Grading rubric
Introduction
(20 points)
0 - 11
Presents little to no coherent information on the topic to engage the reader in the paper. Components of the thesis and/or summary of main points may be missing. The point of view may be unclear or too general. Provides no road map for the paper or provides one that does not accurately reflect the paper’s content.
12 - 13
Fails to provide enough background to truly engage the reader in the topic. Presents the essay’s thesis and a summary of main points so that the writer’s point of view or interpretation is fairly clear, but several components may be missing. Provides a road map for the paper that may require a lot of work.
14 - 15
Somewhat engages the reader with background information on the paper topic. Presents the essay’s thesis and a summary of main points so that the writer’s point of view or interpretation is somewhat clear, but a few components may be missing. Provides a road map for the paper that may need some work.
16 - 17
Mostly engages the reader with some form of creative “hook” and basic background information on the paper topic. Presents the essay’s thesis and a summary of the main points, mostly clarifying the writer’s point of view or interpretation, but a component may be lacking or need work. Provides a fairly clear road map for the paper either in the thesis statement or body of the introduction.
18 - 20
Engages the reader in the topic with some form of creative “hook” (such as a story, quote, example, etc.) and provides a clear background for the topic so that readers can gain an understanding of the purpose of the paper. Clearly presents the essay’s thesis and a summary of the main points that clarify the writer’s point of view. Provides a clear road map for the paper either in the thesis statement or body of introduction.
Quality of Discussion
(45 points)
0 - 26
Unclear, often because thesis is weak or nonexistent. Few to no topic sentences. Little or no evidence of critical thinking. Transitions are weak and often confusing.
27 - 31
Generally unclear, often wanders or jumps around. Little critical thinking is evident. Some transitions may be missing or weak. Several paragraphs may lack strong topic sentences.
32 - 35
Fairly clear and appropriate, although may wander occasionally. Shows an effort to think critically. Some transitions may be weak. A few paragraphs may lack strong topic sentences.
36 - 40
Mostly clear and appropriate, although may wander occasionally. Provides evidence of critical thinking. Transitions are adequate. One or two paragraphs may lack strong topic sentences.
41 - 45
Clear and appropriate. Provides strong evidence of critical thinking. Makes use of excellent transitions. Paragraphs contain strong topic sentences.
Organization
(15 points)
0 - 8
The organization is hard to follow; ideas are not linked together and/or may be fragmented. Lacking any logical grouping of ideas or transitions from one idea to the next.
9 - 10
The organization is mostly ...
1. Grading rubric
Introduction
(20 points)
0 - 11
Presents little to no coherent information on the topic to engage
the reader in the paper. Components of the thesis and/or
summary of main points may be missing. The point of view may
be unclear or too general. Provides no road map for the paper or
provides one that does not accurately reflect the paper’s
content.
12 - 13
Fails to provide enough background to truly engage the reader
in the topic. Presents the essay’s thesis and a summary of main
points so that the writer’s point of view or interpretation is
fairly clear, but several components may be missing. Provides a
road map for the paper that may require a lot of work.
14 - 15
Somewhat engages the reader with background information on
the paper topic. Presents the essay’s thesis and a summary of
main points so that the writer’s point of view or interpretation
is somewhat clear, but a few components may be missing.
Provides a road map for the paper that may need some work.
16 - 17
Mostly engages the reader with some form of creative “hook”
and basic background information on the paper topic. Presents
the essay’s thesis and a summary of the main points, mostly
clarifying the writer’s point of view or interpretation, but a
component may be lacking or need work. Provides a fairly clear
road map for the paper either in the thesis statement or body of
the introduction.
18 - 20
Engages the reader in the topic with some form of creative
“hook” (such as a story, quote, example, etc.) and provides a
clear background for the topic so that readers can gain an
2. understanding of the purpose of the paper. Clearly presents the
essay’s thesis and a summary of the main points that clarify the
writer’s point of view. Provides a clear road map for the paper
either in the thesis statement or body of introduction.
Quality of Discussion
(45 points)
0 - 26
Unclear, often because thesis is weak or nonexistent. Few to no
topic sentences. Little or no evidence of critical thinking.
Transitions are weak and often confusing.
27 - 31
Generally unclear, often wanders or jumps around. Little
critical thinking is evident. Some transitions may be missing or
weak. Several paragraphs may lack strong topic sentences.
32 - 35
Fairly clear and appropriate, although may wander occasionally.
Shows an effort to think critically. Some transitions may be
weak. A few paragraphs may lack strong topic sentences.
36 - 40
Mostly clear and appropriate, although may wander
occasionally. Provides evidence of critical thinking. Transitions
are adequate. One or two paragraphs may lack strong topic
sentences.
41 - 45
Clear and appropriate. Provides strong evidence of critical
thinking. Makes use of excellent transitions. Paragraphs contain
strong topic sentences.
Organization
(15 points)
0 - 8
The organization is hard to follow; ideas are not linked together
and/or may be fragmented. Lacking any logical grouping of
ideas or transitions from one idea to the next.
9 - 10
The organization is mostly unclear and could be arranged in a
more logical way. Some ideas are linked together, but some
3. ideas are fragmented. There is little to no grouping of ideas or
use of transitions.
11 - 11
The organization is fairly clear, but it could be arranged more
logically to better support the proposed solution. Ideas are
somewhat grouped together with a few transitions between
groups.
12 - 13
The organization results in clarity and presents mostly logically
arranged points to support the proposed solution. Ideas are
grouped fairly well, and there are transitions throughout the
document.
14 - 15
The organization results in clarity and presents logically
arranged points to support the proposed solution. Related ideas
are well grouped, and transitions between ideas flow smoothly.
Writing Mechanics
(10 points)
0 - 5
Writing lacks clarity and conciseness. Serious problems with
sentence structure and grammar. Numerous major or minor
errors in punctuation and/or spelling.
6 - 6
Writing lacks clarity or conciseness. Minor problems with
sentence structure and some grammatical errors. Several minor
errors in punctuation and/or spelling.
7 - 7
Writing is somewhat clear and concise. Sentence structure and
grammar are strong and mostly correct. Few minor errors in
punctuation and/or spelling.
8 - 8
Writing is mostly clear and concise. Sentence structure and
grammar are strong and mostly correct. Few minor errors in
punctuation and/or spelling.
9 - 10
Writing is clear and concise. Sentence structure and grammar
4. are excellent. Correct use of punctuation. No spelling errors.
Citations and Formatting
(10 points)
0 - 5
The majority of sources used are not academically reliable.
Reference entries and in-text citations follow APA formatting
guidelines, but many errors are present. Several in-text citations
do not have references and vice versa.
6 - 6
Some peer-reviewed papers are used along with non-
academically reliable sources. Reference entries may somewhat
follow APA formatting guidelines; several major errors in in-
text citations or references may be present. Some in-text
citations do not have references and vice-versa.
7 - 7
Most sources used are peer-reviewed papers, though two or
more sources are not academically reliable. Reference entries
and in-text citations show effort to follow APA formatting
guidelines; several errors in in-text citations or references may
be present. Most in-text citations are referenced and vice versa.
8 - 8
The number of sources meets any expressed assignment
requirements, and all but one source is a peer-reviewed paper.
Reference entries and in-text citations follow APA formatting
guidelines fairly well and are usually correct. All in-text
citations are referenced and vice versa.
9 - 10
The number of sources meets or exceeds any expressed
assignment requirements. Every source used is peer-reviewed or
academic in nature. Reference entries and in-text citations
follow APA formatting guidelines and are free of errors. All in-
text citations are referenced and vice versa.
Forecasted Profit and LossMonthly Profit and Loss Month
1Month 2Month 3Month 4Month 5Month 6Month 7 Month
5. 8Month 9Month 10Month 11Month 12REVENUE
(Sales):1,800,0001,800,0002250000225000022500001,800,0001
,800,0001,800,0001680000168000016800001680000OPERATIN
G EXPENSES:pay
roll257500.00257500.00257500.00257500.00257500.00257500.
00257500.00257500.00257500.00257500.00257500.00257500.0
0rent45000.0045000.0045000.0045000.0045000.0045000.00450
00.0045000.0045000.0045000.0045000.0045000.00office
supplies/ spare
parts40000.0040000.00415000.00415000.00415000.00400000.0
0400000.00400000.00410000.00410000.00410000.00410000.00
Utilities12000.0012000.0012000.0012000.0012000.0012000.00
12000.0012000.0012000.0012000.0012000.0012000.00marketin
g4500.004500.004500.004500.004500.004500.004500.004500.0
04500.004500.004500.004500.00insurance11000.0011000.0011
000.0011000.0011000.0011000.0011000.0011000.0011000.0011
000.0011000.0011000.00Taxes378000.00378000.00472500.004
72500.00472500.00378000.00378000.00378000.00352800.0035
2800.00352800.00352800.00purchase of vehicles for
restoration(15*$8000)120000.00120000.00120000.00120000.00
120000.00120000.00120000.00120000.00120000.00120000.001
20000.00120000.00Total Operating
Expenses:868000.00868000.001337500.001337500.001337500.0
01228000.001228000.001228000.001212800.001212800.001212
800.001212800.00Profit before Interest
932000.00932000.00912500.00912500.00912500.00572000.005
72000.00572000.00467200.00467200.00467200.00467200.00Int
erest
Expense17981.2517981.2517981.2517981.2517981.2517981.25
17981.2517981.2517981.2517981.2517981.2517981.25Net
Profit (Loss) -
Monthly914018.75914018.75894518.75894518.75894518.75554
018.75554018.75554018.75449218.75449218.75449218.754492
18.75Net Profit (Loss) for year($)7970525.00
Firm Name:
Name of Report:
6. For the period ending: &"-,Bold"The Rust to Art Company
Forecasted Profit and Loss for the first year
september 30 2020
Forecasted Balance SheetProjected Balance
SheetASSETS:Current Assets:cash$ 7,970,525.00$
7,970,525.00Long-Term Assets:plant$
14,728,175.00machinery$ 3,550,000.00building$
5,050,000.00$ 23,328,175.00Total Assets$
31,298,700.00LIABILITIES:Current Liabilties:operating
expenses$ 14,283,700.00interest expense$ 215,775.00sales
tax$ 4,718,700.00$ 19,218,175.00Long-Term
Liabilities:Long-Term Loan (if applicable)$ 4,110,000.00Total
Liabilities $ 23,328,175.00Owner's EquityRetained Earnings$
7,970,525.00Owner Investment (if applicable)$
7,970,525.00Total Liabilities and Owner's Equity$
31,298,700.00
Firm Name:
Name of Report:
As of: &"-,Bold"The Rust to Art Company
Forecasted balance Sheet
September 30, 2020
7. A Business Plan for Rust to Art Company
Name
Institutional Affiliation
Table of Contents
A Business Plan for Rust to Art Company 3
Executive Summary 3
Company summary 4
Products offered by the company 5
Location and facilities of the company 6
The company’s organization and management structure 7
Market analysis for the company 8
The Company’s target market 8
Current trends and statistics in the motor vehicle industry 9
SWOT analysis of the company 10
The company’s marketing strategy 13
The 4Ps of marketing and how they relate to the company 13
The company’s product price list 13
The company’s promotional strategy 14
Monthly sales forecast for the first year of operations 14
The company’s implementation strategy 15
Summary of the implementation strategy 15
Post-launch monitoring plan 16
Financial statements and projections for the first year 17
Forecasted Profit and Loss for the first year 17
Projected Balance Sheet 18
Financial report 18
Summary of the projections 19
8. References 21
A Business Plan for Rust to Art CompanyExecutive Summary
The Rust to Art Company is a limited liability partnership
company that is intended to sell vintage vehicles to customers
in the country as well as internationally. The mission of the
company is to provide motor vehicle enthusiasts with classic
vintage vehicles. Besides, the company's mission is to bring
back classic vehicles in America, to have the past in the present.
This company has two main business goals; to refurbish vintage
vehicles for selling purpose, and to repair classic cars and have
them on the roads to achieve its mission.
The company’s operational model involves the company
collecting abandoned old vehicles and restoring them to their
former glory. The company will specifically target vehicles
developed earlier than 1980. The business will restore vehicles
of all types, including trucks, sedans, saloons, and hatchbacks.
The company’s assembly plant will be in Oregon. The plant will
be located in a 10,000-m2 complex. The reason for the location
of the plant is based on the states with vehicle longevity. The
state of Oregon is one of the top five states with vehicle
longevity (MacArthur & Harpool, 2019).
The company has three primary keys to success. The first key is
that they will acquire old vintage cars at throwaway prices, and
they will refurbish them cheaply and sell them at a reasonably
competitive price. The second key is that the company’s success
will be dictated mainly by the vast leadership experience that
will be from the partners. The last key to success is that the
9. company will refurbish vehicles that will be sold in the US as
well as internationally, and this action will contribute
significantly to having vehicles that are more classical on roads.
Company summary
There are about five million classic cars in the US. Hagerty
group, one of the companies that sell classic cars’ insurance in
the US, gave the above statistics. According to Hagerty group,
the classic cars industry is a booming industry that if tapped
well, can be profitable to those selling classic vehicles (Sass,
2014). Most buyers of classic vehicles can be categorized in the
generation of baby boomers, the generation that was born
between 1946 and 1965. The youngest baby boomers are nearing
retirement age, and are willing to spend some considerable
amount of their life savings to get an ideal vehicle that reminds
them of their younger lives. The current demand for classic
vehicles in America by baby boomers and other generations is
what makes the Rust to Art Company a viable business.
Rust to Art Company is a limited liability partnership company
that is intended to sell vintage vehicles to customers in the
country. The company will have four partners who will have an
equal say in the running of the business. The partners will share
profits equally, as well as the company’s liabilities (Whittaker
& Machell, 2016). Three of the company’s partners will be
active partners where they will be included in the company’s
daily activities. One of the partners will be a silent partner. He
will not be concerned about the daily progress of the company.
His role will be to look for finances to run the business as well
as find a market for the company’s products. The partners each
own 25% of the company and have equal voting rights as well
as decision-making rights.
The four partners are all motor vehicle enthusiasts more so the
vintage vehicles. Three of the partners have a history in the
motor vehicle assembly and manufacturing industry. Two of the
three have worked at General Motors as vehicle engineers. The
other partner who has a history regarding the motor vehicle
10. assembly and manufacturing industry has worked for Toyota as
a mechanical engineer. The three partners combined have a total
of 46 years of working experience in the motor vehicle
assembly and manufacturing industry. The silent partner has
experience in the finance and marketing sectors of 12 years
(Whittaker & Machell, 2016).Products offered by the company
The company's operational model involves the business
collecting abandoned old vehicles and restoring them to their
former glory. The company will specifically target vehicles
developed earlier than 1980. The company will restore vehicles
of all types, including trucks, sedans, saloons, as well as
hatchbacks. The company will travel the whole country looking
for the vehicles that meet the above criteria given that their
bodies or frames are intact or in a repairable state. The company
plans to buy old vehicles at discounted prices. Once the vehicles
are refurbished and restored, the company hopes to sell the
vehicles at a profit, considering that they are classical and that
currently, vintage vehicles are in extreme demand.
The company will visit states known to have motor vehicle
yards for vehicles that were manufactured in the 80s and before
the 80s. The company will as well contact individuals to have
such vehicles in their garages, yards, or even fields. Besides,
the company will contact organizations and institutions known
to have their car yards and a desire to dispose of the vehicles
for the organization. The company will offer monetary
compensation for old vehicles. The company will as well offer
to discard the vehicles free, given that the owners agree to it.
The old and unused vehicles will be transported to the
company’s assembly plant. In the assembly plant, the vehicles
will be checked and scrutinized to determine their status. After
scrutiny, a report of the vehicle requirements will be developed.
The report will detail parts that need to be replaced and the
repairs that need to be done for the vehicles to be in good
working conditions. After the report is prepared, it will be
vetted and approved. The restructuring process will ensue, and
once that action is done, the restored vehicle will be auctioned
11. as a classic car that will be sold off as a piece of art. Profits
earned from selling of the vehicles will be used for the general
running of the company and expansion of the business.Location
and facilities of the company
The company’s assembly plant will be in Oregon. The plant will
be located in a 10,000-m2 complex. The reason for the location
of this plant is based on the states with vehicle longevity. The
state of Oregon is one of the top five states with vehicle
longevity. The state is fifth on the list of states with the highest
vehicle longevity rates. Vehicles in the state of Oregon on
average clock 13.5 years on the road. The decision to settle on
Oregon was reached because the state is most likely to have old
vehicles that are still operational or that can be efficiently
repaired. Oregon offered such vehicles for the company. A
decision to have the plant in Oregon meant that the company
would not have to travel across America to get its first fleet of
vehicles that would kick off the company's operations.
The assembly plant will be divided into six main areas. The first
area will be the scrutiny area where diagnostic machines will be
required. The second area where frames of vehicles would be
repaired or made is the vehicle framing area. The equipment
needed in the area includes panel beaters, cutting, and welding
equipment. The third area is the engine area where engines will
be repaired, assembled, and fitted into vehicles. The area or
section will require engine diagnostic tools and engine
assembling tools.
The fourth area will be the paint spraying and assembly section
where the restored vehicles will be sprayed and have all parts
assembled. The restored vehicles will have all their running
parts installed. The equipment needed for the fourth section
includes; paint spray machines and assembling machines. The
fifth area will be the testing area where the vehicles will be
tested for safety and operation. The sixth area will be the
display and test drive area where the restored vehicles will be
displayed for selling. The sixth section will as well have a test
road that incorporates all possible terrains.The company’s
12. organization and management structure
The company will have 123 employees. The business will be
divided into five central departments. The first department will
be the product development department, where it will consist of
the six areas or sections of the assembly plant. The department
in total will have 63 employees; 10 employees for the scrutiny
section, 15 employees for the framing section, 8 for the engine
assembly section, 16 for the paint spray and assembly area, 8
for the testing section, and 6 for the display as well as the test-
drive section. Human resource is the second department, and it
will consist of 11 employees. It will as well be responsible for
managing human resources (Knapp, 2015).
Sales and marketing will be the third department that will have
the responsibility of pushing motor vehicle sales through
extensive marketing. The department will consist of 22
members. The fourth department is the administration
department. The department will be responsible for all
requisition requests and the state of the assembly plant. The
department will have 12 employees. The fifth department is the
department that will be responsible for identifying vehicles that
can be restored by the company. The department will have 15
employees.
The company will employ the use of a hierarchical
organizational structure that defines the employee’s roles and to
whom they report to (Knapp, 2015). The company will
explicitly rely on the functional structure or the bureaucratic
organization structure. All departments will report to a manager
or the department head. All departments, other than the product
development department, will have one manager. The product
development department will have six managers that give
information to the manager of the executive department. Those
six managers will head the six sections of the department, and
the organization will have 11 tier three managers in total. All
the tier three managers will report to the operations manager,
who is a tier 2 manager. In the Tier two manager’s position, the
operations manager will work in tandem with the Chief
13. financial officer. The operations manager and the chief financial
officer will report to the CEO, who is a tier 1 manager. The
CEO will finally report to the partners.Market analysis for the
companyThe Company’s target market
The company will target to sell its product all over the nation;
however, it will precisely target the state of Montana. The state
of Montana is one that has the most significant number of
classic or vintage vehicles in the US where the most popular
classic vehicles are the 1970 and 1972 firebird and 1963 Grand
Prix Wyoming. The company’s target market consists of three
types of customers.
The first type of customers is wealthy Americans. Considering
that vintage vehicles are sold at extremely high prices, it makes
sense for the company to target high-value individuals or
wealthy individuals. The company plans to sell its vehicles to
individuals who have a net worth of $1,000,000 and above, and
this act is primarily vital because the vintage vehicles will go
for amounts between $150,000 and $350,000.
Sports players and people in the limelight are the second
customer types the company will target. Famous sports players
and actors love to have attention periodically. Classical vehicles
that are to be offered by the Rust to Art Company will exactly
give the actors and sports players the attention they crave for
carefully (Knapp, 2015). Classic vehicles are attractive and for
that reason, divert attention to its drivers. The third type of
customers that the company will target is collectors of vintage
vehicles. There are many people in the US and internationally
that collect vintage or classical vehicles for their value
addition; for them, it is a hobby. Most people who are collectors
of vintage vehicles are wealthy individuals who love art and at
the same time have embraced machine art.Current trends and
statistics in the motor vehicle industry
A mid-size car has an average price of $25,000, and a mid-sized
SUV or the average price of a cross over as well as a mid-sized
pick-up truck is $33,000 and $39,000 respectively. On average,
Americans own vehicles for 3.5 years. Currently, Americans
14. love classic cars because they represent old wealth, as well as a
time when the US was the dream country that every other
citizen of the world wanted to visit (Lezotte, 2015). The vintage
and classic cars, in short, represent the American dream. All the
above statistics show how effective the proposed business
model for the Rust to Art Company is ordinarily.
Since vintage or classic cars are luxury cars that are treated in a
manner that befits royalty, the company’s desire to venture into
the market promises to yield good returns for the company.
When one looks at the average amount that Americans are
willing to spend on a car that performs typical day-to-day
activities promises Rust to Art Company, good returns should
they find a way of selling vintage luxury cars.
On average, a perfect working vintage car can go for amounts
between $90,000 and $200,000 (Schultz, Dziczek, Chen, &
Swiecki, 2019). On the other hand, a broken-down vintage
vehicle goes for as low as $6,000. Besides, the average cost of
restoring or refurbishing a vintage vehicle is between $10,000
and $15,000. The above figures are aligned with the company’s
selling price of its restored vehicles. In essence, the pricing of
the company’s product is in line with the average price of
similar products. In short, the company’s plan promises to yield
good returns to the business if the operations of the company
are run properly.SWOT analysis of the company
Strengths
Weaknesses
1. The company’s product is in high demand.
2. The selling price of that company promises to yield good
profits for the business.
3. Individuals who have experience in the motor vehicle
industry lead the company.
1. It is highly demanding and tasking to get the right customers
for the company’s product.
2. It is highly tasking to restore or refurbish old vehicles.
3. Getting old vehicles that can be refurbished is not easy.
Opportunities
15. Threats
1. The company can sell internationally simple through online
platforms.
2. The company can venture into classic boats and other
automobiles.
3. The company can offer repair services for old vintage
vehicles.
1. Other companies are restoring classic cars
2. Modern cars are crippling the classic car industry.
3. The internet is offering ways in which people can restore
their old vehicles.
Strengths
There are three main strengths that the company has over its
competitors, and that make its product viable. The three primary
strengths include; the company’s product is in high demand, the
company selling price promises to yield good profits for the
business, and that the company is led by individuals who have
vast experience in the motor vehicle industry. Classic vehicles
are in high demand, and for that reason, the price of such
vehicles is high, and that makes it more profitable for the
company. In the manufacturing and assembly industry of motor
vehicles, the company has leadership that is experienced. The
three partners, who have worked in the motor vehicle
manufacturing industry, promise to offer insight into motor
vehicle assembly, which can be beneficial for the company
(Schultz et al., 2019).
Weaknesses
The company has three main weaknesses that it needs to deal
with, to ensure it is profitable as well as successful. Three main
weaknesses include; it is highly demanding and tasking to get
the right customers for the company’s product, it is highly
tasking to restore or refurbish old vehicles and getting old
vehicles that can be refurbished is not easy. The process of
getting the raw material for the company’s final product is not
easy. The fact that the organization plans to get broken down
vehicles promises to be a challenging task in both acquiring
16. vehicles as well as in restoring those vehicles. Such a practice
is not the only task that is challenging for the company since
the business has the challenge of getting customers for its
product. Classic cars are in high demand, and for that reason,
many companies are opting to refurbish and restore classic
vehicles meaning that the company expects to find stiff
competition from such companies (Lezotte, 2015).
Opportunities
The company can leverage three main opportunities to top the
industry it operates in as well as compliment the product it
offers. Three opportunities include; the company can sell
internationally simple through online platforms, the company
can venture into classic boats as well as automobiles, and the
company can offer to repair service for old vintage vehicles. As
it stands, many companies are offering the same product as to
the proposed Rust to Art Company in America. The company
can leverage available online platforms to sell its product
internationally to stand a better chance of surviving (Englmaier,
Schmöller, & Stowasser, 2017).
Further, the company can as well offer to refurbish and restore
old classical boats, ships, and yachts. The above activity can be
a lucrative venture considering that classical water vessels are
also in high demand. To supplement its product, the company
can repair old vintage cars for willing customers rather than
restore them.
Threats
Three main actions threaten the success of Rust to Art
Company, and they include; other companies are restoring
classic cars, modern cars are crippling the classic car industry,
and the internet is offering ways in which people can restore
their old vehicles. Automobile restoration companies in the US
and internationally threatens the company. In the US, its main
rivals include RTD Refurbishing, Crucial Customs and
Restoration, and Lutty’s Chevy Warehouse (Ma, Prasad, &
Sethi, 2019). Internationally, the company is under the threat of
Broad Arrow Classic cars from the UK and other companies.
17. Modern cars or vehicles being manufactured currently are
strangling the classical vehicle industry. Potential customers of
classic cars are being lured to modernized vehicles. For
instance, vehicles like Bugatti and Porsche are attracting
potential customers of classic vehicles by the gadgets and
features they promise (Englmaier et al., 2017). The internet is
another point that threatens the success of that company. More
people are utilizing the internet to restore their damaged old
vehicles. The internet is taking away the business that would
otherwise go to Rust to Art Company, and similar classical car
repair firms. The company’s marketing strategyThe 4Ps of
marketing and how they relate to the company
The product offered by the Rust to Art Company is tangible.
The product is a restored classical vehicle. The product
promises to offer three main benefits, and the benefits are the
value proposition that the company’s product offers. The
product promises to offer luxury, attention, and fame. The
classic cars restored by the company are priced highly because
the company promises to give its customers vehicles that are of
superior quality compared to its competitors. The price covers
all the expenses incurred from purchasing or getting the old
classical vehicles, transportation costs, as well as the
restoration exercise. The price is quite okay for the product that
is on sale.
The company plans to market and sell its product through
networking channels as well as via its website. Its promotion
strategy is best suited for the type of product that is on sale.
The company plans to target specific customers to promote its
product, and networking is the only way that will ensure they
acquire the desired customers. The website promotion strategy
will ensure that the product not only reaches potential
customers in the US, but it reaches international customers as
well. The company plans to use its location as its viewing shop.
The viewing place offers customers the chance to test drive the
classic vehicles and confirm the quality of the vehicles before
purchase (Knapp, 2015).The company’s product price list
18. The minimum selling price for the company’s product, which is
the restored classic vehicles, is $150,000. On the other hand,
the highest price tag of the company’s restored vehicles is
$350,000. The vehicles will be sold in the US as well as
internationally. For international customers, prices will include
shipping costs as well as respective countries’ custom
charges.The company’s promotional strategy
The company will start promoting their restored vehicles as
soon as they locate the first fifty vehicles to be restored. By that
time, the company is starting its operations on October 1, 2019.
The department that will be responsible for identifying vehicles
that can be restored by the company will have located the first
fifty vehicles to be restored. Marketing and sales department of
the company will use images as well as prototypes of sample-
restored vehicles to market the company’s products. The
department will have two months to ensure that the company is
well known. By December 2, 2019, the company should be
widely known for selling classic cars. The promotion strategy is
geared at ensuring that the company does not have to wait for
long before it gets its first customer. The company as well will
promote vehicles before they are restored to lock in customers
(Lezotte, 2015). Since the average time that will be taken to
restore a vehicle is three weeks, the company will look for
potential customers a week before each vehicle is completely
restored. It will be the duty of the sales team to have as many
potential customers as possible before a car is fully restored.
The company will continue looking for customers until the
vehicle is bought off.
The marketing department is responsible for marketing and
promoting vehicles. Each vehicle is expected not to last past
two months after it is fully restored. In short, after identifying a
vehicle or bought for restoration, it should take at most two
months and three weeks for it to be sold. It will be the duty of
the marketing and sales department to ensure that restored
vehicles do not remain in possession of the company for more
than two months after they are fully restored.Monthly sales
19. forecast for the first year of operations
The company plans to begin operations in October 2019. It is
expected that the company will struggle to make sales in the
first two months, considering it is a new market entrant. The
company hopes to make good sales in December, January, and
February because of the Christmas and New Year festivities as
well as the valentine period. Most automobile purchases are
made between November and March because of the festivities in
December, January, and February. The company's sales are
expected to drop for the following three months after February
and once again pick from May onwards. It is assumed that the
company’s reputation will have grown by then (Whittaker &
Machell, 2016).
The company plans to restore at the minimum 15 vehicles a
month and sell 12 in the same month. In total, the company
hopes to restore 180 vehicles within the first year and sell a
minimum of 156 vehicles within the same year. Considering that
the minimum selling price for the vehicles is $150,000, the
minimum amount that the company expects to generate per
month from the sale of 12 vehicles is $1,800,000. The minimum
amount the company expects to make in the first year is
$21,600,000.
In October and November, the company expects to sell 12
vehicles and make a minimum of $1,800,000 each month. In
December, January, and February, the company anticipates
selling 15 vehicles each month and makes a minimum of
$2,250,000 each month. The company expects to sell 12
vehicles in March, April, and May, as well as make a minimum
of $1,800,000 each month. The company anticipates its sales to
increase to 14 vehicles per month from June until November
2020 and make a minimum of $1,680,000 each month. The
company’s implementation strategySummary of the
implementation strategy
The company will start operations by the start of October 2019.
Before starting its operations, the company will seek to get
licensing for its operations. The company will need to pass its
20. background test, and this action will be done by September 15
to leave enough time for correcting all tasks that need to be
changed. The county’s licensing and permits, as well as the
registration for taxes, will be done by September 25. Setting up
of the plant, the company’s website, and getting a license will
run simultaneously, and by September 27, everything will be
ready for the company to start its operations.
Before starting operations, the company will as well have
acquired 50 vehicles that are to be restored. During October 15,
classic vehicles will be restored, and by the end of the month,
all fifteen vehicles will be up for sale. The company will launch
its promotion strategy at the start of October and will carry out
a significant marketing campaign a week before the end of
October and the first week of November. The primary marketing
campaign is geared at pushing the sales of the company, as well
as pushing for a position in the classical vehicle restoration
industry (MacArthur & Harpool, 2019). The campaign will be
exclusively run through the company’s website. The company
will as well have a significant classical sale on the last weekend
of October 26 and 27th 2019.Post-launch monitoring plan
Running head: A BUSINESS PLAN FOR RUST TO ART
COMPANY 1
A BUSINESS PLAN FOR RUST TO ART COMPANY 14
The company will have a monitoring plan geared at monitoring
the resources used within the first three months, the sales made
in the first three months, quality control, and customer
satisfaction. Monitoring of the resources used will be done
every week with the intent of establishing a pattern in terms of
resource utilization. The monitoring of sales will be done every
fortnight to establish a sales pattern for the company. Quality
control will be monitored every week to ensure that the
restoration process leads to the quality of restored vehicles.
Monitoring of quality will be primarily carried out in the testing
section of the company. The monitoring of customer satisfaction
will be done a month after a customer makes a purchase.
Customers will be called to confirm if they are satisfied with
21. their purchases or not (Sass, 2014).Financial statements and
projections for the first year
The Rust to Art CompanyForecasted Profit and Loss for the first
year
September 30, 2020
Monthly Profit and Loss
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
REVENUE (Sales):
1,800,000
1,800,000
2250000
2250000
2250000
1,800,000
1,800,000
1,800,000
1680000
1680000
1680000
1680000
28. Net Profit (Loss) for year($)
7970525
The Rust to Art CompanyProjected Balance Sheet
September 30, 2020Financial report
Projected Balance Sheet
ASSETS:
Current Assets:
31. Owner's Equity
Retained Earnings
$ 7,970,525.00
Owner Investment (if applicable)
$ 7,970,525.00
Total Liabilities and
Owner's Equity
$ 31,298,700.00
Summary of the projections
The company’s projections are made based on the assumption
that long-term assets are provided for by the partners.
Furthermore, it was assumed that the company would get
financing from a local bank. It is assumed that the bank will
take out a loan that amounts to $20,550,000 at an interest of
32. 5.25%. In total, the company will be expected to pay back
$21,618,600. The company will be expected to pay back the
loan within five years, meaning that the company will be
expected to pay $4,323,720 every year or $360,310 every month
for five years. The loan was to cater for the operations of the
institution during the first year. The assumption is that the
company's expenses will not change other than for the months
that the company will intensify its operations to meet the
project market demands. Another assumption is that the sales
will be in line with projections. The monthly financials indicate
that the company is profitable and that the least profit that they
will make in the year is $914,018.75. According to the
projections for the first year, the company is anticipating to
make a minimum of $7,970,525.
The company will not have met its break-even mark after the
first year. However, the profits will be enough to sustain the
operations of the organization without the company having to
take out another loan. Through estimation, the company will
break even in 2 years and seven months. The company needs to
find a cheaper way of buying vehicles up for restoration (Sass,
2014). Furthermore, the company needs to reduce its expenses
to increase its profits, and reduce the expected break-even
duration.
33. References
Englmaier, F., Schmöller, A., & Stowasser, T. (2017). Price
discontinuities in an online market for used cars. Management
Science, 64(6), 2754-2766.
Knapp, S. (2015). Lean Six Sigma implementation and
organizational culture. International journal of health care
quality assurance, 28(8), 855-863.
Lezotte, C. (2015). Out on the highway: cars, community, and
the gay driver. Culture, Society and Masculinities, 7(2), 121.
Ma, Z., Prasad, A., & Sethi, S. P. (2019). Strategic
Remanufacturing under Competition. Review of Marketing
Science, 16(1), 85-107.
MacArthur, J., & Harpool, M. (2019). Survey of Oregon
Electric Vehicle Owners: Understanding Perceptions,
Motivations, and Concerns (No. 19-05393).
Sass, R. (2014). How Baby Boomers Created Today’s Classic-
Cars Market–and How They Could Crash It. Retrieved from
https://www.caranddriver.com/features/a15112517/baby-
boomers-created-the-classic-car-marketand-could-crash-it-
feature/
Schultz, M., Dziczek, K., Chen, Y., & Swiecki, B. (2019). US
Consumer & Economic Impacts of US Automotive Trade
Policies. Center for Automotive Research, Ann Arbor, MI.
Whittaker, J., & Machell, J. (2016). The law of limited liability
partnerships. Bloomsbury Publishing.
Forecasted Profit and LossMonthly Profit and Loss Month
1Month 2Month 3Month 4Month 5Month 6Month 7 Month
8Month 9Month 10Month 11Month 12REVENUE
(Sales):OPERATING EXPENSES:Total Operating
Expenses:Profit before Interest Interest ExpenseNet Profit
34. (Loss) - MonthlyNet Profit (Loss) for year
Firm Name:
Name of Report:
For the period ending:
Forecasted Balance SheetProjected Balance
SheetASSETS:Current Assets:Long-Term Assets:Total
AssetsLIABILITIES:Current Liabilties:Long-Term
Liabilities:Long-Term Loan (if applicable)Total Liabilities
Owner's EquityRetained EarningsOwner Investment (if
applicable)Total Liabilities and Owner's Equity
Firm Name:
Name of Report:
As of:
Student ID 000000 Lastname Business Capstone Business plan
Version page 6
Name of Company Business Plan
Firstname I. Lastname
Your Title
A.Executive Summary4
A1. Company Identification4
A2. Mission of the Company4
A3. Business Goals4
A4. Keys to Success4
B.Company Summary5
B1. Industry History5
B2. Legal Form of Ownership5
B3. Location and Facilities5
B4. Management Structure5
B5. Products and Services5
C.Market Analysis6
C1. Target Market6
35. C2. Industry Analysis6
C3. SWOT Analysis7
D. Market Strategy8
D1. 4Ps8
D2. Price List8
D3. Promotional Strategy8
D4. Sales Forecast8
E. Implementation Strategy9
E1. Overall Strategy9
E2. Monitoring Plan9
F. Financial Statements and Projections10
F1. Forecasted Profit and Loss Statement10
F2. Forecasted Balance Sheet10
G. Financial Report11
G1. Financial Projections11
G2. Financial Position11
G3. Estimated Capital/Investment Needs11
H. References12
A. Executive Summary
Suggested length of 1–2 pages
A1. Company Identification: Identify the company’s name and
location.
A2. Mission of the Company: Describe the mission of the
company.
A3. Business Goals: Discuss two business goals in support of
the company’s mission.
A4. Keys to Success: Discuss three keys to success for the
company.
B. Company Summary
Suggested length of 4–6 pages
B1. Industry History: Describe the history of the industry in
which the company will operate.
B2. Legal Form of Ownership: Identify the legal form that the
company will take.
B3. Location and Facilities: Describe the location and type of
36. facilities needed for the company.
B4. Management Structure: Describe the management structure,
including key positions and specific responsibilities.
B5. Products and Services: Describe the products and services
offered by the company.
C. Market Analysis
Suggested length of 3–5 pages
C1. Target Market: Describe the target market for the
company’s products and services, including the specific
location, demographics, etc.
C2. Industry Analysis: Complete an industry analysis for the
company, including current trends and statistics.
C3. SWOT Analysis:Complete a four-square SWOT analysis
for the company in which you do the following:
a. Identify three strengths, three weaknesses, three
opportunities, and three threats.
b. Explain each of the identified strengths, weaknesses,
opportunities, and threats.
S (Strengths)
1.
2.
3.
W (Weaknesses)
1.
2.
3.
37. O (Opportunities)
1.
2.
3.
T (Threats)
1.
2.
3.
D. Market Strategy
Suggested length of 3–6 pages
D1. 4Ps: Discuss each of the four Ps of marketing as they relate
to the company’s products and services.
D2. Price List: Develop a price list for the company’s products
and services.
D3. Promotional Strategy: Develop a promotional strategy
including specific tasks, target dates, and responsible parties.
D4. Sales Forecast: Develop a monthly sales forecast for the
first year of operations, including a discussion of expected
market conditions.
Note: The sales forecast will be used as the basis for your
revenue in your financial statements.
E. Implementation Strategy
Suggested length of 1–2 pages
E1. Overall Strategy: Summarize the overall strategy that will
be utilized to launch your business, including target dates and
goals for implementation.
E2. Monitoring Plan: Develop a post-launch monitoring plan
(e.g., financial impact, quality control, customer satisfaction,
monitoring schedule) to evaluate the success of the company in
meeting milestones.
F. Financial Statements and Projections
Note: Develop projected financial statements for the first year
of business. You are required to use the Business Plan
38. Financials Template. The only information entered in section F
of this report should be “See attached spreadsheets”.
F1. Forecasted Profit and Loss Statement: Develop a month-by-
month forecasted profit and loss statement using an estimate of
revenues and operating costs based on the sales forecast.
F2. Forecasted Balance Sheet: Develop a forecasted balance
sheet for the end of year one.
G. Financial Report
Suggested length of 1–2 pages
G1. Financial Projections: Summarize the financial projections
and the assumptions used in estimating the financial statements.
G2. Financial Position: Describe the company’s financial
position at the end of the first year.
G3. Estimated Capital/Investment Needs: Describe the
company’s initial and future estimated capital/investment needs.
H. References
Title:
Business Management
Paper type
Research Paper
Language style
English (U.S.)
Deadline
16th Sep 2019 @ 05:52:08 P.M. ... (London Time)
Paper format
APA
39. Course level
College
Subject Area
Management
# pages
15 ( or 4125 words Minimum)
Spacing
Double Spacing
Cost
$ 75.00
# sources
3
Paper Details
For the capstone project, you will create a business plan for a
hypothetical start-up company using the scenario provided
below. In the business plan, you will need to demonstrate the
integration and synthesis of competencies in all domains
required for your degree program.
Develop a business plan for a start-up company that plans to
sell a product or service in a local market, in a national market,
or on the Internet. Select one of your favorite products as the
basis for the company, or invent a product.
Create a business plan for your hypothetical start-up company
in which you do the following:
Note: You are required to utilize both the attached “Business
Plan Template” and the attached “Financial Plan Template” in
creating your business plan. If the attached templates are not
completed and submitted, your work will automatically be
returned to you without being evaluated.A. Write an executive
summary (suggested length of 1 page) in which you do the
following:
1. Identify the company’s name and location.
2. Describe the mission of the company.
3. Discuss two business goals in support of the company’s
40. mission.
4. Discuss three keys to success for the company.
B. Write a company summary (suggested length of 4 pages) in
which you do the following:
1. Describe the history of the industry in which the company
will operate.
Note: Cite data and examples from your organization to support
your analysis.
2. Identify the legal form that the company will take.
3. Describe the location and type of facilities needed for the
company.
4. Describe the management structure, including key positions
and specific responsibilities.
5. Describe the products and services offered by the company.
C. Develop a market analysis (suggested length of 3 pages) in
which you do the following:
1. Describe the target market for the company’s products and
services, including the specific location, demographics, etc.
Note: Cite data and examples from your organization to support
your analysis.
2. Complete an industry analysis for the company, including
current trends and statistics.
3. Complete a four-square SWOT analysis for the company in
which you do the following:
a. Identify three strengths, three weaknesses, three
opportunities, and three threats.
b. Explain each of the identified strengths, weaknesses,
opportunities, and threats.
D. Develop a market strategy (suggested length of 3–4 pages) in
41. which you do the following:
1. Discuss each of the four Ps of marketing as they relate to the
company’s products and services.
2. Develop a price list for the company’s products and services.
3. Develop a promotional strategy including specific tasks,
target dates, and responsible parties.
4. Develop a monthly sales forecast for the first year of
operations, including a discussion of expected market
conditions.
Note: The sales forecast will be used as the basis for your
revenue in your financial statements.
E. Develop an implementation strategy in which you do the
following:
1. Summarize the overall strategy that will be utilized to launch
your business, including target dates and goals for
implementation.
2. Develop a post-launch monitoring plan (e.g., financial
impact, quality control, customer satisfaction, monitoring
schedule) to evaluate the success of the company in meeting
milestones.
F. Calculate and develop the financial statements and
projections for the first year of business by doing the following:
1. Develop a month-by-month forecasted profit and loss
statement using an estimate of revenues and operating costs
based on the sales forecast.
2. Develop a forecasted balance sheet for the end of year one.
G. Write a financial report (suggested length of 1 page) in
which you do the following:
1. Summarize the financial projections and the assumptions
used in estimating the financial statements.
2. Describe the company’s financial position at the end of the
first year.
42. 3. Describe the company’s initial and future estimated
capital/investment needs.
H.When you use sources, include all in-text citations and
references in (Strictly) APA format.
Good grammar is a plus, DO NOT PLAGIARIZE, and FOLLOW
INSTRUCTIONS CAREFULLY.
Kind Regards.
