Strategic Issues: 3.1 Tactics: As an organisation, we are in the creation stage.

The ambition of our organisation is to develop a very successful second hand dealer shop for Cardiff students which will generate healthy profits year on year. The shop will sell numerous types of items split into several headings; • • • • • • • • PC’s, laptops and office equipment TV’s and DVD players Books and stationary Consoles and gaming Mobiles and photography equipment Toys, games and activities Home and Kitchen Outdoor sport and leisure

Bric-a-Brac’s target market is primarily international students which will not be bringing bulky stock home to their countries such as bikes, printers, TV’s etc. These items will be bought cheaply by Bric-a-Brac and sold to new students at a healthy profit. Our aim is to create Bric-a-Brac into a national brand by 2020, with shops located in all major student populated cities. 3.1.2 Location The location picked as our shop front is an office space located at 4 Museum Place, Cardiff Cathays Park, Cardiff, CF10. It has 2,482 sq ft. The shop is strategically located near the student union and is only five minutes from the city centre. The rent is £600 per calendar month. The office also comes with five on-site car parking spaces and there is also on street parking at a cost of £3.50 for all day parking.

3.1.2 Website

Figure 3.1: 4 Museum Place, Cathays Park, Cardiff.

uk) will be able to supply a small number of laptops. mobiles and DVD players 3. Twitter and Myspace to help in awareness and advertisement of the organisation. 40 1 6 .'s 4 1 students in total and University of Wales Institute has roughly 11.V. who is an experience valuator. Some examples of this are. Every Monday a part-time electrican and a part-time mechanic will work to fix items that need repair.'s. The website will also have multiple email account system and online website visitor statistics.5 Games Consoles: 8 5 2 25 12 P. one page for each item category.D. ent Good Bicycles: 60 35 15 100 60 D. TV’ Cost of single items that will be bought/sold for.1.K. flyers can be handed out to students at the student unions and emails sent to their college accounts. There will be one manager.5 8 2. Cost of Items bought/Sold per item: Buy (£) Sell (£) Excelle Excell Items: nt Good O. This population gives us a chance to supply the at a cost of £745 with a maintenance fee of £50 per month. To reach students. students is given in the following table.1. 9am – 6pm.C. It will contain 9 pages. All prices include tax.3 Stock Cardiff University has 27. It will be contain links to Facebook. • • Pedal Power will sell second hand bikes to us when their bikes are out dated Buy As You View (www.000 students which is about 2 miles away from the shop.5 Operation of Bric-a-Brac The shop will be opened Monday to Saturday. Other private companies have been contacted to buy their used equipment at competitive prices. mobiles etc will be evaluated by an expert: O.A website will be constructed by WebCreation. A plan for the cost of items that is likely to be bought by Bric-a-Brac from students is given in table 3. on the shop floor at all times with a student hired at peak hours. Many students have facebook accounts and advertisement can be use to attract their attentions. Table 3. 3. laptops.yayv. consoles.

hopefully by the third year. part-time electrician and another part-time student for the Birmingham shop. Other resources of supplying the shops are. Bric-a-Brac will open a third shop in the Manchester area.200 graduating and to help in our main primary objective. our market share will grow and by the end of year one.2: Our Business Strategy The first year of any business is the most difficult.1. T. we intend to employee another part-time mechanic. Accompanied by Promotional Activities Figure 3. pedal power can supply 50 top quality second hand bikes. roughly 8. Strategic issues: Our organisation will sell/buy quality second hand products at a competitive price which will exceed customer expectation and gain a healthy profit margin. Our market share at the beginning will be small but with time. By the third year. This time frame was picked due to the number of students finishing University. and Buy as You View can supply over £3000 worth of laptops. In the first year we will employee a part-time mechanic. By the fifth year.6 Growth When sufficient funds are being made. Birmingham has a large student population which would make it an ideal location and is only two hour drive from Cardiff. which is to supply the shop.3. a second shop can be opened in Birmingham. advertisement and word of mouth. The company will start its operation in May 2011.2. Our organisation is planning to hit the ground running. 3. part-time electrician and part-time shop assistance. also heavily populated by students. bric a brac will be a common name to Cardiff University students. We have .s and other electrical goods.V.

Table 3. There are several other second hand dealers in the Cardiff City area including.P. Our predicted sales for the first year of our organisation are shown in the following table 3. The total cost of our first year goods will be £26680 and we expect a revenue of £55000. O.C. British Red Cross. Second to None and Dvinyl Records.been in contact with several hotels including Premier Inn. 360 0 250 0 420 £ 4900 3100 1325 2300 1200 3000 4500 1000 7000 28325 Bicycles: D.V.V. Oxfam.'s: Mobiles: Books Toys/games Misc: Sum: This table shows that we intend to buy £2400 excellent bikes and sell at £4500.D.2.K . Bric-a-Brac is unique compared to these in that we are after all second hand items and that we are focused on students.K.4 and figure 3. British Heart Foundation.'s Games for Consoles: P. Holiday Inn and The Big Sleep hotel for sheets and towels and kitchen-ware. There is no second hand shop associated with Cardiff University. The estimated operational cost of the organisation for the next three years are shown in table 3.2: Predicted buys/sells of Bric-a-Brac for 2011.3 . Cash Generator.'s/Laptops: T. 180 0 150 0 200 Sell (£) Excelle nt Good 4500 1400 1125 4500 3000 960 3800 2000 4200 6000 2000 15000 55005 G. and this is where we see an opportunity.3 and the estimated net profit income is shown in table 3. This will give Bric-a-Brac a gross profit of £28325. etc. Other items such as gaming consoles have been researched online for great bargains and to be sold at a profit. Buy (£) Items Excell ent 2400 800 480 Good 3500 1500 500 1500 800 1200 1500 1000 8000 26680 O.

Table 3.1 The first year of business (2011) Bric-a-Brac expects a small operational income of £3000 at the end of 2011.3: Operational Costs of the Businesses Year 2011 Cost Category: (£) Rent: Website: Running Cost: Wages: Σ: 7200 1345 2500 1500 0 2604 5 Year 2012 Cost Category: (£) 720 Rent: 0 Website: Running Cost: Wages: Σ: 600 195 0 150 00 247 50 Year 2013 Cost Category: (£) 150 Rent: 00 200 Website: 0 Running 325 Cost: 0 300 Wages: 00 502 Σ: 50 Table 3.2.000 in operating costs.4: Estimated operating income for the next five years 201 2 7500 0 3000 0 4500 0 60 2475 0 2025 0 Year: Revenue £: Cost of Goods £: Gross Profits £: Gross Margin %: Operating Expenses £: Operating Income £: 2011 55005 26680 28325 51 26045 2280 2013 13000 0 55000 75000 58 50250 24750 2014 150000 60000 90000 60 50000 40000 2015 2050 00 8000 0 1250 00 61 7500 0 5000 0 3. This is because we are only opening in May and expect to spend roughly £27000 in supplying the shop to get the business off the ground and another £27. The first six months will Figure 3.3: Estimated operating income for the next five years .

3. The operation cost of the business will reduce as major purchases of equipment have been spent in the first year of the business. We show pride.2. 3. Bric-a-Brac expects to see a revenue of £75000 from the Cardiff branch and an estimated £55. This gives us an operating profit of £20000. All figures will be reviewed after 6. Our aim is to raise our gross margin from 50% in 2011 to 60% in 2012.2. With the success of the Cardiff branch. 3. To act with honesty and integrity without compromising the truth 2. 3. We expect this price as our business becomes more popular with the students. This will give a surplus of £40000 which can be used as capital for the third outfit in Manchester in 2015.2 Year 2012 2012 will see the operating expense and the cost of goods of the business level to £55000.3 Core Values The four core values of Bric-a-Brac are 1. In 2015 with the three shops up and running an operating profit of £50000 is expected. and the revenue rise to £75.000 in potential sales.required a lot of hard work and effort to get the business running successful. more business will be done.4 Years 2014 and 2015 In 2014.2. expected revenue of £150000 will be generated. and an operating cost is estimated at £50000.000 in the Birmingham shop giving a combined revenue of £130000. 3. We are committed to selling and delivering quality products and services. The expected cost of goods in total is £60000. 36. enthusiasm and dedication in everything that we do. . with the two branches off the ground.3 Year 2013 If expected targets have been reached by the end of 2012. 24. This will give Bric-a-Brac a healthy operating income of £25000. 48 and 60 months into the operation. Being efficient and effective in our approach to give best solution each time. 12. and will give us a good indication of the future years of the business. This will at least double our operational cost in this year and we expect it to rise to £50250 with an additional cost of £55000 in goods. a second shop will be opened in Birmingham around early May. 18.

Our final core value will challenge our entire organisation to bring fresh ideas and make Bric-a-Brac better than our competitors. . The last will make us aware of our environment. The second core value will drive us. Been efficient in every aspect will make the organisation more profitable. to achieve our required goals with dedication and hard work. friendlier to the environment and will send Bric-a-Brac to the best performance. externally and internally in the business and also watch for future potential markets. methods. The second core value aims to set Bric-aBrac on a passion to achieve results and performance in every task under taken by the organisation without compromising our products or services. with this our organisation will thrive. The first core value aim is to set Bric-a-Brac on a high level of consistency in values. The first core value will give Bric-aBrac a loyal customer base and will spread Bric-a-Brac name by word of mouth which will lead to a successful business. Being 100% efficient and effective will place us above competitors and will give our customers the best service around. Collaborating within and outside the company to give the best. Bric-a-Brac will show honesty and truthfulness about the quality of a product to the potential consumer. competitive. principles and expectations. These core values are vital to our long-term success. the management. The staff can understand what the objectives of Bric-a-Brac are and how to change with the future.4. Each individual is committing to bring Bric-a-Brac to a successful organisation form the start.