cited with Harvard referencing and no

one’s work is copied or replicated. (Miller, Cross, and Hollowell, 2006)

A4Willtheprojectinvolvedeceptiveorcovertresearch? NoA5Ifyes,givearationalefortheuseofdeceptiveorcovertresearchNotApplicable

BPREVIOUSEXPERIENCEB1Whatpreviousexperienceofresearchinvolvinghumanparticipantsrelevanttothisprojectdoyouhave?NoneB2Studentprojectonly

Whatpreviousexperienceofresearchinvolvinghumanparticipantsrelevanttothisprojectdoesyoursupervisorhave?

Mysupervisorhasundertakenresearchprojectsthatincludedbothquantitativeandqualitativemethods.

CPOTENTIALRISKSC1Whatpotentialrisksdoyouforesee?NoneC2Howwillyoudealwiththepotentialrisks?NotApplicable

89

ii Questionnaire

03/01/17, 5)32 PMA business development proposal to set up a DIY hardware store in Salem, India.

Page 1 of 6https://docs.google.com/forms/d/1ROkyRtFOtpsPfIawCAafOjt92m0qi-MyRvkzC_Ikzm8/printform

A business development proposal to set up a DIYhardware store in Salem, India.Hello,I am a final year MBA student at Cardiff Metropolitan University and I am carrying out this research as part of my final project. This research aims to study the impact of business operations, human resources, marketing and finance on the food truck business. Your contribution to this survey will be beneficial in learning the impact of these four factors on the business. Please be assured that your responses will be kept confidential and will only be used for research purposes.

*Required

1. I confirm that I have read and understood the information sheet for this study. I havehad the opportunity to consider the information, ask questions and have had theseanswered satisfactorily. *Mark only one oval.

Yes

2. My participation in this survey is voluntary and I am free to withdraw at any time,without any reason. *Mark only one oval.

Yes

3. I agree to take part in this survey. *Mark only one oval.

Yes

Section 1 - Demographics

Mr. FIX IT - THE DIY HARDWARE STORE

90



4. Please state your gender. *Mark only one oval.

Male

Female

Other

5. What is your age group? *Mark only one oval.

18-20

21-30

31-40

41-50

50 and above

6. What is your employment status? *Mark only one oval.

Student

Employed

Unemployed

Self- Employed

Retired

7. What is your monthly income? *Mark only one oval.

Below INR 10,000

INR 10,000 - INR 29,999

INR 30,000 - INR 49,999

INR 50,000 and above

8. How much do you spend on Fixing Household items per month? *Mark only one oval.

Below INR 100

INR 100 - INR 299

INR 300 - INR 499

INR 500 and above

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9. Do you Fix household hardware & furnitures ?Mark only one oval.

Yes

No

At Times

Section 2 - Business ProcessPlease tick one .

10. I prefer the purchase to be as quick as possible.Mark only one oval.

1 2 3 4 5

Strongly Disagree Strongly Agree

11. It is always better to mention the manufacture date on the products to make theproduct more reliable.Mark only one oval.

1 2 3 4 5


12. I would like to know/see how the products are manufactured.Mark only one oval.

1 2 3 4 5


13. Take measures to reduce energy consumption and recycling procedures.Mark only one oval.

1 2 3 4 5


14. Use of raw materials from overseas is attractive for the business.Mark only one oval.

1 2 3 4 5


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Section 3 - Human Resources

15. In Store staffs should be friendly and welcoming.Mark only one oval.

1 2 3 4 5


16. The Staffs should be knowledgeable about the products and services offered.Mark only one oval.

1 2 3 4 5


17. The sales and service team should have a good command over english and the localdialect.Mark only one oval.

1 2 3 4 5


18. The employees should not keep the customers waiting for long.Mark only one oval.

1 2 3 4 5


19. The employees should be aware of the profit and loss that the company faces.Mark only one oval.

1 2 3 4 5


Section 4 - Marketing

20. I do research (check ratings, customer feedback, etc) about the store on social mediabefore trying out the place.Mark only one oval.

1 2 3 4 5


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21. Offers and promotions play an important role when I'm choosing a place to buy.Mark only one oval.

1 2 3 4 5


22. New or different type of products is definitely an attraction.Mark only one oval.

1 2 3 4 5


23. Price is another factor that I consider before making a purchase.Mark only one oval.

1 2 3 4 5


24. I Wouldn't mind driving long to see a new store with new innovative products.Mark only one oval.

1 2 3 4 5


Section 5 - Finance

25. Proper financial strategy is necessary to run a business effectivelyMark only one oval.

1 2 3 4 5


26. Bank loan is one of the best option for start-up businesses.Mark only one oval.

1 2 3 4 5


94



Powered by

27. Businesses will surely succeed if there is enough investment to maintain the quality ofproducts.Mark only one oval.

1 2 3 4 5


28. It is better for owners to fund their own business before seeking external funds.Mark only one oval.

1 2 3 4 5


29. Indian government/ NGOs offer a lot of financial support to young entrepreneurs.Mark only one oval.

1 2 3 4 5


Thank you for your participation.

final project up

Documents