Elite Tech Business Plan

Executive Summary
Elite Tech is a technology company that is based out of Chicago. We have sales offices in
North America (Chicago, Los Angeles, and Toronto). Elite Tech is currently selling two brands,
the Elite TravelPad and the Elite Inspire 2.0. We are launching a new brand in quarter five and
that is the Elite InspirePad. We are currently going targeting Innovators and Travelers. With the
new launch of the Elite InspirePad that will be targeting Mercedes.
After a year of being in production Elite Tech has been very successful. We currently own
thirty percent of the market share. There are three other companies that are in competition with
Elite Tech. We have been very successful with selling our products due to having great brand
judgement for the Elite TravelPad and the Elite Inspire 2.0. We have passed the introduction
stage in the business cycle and we are in the growth stage of the business cycle. We have had
great success with our revenue.
Elite Tech does have some strategies to go on for the remainder of the quarters. We are
purchasing research and development so we can really improve our brands. We believe
purchasing research and development we can take a big step on the competition and improve our
market share. We also need to fix our ads so we can really get our brand name out there. Another
strategy is that we are opening up sales offices in Europe. We believe it is time to go
international and that will be in London and Paris. Elite Tech is also working on opening web
centers to improve sales.

Situation Analysis
We are Elite Tech that is a technology company that is headquarters out of Chicago. We
have produced two brands a laptop and desktop. We are only selling products only in North
America. Elite Tech has three members on the executive board. We have Kyle Hilburger who is
the Overall President and the Vice President of Accounting and Finance, Jessica Coxe who is the
Vice President of Manufacturing, and Tom Ameche who is Vice President of Marketing and
Sales Management.
The two brands are the Elite TravelPad and the Elite Inspire. We had to modify the
Inspire so it is now the Elite Inspire 2.0. Our customers are targeted toward the travelers and
innovators. The TravelPad is more targeted towards travelers and the Inspire is more targeted
towards innovators. We choice these two segments because we felt that we could do the best
profitable for Elite Tech.
Our competition is three other technology companies which are Tech Global, Pear, and
FORE. Those companies are more international than Elite Tech. The only company that is selling
products in North America is Tech Global. They have sales offices in Los Angeles. We have sales
offices in Chicago, Los Angeles, and Toronto. As a company we plan on opening sales offices in
the Europe region which are Paris and London. Moving to Europe can be a risk for Elite Tech
because all the companies have sales offices in Europe.
Our context for Elite Tech is for economic environment. The business cycle we are
currently in the growth stage. We have launched products and have been successful. We have
competitors that still are in the introduction stages of their products and our products are in the
growth stage. We are currently selling our two brands that have been successful on the market.

We have invested in new research and development and other competitors could have not done
that yet or have purchased research and development for something different than Elite Tech.

S.W.O.T.
Strengths:

Owns 30% of Market Share

Top leader in Innovators Segments and second in Travelers Segments
Elite TravelPad and Elite Inspire 2.0 had great brand judgement
Had great revenue quarter four was at three million
Only group in the technology competition to have a positive profit

Weakness:

Remainder of an emergency loan to payoff (about $600,000)

Both ads for Elite TravelPad and Elite Inspire 2.0 did not great Ad judgement
Ending inventory of about 800

Opportunities:

Opening up sales offices international (Paris and London)

Product Development
Opening web centers

Threats:

Loan to payoff
Three other tech companies in the market
Losing products to other companies in the travelers segment (FORE and Pear)
More competition in the Europe Region
Ending Inventory

S.M.A.R.T.
Elite Tech to start our business we had to think of who we would be targeting to get a
great start to our first year. We chose innovators and travelers to target our two products. Elite
Tech has done some research and we believe that through the previous market research that we
can do very well in the Mercedes segment. We think with a great first year we can do very well
in the Mercedes segment. With great brand and company recognition we will feel strong in the
Mercedes segment.
Some measurable things that we looked for Elite Tech is our ads dont have great ad
judgement and that can really affect our brands. Elite Tech has done well in revenue. The brand
can cost a little more and going after the Mercedes segment can be very risky. We need to take a
risk because we are on top and we should take a risk to get out on top.
Assigning these task were making Kyle accounting and financial decisions to make sure
we are good with our budget so we dont have to take an emergency loan. Jess is looking at our
human resources to make sure our employees like working for Elite Tech so we stay working
well and productive. Tom is looking over marketing to work on brands and ads to make sure our
products are getting recognition. As a team we work on manufacturing because it can be difficult
and we need everyones input.
What we know that can be realistic is that our products are working and have great brand
judgement. We can achieve great atmosphere to work in and be very productive. We can be
realistic with meetings and working together as a team. We can work every time on Sunday
evenings so we have our decisions due by the beginning of the week. When we do that we have a
great week because we have everyone giving an opinion.

Elite Tech has been very time-related on being at meetings every Sunday and working
during the week on Tuesday and Thursdays. We try to put all our work into this company and it
has been very successful. Elite Tech is already making a profit after year one. It is very hard to
do that as a company to start off and making a profit. We put a lot of hard work and time-related
stuff with Elite Tech.

Strategies for remainder quarters

Elite Tech has some strategies for the remainder of the quarters. We have had one year
under our belts and have done very well. Elite Tech has made two brands that targeted towards
innovators and travelers. We are looking towards future quarters and it will take some steps for
us. We looked at several strategies and to start it is our marketing strategies.
Elite Techs marketing strategies are to make product development. We are looking to go
after the Mercedes segment and we feel like if we can hit the Mercedes segment very well. We
think that our sales can jump much more with hitting this segment. We plan to launch this brand
in quarter five. As a company we are thinking of launching another product in quarter seven or
eight. Other marketing strategies we are looking to go after is updating and improving our ads.
We have not been successful with our ad judgements and we need to fix them. We plan to fix our
ads so we can boost sales even more. Quarter five and six we are working on research and
development. We are looking into ultra-fast, hard drive, and battery to last longer. We believe we
can hit more of the customers needs if we put research and development into ultra-fast, hard
drive, and longer batter. Throughout the quarter we will be modifying our product development
so we can get perfect brand judgement. Some other marketing strategies is that we need to
improve our ads for our products. We need to improve our ads by updating our ads and we can
say more powerful information on the ads after our research and development.

Manufacturing with multiple products and trying to predict demand is always a

challenge. Our goal is to not lose sales due to inventory sale outs. Since our fixed capacity for
manufacturing is so big right now, until we see a big spike in demand we do not need to invest in
more room to produce a higher output of units. In order to stay away from stock outs, we have
low replenishment points with moderate target points in order to keep production moving and
can quickly change to another product if two happen to be running low. If in the case that two
products are running low though, we have production priority set to produce the one that we
have the highest profit margin on so that way we do not lose as much money. Lastly to help
improve our manufacturing, we are inventing 400,000 into helping our changeover and quality
improvement to help reduce the costs and time it takes to go from product to product on the line.
Our sales channel strategies are to go open more sales offices. As of right now we are a
company that is specifically in North America. We have sales offices in Chicago, Los Angeles,
and Toronto. We decided to go and open up in one region so we can see how our products would
9

do in the market. We are opening up sales offices in Europe and those cities would be London
and Paris. Those sales offices will be opening up in quarter five. Also after a year of being in
business we have decided to open up web centers in North America and Europe and we really
feel that can boost sales by opening up web centers. We do know that all of the competition has
at least one sales office in Europe. After the second year we plan on doing some consideration on
opening sales offices and a web center in Asia. We plan on opening them up in Tokyo, Shanghai,
and Sydney.
At Elite Tech, we want our workers to feel like they are wanted. In order to achieve that,
we offer our sales people and factory workers higher compensations for the work that they do.
Along with offering a higher yearly salary, we also offer them more health care coverage,
retirement pensions, and time off to enjoy themselves. This keeps our worker productivity high
as they are more likely to do what we expect of them but also keeps good HR. Our goal is to
show consumers in the market that we are a company that cares about their employees.
As we are targeting markets that expect more in a product, our financial strategy is to
give them what they want faster. As we are already profitable in the first two quarters of selling
our products, we have found that even our revenues will not be enough yet to quickly invest
heavily into R&D. In order to overcome this, we are using a combination of our revenues and
some long term financing to help us out. As we are confident that we can pay back a long term
loan of 3.5M over the next five years, it will help speed rocket us to being more profitable. Since
we have already seen profits, we plan on giving back to those who helped us out in the begging
of our company. Through the use of dividends, we plan on giving back slowly and increasing the
payout as we become more profitable and mature. In the last quarter as well, we saw a 60%

10

increase in our revenues from the previous quarter. We hope to achieve 50% increases in the next
3 quarters while it slowly decreases after that and we hit our maturity state of the company.

11

Cash Flow

Quarter Quarter Quarter

1
2
3
Beginning Cash Balance
0 912,000 138,500
Receipts and Disbursements from Operating Activities
1,890,35
Revenues
0
0
0
- Rebates
0
0
39,300
2,211,85
- Production
0
0
7
- Research and Development
0 120,000
60,000
- Quality Costs
0
0
71,225
- Advertising
0
0
208,168
- Sales Force Expense
0
0
245,090
- Sales Office and Web Center Expenses
0 455,000
154,000
- Marketing Research
88,000
0
23,000
- Shipping
0
0
20,119
- Inventory Holding Cost
0
0
139,181
- Excess Capacity Cost
0
0
0
- Web Marketing Expenses
0
0
0
- Income Taxes
0
0
0
+ Interest Income
0
1,500
0
- Interest Charges
0
0
0
+ Licensing Income
0
0
0
- Licensing Fees
0
0
0
+ Other Income
0
0
0
- Other Expenses
0
0
0
= Net Operating Cash Flow
-88,000
1,281,58
573,500
9
Investing Activities
1,100,00
1,100,00
Fixed Plant Capacity
0
0
0
+ Sinking Fund
0
0
0
1,100,0 1,100,00
= Total Investing Activities
0
00
0
Financing Activities
1,000,00 1,000,00
1,000,00
Increase in Common Stock
0
0
0
+ Borrow Conventional Loan
0
0
0
- Repay Conventional Loan
0
0
0
+ Borrow Long-Term Loan
0
0
0
1,143,09
+ Borrow Emergency Loan
0
0
0
12

Quarter
4
1
3,025,36
2
45,300
1,657,82
8
60,000
124,472
208,168
169,554
364,000
23,000
26,615
148,597
0
0
0
0
62,870
0
0
0
0
134,958

600,000
0
600,000
1,000,00
0
0
0
0
0

- Repay Emergency Loan

- Deposit 3 Month Certificate
+ Withdraw 3 Month Certificate
- Dividends

0
0
0
0
1,000,0
00

= Total Financing Activities

Cash Balance, End of Period

912,000

0
100,000
0
0
900,000

0
0
100,000
0
2,243,09
0

138,500

534,958
0
0
0
465,042

Balance Sheet
Quarter Quarter
1
2
Current Assets
Cash
912,000
138,500
+ 3 Month Certificate of Deposit
0
100,000
+ Finished Goods Inventory
+ Sinking Fund
+ Net Fixed Assets
= Total
Conventional Bank Loan
+ Long-Term Loan

Long Term Assets

0
0
1,100,00
0
0
1,338,5
912,000
00
Debt
0
0
0
0

+ Emergency Loan

+ Retained Earnings

Equity
1,000,00
0
-88,000

= Total

912,000

+ Common Stock

13

0
2,000,00
0
-661,500
1,338,5
00

Quarter
3

Quarter
4

1
0
1,391,80
8

1
0
1,485,97
0

0
2,154,16
7
3,545,9
75

0
2,662,50
0
4,148,4
71

0
0
1,143,09
0

0
0

3,000,00
0
-597,115
3,545,9
75

608,132
4,000,00
0
-459,661
4,148,4
71

Income Statement
Quarter
1
Gross Profit

Quarter
2

Quarter
3

Quarter
4

Revenues

0
0

1,890,35
0
39,300

820,049

1,031,0
01

3,025,36
2
45,300
1,563,66
5
1,416,3
97

- Rebates

- Cost of Goods Sold

= Gross Profit

0
0
0
0
0
88,000
0
0
0
0
0

120,000
0
0
0
455,000
0
0
0
0
0
0

60,000
71,225
208,168
245,090
154,000
23,000
20,119
139,181
0
45,833
0

88,000

575,000

966,615

Expenses
Research and Development
+ Quality Costs
+ Advertising
+ Sales Force Expense
+ Sales Office and Web Center Expenses
+ Marketing Research
+ Shipping
+ Inventory Holding Cost
+ Excess Capacity Cost
+ Depreciation
+ Web Marketing Expenses
= Total Expenses

Operating Profit

575,000
Miscellaneous Income and Expenses
-88,000

14

64,385

60,000
124,472
208,168
169,554
364,000
23,000
26,615
148,597
0
91,667
0
1,216,0
73
200,324

+ Licensing Income
- Licensing Fees
+ Other Income
- Other Expenses

0
0
0
0

= Earnings Before Interest and Taxes

-88,000

+ Interest Income
- Interest Charges

0
0

= Income Before Taxes

-88,000

0
0
0
0
575,000
1,500
0
573,500

0
0
0
0

0
0
0
0

64,385

200,324

0
0

0
62,870

64,385

137,454

- Loss Carry Forward

= Taxable Income

0
0

0
0

64,385
0

137,454
0

- Income Taxes

= Net Income

-88,000

0
573,500

64,385

137,454

Earnings per Share

-9

-29

Tactical plans for remaining quarters

Elite Tech tactical plans for the remaining quarters are very similar to our strategies.
Some of our plans are to open up sales offices in Europe and official make Elite Tech an
international company. I think with dominating the market in North America, Elite Tech is ready
for the challenge of being an international technology company. The sales offices are short term
goals because we are opening up offices in Paris and London in quarter five. Some of our short
term plans are to modify our two products the Elite TravelPad and Elite Inspire 2.0. We would
like to have the products and future products to be ultrafast because that will get more customers
to purchase our products. They will enjoy having that perk in a computer so they dont have to
worry about things slowing down for them. Throughout the remaining quarters we plan on to
modify our product development so we can have near perfect brand judgement. In year three we
plan on opening sales offices in Asia to improve our company international.

15

Implementation plan
Year 1
New Product

Quarter 1

Quarter 2
TravelPad &

Quarter 3

Quarter 4

Inspire
Modify Product
Sales Offices
R&D

Year 2
New Product

Inspire 2.0
Chicago & LA

Quarter 5
InspirePad

Toronto

Quarter 6

Quarter 7
New Laptop and

Quarter 8

Computer
Mercedes/Innovator
s
Modify Product
Sales Offices
Web Center
R&D

X
Paris & London
North America
and Europe
Ultra-fast &

Battery: Long

16

X
Moscow

Hard Drive

Year 3
New Product
Modify Product
Sales Offices

Quarter 9
X
Tokyo

Life

Quarter 10
X
Shanghai and

Quarter 11
X

Quarter 12
X

Sydney
Web Centers
R&D

Asia

Big Plan
Elite Techs big plan is to head after a new market development and that would be going
after the Mercedes segment. After selling two products that are directed towards innovators and
17

travelers. We have been successful selling to Mercedes toward with a high market share. We feel
if we make a brand that is more aimed towards the Mercedes segment. The Mercedes segment is
the highest market and can be risky because they expect more in a desktop or laptop. We feel that
can meet the needs of the customers.

18