Objectives On successful completion of this assessment, students should be able to: prepare a summary of a business idea clearly indicating the business purpose, consumer need, and potential for profi

Running Head: DEVELOPING A BUDGET STATEMENT ASSIGNMENT 0

Developing a Budget Statement Assignment

Gurleen Kaur

2019081614

BUSI 2153- Entrepreneurship

Professor Hamid Reza Mohammadi

Sunday, February 13, 2022

Introduction

For the company to be able to maximize on its profits they have to work hard to ensure they maintain their costs low. Globally all companies are looking towards succeeding in the market and obtaining a higher market share which is vital for having a competitive advantage among other companies. For a company to succeed then it has to ensure it’s on the right track while they are doing business and to be able to achieve this then there are areas they have to focus on for it to succeed. In the implementation of the different strategies for ensuring the company succeed they have to look at the short term vs. longterm strategies for investment, the cash flows and the financial plan for the company, they have to consider its marketing plan, carry out market research plus analyzing the market. To be able to succeed in this areas the company has to adapt the right technology which will push them towards maintaining their costs low and succeeding in the markets.

Taking an example of the transport sector, appetite for owning cars has continued to increase up to where currently there is one car for 11 individuals (Arbogast,2017). Through an increase in total number of the vehicles globally, the total number of accidents has continued increasing. In reference to the WHO close to 1.2 million individuals they end up dying on the roads annually (Global status report on road safety 2015). For most of the companies they are trying to come up with vehicles which can function without having drivers to be able to reduce the errors which occur as a result of human error leading to death. When the right technology is adapted it will ensure there is success in business being done which will give the company competitive advantage among the other companies. The main problem which is being addressed in this matter is to ensure the business adopts the right strategy for its competitive advantage.

Objectives

The main aim of this project is to ensure the business succeed through the adoption of the new business model that can be adapted at the commercial level.
The other objective is checking for viability.
To check how ready, the business is to adapt the proposed new strategies.

Scope for the project

As a business we have been focusing on viability of the technology being adopted by the company to be able to serve purpose besides seeing where the company is,in this there is consideration of global market.

Advantages

Through the adoption of the proposed project within the business the main advantage will comprise:

Reduction in accidents

Through the adoption of the advanced technology within the transport sector this will ensure that there is a reduction in the accidents. For the adoption of the new technology it will be using algorithms regulating the precise stop distances from one vehicle to the other. Through the adoption of the technology, it will ensure there is a reduction in the number of accidents which are encountered within the sector.

Reduction in carbon emissions

Through doing away with the old technology and adopting to the new one it is expected that this will ensure that the emissions will ensure there is reduced carbon emission. Through the adoption of the new technology.

Stress free parking

Through the adoption of the autonomous vehicles the passenger can be drop at their destination and the vehicles can be able to park where they find space. Through this it will ensure that time wastage by looking for parking spot is reduced and the people are able to concentrate on their work.

Disadvantage

Through the adoption of the technology where we have got self-driven cars there is doubt which exist concerning their effectiveness and scalability. Some of the problems which will be faced comprise:

Costs

Transition from using human being to technological advancement where they use robots requires massive investments. The costs for technology and the software’s is recouped with higher sales prices. For the consumers they do not want to pay more as a result of advancement in the technology.

Scalability

Not everybody is ready to adapt the advancement in the technology. Having self-driven cars will not come as good news to all. There is still safety concern with the new models since there was death of the passenger when the car collided with tractor.

Economic disparity

Losing jobs is inevitable resulting to increase of reliance on the technology where most of the workers are left lacking any income means. Through adopting autonomous vehicles, the drivers lose their jobs plus unemployment having hike which results in the economic disparity.

Cost and Pricing

Through the published forecast for the autonomous cars, according to the report by the Forbes they are going to cost $5000. In this we will have a premium price till the year 2030. Having vehicles that are full autonomous its still has got a decade away where for some of the predictions till the year 2040 is when we will have them on roads. For the current version of the autonomous cars they are using laser mapping technologies. It is expensive and they are predicted to decrease to $2,000 by the year 2030. Having breakthrough in solid state device could have system prices for low hundreds of dollars (Earl,2020).

In U.S. the cost for having a new car is over $30,000. In past two decades, prices for average vehicle sold has increased less as compared to inflation rate. For the autonomous cars they are still going to sell at a premium to conventional cars where on average the prices will be between $40,000 and $50,000. For Tesla they are working on a system of low cost which does not rely on the LIDAR. For this they are predictions which are being made on basis of the data which is available thus it could be used for reference purposes.

In pricing we are going to use the competitive pricing plus penetration pricing strategies to be able to stay competitive in market besides having a larger customers base. When there is a good base of customers then it will charge premium. It is difficult to coming up with the exact costs plus prices for products while costs for the production of the basic models is close to $40,000 up to $45,000 besides depending on prices has to begin at $50,000 to $55,000.

The funds for this project will be from the venture capitalists, loans among others. For technology which is being applied its appealing and will be a reality in coming years. This provides confidence to the investors which will make it easier to get funds required for the project.

References

Arbogast C., (2017). "Experiments Show That a Few Self-Driving Cars Can Dramatically Improve Traffic Flow." Phys.Org, Phys.org, phys.org/news/2017-05-self-driving-cars-traffic.html.

Earl J. (2020). "Self-driving automobiles: How soon and how much?", Forbes. 21st May 2019. Web. 11th Nov 2020. <https://www.forbes.com/sites/uhenergy/2019/05/21/self-driving-automobiles-how-soon-and-how-much/?sh=b1c8cc938bd2>

Global status report on road safety 2015. (2018). World Health Organization. https://doi.org//entity/violence_injury_prevention/road_safety_status/2015/en/index.html