Business Expansion Plan Depth Analysis

Question: Discuss about the Business Expansion Plan for Depth Analysis. Answer: Introduction This paper describes the various aspects of the Fischer Sports Gmbh. The objective is to evaluate the depth analysis of the Fischer Sports GmbH in the perspective of the business expansion plan. It enables to determine the description of the venture, literature review, assessment of associated theories, strategy formation, operation overview, financial overview, approaches to sustainability ethics and timeline. Indeed, Fischer Sports GmbH was founded in 1924. Its headquarter located in Austria. It manufactured several products such as Alpine Skis, Nordic Poles, Jumping Skis, Accessories and Hockey. Description of the venture: Fischer Sports Gmbh manufactures the Nordic skiing and Alpine equipment. It delivers the poles, skis, boots, binding, jumping skis, apparel, and hockey products that involving men and women gloves, socks, race and leisurewear. It is not sold regular basis. So, the most of stock would be outdated and wasted. It is a big risk in the Fischer Sports Gmbh. They sold their products in Austrian market that is another venture because it has limited market for sales. Austria is a well developed country where people take high education. So, sports product has low sales that is venture of it. (Fischer Naro 2012). Literature review: Literature review of the Fishcer Sports is to the global expansion of the associated and Internet technologies have developed an environment of gambling that is tough to evaluate and regulate Sports equipment. It includes a systematic review of the literature. The objective of the literature review is to present the theoretical background related to the Fischer Sports. It will start reviewing literature related issue in the Fischer Sports. It includes associated theories in the perspective of the Fischer Sports and appraisal the strategy formation, operation, financial overview and timeline of the Fischer Sports. (Jones 2014). Assessment of associated theories: A theory of business is a framework of an approach, mental model and philosophy. It affected the objective or goals, the choice of policies, the choice of structure, the formation, development of company culture and the getting work done. The theory of Fischer Sports business is purposeful. Then, leader can articulate it. It is not consciously stated. Then, Fischer Sports is able to surmise the theory of business. (Kaufam 2016). Strategy formation: It is the process of developing the strategy. Fischer Sports includes six steps strategy formation to evaluate the scenario. First, organization objective that is the key part of Fischer Sports strategy formation in the long-term perspective. Second, organizational environment that evaluate the general economic and sports industrial environment. It review the organization competitive position that necessary to conduct a quantitative and qualitative review of the Fischer sports. Third, setting quantitative target that fix the values of some Fischer Sports objectives. Fourth, decide the divisional plan that helps to check the Fischer Sports manufacturing department that they are working as per strategic planning or not. It requires a careful evaluation of macroeconomic trends. Fifth, performance analysis involves the gap between the desired and planned performance. Fischer Sports evaluate the performance of the organization strategy that help to judge the manufactur ing speed and sales of the products in the current competitive market. Six, choice of strategy is the ultimate step in strategy formulation of the Fischer Sports. It helps to select the Fischer Sports goals, strengths, potential and limitations as well as the external opportunities. (Meige Schmitt 2015). Operation overview: Sports is a multibillion dollar fast growing sector in the world. Fischer Sports provide a high job opportunity to workers in their operational department. Fischer Sports GbmH has $235000 million expected sales in 2017 and it would be raise constantly till 2021 and it would be reach $411016 in 2021. It has $199750 expected operation income in 2017 and it would be $229713 in 2018, $263088 in 2019, $302706 in 2020 and $349364 in upcoming years till 2021. It would be possible through the expansion plan in worldwide country. When Fischer Sports will expand their business. Then, the operation income would be also increase that will help to survive in the competitive market. (Drake Fabozzi 2012). Expected Profit Loss statement for the first 5 years at the end of the year of Fischer Sports GbmH 2017 2018 2019 2010 2021 Sales $235,000 $270,250 $310,788 $357,406 $411,016 Cost of Goods Sold 35250 40538 47700 54700 61652 Gross Margin 85.00% 85.00% 84.65% 84.70% 85.00% Operation Income 199750 229713 263088 302706 349364 EXPENSES General and Administration expenses 15400 16700 17368 19847 21475 Salary Wages 11800 12272 12763 13273 13804 Professional Fees 6400 6656 7411 7707 8016 Interest Expenses 8750 9100 9464 9843 10236 Marketing Selling Expenses 10245 10474 10893 11329 11782 Rent Utilities 7880 8195 8523 8864 9218 Insurance cost 9540 9922 10318 10731 11160 Other Expenses 8750 9100 9464 9800 10241 Total Expenses 78765 82419 86204 91394 95933 Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) 120985 147294 176883 211311 253431 Finance Cost 39950 45943 52618 60541 69873 Depreciation and Amortisation Expense 7100 7100 7100 7100 7455 Profit/(Loss) before Tax 73935 94251 117166 143670 176103 Tax Expense Federal Income Tax 24399 31103 38665 47411 58114 State Income tax 3697 4713 5858 7184 8805 Total Tax Expense 28095 35815 44523 54595 66919 Net Profit/(Loss) $45,840 $58,436 $72,643 $89,076 $109,184 Profit Margin 19.51% 21.62% 23.37% 24.92% 26.56% (Source: Drake Fabozzi 2012) Financial overview: Fischer Sports produce sports equipment that require a lot of assests and cash capital to run their business in the competitive market. It has $5400 million inventory stock in 2017 that have target to sold in the market that generate revenue for it. It has expected $12509 million maintenance reserve in 2017 and it will reach $30540 million in 2021. Balance Sheet for the first 5 years at the end of the year of Fischer Sports GmbH 2017 2018 2019 2020 2021 Assets: Cash and cash equivalent 20648 24778 29733 35680 42816 Inventory 5400 6480 7776 9331 11197 Capital Work in Progress 8434 10121 12145 14574 17489 Intangible Assets under Development 542 650 780 937 1124 Property, equipment furnishings 15239 18287 21944 26333 31600 Equipment purchase deposits 6901 8281 9937 11925 14310 Accumulated Depreciation 1369 2765 5586 11284 22793 Other assets 15875 19050 22860 27432 32918 Total assets 74408 90412 110762 137495 174247 Liabilities: Accounts payable and accrued expenses 16833 21041 26302 32877 41096 Deferred income taxes 3504 3854 4240 4664 5130 Maintenance reserves 12509 15636 19545 24432 30540 Security deposits 15778 19723 49279 61278 79675 Long term liabilities 25784 30158 37698 47122 58902 Total liabilities 74408 90412 110762 137495 174247 (Source: Fridson Alvarez 2011) Approaches to sustainability and ethics: Fischer Sports sustainability depends on the fast growth and revenue of the organization. If the organization is earning revenue constantly. Then, it would be beneficial for the organization growth and development. Fischer Sports is not only linked with excercising the human body. But also related to global sports sectors that have millions employees, generates revenue and participate in global GDP. Fischer Sports company produce sports equipment that is ethical acceptable by Austrian government. So, it is a good business in the perspective of the ethical concern. (Kotter 2008). Timeline: It is the significant part of the Fischer Sports because timeline should be clear when organization constructed the business expansion plan for it. Fischer Sports should achieve the expansion plan goal within the targeted the timeline period. If the Fischer Sports are able to achieve its target within timeline. Then, it would be consider as successful organization in the sports equipment industry. (Parent Smith-Swan 2013). Conclusion On the basis of above analysis, it can be concluded that clear description of the venture, literature review, assessment of associated theories, strategy formation, operation overview, financial overview, approaches to sustainability ethics and timeline as well as high ability to adopt new approach in Fischer Sports helps to achieve its expansion plan in the competitive market. References Cocchiarale, M, Emmert, S, 2004, Upon Further Review: Sports in American Literature, Greenwood Publishing Group, Melbourne. Drake, PP, Fabozzi, FJ, 2012, Analysis of Financial Statements, John Wiley Sons, Melbourne. Fischer, MB, Naro, MW, 2012, Volume 48 of TransD. Arbeiten zur Theorie und Praxis des bersetzens und Dolmetschens, Frank Timme GmbH, Melbourne. Fischer, R, 2011, Trading With Charts for Absolute Returns, John Wiley Sons, Melbourne. Fridson, MS, Alvarez, F, 2011, Financial Statement Analysis: A Practitioner's Guide, John Wiley Sons, Melbourne. Jones, I, 2014, Research Methods for Sports Studies: Third Edition, Routledge, Melbourne. Kotter, JK, 2008, A Sense of Urgency, Harvard Business Press, Melbourne. Loidl, F, Sabo, J, Whrer, G, 2012, Absatzkrisen anders bewltigen: Konsequenzen fr Marketing und Management, Linde Verlag GmbH, Melbourne. Meige, A, Schmitt, J, 2015, Innovation Intelligence. Commoditization. Digitalization. Acceleration. Major Pressure on Innovation Drivers, Absans Publishing, Sydney. Parent, MM, Smith-Swan, S, 2013, Managing Major Sports Events: Theory and Practice, Routledge, Melbourne. Kaufam, M, 2016, The Theory Of Business, Complexity, And Getting Work Done, View 7 July, 2016, from: https://innovationmanagement.se/wp-content/uploads/pdf/Theory_of_Business.pdf