Writing Unit 3

Investment plan 1. 2. Objectives: To solve our current problems and enable Valentino to become a competitive international business, we propose an investment of 1.5 million.

Strategy and implementation: The Board of Directors has agreed the following investment plan. Firstly we need to invest in machinery. The machinery is now quite old and some of the machines keep breaking down. As a consequence this causes delay in production. Secondly more research and development needs investing. This should give us a better understanding of our target customers changing needs and desires in term of new product development such as a low-fat chocolate drink, new biscuits/cakes. We launched biscuits and cakes six months ago but they are just not selling well. Thirdly we need to finance a market survey and research trips to the US with the assessment of the market potential for Valentino chocolates as we want to find a new market. Fourthly to invest in an existing group of cafes is of necessity as we can become a partner in caf which sell and promote Valentino chocolates. To buy a new fleet of cars to increase motivation of the sales staff is the final area that we need to do as the sales team are becoming demotivated. 3. Cost Investment in new machinery : Investment in R&D Investment in market survey Investment in an existing group of caf Investment in a new fleet of cars 200,000 200,000 100,000 500,000 500,000

4. Timeline To buy new machinery : to be completed in two months time, ie by the end of May. To do R&D: six month time at least. However it needs to be speeded up. To do market survey: to be completed in three months by the end of June. To invest in an existing group of cafes : to be completed in six months by the end of September To buy a new fleet of cars: one month is enough by the end of April. 5. Evaluation: The heads of the departments concerned will hand in a monthly progress report. TheBoard will then meet to assess the progress made in all five areas.