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Business Plan of Contact Lens for Underwater Swimming by Modi & Co.

Organization Selected : Modi & Co

1.0 INTRODUCTION

1.1 Introducing company background, product and form of ownership

Contact lenses should be wore while swimming underwater in order to protect eyes in effective manner. It is required that business should provide better quality lenses so that they may be satisfied.

1.1.1 What is the name of organisation

The name of company is Modi & Co. which is a new start-up company being focused on providing contact lenses to underwater swimmers. The co-founders wanted to start this firm as swimmers felt goggles are not quite handy and irritation persist time passes in the sea. This led to motivation to offer contact lenses as it is light weight and clear vision can be seen underwater while swimming (Steele, 2018). Motivation was attained for giving correct vision in the best way possible. Modi & Co will provide quality lenses in order to capture UK market.

1.1.2 What formof ownership has company adopted

Modi & Co has adopted corporation form of ownership limited by shares so that it may upscale manufacturing business in Brighton. This form has been adopted because liability of shareholders is limited to shares held by them. Shareholders which are family members can be effectively employed by Modi & Co with ease. One of the main advantage of choosing this business is that professional managers are employed by investors and as such, day-to-day operational activities can be handled in a better way. Hence, it can be justified that corporation form has been selected.

1.1.3 Product Description

The product will effectively meet the needs of divers and water sport enthusiasts in the sea so that they may clearly visualised. Zoom-in feature will be offered with ambitious contact lenses requiring a power of 43 dioptres of accommodation. Thus, needs of water sport people will be entertained with superior quality lenses will be provided (THE BENEFITS OF CONTACT LENSES.2012). The current customers are not satisfied as they wear low quality lenses in the sea which involves irritation after sometime as bacteria comes in contact with it. The unique selling point that unique selling point Modi & Co is that salt-proof technology, precise underwater vision. This has competitive advantage of company over its rivals as larger vision span and salt-proof technology will be offered which are not provided by competitors in industry.

1.1.4 Strategic Management

The aim of Modi & Co is to be market leader by manufacturing superior quality lenses in order to enhance clear vision in the sea. In accordance to Ansoff Matrix, business will attain higher growth in near future and thus, market penetration strategy is best suitable for it. It can be justified that by focusing on selling existing products in similar markets, organisation can improve upon its production of lenses and efficiency can be improved (Poor and et.al., 2018). This will help to provide with quality products and customers will get satisfied. Dominance in UK market will be accomplished.

The current position of Modi & Co in Product Life Cycle is at introductory stage. This is because company is less than a year in the market. To move on to growth stage, awareness of new contact lenses will be provided having larger vision span and zoom-in feature which is also unique selling point of company. Distribution channels will be increased to meet ever-increasing demand of people. Support services will also be incorporated that would help to push company to market. Marketing management orientation concepts are needed and product concept will be adopted by Modi & Co in order to focus on product being nicer, cheaper and better quality. It can be justified that customers will favour contact lenses offering quality, enhanced features and performance in effective manner (Rodríguez-Martín and et.al., 2018). Thus, aim of product concept is to improve item which effectively attracts people.

1.2 Mission Statement

Modi & Co mission statement is follows- “To offer innovative lenses that enhances quality of life for maintaining the highest spectrum of contact lenses for water sport customers”.

1.3 Objectives of business

  • To reduce refractive errors persisting from contact lenses
  • To offer superior quality lenses to underwater sport customers for enhancing their vision
  • To become trusted market leader in eye care by producing customer-centred products
  • To become hallmark of quality and innovation in next five years
  • To attain gross profit of 10 % in 12 months period

1.4 Organisational chart

The organisational chart which is prepared providing the duties and tasks which will be performed by Modi & Co to effectively attain production. The organisational chart presented is matrix because there are various tasks needed to be performed by personnel in order to accomplish desired production. It emphasis on efficiency, innovation and creativity directly attaining customer satisfaction. Multiple level of hierarchical communication with responsibilities in organisation is provided. It is chosen so as to enhance communication between personnels.

The organisation chart is flat and wide because it has various pros. It improves communication as without involvement of intermediaries, employees and executives can easily talk speeding up transparent communication. It also reduces operational costs as expenses in hiring mid-level and lower-level managers can be saved. This will provide with better communication and transparency among staff members and executives.

The decentralised approach will be used in order to encourage employees to make active participation in responding towards duties in the best way possible. Decentralisation help business to develop higher-level skills as activities with regards to planning, decision-making are delegated to a group eliminating the role of central group (Tang, Zhi and Flaherty, 2017). Main benefit of decentralised approach is that central group can focus on important things and delegating certain unimportant matters to lower group.

1.4.1 Introducing management team

The management team will have CEO, followed by Business Analyst Manager, Development Manager, Quality Assurance Manager. Product Manager will be followed by Business Analyst, Tester and Developer. Hence, management will effectively allocate work in accordance to job roles of employees for attaining efficiency in operational activities.

2.0 Human Resource Management

The skills are required to be possessed by employees so that business may be able to provide competitive contact lenses. The water sport enthusiasts' are main target customers of Modi & Co which will be provided with quality product. Creativity skills are needed in workforce with the help of which majority of people can be provided with enhanced quality of lenses. Currently we have employed 50 workers for attaining production meeting specific demand of customers in the best way possible. It is required that more people can be recruited so that efficiency and productivity can be increased in a better way.

Human resource management is a key to attain desired stated objectives and provide customers with superior goods and services for accomplishing satisfaction level (Gómez, Aguirre-Villaseñor and Morales-Serna, 2018). There is an urgent need for recruitment of employees for filling the job positions. For this, optician, final assemblers, manufacturing engineer, production technician are required so that contact lenses can be produced in effective manner. It is need that optician must be recruited so that he designs and dispenses right lenses to final customers. He has the role of providing specific ophthalmic appliances which will give necessary correction to the eyesight of people. This is an important job position addressing eye wear needs of people and seeking out vision in a better way so that desired contact lenses can be produced. This position is vacant and optician will be recruited in getting needs of customers in effective manner.

Manufacturing engineer is missing in company and this skill is required for developing manufacturing process by studying product requirement, designing, modifying and testing methods of manufacturing. Final assembler has a role to assemble part of lenses in company in order to finally complete product and make it ready to be delivered to customers. Production technician is also missing for analysing that products are being manufactured as per quality standards.

The above recruitment flow chart will be followed by Modi & Co in recruiting employees for getting desired level of production. This shows that firm will have structured process of recruiting and then job offer will be provided to them upon selection. First step will be to analyse job need and recruitment requisition would be given. After that selection criteria will be then processed in a better way. Advertisement is then provided for the job. Then receiving applications for job. Categories of job is prepared and as such, suitable job is then identified. Candidates will be then interviewed in accordance to job category and according to criteria as well. Then 2ndinterview will be done according to criteria. Lastly mail will be provided regarding thanking for interview and thus, job offer will finally be provided to selected candidates.

Modi & Co will recruit work force externally as more positions are required for attaining demand of customers by meeting production. It is an appropriate source as creativity and innovative workers are needed which can work according to unique selling point and good quantum of sales can be accomplished (Pesudovs, 2018). New employees will be recruited possessing necessary skills, but to sharpen their knowledge and skills, training and development is essentially required. Training and development will be provided to employees. Technical skills trainiong will be provided because even if employees possess required skills, there is always room for improvement. Technical skills such as for handling production level, assembling final products, development process of contact lenses so that job can be done with much efficiency.

Refresher training is another crucial training which is offered when any important changes are occurred in particular field. Eye care sector is ever-changing field and this training is required for upgrading skills of workers, hence, Modi & Co will incorporate necessary training to new employees. On-the job training will also be provided to employees by learning work under a supervisor for learning job roles in the best way possible (Rucinski, 2018). Hence, company will focus on continuous development and training by which desired objectives will be accomplished.

The compensation structure is prepared below for co-founders, senior managers, mid-level managers and low level employee-

Compensation structure of Modi & Co

Grade

Min(In £)

Mid (In £)

Max (In £)

Co-founders

67000

69000

72000

Senior Managers

62000

64000

67000

Mid-level Managers

57000

60000

62000

Low level employees

52000

55000

57000

It can be analysed from the above table that co-founders that minimum salaries will be 67000 and maximum to 72000. On the other hand, senior managers will get salaries within range of 62000 to 67000. Mid-level managers will be paid within 57000 to 62000. While low level employees will be paid within 52000 to 57000 range.

3.0 Business Environment

3.1 Describing and introducing the industry

The contact lenses industry is one of the major competitive industry which has more number of companies competing with another. Global contact lenses market size was valued $9.91 billion in 2016 which is sets competitive position of companies. It can be analysed that UK contact lenses in 2016 was £290 million in accordance to ACLM (Association of Contact Lens Manufacturers) which is increased by 8% from 2015 (ACLM 2016 contact lens statistics.2017). There were 4.2 million contact lens wearers in UK aged between 15-64 years. ACLM has forecasted that market will continue to grow in coming years.

The chart represents that 47 % are people in UK falling under showering with lenses in. while, 19 % uses tap water on lenses and 37 % swim with contact lens without wearing goggles. Thus, market of contact lenses will be fruitful for company in UK for attaining profitability. Concentrated industry is contact lens industry having large companies with higher market share. Opportunities will be to provide unique feature of lenses such as larger and clear vision, salt-proof technology lenses. While, challenges in the industry are to provide superior quality lenses, bacteria and contamination resistant lens.

3.2 PEST Analysis

Political (P)-

The political environment in UK will get ruined as UK has decided to leave EU. Brexit will have major influence on Modi & Co as it is a start-up company and operational activities would be affected up to a high extent. On the other hand, tax structure levied on contact lenses will also obstacle company in achieving group goals.

Economical (E)-

UK economy has mainly influenced by Brexit and economic slowdown has been registered which will have negative impact on organisation. This is because purchasing power of people have gone down and they will not buy new lenses leading to lower profits to firm. It can be analysed that economic downturn will become stable in near future but it is not appropriate presently for company.

Social (S)-

Consumer preferences are ever-changing and never remains same. This is the reason that contact lens are made with unique advantages to business which will lure customers who are water sport enthusiasts (Nanavaty and et.al., 2017). Moreover, investment in trending technology is required to be made in order to attract customers.

Technological (T)-

Technology has revolutionised the way of production in today's scenario. Contact lenses are made from wearable technology and manufacturing is done. Product design is to be made in a manner so that people may purchase the same.

It can be concluded from PEST analysis of industry that new ways of production has to be deployed by Modi & Co for effectively attaining customer attention. Technological advancement will be implemented and desired production will be accomplished.

3.3 SWOT Analysis

Strengths (S)-

The main strength of Modi & Co is that it will introduce contact lenses being wearable underwater in the sea. This will entertain and attract divers which have to wear goggles while diving which has many disadvantages. Moreover, to capture the market, prices will be kept low in order to provide commodities at competitive and affordable price. Advanced technology will be implemented in order to enhance efficiency in production and thus, desired production will be done for attracting customers (Park and et.al., 2018).

Weaknesses (W)-

Main weakness is that firm is new in contact lens manufacturing industry. Brand name is not present which will have disadvantage to company in attaining goals. Lower end product of lenses are also present. Moreover, perceived weakness is cost of producing services as per the superior quality. It will have to recognized its name in the market by providing quality services.

Opportunities (O)-

Major opportunities include providing larger vision span, zoom-in feature for better and maximised angle view. Securing contracts with distributors and wholesalers so that eye wear purchases may be made in abundant quantity. This will have increased profits to company and as a result, firm will effectively achieve desired goals.

Threats (T)-

Threats are also available to Modi & Co which has to be resolved by taking in it. Rise of e-commerce in today's world has led to offer eye wear products at low price and as such, manufacturing cost increases. On the other hand, government regulations' is also another threat to business as standards of quality of manufacturing contact lenses are changing frequently and becoming rigid.

It can be analysed from above position map that Modi & Co has to attain higher performance so that people may purchase contact lenses in good quantum. It needs to beat rivals by which competitive advantage may be attained in a better way. The prices should be kept low and maximise quality so that profits can be attained.

3.4 Porter’s 5 Forces Analysis

Competitive Rivalry-

The competition has become fierce in the contact lenses industry but Modi & Co will provide better and unique products in order to effectively attain desired production and then enhance profitability position in the best way possible. Organisation will offer differentiated products which will attract more rivals.

Bargaining power of suppliers-

Suppliers are main force in organisation as raw materials have to be attained from them. If they provide, materials at high prices, then unnecessarily manufacturing costs will get increased (Rodríguez-Cabello and et.al., 2018). Cost of switching from one supplier to another will also have bad consequence to company. While, size and strength of suppliers will also influence organisation.

Bargaining power of customers-

It is quite easy for customers to effectively drive down the prices of contact lenses. This is evident from the fact that there are large number of buyers in UK who prefers commodities at lower price and they may easily switch to other businesses. There is immense importance of buyers to Modi & Co and if buyers are more, then bargaining power is high.

Substitution threat-

Substitution is common threat found in business because products have close substitutes which effectively reduces sales. It can be analysed that contact lenses have perfect and close substitute which is goggles and customers can easily switch to goggles as soon as price rises of contact lenses. Hence, threat of substitution is high (Padzik and et.al., 2016).

New entry threat-

Threat of new entry is not high as there are few large businesses dominating the market up to a major extent. Moreover, Modi & Co will not face this kind of threat as it will provide better quality lenses to underwater swimmers.

It can be concluded that customers will purchase eye lenses from company as spending power of people is more. Moreover, suppliers will also provide materials at competitive price leading to attainment of market of UK. Furthermore, Modi & Co will create barrier in entry of rivals by implementing unique selling point and providing quality lenses having larger vision with salt-proof technology.

4.0 Marketing Management

4.1 Market Segmentation & Target Marketing Strategy

The market segmentation is required to be done so that company may concentrate on particular segment only for achieving sales. In relation to this, target market of Modi & Co is water sport enthusiasts which have thrilled to dive underwater in the sea. It means that company will effectively achieve target market in the best way possible. Mainly factory will be located at Brighton and as a result, firm may be able to accomplish set target in effective manner. On the other hand, target marketing strategy such as focused or concentrated targeting will be implemented because company will target that people only which are indulged in water sport activity. This marketing mix is small mainly with single segment (Javanmard and et.al., 2017). Modi & Co will effectively provide superior quality products in a manner which will attract people in effective way. Moreover, remedy for hypoallergenic will also be provided, easy to carry and very clear vision will be imparted to people. Hence, company will effectively attain profits by selling goods to customers.

4.2 Pricing Strategy

Penetration pricing strategy will be implemented by company in order to provide products at low prices. By providing at lower prices will lure customers and they will purchase items. Penetration strategy means that company will offer goods at low prices and as a result, higher amount of sales will be achieved. However, lower profits will be generated at initial stages but it will be offset by attaining higher sales. Moreover, after firm attains good position in the market, it can easily attain higher profits with ease. It can be justified that penetrating pricing strategy is followed as firm is new in the market and if high prices will be charged, then customers will not attract.

4.3 Promotional Strategy

Promotions are needed so that company may achieve marketing in effective manner. There are various strategies for promotions by which customer's demand can be accomplished about the product (Ayi, 2016). The communication objective of Modi & Co is to provide better substitute against goggles ie contact lenses for increasing their vision in the sea and enjoy the zoom-in experience. Advertising will be adopted by organisation in order to attain promotion. It will be adopted because non-personal message is usually provided to customers to build up demand of customers with ease. Certain amount is paid by advertiser and advertisement is posted and control over the message is found. It means that firm will effectively attain promotion by deploying advertisement by using social media channels namely Facebook, Instagram, Twitter as large number of people visits these channels and as a result, promotion can be done with much ease. Hence, Modi & Co will be able to attain sales by promoting through advertisements and thus, stated objectives will be met.

4.4 Place

It can be analysed that firm's warehouse will be located at Brighton near to Sea life Brighton. The location is good as from there, it will directly deliver contact lenses to distributors and wholesalers in the best possible manner. On the other hand, push and pull factors. Push factors, idea is to directly sell products through intermediaries. Organisation will use intermediaries to effectively attain sales and make profits. On the other hand, pull factors is spending on advertising and promotion to effectively build up demand of product. Thus, firm will be able to effectively attain sales by offering contact lenses to customers.

5.0 Operations management

Modi & Co. had been planning to introduce contact lenses which will be convenient to buyers in multiple use. Thus, the main motive is for developing them for underwater use as which does not affect any eye issues such as salt irritation, clear vision, zoom in feature, larger vision spans as well as prevention from hypoallergenic issues. However, in this case there has been determination of various techniques and methods to process the products. In relation with developing goods which in turn brings adequate operational gains. The organisation has planned to bring such lenses on reasonable rates and with perfect quality which will be manufactured by them in manufacturing unit at Brighton.

Operating model and procedures:

In relation with manufacturing a contact lens there will be consideration of various features and methods to be considered by producers. Moreover, it has been comprised of implication several steps and process for manufacturing a contact lens. There will be use of raw material like, glass or plastic which will be gone through several stages such as:

  • Molding process: This is the process of molding a lens in consideration with the three kinds of fluids which were poured in open rotating molds. After this, the outer layer of the lens will be shaped by the mold as well as internal curvature has been developed as per speed of mold rotation.
  • Lathe Process: This is the process after molding the lens it will be cut on a lathe. There will be use of a plastic rod in cutting and stamped on a plastic sheet. After completion of the entire process, the lens than be polished.
  • Finishing: At this stage the lens will require several curves as per the requirement of the client. Thus, it requires the final look through which designs the lens according to the requirement and satisfaction of the buyer (McKenzie, 2017).
  • Quality control: In this stage the lenses will be investigated by implicating medical devices. It will be examined under magnification as well as measured under shadow graph.
  • Packaging: After proper investigation and modification the lenses will be packed. There will be use of hydrophilic material which consists of saline solution that is similar to human tear. Therefore, due to such solution the lenses become soft and pliable as well as were ready to wear.

Production cycle and seasonal production loads:

In accordance with manufacturing the contact lenses there will be consideration of effective production cycle. Thus, Modi & Co. has planned to promote this technique and the advanced features of these lenses among society (Ibrahim and et.al., 2017). it has been analysed here that, there will be growth in gains as if proper procedure must be implicated by them in a cost-effective manner.

Inventory storage:

Modi& Co. has analysed that the most common numbers in designing a contact lens are needed to be prepared and stored. Along with this there will be development of various lenses which are based on the demands and wants of buyers. Additionally, it will be designed as per requirement of buyers.

Made to stock:

Modi & Co. have determined that all lenses are to be designed under the manufacturing unit. They will have raw material, machineries as well as appointment of various skilled experts in designing the lenses as per consumer wants.

Forecasting demand:

Forecasted Cash flow statement

Particulars

Initial investment

1st year

2nd year

3rd year

Product

 

Underwater contact lenses

Underwater contact lenses

Underwater contact lenses

Customers

 

1500

2000

2500

Average price

 

12.9

12.9

12.9

Total revenue

 

19350

25800

32250

Change in % of sales

   

33%

25%

Total cash inflows

 

19350

25800

32250

Operating expenses

       

purchase of raw material

 

150

180

90

electricity charges

 

45

50

60

wages

 

55

55

55

Machineries and equipment

140

75

60

20

packaging

 

45

58

62

Total cash outflows

140

370

403

287

Net cash flows

-140

18980

25397

31963

Capital invested

45000

     

Opening cash balance

45000

44860

63840

89237

Ending cash balance

44860

63840

89237

121200

6.0 Exit strategy

In relation with operating the business as well as retaining the gains from stakeholder it is necessary to retain them for long period. Thus, in this process there have been implication of various strategic plans such as liquidating the stakes bringing the adequate substantial profit as well as bringing the higher return on investment. In context with this there will be rise in the gains which were being awarded to those investors.

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REFERENCES

Books and Journals

  • Ayi, B., 2016. Infections Acquired via Fresh Water: from Lakes to Hot Tubs. InInfections of Leisure, Fifth Edition(pp. 55-81). American Society of Microbiology.
  • Gómez, S., Aguirre-Villaseñor, H. and Morales-Serna, F. N., 2018. A new species of Chondracanthus (Cyclopoida: Chondracanthidae) parasitic on deep-sea Dibranchus spongiosa (Lophiiformes: Ogcocephalidae) from the Eastern Central Pacific.Acta parasitologica.63(2).pp.375-385.
  • Ibrahim, S. S. and et.al., 2017. Modelling Effective Business Plan in Entrepreneurship Education: A Solution Toward Better Learning.Advanced Science Letters.23(11). pp.10786-10789.
  • JAKI, P. and TIPTON, M., 2016. Eyesight standards for beach lifeguards.The Science of Beach Lifeguarding.p.211.
  • Javanmard, E. and et.al., 2017. Molecular identification of waterborne free living amoebae (Acanthamoeba, Naegleria and Vermamoeba) isolated from municipal drinking water and environmental sources, Semnan province, north half of Iran.Experimental parasitology.183.pp.240-244.
  • McKenzie, D., 2017. Identifying and spurring high-growth entrepreneurship: Experimental evidence from a business plan competition.American Economic Review.107(8). pp.2278-2307.
  • Nanavaty, M. A. and et.al., 2017. Toric Intraocular Lenses Versus Peripheral Corneal Relaxing Incisions for Astigmatism Between 0.75 and 2.5 Diopters During Cataract Surgery.American journal of ophthalmology.180.pp.165-177.
  • Padzik, M. and et.al., 2016. Assessment of in vitro dynamics of pathogenic Acanthamoeba strains originating from contact lens wearers with infectious keratitis.Annals of parasitology.62(4).
  • Park, J. and et.al., 2018, July. Development of a Design Protocol for Customized Swimming Goggles Using 2D Facial Image Data. InInternational Conference on Applied Human Factors and Ergonomics(pp. 151-155). Springer, Cham.
  • Pesudovs, K., 2018. Influence of refractive surgery complications on quality of life. InManagement of complications in refractive surgery(pp. 13-19). Springer, Cham.
  • Poor, B. M. and et.al., 2018. Contamination of swimming pools and hot tubs biofilms with Acanthamoeba.Acta parasitologica.63(1).pp.147-153.
  • Rodríguez-Cabello, C. and et.al., 2018. Insights about depth distribution, occurrence and swimming behavior of Hexanchus griseus in the Cantabrian Sea (NE Atlantic).Regional Studies in Marine Science.23. pp.60-72.
  • Rodríguez-Martín, J. and et.al., 2018. Presence of Acanthamoeba in the ocular surface in a Spanish population of contact lens wearers.Acta parasitologica.63(2).pp.393-396.
  • Rucinski, P. J., 2018.Materials and methods for controlling infections. U.S. Patent Application 10/016,375.
  • Steele, K. R., 2018.Contact Lenses and Water Exposure: Current Practice Patterns and Perceptions(Doctoral dissertation, The Ohio State University).
  • Tang, M., Zhi, J. and Flaherty, G. T., 2017. An Eye on Travel: An Overview of Travel-Related Ocular Complications.International Journal of Travel Medicine and Global Health.5(3).pp.74-76.
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