FAMILY BUSINESS MANAGEMENT

Questions:

Part A – Business and Marketing Strategy

1. Research the family market segment in Australia, and write a revision to the business plan that updates the target market segment

market size in terms of people and potential in terms of estimated spend on health and wellness per annum)

Their key features (demographics, lifestyle, values etc.), wants and needs

How your new product and service offering can meet and/or create wants and needs

Identify or make assumptions on their social habits and media consumption to identify the most relevant communication channels and methods to reach and engage them.

2. You can achieve your business and marketing objective of growth through any/all through market penetration, market development, product development and diversification. The concept you have in mind covers all of these.

Write three (3) new business goals using the S.M.A.R.T principles that you wish to achieve within the next twelve months.

For each goal, provide two (2) practical examples of how you will monitor your progress and measure the success.

3. Conducting an initial market scan and competitor analysis, you have identified ‘Naughty Naturopath Mum’ http://www.naughtynaturopathmum.com.au/ as your primary competitor for essences. Continue your scan and determine who your primary competitor is for meal plans and recipes.  After reviewing the competitor’s product range, and marketing strengths and weaknesses:

State who they are, and which product/services will compete directly with yours.  Include the URL, and any images or marketing executions in the Appendix.

Write a brief vision, product description and positioning statement (150-200 words) that includes how you will price and deliver (e.g. subscription, download) your new range; and what your point of difference or unique selling proposition is.

Draft an action plan for your product launch that includes:

• Marketing campaign and execution budget
• Resources required
• Inventory management
• Time frame
• Roles and responsibilities

Part B – Operations and Human Resources

4. Make a list of business areas or activities that require review or development of policies and procedures to ensure that your new products and services are compliant with the following regulations?
   1. Therapeutic Goods Act
   2. Consumer Protection Laws
   3. Privacy Act and National Privacy Principles
   4. Anti-Spam Act and Direct Marketing Code of Practice
   5. Child Protection Act
   6. Anti-discrimination Act
   7. Copyright and Trademark Laws
   8. Environmental Protection Act and sustainability principles
   9. Public liability and indemnity insurance

5. You recognise that you need support as well as additional funds, and will benefit greatly from professional advice on business expansion. Develop an action plan for identifying and meeting with appropriate organisations and/or individuals. This can be in bullet point form, and must include:

Who you want meet with, how your will initiate contact, and how/where you will meet

The purpose and objectives of the meeting

The agenda or key discussion topics

What resources you will need to prepare

6. You want to be hands on with product management and continue face to face consults, and know that you will only be able to maintain quality (and keep your sanity) if you enlist help. You are happy to hand-over some of the administrative tasks including order packing and dispatch, reception and finances; and are also considering the need for another Naturopath.

Make an assessment considering the scope of work, and available finances of how many people you need for what roles.  For each role, briefly (50 – 100 words per answer):

1. List the minimum requirements for education, experience, skills, and attitude.
2. State if you would employ and/or contract them; and/or if a partnership meets your business goals and objectives.
3. List the applicable industrial award/s, salary guides or agreements.
4. Describe how you will promote and manage diversity – both in your recruitment strategies, and day-to-day communications with your team.
5. Describe how you will provide clinic guidelines, policies and procedures; support and develop individuals; monitor and manage performance according to regulatory requirements. 

Part C – Financing and Viability

7. Making a realistic assessment of your capabilities, available time, and if it would be better spent else-where, decide which financial management activities that you will undertake, and which you will outsource. Research book keepers and small business accountants in your local area; payroll providers; billing and accounting software systems.  Review their services, the expected benefits and decide upon which tasks that you will outsource.  For each, estimate the one off or ongoing cost, and factor this into your operating expenses.

8. Prepare a cash flow forecast for the next twelve (12) months using the Business Victoria (2015) template and guidance available at http://www.business.vic.gov.au/money-profit-and-accounting/getting-paid-on-time/cash-flow-statement-projection-with-template

What is the minimum amount of funding you will require for the next 12 months to implement your plan?

What is your preferred method of funding and why?

What is your likely return on investment?

In 100 words or less, state if you should continue to pursue this opportunity and implement your plans in the short-term (3-6 months).  Why / why not?  How could you minimise the risk?

Answers:

1. Business and marketing strategy

This part of the report focuses on the business and marketing strategy of the family business plan which could be implemented to increase the overall market share.  This natural therapies practice family business accompanied with the following services such as

These services are provided to clients at reasonable cost with the high quality services in market (Butcher, Howard, et al.).

Market size

The natural therapies practice is a subset of health industry in Australia. In Australia, there are more than 24 million Australian people who are potential clients in this industry. It is observed that estimated spend on the health and wellness per annum is approximately AUD $ 24 billion.

Key features

People are more inclined towards maintaining healthy life style.

More than half of the population wants to treat their illness without using chemical medicines.

Use of advanced technology in natural therapies practice is will attract high number of patients.

New advanced technology in natural therapies practice

It will help patients to treat their illness in sophisticated manner.

Communication methods

The main communication methods would be TV and online social media. Most of the Australian people are using social media in their daily life work.

2. Penetration of the market with the advanced technology in natural therapies practice

3. Conducting an initial market scan and competitor analysis,

It is evaluated that the main rivals of Medicare herbalist business general practice is Naughty Naturopath Mum who is strive to provide best possible herbalist care consultation and services to clients.  The current market share of Naughty Naturopath Mum is 8% in Australia related to health care consultation and services to clients. The main services of Naughty Naturopath Mum is to provide health care consultation and services to clients for reducing stress and other health issues. The Marketing strength of Naughty Naturopath Mum is based on its advanced technologies and experts dieticians. The new product of Naughty Naturopath Mum is follower essence which is developed by naturopaths, acupuncturists, energy healers, kinesiologists to provide health care services (Australian Government, 2016).

Other rivals are EMBODY wellness and Chia Seeds who are giving tough completion to Medicare Health care’s general practice.

Product description and marketing strategy

The main product of Medicare Healthherbalist general practice would be to increase the immune system of people in Australia “Astra”. This product will be produced by using advanced technology and system. The main core competency of this developed product would be the least cost and its effectiveness in the market.  It wills 100% affect the client’s health in positive manner (Australian Natural Therapists Association, 2016).

Action plan for introducing new product

Part-B

4. Operation and Human resources plan

It is observed that there will be following activities would be required to comply with the applicable rules and regulations (Chaudary,et al. ).

• Setting up of the corporate governance department
• Assessment of the applicable rules and regulation such as consumer protection law, child protection law, Anti-discrimination act and privacy act.
• Complying with the rules and regulations
• Follow up program.

5. Action plan for the raise of funds and deployment of funds in market.

Key stakeholders-It is related to proposing funds from the banks, venture capitalist and financial institutions.

Use of funds-It reflects the application in banks and venture capitalist and financial institutions.

Objectives- The main objective is related to reducing the overall cost and increasing the overall efficiency of the business.

Agenda- The agenda of company is to arrange adequate capital for the company and increase the overall efficiency of the business (Australian Government.  2016).

Resources- there will be following resources required

6. Minimum requirements for education, experience, skills, and attitude

This person should have professional experience, high degree of specialisation, and proficiency in handing two languages, extra- curricular activities excellent academic records

In order to get employed in Medicare herbalist general practice, hired persons needs to go through from the proper training and development process. It will increase overall outcomes and efficiency of the business. In addition to this, the strategic alliance will also increase the overall outcomes of the business in determined approach.

Applicable industry laws and regulations

• Data privacy act,
• Consumer protection act
• Corporate social responsibly governance

Promote and manage diversity

Cultural differences and manage diversity in your practice is highly based on the policy and rules implemented in organization. However, in order to avoid these sorts of cultural differences, management needs to adopt standards cultural program. In addition to this, policy and structure formulated in organization should focus on developing equal opportunity program for its employees.

Clinic guidelines, policies and procedures;

In order to provide clinic guidelines and policies, management of Medicare herbalist care’s general practice needs to adopt this in its policies requirement and applicable rules. It will help company to manage these Clinic guidelines, policies and procedures in determined approach.

7. Assessment of the expected revenue and expenses of business

Preferred method of funding

It is observed that in order to evaluate the best efficient project plan, company could use proper capital budgeting program. The project which will give higher NPV will be accepted (Australian Natural Therapists Association.  2016).

The outsources work

The main task which would be outsourced will be cash matching work. It will be outsourced to the financial firm to keep the record of business (Morton, et al. 2017)

Cash flow statement

Minimum amount of funding

The minimum amount of funding which would be required to run the business would be around AUD $ 300K- AUD $ 500K for starting up a work from home busienss.

The preferred method of funding would be private funding and issue of equity shares in market

Likely return on investment

The return on investment would be 25%.

Continue to pursue this opportunity and implement your plans in the short-term

This opportunity would be accepted as it will give good return to the busienss organization and also increase the overall brand image. I will surely start up this new busienss within 3 to 6 months. However, in order to minimize the risk found, organization could take proper insurance and indemnity bonds. 

Australian Government, “Business.gov.au. Opportunities for business growth”.  “http://www.business.gov.au/business-topics/business-planning/Pages/opportunities-for-business-growth.aspx” (Accessed February 6th, 2018).

Australian Government. “National Innovation and Science Agenda.  Startups and entrepreneurs”.  http://www.innovation.gov.au/audience/startups-and-entrepreneurs (Accessed February 6th, 2018).

Australian Natural Therapists Association, “Business Assist.” http://www.australiannaturaltherapistsassociation.com.au/features/business_assist.php (Accessed February 6th, 2018).

Butcher, Howard K., Gloria M. Bulechek, Joanne M. McCloskey Dochterman, and Cheryl Wagner. Nursing Interventions classification (NIC)-E-Book. Elsevier Health Sciences, 2018.

Chaudary, Samra, Sohail Zafar, and Mehrukh Salman. “Does total quality management still shine? Re-examining the total quality management effect on financial performance.” Total Quality Management & Business Excellence 26, no. 7-8 (2015): 811-824.

Morton, P.G., Fontaine, D., Hudak, C.M. and Gallo, B.M., 2017. Critical care nursing: a holistic approach (p. 1056). Lippincott Williams & Wilkins.

Australian Government, “Business and Industry Portal,  For Business.  Growing a business” https://www.business.qld.gov.au/business/business-improvement (Accessed February 6th, 2018).