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Vision: Many organizations today develop a vision statement that answers the question "What do we want to become?" (David 2007, p.11) The vision can inspire the staffs. Setting a Vision can make employees to think and behavior of a unified. A vision of the corporate is composed by two parts core concepts and future prospects. The core concept is the soul of a corporation. It can motivate staff to keep making progress.
As a interior design office, it is going to be one of the top levels in graphic design industry and to lead a new fashion style of interior designing in Singapore. This is a great vision description for both the directors and employees among this office.
Mission statements are "enduring statements of purpose that distinguish one business from other similar firms. A mission statement identifies the scope of a firm's operations in product and market terms." (David 2007,p.11)
The corporate mission is more specific showed that the nature and direction of development of the corporate. In this interior design office, mission statement determines that designers will process a complete interior designing proposal for each customer's home or small shops based on customers' own needs and requirement. It is the common business of this design office. This office now only focuses on small-scale interior designs.
This office is always working on providing customized designs for customers with professional expertise from its designers. It will listen to the customer's needs and will combine these needs with expertise in order to make customers feel satisfied with their interior decoration. During short-term period, the office will try best to recruit professional designers and to increase the brand awareness among Singapore market. It will explore the target market and customers as well. Exploring and locating the appropriate target customers will contribute to sustainable development of a start-up company. And it will one of the factors to be a successful company. During long-term period, the office wants to create and lead a new trend in graphic industry in Singapore.
2.3 Company Profile
This office will a brand new company of graphic industry in Singapore. In order to be different, this office will have a rocker-style name, called "Tank" Interior Design Office. It will be a private limited company. It has two shareholders. Tank may be delivery similar meanings like the band, Guns N' Roses. It stands for hard rockers and new fashion trend among young peoples. Besides, T and K is the abbreviation of the main shareholder's name, which is TianKun. Due to the special of profession in graphic design industry, Tank Design will hire several professional designers in order to provide professional advice to their customers. Tank Design is always working to making self-improvement and to follow the trends in the industry. It will surely carry out the proposals which are combined the customers requirements with professional suggestions. It will a great honor that this office will let the customers satisfied and make their home different.
Product and Service
3.1 Product and Service Description
Tank Design Office is a brand new company in Singapore and it leads that the main products in this office is only the interior design proposals. After all Tank Interior Design Office is a developing and small company and it may not have large financial capacity. However, after the proposals are approving by the customers, Tank Design will be willing to be an agency between the customers and other decoration companies. Tank Design will listen to the customers' requirements and cash budgets to introduce the most fitted decoration company. In the area of designing, it will be fully customer oriented. These designers from Tank Office will talk to the customers about how the customer want their decorative style to be. After reading and studying house structure charts, these designers will give their improving suggestion. When these suggestion approved by the customers, designers will begin to carrying out the interior design proposals. Customers will not be necessary to pay off all the money, until the final proposals are approved.
All these design proposals will consider of the numbers of peoples live in this house, the type of house and so on. As well, these proposals will include everything in detail. For example, which color is suitable for the walls in order to fit the floor's color. Or how to put the piano to get the largest effective using space. It will clearly show that how many sockets and switches will be in each room. In advance, it will be pointed out the style of each house furnitures.
Graphic design industry is different from other industries, like wholesale industry or service industry. It exists large professional and technological job requirements in graphic design industry. First, as a interior design office, it is necessary to recruit several designers. These designers should graduate from relevant majors. They have to be familiar with fundamental principles of designing. It will be better if they are graduated from well-known universities with recognized designer licenses, 3D Max certificate or Auto CAD certificate. They must be hardworking and have hand drawing ability. They have to be familiar with the utilization and properties of different materials. As an interior designer, he or she should have a sense of artistic aesthetic and imagination. It is better if these designers have several years working experiences. For designers, working experiences will be a competitive advantage as well. In addition, these designers should have excellent communication skills in order to talk to the customers and learn clearly about the customers' needs. Since Tank Interior Design Office is a start-up company, these designers sometimes have work independent.
Market Analysis Summary
4.1 Market Segmentation
Even in a market, variation among customers will cause different customer behaviour and purchasing habits. Market segmentation helps company to group the market by geographic, demographic, psychographic, behavioral and so on. Market segmentation delivers a concept of customer-oriented. Segmenting the market effectively will contribute to find the appropriate target market and to carry out effective marketing mix to this market. During the process of market segmentation, company will study and learn the customers' needs and what attractiveness will attract these customers. It is best that a company can locate and develop in the specialized market segments. For Tank Interior Design Office, utilizing market segmentation effectively will be one of key factors to the success. It will contribute to the long-run development of Tank Design Office.
4.2 Target Market Selection
Tank Design is a totally new and start-up brand in Singapore market. It may not have large financial capacity like other successful interior design company. While, Tank office focuses on small-scale interior design projects. Firstly, Tank Office will promise that customers will not have to make a reservation before meeting with Tank Office. Customers are encouraged to use our customer hotline to learn about Tank Office. In Tank Office, all the designers are full of energy and will be very patient to listen to the customers. Tank Office wants to create a new and fashion style in the area of interior design. All the proposals from Tank Office will show the details clearly, even the color of carpets, the combination of sofas, numbers of sockets and switches. Whatever HDB houses, condos or bungalows, even small business stores, Tank Office will always help customers to explore their dream space. For each proposal, designers from Tank Design Office will give it a topic. For example, for the new couple who are going to get married, the topic of their topic can be "Wonderland". All the interior designs will be loyal to "Wonderland".
Information talked above can be advantages of Tank Office when locating the target market. As a consequence, the target market and target customer of Tank Office will be the young couples or peoples who wants to experience and enjoy a new and fashion interior style. These target customers may acknowledge about trendy information or have updated thinkings and they are willing to pay money to achieve better interior living atmosphere. They are willing to improve the deteriorate quality.
4.3 Marketing Analysis
4.4.1 PESTEL Analysis
PESTEL analysis is a type of external environment analysis. External trends and events significantly affect all products, services, markets, and organizations in the world (David 2007). Identifying PESTEL analysis is to learn about the macroenvironment factors which may influence on the products, decision-making and settlement of market strategies. PESTEL consists of six factors: Political, Economic, Social, Technological, Environmental and Legal factors. From PESTEL analysis, the firm can adapt itself into the market environment as well as possible.
Political factors mainly refer to the government policies which may affect the firms. In another word, political factors mean that the degree of how much the government intervene the firms. In Singapore, the government intervene will very less among small and medium business. While for many start-up company, taxes are one of the biggest questions, especially during the first period. Instead, Tank Office will have not to pay corporate tax and GST tax. These two taxes are appropriate for those large organizations or multinational corporations who have large amount of profit and account turnover. And it will be good to the development of small and medium business to start up and develop in the market. For small and medium business like Tank Office, no GST tax may be an attractiveness to customers.
Singapore is one of the international financial centers in South East Asia. Singapore government provides an open and stable business environment for the economy growth. Singapore is under a stable and peaceful national environment. For a new start-up company, Singapore has very low political risk. This will contribute to the sustainable development of Tank Design Office.
Economic factors will affect the companies or business by affecting on supply and demand (Jobber 2010). Economic factors have a direct effect on the marketing strategies and marketing decisions. There are two main approaches under economic forces: monetary policy and fiscal policy. Monetary policy focuses on controlling the market supply to make the economic growth stable. Fiscal policy focuses on reducing government spending to achieve long-term economic goals.
Inflation has become a global financial issue. In Singapore, the main purpose of monetary policy is to get low inflation and make economic growth stable. Since the global financial crisis in 2008, the inflation rate of Singapore has dropped from 6.6% to 5.2% in 2011 (Department of Statistic Singapore 2012). Under sustainable economic environment in Singapore, with lower inflation rate, public will be able to have extra money after tax. When peoples have extra money, they will be willing to increase their living environmental quality. Housing environmental quality is the first issue. As a consequence, people will have pay for professional interior designers due to expertise of interior designing. This will be a chance for Tank Office to develop. Tank Design Office can provide interior design for all houses with different topic and theme. It will help the customer to create their dream house and make them feel more convenient to live their own house.
Social, cultural, demographic changes have a major impact upon virtually all products, services, markets and customers (David 2007, p81). Singapore is a multinational country. Most of them are Chinese, Malay and Indian. During recent years, the education level of Singaporean has a significant increase. Table. 1 showed blew reflects the changes in education level among Singaporean.
High-educated peoples may accept new idea and new trends easily. Compared to the last generation, young people have more chance to touch new culture and experience new style. They will think more of living environmental quality and they will pay their money for interior designing. Furthermore, high-educated middle-aged people think of living environmental quality as well, and most of they are willing and able to pay the designing fee. With the increasing awareness of interior design, Tank Office will have chance to develop in this market. Due to the limitation of financial capacity, Tank Office and its concept may be appropriate for young people's taste. Tank Office will design for their dream house and make plans of all the details. At last, the price of design proposals offer by Tank Office will be cheaper than other large company.
Table.1 Educational Attainment
(Source: Adapting from Department of Statistic Singapore 2012)
With the development of technological skills, there are many new approaches occurring between markets and consumers. Internet is the typically technological factors which affects the firms. New technology will contribute to new products and services which may instead of existing ones. In the graphic industry, the most significant technological factor will be computer technology. During recent years, 3D Max and Auto CAD technology has been widely applied in graphic industry. In Tank Office, designers are familiar with hand drawing and they can transfer their hand-drawing into 3D Max rendering. 3D Max rendering will help the customer to see clearly about the interior design in a all-round sight. Application of 3D Max will help to reduce the conflict between customers and designers.
Environment factors means the changes on the external natural environment will have effect on the firms. Singapore is a tropical country. There always two seasons, which are rainy season and dry season. As a interior design office, Tank Office will not be affected by any environmental factors. In Tank Office, there will be air conditioning service and drinks service for free. Customers are welcome to sit in the office and talk to designer about their ideas face to face.
Legal factors mean the operating legal environment. As the firms, operating under legal environment is the safest approach to achieve its goals. Legal factors usually refer to legal documents or regulations which the firms must have to follow and observe. In Singapore, Tank Office will follow all the requirements from Ministry of Manpower Singapore when recruiting designers. Designers' and all staffs' tights and interests will be respected by Tank Office. Tank Office will try provide the best workspace for both sides.
4.4 Industry Analysis
4.4.1 Porter's Five Forces Analysis
Porter's five forces model of competitive analysis is a widely used approach for developing strategies in many industries (David 2007). It can help the firm to analyze the competitive pressure in the market and to make changes to competition strategies. These five forces include: Rivalry among competing firms, Bargaining power of suppliers, Bargaining power of consumers, Threats of substitute products and Threats of new entrants. Table.2 shows the inter-related relationships between these five forces.
Table.2 Relationship of Porter's Five Forces
Threats of Substitute Products
Bargaining Power of Suppliers
Bargaining Power of Buyers
Rivalry among competing firms
Threats of New Entrants
(Source: Created for this project)
Rivalry among competing firms (Strong)
In most situations, rivalry among competing firms is a very important force among Porter's five forces. The key point here is to achieve success for a firm is to remain advantages against competitors. Different industries have different competitive situations. In graphic design industry, the intensity of competitors is very high.
This Tank Interior Design Office belongs to graphic design industry. Different companies will have different designers and different designers will carry out different styles of designs. In fact, there are many excellent designers with great talents in designing. As those big companies, they can recruit more excellent designers and they can pay more salaries for those talents. Those ones have more wealth and assets to expand and recruit compared to this design office here. In addition, it is obviously that this office may lack of brand awareness and financial capitals.
Bargaining power of suppliers (Weak)
Bargaining power of suppliers will affect the intensity of competitions in the industry. Firms may sometimes pursue a backward integration strategy to gain control or ownership of suppliers (David 2007, p.97). As an interior design office, its major duty is to provide ideas of design. In other words, it is selling design proposals as products. For this graphic design industry, these companies normally have fewer suppliers. They are taking charge of interior designing and as a result, the bargaining power of suppliers will be very weak.
Bargaining power of buyers (Medium)
When customers are concentrated or large or buy in volume, their bargaining power represents a major force affecting the intensity of competition in an industry (David 2007, p.97). In graphic design industry, buyers's requirements and needs can be major parts of bargaining power of buyers instead of buying in a large volume. In advance, a good brand awareness and high recognizability will lower the bargaining power of buyers especially in this industry. This is because that famous interior design office will provided customized design for the customers and customers will have no need to take care too much.
However, for Tank office here, it is under the growth stage and it may lack of brand royalty. The design proposals will be closely driven by the customers' needs. By now, this office will consider more of customers' needs and provide high quality of designs for customers. As so, the bargaining power of customers will be medium level.
Threats of potential substitute products (Strong)
In graphic design industry, threats of substitute products are very strong. In Singapore, there are many famous commercial interior design firms, for example DB&B, TOPOS and so on. They are famous and successful firms with good customer awareness. Their scare of business will include not only interior design but also large commercial landscape design. They are all perfect structured organizations and some of them are multinational corporations. They can provide higher quality and perfect designs and services. Most of all, these companies will provide from designing to decorating services. Their designs and services can be very threatening to Tank office as well.
Threats of new entrants (Medium)
In graphic design industry, the barriers to enter in are not so high. The most important factors to enter into this industry will be the quality of designers. As well known that interior designing requires architectonics, principles of aesthetics and some principles of mathematics. In order to start a interior design office, it is necessary to attract and recruit professional designers who are good at both three subjects talked above. It needs financial capitals and some interpersonal relations to explore and recruit these designers. In Tank Office, one of its directors are people who is familiar with aspects of designing. As so, the threats of new entrants may be under medium level.
Table.3 Result of Porter's Five Forces Analysis
Rivalry among competing firms
Bargaining power of suppliers
Bargaining power of buyers
Threats of substitute products
Threats of new entrants
(Source: Created for this project)
5. Strategy and Implementation Summary
5.1 Value Proposition Design
Value proposition is a type of statement of a company's advantages. It delivers a attitude of the company to its customers. Value proposition focuses on determining the value and attractiveness of products and services provided to the customers. Good and appropriate value proposition can make the customer be more willing and sure to pay for the product and service. In Tank Interior Design Office, all design proposals start with the customers' needs and wants. Compared to other companies, Tank's proposal will determine all the details in customers' houses and it will a personalized design proposal. The value proposition statement of Tank Office will be "Tank Office will help the customer to get more convenient living environment and to create their dream decorative-style at a reasonable price."
5.2 Marketing Strategy
5.2.1 Product Strategy
Product can be a good or service which will make the customers satisfied. Product strategy requires company to listen to the potential customers' needs and wants. It requires the company to carry out a valued and attractive products. In Tank Office, the product will be these interior design proposals. A good product strategy will make the product become very attractive and unique to the customers. An effective product strategy will have important affect among target customers.
During the start-up process, it is necessary to locate target customers clearly. It has been discussed above that target customers of Tank Office will be these people who are willing to accept new idea and have ability to pay for these design fees. For these customers, most of them are young-age or middle-age people. They are willing to accept new fashion and new thoughts. Compared to their parents, last generation, they will think more about the interior living quality. Interior design will help the house avoid from light issues, noise issues or heat issues. Interior design will help to remit the dampness issues. A reasonable interior design proposal can provide a comfortable living environmental. Tank Office will read the drawing of customers houses first, and give the professional advice to solve and remit potential problems. Designers will make a 3D Max effect drawing to get the customers' final approve. Customers will be willing to accept high-quality service provided by Tank Office.
5.2.2 Pricing Strategy
Price will reflect the value of product and service. A good pricing strategy focuses on the setting of price and changing of price. A good price will be an attractiveness to the customer. It will reflect the value of product appropriately. At least, a price should cover the company's cost.
The price setting of Tank Office is a little bit complicated. In order to keep the business environment in the industry, it should consider about the average level in the graphic industry. Before the final design proposals, designers have to spend large time to discuss about a proposal. Cost of timing and physical will be covered by the price of each project. Electricity and paper cost have to be covered by the price as well. There will be different price for designs of houses and business stores. The price in Tank Office may be little lower than other companies. This is because that Tank Office may not be able to hire designers as experienced and professional as those large companies. In order to get space in the market, Tank Office will lower the price.
5.2.3 Promotion Strategy
In general, promotion determines how to increase the brank awareness among potential customers. Promotion is one type of communication between sellers and buyers. The best and most effective method of promotion strategy is advertising. With the development of new technology, there are many types of advertising. For small business like Tank Office, advertising though Internet will a good choice.
In Singapore, Facebook is definitely the frist social networking program. Tank Office will register a public Facebook account. Tank Office will upload the news and photos immediately. People can learn about Tank Office Facebook website and there will a be a link to the homepage of Tank Office as well. During the start-up period, Tank Office will upload some introduction and some photos of its designers' work. People can leave feedback message and discuss with us about these photos. Besides Facebook, Tank Office will register a Twitter account. All Tank's official website accounts will participant in as much as possible interactive events on the Internet. It will help to increase the brand awareness among people. Tank Office will also makes advertisement on the popular newspapers. Due to the financial condition of Tank Office, Tank Office cannot afford large-scale advertisement. It will print out some paper leaflets and will pass out these leaflet to the place where has new estate and MRT stations.
5.2.4 Place Strategy
Place means that the approach to get the products. Place strategy focuses on how place the products in order to let customers feel easy and convenient to get. As a interior design office, it is better to be located near the central business district or inside the office building. The selection of place will reflect on the customers' impression of a company. Tank Office will rent a store of a office building in Quenstown and this building is nearby IKEA. The location of Queenstown is close to the Orchard and City Hall. This place is close to AYE and CTE. There are also many public buses and it is not far away from the MRT station. It is convenient for the customers to go to Tank Office. If the customers want to drive to Tank Office, there will be enough car parks around Tank Office.
5.3 Sales Program
Sales program is a sales plan. It depends on the current situation and current resources. A sales program can determine the future achievements and goals. Sales program will analysis the current situation and make marketing strategies to achieve the goals. Sales program is one way to make improvement and to adapting new technology. The goal of sales program is to increase brand awareness and explore more customers.
For a new start-up company, Tank Office will have understand the current resource first. In the area of sales, social networking resource is very useful and important. Tank Office will encourage all the staffs to use their own social networking resource to find the potential customers. People from these social networking resources may be the first customer group of Tank Office. Due to the properties of interior design, Tank Office have to provide higher quality design proposals to the first customers. It will be great, if these customers are satisfied with Tank Office and are willing to introduce Tank Office to their friends. Collection of feedback from customers will be very necessary and useful. Utilization of social networking resource will have influence on the sales figures. It will help to increase the brand awareness.
Another way to increase brand awareness and to explore is to keep advertising. In the advertisement, it will introduce Tank Office's size, business, price level and examples of interior design clearly. Effective advertising will contribute to the sales figures as well. For a new company, brand awareness and customer groups will be the important factors to the success of sustainable development.
A company should consist of several fixed department, like director office, human resource department and so on. Company structure is the basis of management and operation. Each department have different duties and they are independent. However, they will be affected by each other sometimes. They are corelative existing in a company. Even a small business company, the company structure and these duties should be identified clearly. There are two shareholders of Tank Office and these two shareholder will be Board Office of Director. Table.4 shows blew will indicate the company structure clearly.
Table.4 Company Structure
Name of Departments
Numbers of people
Board Office of Directors
Marketing and Sales
Front Office/ General Office
(Source: Created for this project)
Board Office of Directors
Directors are the leaders and decision makers of a company. All the documents have to be approved by the directors. They are the heart of a company. They will decide the directions of future development. In Tank Interior Design Office, directors will be the two shareholders. Directors will have located the company into a market. They will conduct the management team of a company. Directors have to publish general regulations of the company. They have design the company structure. In Tank Office, directors have to choose the location of the office, plan the range of service and register this company to the Singapore government. They have make interior design for Tank Office as well. Directors also have set the salary level in the company. They are responsible to motivate employees as well.
In Tank Office, Human Resource is responsible to build the human resource system in a company. They have to take charge of labor power and employment, person file management and to set other related regulations among a company. If there will be foreign employees in Tank Office, Human Resource has to help them supply for a working pass from ICA. Human Resource will have to recruit new employees. They will interview the suitable candidate and introduce to the directors. They can also discuss with the directors about who needs to be laid off. They are responsible for conducting and signing contracts with employees. Human Resource has to remit the dispute between departments or employees. Human resource has to prepare the payrolls as well. Human Resource is required to build the communication channels among the company.
Marketing and Sales
Marketing and Sales is a very important department in a company, especially like Tank Office. They have to help to increase the brand awareness and sales figures. They have to study the current position of Tank Office and to combine it with current marketing environment. Marketing and Sales has to carry out marketing and sales strategies and report to the directors. It will take charge of advertising and build the brand image to the market. Marketing and Sales will have to utilize and explore the social networking resource for the company.
According to current situation of Tank Office, there will be three designers in the Design Office. They are taking charge of all the detail jobs during designing. They have be familiar with hand drawing, 3D MAX and Auto CAD skills. Besides professional requirements, designers have talk to the customers. They will have good communication skills and they understand customers' wants and needs. Instead, they can make customers understand everything when explaining the purpose of their design proposals. It is true that designer is one of most toilful jobs in the world.
Front Office will represent the company image to the customers. Upon customers walks into Tank Office, they can see the Front Office first. Before customers want to discuss with the designers, they have to register to the Front Office. Front Office will record the necessary information of customers. They will have to introduce the designer to the customer. Before customers paying the bill for their proposals, Front Office will give customers a list of items they have to pay. Customers have take this list and go to the Finance to pay off money.
Customer Service will have a record of all the customers. The duty of Customer Service is to do feedback research. They can discuss with customer and they will accept the complain from the customers. Customer Service can use the public social networking account to publish the news and photos of Tank Office. They have interact with customers on the Internet.
There will be only one accountant in Tank Office's Finance department. Finance has to keeps record of all cash flows in Tank Office. It is necessary and legal for Finance to carry out Profit and Loss account, Balance Sheet, Income Statement and so on. It has to collect money from the customers. They have to prepare the salaries for all the people.
Facilities has to make sure that all the facilities and equipments can work properly in Tank Office, especially the computers, printers, wireless service and pens. Facilities is responsible for all the clean up and keep of equipments.
7.1 Operation Model and Procedure
First of all, it has to register to the Accounting and Corporate Regulatory Authority (ACRA) in Singapore if you want to start a new company. People can go to ACRA office or to use the online application to register a company. Tank Office will choose the online application. The two shareholders can go the official website of ACRA and download the application forms. After finishing the form, they can submit it online. While, all the shareholder or partners are required to have endorsed to the submission of online transaction. Table. 5 shows the register fee which Tank Office have to pay in Singapore.
Table.5 Register Fee
Name Approval Fee
Business Registration Fee
(Source: Adapting from the Official Website of ACRA)
After the successful registration, Tank Office can start with its business. The two shareholders are the top level in Tank's management team. They are the decision makers. They will decide and choose the business style fro Tank Office. All the official documents have be approved by these two directors. In order to save cost and consider the financial capacity, these two directors will act as the human resource and marketing and sales managers as well. As a result, these two directors can become one part during working period. They can learn much more about the company. In fact, Front Office and Customer Service will be combined in Tank Office. Tank Office will recruit only one person for this position. Tank will recruit only one accountant as well. For the Design Office, there will be three designers. Designers can discuss with each other and help each other when they are facing with difficulties. For Facilities jobs, all the staffs will have to take turns to do this job. Normally there will only be some cleaning and testing jobs in Facilities.
In Tank Office, there will be frequently meetings. Most of these meeting will be a designers' meeting. They have to discuss about their proposals. During these meetings, these two directors can be auditors. It is necessary that all the people have to mark attendance when they arrive at the office. After marking attendance, they can start with the morning cleaning jobs. In Tank Office, the company will provide personalize working environment and encourage employees to treat this team as a big family. As same as many other companies, there will be a morning meeting on every Monday. During this meetings, all people can talk about their feelings and discuss with each other. Of course, during this morning meeting, these two directors will make coffees for the staffs and talk to them. The working attitude of directors will influence the whole management team. Directors are responsible to motivate their employees.
In addition, directors will not intervene during the process of interior designing. Designers will have enough space to do their design proposals. In Tank Office, people will show respect on others' personal preference. In small business company, everyone are encouraged to help with each other. Everyone should feel responsible for the company. Healthy working environment will have positive effect on the future development of Tank Office.
7.2 Facilities and Equipments
There are many types of facilities and equipments will be applied in Tank Interior Design Office. According the professional skilled properties of interior design, Tank Office has to provide computers with full high definition display to designers. It will deliver high image quality for displays of design proposals. Each designer will be able have one computer like this on their tables. Besides the computers, their will be at least two color printer which can be used as copiers as well. There will be enough papers and pens in Tank Office. Designers do not have to face with lack of papers or pens. For the common facilities and equipments like tables, chairs and air conditions, Tank Office will buy these in Singapore. All the shipping fee will be added to the operating cost.
7.3 Development Tasks
Development tasks indicate how a company wants to develop into. For start-up and small business, development tasks can be short-term goals firstly. During short-term period, all the small business company has the same desire of increasing the brand awareness and explore more customers. Tank Ofiice will keep the advertising and try to improve the quality of service. It is better if Tank Office wants to recover its investment amount and to make profit in the second year.
During long-term period, Tank Office want to be able to have its decoration teams. Tank Office wants to be a famous interior design company which can provide customers from designing proposals to decorating service. Tank Office wants to have it own product and service chain.
8.1 Key Financial Indicators
8.1.1 DuPont ROE Approach
DuPont ROE approach is created by the DuPont Corporation. It is used to measure the financial performance of a company. With this method, assets will be measured at gross book value in order to get higher return of equity (ROE). There are three components of DuPont ROE approach: Profit Margin, Total assets turnover and Equity Multiplier. The basic formula of DuPont ROE is:
8.2 Break-even Analysis
Break-even analysis is used to calculate when will the revenue can recover the operating costs. Break-even analysis is a safe margin. As long as the price or units are exceeding the break-even point, the product will bring back profit and revenue as well.
8.3 Projected Profit and Loss Account
There will be a