Business Plan: Help With My Business Plan

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Business Plan Improvements

The financial performance of the company is reflected by the following indicators:

Net income - $20,000

Cash flow - $120,000

Operating activities - $16,000

Investing activities - $11,000

Income Statement

USD 1,000

Net income

Cost of sales

Gross income

Research and development expenses

Operating income

Cash Flow Analysis

USD 1,000

Cash from operations

Additional cash received

Current borrowing

Cash from receivables

Cash spending

Assets

Usd 1,000

Cash

Accounts receivable

Other current assets

Total current assets

Liabilities

Usd 1,000

Accounts payable

Current borrowing

Other current liabilities

Total liabilities

36,500

53,000

Competitive sustainable advantage

Competition

The global steel industry is characterized by intense competition. This industry seems to have a high concentration ratio, which means that the largest steel companies have the greatest market share of this industry (QuickMBA, 2010). This makes it very difficult for smaller companies like Korean Steel International to increase their market share. There are several strategies that can be used by companies that want to increase their market share: reducing prices, improving product differentiation, efficiently using distribution channels, and improving relationships with suppliers. In the case of KSI, it is obvious that the company cannot significantly reduce the prices of its products. This is because the prices in the steel industry are established by large players and by producers. It is also difficult to improve product differentiation because the types of products commercialized by KSI depend on producers. The company's distribution strategy can be improved. In addition to this, it is recommended that KSI focuses on improving relationships with business partners in order to create competitive advantage.

Threat of substitutes

The steel industry is not significantly affected by the threat of substitutes. In this case, steel is required in most activities. However, specialists in the field try to develop innovative materials with similar characteristics to those of steel, but at very high prices, and with lower usage possibilities.

Buyer power

In the steel industry buyers have a rather moderate power. Buyers are quite fragmented, there are many different buyers with little influence on product price. Another important factor that determines this situation is represented by the fact that steel producers supply significant amounts of steel purchased by buyers in this industry. In addition to this, companies that purchase certain types of steel products from certain producers build their product strategy on those types of steel products, becoming somewhat dependent on them. Therefore, it is… [END OF PREVIEW]

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