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Business Plan For Business Game

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1 Executive Summary:

Uberwagon (UW) is a small, French based automobile manufacturing organisation. From this base Uberwagon will attempt to grow into a larger firm to ensure we meet demand though still attempting to offer unprecedented customer attention. Uberwagon will be competing for market share in a very established industry against companies that have been in operation for tens of years. Despite this, we feel we can penetrate a niche in this market through the use of aggressive marketing, pricing and unmatched quality. Uberwagon is founded on the idea that maintaining satisfied customers is essential to the financial health of the organization. With this in mind, UW will be working hard to ensure that all of their customer's expectations are exceeded in all cars made. Uberwagon will become the premier destination for high spec, affordable Lower Medium cars.

1.1 Company Objectives:

* To make Uberwagon the number one provider of affordable high quality automobiles in Europe.

* To meet a sales target of 107,000 cars in the first year.

* To firstly exploit a niche in the lower medium car market to establish brand image and then follow this up by introducing a upper-medium in the second year to take full advantage of our image.

* To maintain a solid growth rate of 20% per year for the first three years.

* To increase shareprice by at least Ј1.00 per year.

* Uberwagon will be working hard to ensure that all of their customer's expectations are exceeded in all cars made.

1.2 Company Mission:

Uberwagon is dedicated to providing automobiles that combine quality and performance with affordable prices. We wish to exploit a niche in the lower medium car market and to establish successful partnerships with our customers, our employees and our suppliers that respect the interests and goals of each party.

Constantly striving to supply what the consumer is asking for, we will be continually conducting market research to identify niches in the market and to ensure our success in a market, driven by consumer demand.

Success will ultimately be measured by our consumers choosing us because of their belief in our ability to meet or exceed their expectations of price, service, and selection.

2 Marketing Analysis:

Our main marketing objective is to meet the company objectives through aggressive advertising. Secondly we wish to inform the market about our product to build brand image and product demand. Lastly we want to create a top-of-the-mind awareness of our product by reminding the consumers.

2.1 Strategic Audit:

2.1.1 External Audit

We carried out a PEST Analysis to ensure Uberwagon is aware of the macro-environment and any issues this might bring.


* Laws and regulations, such as the Monopolies and Mergers commission, which would stop us from getting too large as it prevents unfair competition.

* Laws protecting consumers, so Uberwagon would have to ensure there were no lies or deception in our advertising and pricing.

* Government regulations ensure firms take responsibility for the social costs of their production and products.


* Economic growth predictions suggest Europe will drop down the economic rankings from 22% to 17%.

o Poor economic growth is associated with poor sales.

o In an economic recession consumer's purchasing power is reduced so they will be looking for value for money.

o Whereas in an economic boom purchasing power increases so consumers will be looking for quality products.


* Europe has the smallest population growth in the world, at just 0.6%, and Germany has the lowest growth. This means our target audience is not getting much bigger.


* Uberwagon has to keep up with technology, through high R&D spending, especially as technology changes quickly in the motor industry. Pursuing new technology is very risky, so Uberwagon would have to decide whether to follow defensive investment such as copying competitors, or offensive investment, such as developing something new and trying to be a market leader with this new technology.

2.1.2 Internal Audit

We have used Porter's 5 forces to conduct our internal audit

The bargaining Power of Buyers

* This will be high, so we will have to price carefully, and ensure we are offering good value and good quality to remain competitive.

The bargaining Power of Suppliers

* Supply cost increases may force price increases, which can damage sales, hence power of suppliers is high.

Threat of Potential New Entrants

* Other companies may release a lower medium car in the second year. Hence Uberwagon will try monopolise the Lower Medium market to create some barriers to entry for the other companies.

Threat from Substitutes

* This threat will be high, therefore we must gain a strategic advantage by positioning ourselves strongly in the minds of consumers. We must also adapt our product to meet customers needs and ensure our product is differentiated from the rest.

Degree of Rivalry in the Market

* This will be high, so Uberwagon will try to have the highest growth rate in the market and be the main player.

2.2 Description of the Market:

The Market across the whole of Europe has reached a stalemate. It was growing steadily but has now started to slowly decline. Germany is decreasing the most, though still remains the largest market. The only market still in economic growth is the UK, due to very low interest rates. As the main market forces, USA and Japan,



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