General MotorsExecutive SummaryTable of ContentsBusiness Plan For:Challenge-X Electric MotorSubmitted to: General MotorsDesign Team:Michael Robertson (Director)Jeff Smith (Hardware Engineer)Dustin Ott (Hardware Engineer)Craig Ross (Software Engineer)Submitted to:ECE4522 Senior Design IIDepartment of Electrical and Computer EngineeringMississippi State University0April 13, 2005Executive SummarySpecialty Motors Researching is the leader in providing solutions involving hybrid vehicles. We also specialize in custom fitting the special applications required for converting vehicles into hybrid vehicles. The research and modeling will all be done from Mississippi State Universities state of the art Center for Advanced Vehicular Systems (CAVS). Specialty Motors Researching will give companies the expert knowledge and capability to expand their resources and their vehicle inventory. Specialty Motors Researching and its resources will allow other companies to sell more hybrid vehicles which in the long run will cut down on greenhouse gasses that are destroying the ozone layer and creating global warming.This business plan is part of our regular business planning process. We will revise this plan annually.The nature of our business will allow Specialty Motors Researching to be highly effective and profitable. The future in vehicle industry is surrounded by hybrid vehicles. However, there are very few companies that make these vehicles and there are a lot of companies that want to, but lack the knowledge to do so. This allows Specialty Motors Researching to be the key asset to all these companies and allows them to develop a hybrid vehicle while our company profits from it.Through extent research, studies, and several commitments we foresee that we will have approximately fifty customers the first year. These customers exist anywhere from large companies to individual people converting their personal vehicles to hybrid vehicles. After the first year, we predict that our customer base will increase 20% per year for four years. Specialty Motors Researching will advertise by going to manufacturing companies and negotiating for theirbusiness. The company will also have an updated website with all projects completed and all services that we can provide. Sales and advertisement agents will be hired in order to get the word out to the public via fliers and magazines. The sales generated from larger accounts will allow the company to remain profitable while also advising smaller individual accounts.The first year, fifty accounts are projected for our services. If each customer gets the complete service package, which is approximately sixteen thousand dollars per customer, then the first yearwill result inapproximately eight hundred thousand dollars in sales. By our estimates, this will lead to a net profit of approximately one hundred to two hundred thousand dollars during the first year and increasing around two percent each year afterwards.The keys to success over the next four years include the following:- Maintain a contract with GM.- Need to develop a website with completed projects and recommendations from satisfied- customers.- Must successfully be able to negotiate to manufactures to gain more accounts.- Achieve a growth rate of 20% per year.- Hire effective sales and advertising agents to advertise our company’s value and resources.- Market individual services for personal applications of hybrid vehicles.- Develop a customer base of at least 50 customers a year in order for the company to break even.1Table of Contents1.0 Mission . . . . . . . . . 31.1 Objectives . . . . . . . . . 31.2 Keys to Success . . . . . . . . 31.3 Target Market . . . . . . . . 31.4 Competitive Advantages . . . . . . . 31.5 Basic Strategies . . . . . . . . 41.6 History . . . . . . . . . 41.7 Company Services . . . . . . . 42.0 Start up Plan and Cost . . . . . . . 52.1 Initial Breakeven Chart . . . . . . . 52.2 Sales Forecast and Assumptions . . . . . . 62.3 Personnel Plan . . . . . . . . 63.0 Product . . . . . . . . . 73.1 Market Analysis . . . . . . . . 73.2 Market Segmentation . . . . . . . 74.0 Strategy and Implementation . . . . . . 84.1 Marketing Strategy . . . . . . . 85.0 Pricing Strategy . . . . . . . . 85.1 Promotion Strategy . . . . . . . 85.2 Milestone . . . . . . . . . 82April 13, 20051.0 MissionSpecialty Motors Researching is the leader in providing solutionsinvolving Hybrid Automobiles. We also specialize in custom fitting thespecial applications required for converting vehicles into hybridvehicles. The latest technologies are researched and evaluated.Numerous hours are spent modeling, using today’s state of the artmodeling and simulation software. The research and modeling is alldone from Mississippi State Universities state of the art Center forAdvanced Vehicular Systems (CAVS).1.1 Objectives- To make Specialty Motors Research the number one provider of solutions involving Hybrid Automobiles.- To have at least 50 customer s the first year bringing in an initial gross profit margin of 25% and increasing that by 2% every year until 31% is reached.- Achieve a growth rate of 20% per year the first 4 years until we establish 100 customer s per year.1.2 Keys to SuccessOur private customer base consists of the largest names in theindustry. Regardless of size, we treat every customer as an opportunityto better our relationship with various manufactures allowing us to usegrow in size and continue to stay the leaders in technology.1.3 Target MarketOur initial target market is any hybrid electric vehicles currently in useand any hybridvehicles in production. We are planning to fulfill all these customer s’needs bysupplying them with the newest state of the art information. We will befocusing onlarger companies that are established the hybrid vehicle industry aswell as anysmaller scale projects such as the ChallengeX competition.1.4 Competitive AdvantagesOur company is based out of CAVS research center, therefore, giving usaccess to state of the art equipment and simulation tools. Within thecompany we have access to hybrid electric vehicle simulation tools3such as PSAT and MagnaForce. PSAT can be used to simulate thecustomer’s specifications to see how their specifications will performbefore physical testing. MagnaForce can be used to measure andobserve characteristics of different electric motors. Since our companyis related to hybrid vehicle
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