GAC012 Assessment Event 2: Project-Written Report

Business Plan:

Second Eyes

Student’s Name: Bohun Jung

Student ID #:

Teacher: Mr. Choi

Due Date: 16 July 2012

Word Count: 2012

GAC012 AE#2 Bohun Jung

Table of ContentsExecutive Summary.....................................................................................................................................2

1.0 Introduction......................................................................................................................................3

1.1 The objectives of the research.......................................................................................................3

1.2 The context....................................................................................................................................3

1.2.1 Prime function........................................................................................................................3

1.2.2 Key competitors.....................................................................................................................3

1.2.3 Legal structure.......................................................................................................................3

1.2.4 Choice of Business.................................................................................................................3

1.3 Background knowledge.................................................................................................................3

1.4 Thesis Statement...........................................................................................................................4

2.0 Method..............................................................................................................................................4

2.1 Data collection..............................................................................................................................4

2.2 Research objectives from data collection......................................................................................5

3.0 Findings............................................................................................................................................5

3.1 Key success factors.......................................................................................................................5

3.2 SWOT analysis of the business and an alternative........................................................................6

3.3 Summarization..............................................................................................................................8

4.0 Discussion.........................................................................................................................................8

4.1 Interpretation.................................................................................................................................8

4.2 Assess the effectiveness of the research........................................................................................8

5.0 Conclusion and recommendation......................................................................................................9

5.1 Identification and Justification......................................................................................................9

5.2 Competitive edge..........................................................................................................................9

Reference List...........................................................................................................................................10

Appendices A............................................................................................................................................11

Appendices B............................................................................................................................................13

Appendices C............................................................................................................................................15

Appendices D............................................................................................................................................16

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Executive Summary

Purpose: This research aimed to introduce my eyeglasses business that would become successful.

Thesis statement: I hope to be successful by considering everyday people’s desires and making sure my company is always their first choice by providing unique and highest quality eyeglasses.

Methods: Internet sources provided substantial knowledge into acquaintance of spectacles that were demonstrated and explained by interview with managers in highly renowned corporations in Korea, Look Optical and ALO.

Findings: The research offered sufficient information on the success factor and distinctive features of selling management.

Key conclusion: Since special strategy is realized to be needed, which have freely opened space and provide right of choice totally up to customers, setting up a business with more effective plan seemed to give a incredible opportunity to progress favorably proved by Look Optical.

Recommendations: While it is clear that people’s needs of eyeglasses vary, this report recommended Hanyang University continue to develop and attract more young people as to continue providing quality eyeglasses for students as well as those who look for suitable glasses. Since the area is thinly populated, the company expects to spend little on direct consumer advertising and would rely heavily on direct sales efforts, publicity, and word of mouth.

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1.0 Introduction

1.1 The objectives of the researchTo be the most well known optician’s in South Korea, targeting young people that have customers based on 5,000 people in 6 months with over 30 franchises.

1.2 The context

1.2.1 Prime functionTo sell eco-eyeglasses designed by me

1.2.2 Key competitorsLook Optical – Provides cutting-edged fashion eyewear at affordable prices

ALO – Make customized glasses with their own opticians

Gentle Monster – Constantly doing experiments on design, and material for their peculiar products

1.2.3 Legal structureLike when many entrepreneurs start their small business, I would like to establish a sole proprietorship, because I don’t need to hire any employees initially.

1.2.4 Choice of BusinessAlthough more than half people wear glasses, there is only one big company that most people could have thought of an optician’s in Korea. I thought of being the company of eyewear that is wore by every single person having bad eyes, which is made out of environmentally friendly materials. By continually refreshing the product with our own uniquely designed glasses, we create value for our customers. We attempt for maximum comfort on faces of all shapes and sizes. The innovative design features our desire to emphasis individual.

1.3 Background knowledge

1.3.1 Importance of SWOT analysis and how it will affect your businessBefore starting to work on a new project, I need to plan everything carefully. I should do SWOT analysis to evaluate the strengths, weaknesses, opportunities, and threats involved in the project. The main idea of a SWOT analysis is to identify the internal and external factors that will affect

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the project either in favorable or unfavorable ways. SWOT analysis is instrumental tool that leads me to become success in business due to successful businesses build on their strengths, correct their weakness and protect against weaknesses and external threats. Also they keep a watch on overall business environment and help to recognize new opportunities faster than its competitors.

1.3.2 Importance of the business plan model and why it is necessary for the success of your business

Business plan model is often used to give an immediate overview of my products. It describes the benefit offered by the product and outline why I believe potential customers need it and explain how I am going to reach the market. By highlighting the attractiveness of my target markets, I could have the reader of my business plan get interested.

1.4 Thesis StatementSince my company customizes eyeglasses that are manufactured by my designers, I hope to be successful by considering everyday people’s desires and making sure my company is always their first choice. To make this happen, I should consider the public’s preferences and follow the latest trends of young people, which are important factors to my success. After detailed research, I expect my business to be progressive in providing unique and highest quality eyeglasses frames to make sure it meets my customers’ individual requirements and gain reputation as the company grows.

2.0 Method

2.1 Data collection Internet

http://www.lookoptical.co.kr

http://www.alostyle.com

Interviews1. Mr. Lee, Manager

Look OpticalHaengdang-dong, Seongdong-gu 133-070, Seoul, South KoreaTel. 02-2281-6070 / Fax. 02-2281-6071E-mail : kjhg8209@hanmail.net

2. Mr. Ju, ManagerALO1st Floor, 536-9, Shinsa-dong, Kangnam-gu, 135-889, Seoul, South KoreaTel. 02-512-7515 / Fax. 02-512-7516

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Survey - I asked to 20 people of my acquaintances between age of 20 to 25 for conducting a survey about how want to be looked to others with glasses on, which was carried out near Hanyang University.

2.2 Research objectives from data collection

Internet

http://www.lookoptical.co.kr - Introduced new fashion of trendy style of young people at reasonable prices

http://www.alostyle.com - Applied one on one (optician – customer) system like (stylist – celebrity) that makes most suitable to a customer not only on functional purpose, but also stylish and attractive-looking purpose.

Interview

Optical manager – Provided insight into the world of eyeglasses and how to create the most efficient way of providing products to customers.

Alo manager – Suggested a new method of customer service that makes people feel comfortable and easy to shop.

Survey

It helped me to understand the eyeglasses’ current trend of preference in young people, which gives me creative ideas that make variety kinds of characteristic products by understanding the customers’ liking.

3.0 Findings

3.1 Key success factorsThe main success factors will be the customized glasses, adapting environment friendly material and the location. My key success factor of my business is the personalized eyeglasses. I am planning to provide customers with products that they want by gathering the information about the current trend among young people. By interviewing the manager of optician’s, I figured out that there are lots of natural ingredients that are used in making the frame of glasses. I hope applying natural components would lead us to be distinctive from other companies, which makes our products, the eco-glasses. Moreover, the location is another success factor. I have discovered an area of large floating

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population where young people are crowded all the time. The places I chose are Haengdang-dong, Seongdong-gu and Yeoksam-dong, Gangnam-gu.

3.2 SWOT analysis of the business and an alternative

Plan A

Strength

Rental deposit and workforce payment are below the average in this area

Since there is Hanyang university right beside it, the main target customers are university students

For the marketing strategy, I can offer special student discount which attract them to buy

Close to the factory that provide raw materials, making more faster in supplying the products

Weakness

Not many people pass the way where it is located, because the store is positioned on one of the minor roads far away from downtown

Not easy to approach to people readily, because not as much people as in Gangnam walk around for shopping in this area

Hard to present high-priced products due to the surrounding (social) environment, since cheaper conducts are preferred

For it is not a busy street, holding the promotions don’t work much

Opportunities

Nearby companies are not much competitive compared to mine, and only few exist

Easier to contact with students that obviously helps me to get to know further more about the latest fashion

Close to Seoul forest, which gives me opportunity and inspiration to look for the natural ingredients

Easy to start up with little money due to relatively low price compared to Gangnam

Threats

Although competitors are pretty weak, they might come together and fix the price in collusion against me

Market demand will be relatively low in comparison with the ones in big cities

Food alley is well developed, putting my store completely separate from main concern

Will need to strive to meet the young’s taste since most of customers are students

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Plan B

Strength

Since several companies are competing severely to attract people with promoting their new products, I can get a good idea so that it helps me to go ahead in the competition

With lots of young and energetic people, it is easy to hire sensible employees

With great development of technology, it can help me to maximize promotion effects

Located in famous city that attract not only Koreans but foreigners

Weakness

Suffer from money trouble, because everything is so expensive such as rent cost and workforce

Too far from factory which makes transportation time and distance longer

Need to make careful decision on everything as it is exposed to number of people

Always will be the target to be compared to other companies which one is better

Opportunities

As Gangnam is the place where people are always overflowing, so it is great spot to market new designs.

My company’s products could spread through word of mouth very quickly in rapidly changing city

More easier to adjust to customers’ needs immediately as I accept the complains right away

Naturally could draw an attention by holding variety of fun events

Threats

There are lots of popular optician’s shops around

Very competitive in the pricing and the promotional strategies due to high demand

If I fail to adjusting the money matter, there is high possibility to go bankrupt

Corporate social responsibility is much more required due to company image and reputation

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3.3 Summarization

Company [Interviewer]Questions

Look Optical[Mr. Lee, Manager]

ALO[Mr. Ju, ALO]

What do you think your competitors are? Look & Look in Enter-6

Relatively - Look OpticalPersonally - 1001, Davinci,

Glasshouse

What do you think that makes your company so special from

other companies?

A relaxed atmosphere that customers can freely choose

what they wantMore freely open and stylish

Are there any special trends among young people these

days?

Big sized, simple horn-rimmed glasses

Oversized black or tiger skin horn-rimmed glasses

What is the most important value that your company

emphasis?

Fashion, just like wearing clothes

Thinking about customers in their positions

What are your most concerned about recently?

Senior citizens don’t like our ways of management

Overall economic downturn, not just glass industry

Look optical has been ranked first in the list of eyeglasses companies, which successfully have gained their recognition to public with their characteristic mood and values. ALO is combination brands store that represent the existing glasses company from all over the world. Although ALO is little different kind of store from Look optical, both of their fundamental value and main concern were similar.

4.0 Discussion

4.1 InterpretationThe main source of information was web sites of Look Optical and ALO that were consulted to find out about their policy and their own means of selling procedure. Their online opened annual reports were referred as well to get insight on basic initiatives. Also, two business managers of both corporations were interviewed to figure out the overall situation on eyeglasses industry and map out a general plan. These research methods were needed to collect relevant data to make my business stand out conspicuously.

4.2 Assess the effectiveness of the researchThe most considerable factor that affected my findings was the floating population and basis of age class in the average crowd. By roaming streets around Gangnam for an interview, I found out that people hardly stop by the optician’s than I thought even though its TV commercial were showed many times.

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Since then I realized the location doesn’t influence too much, which scarcely relate to product sales. Social influences on aging population were largely concerned on my business due to practically most of consumers are twenties or thirties.

5.0 Conclusion and recommendation

5.1 Identification and JustificationTwo different strategies are considered to have my business get under way: luxury store decorated with fancy designs having narrow range of choices in Yeoksam-dong, and the original designed store with wide choice of selections in Haengdong-dong. The implementation of approach in Haengdong-dong will benefit the corporation in many ways. Firstly, the company is specialized in manufacturing eyeglasses made of environment friendly material using natural ingredients as it is close to Seoul forest. The store would provide various types of glasses at a bargain price. Secondly, customer satisfaction will be enhanced due to improved quality and service. Since opening a business in Hanegdong-dong is a considerable saving of money, the company could focus more on new product development and social responsibility, which makes the company’s reputation improve. Lastly, profits will increase by the reduction of costs. With low street tax and maintenance cost required, the financial condition would naturally get better. In addition, through introducing innovative methods of sales strategy with reasonable prices, it will arouse customers’ curiosity, leading to build up massive profits.

5.2 Competitive edgeThe competitive edge of my company is in its selling strategy differentiation compared to existing ones in other companies and targeting a niche market as the economy is in worse condition. First distinction is letting people put on variety of glasses and shop freely with minimizing the role of shop assistants that show up when only necessary due to the thought that wearing glasses are not different from wearing clothes like a fashion. Another different competitiveness is that people can have their own only glasses, which have no equal by picking the color and design of frame and the size of glasses they want as a buffet.

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Reference List

Ju, Gyuyeon. Personal interview. 10 July 2012.

Lee, Un. Personal interview. 9 July 2012.

“About us.” Alostyle. Alo, 2011. Web. 8 July 2012.

“Brand story.” Lookoptical. Look Optical, 2011. Web. 8 July 2012.

“Business plans and marketing strategy.” Businessballs.com. Businessballs, 2012. Web. 8 July 2012.

“Elements of a business plan.” Enterpreneur. Enterpreneur Media Inc, 2012. Web. 8 July 2012.

“SWOT Analysis.” NetMBA Business Knowledge Center. NetMBA, 2010. Web. 8 July 2012.

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Appendices A

-Interview with Mr. Lee, the manager of Look optical in Hanyang Uni. Store

나: 매니저님께서 생각하는 룩옵티컬의 경쟁 상대는 누구라고 생각하세요?

매니저: 이 근처에서는 엔터식스안에 있는 룩앤룩이라는 안경점이요.

나: 다른 회사들과 달리 이것만은 우리가 최고라고 생각하는 것은 무엇인가요?

매니저: 고객님들이 자율적으로 고를 수 있는거요. 옛날 안경원에서는 안경사들이 붙어서 판매하곤 했는데, 요즘은 젋은 층들은 그것을 안좋아하잖아요? 자유롭게 고르고 써 보고 자기가 선택하게끔 만드는것이요.

나: 요즘 젊은층에서 유행하는 트랜드가 따로 있나요?

매니저: 사이즈는 고객님께서 쓰신 것과 같이 큰 사이즈 좋아하시고 뿔테 좋아하시고 디자인은 고객님이 쓰신 것과 같이 깔끔하고 전체적으로 심플한거요.

나: 회사에서 가장 중요시하는 가치관은 무엇인가요?

매니저: 안경은 패션이다. 눈이 꼭 나뻐서 쓰는게 아니라 옷 갈아 입는 것처럼 패션쪽으로도 비중을 두고 있어요.

나: 마지막으로 지금 요즘 가장 걱정되는게 어떤 거라고 생각하세요?

매니저: 젊은층들쪽으로 가다보면은, 조금 나이 드신 분들은 자율적으로 고르는 것보다는 골라드리는 걸 좋아시니까, 두가지를 다 얻을 순 없잖아요. 젊은층 위주로 가다보니까 나이 드신 분들은 이런 컨셉을 별로 좋아하지 않는 분들이 있는 것 같아요. 그런 걱정 말고는 다른 걱정은 없어요.

Me: What do you think your competitors are?

Manager: In this area, I guess Look & Look located in Enter 6.

Me: What do you think that makes your company so special from other companies?

Manager: A relaxed atmosphere that customers can freely choose what they want. In the past optician’s, opticians used to stick to customers and explain about glasses all the time. However, young people today don’t like that way. Thus, we strive to make them openly try the glasses on whatever they want and to select.

Me: Are there any special trends among young people these days?

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Manager: Size is preferred mostly same as yours, which are big. Horn-rimmed glasses are pretty well sold. For a design, generally neat and simple just like yours.

Me: What is the most important value that your company emphasis?

Manager: Fashion! Not because of only bad eyesight, but like wearing clothes, it is based primarily on fashion.

Me: What are your most concerned about recently?

Manager: There is something that elders prefer to be recommended rather than they choose by themselves, since they have no idea, which one is which. Since we cannot have it both ways, we have no choice but to give one thing up. Other than that, I have no concerns.

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Appendices B

-Interview with Mr. Ju, the manager of ALO in Garosugil Store

나: 매니저님께서 생각하는 알로의 경쟁 상대는 누구라고 생각하세요?

매니저: 상대적인 경쟁사는 룩옵티컬이죠. 개인적으로는 많아요 1001, 다비치, 글라스하우스, 등등. 다 서울에 많이 점포를 가지고 있는 회사들이죠.

나: 다른 회사들과 달리 이것만은 우리가 최고라고 생각하는 것은 무엇인가요?

매니저: 저희가 기존에 있는 안경원보다 느낌이 훨씬 더 자유롭고 개성적이에요. 직원들의 스타일과 매장의 디자인도 세련되어 있고요.

나: 요즘 젊은층에서 유행하는 트랜드가 따로 있나요?

매니저: 요즘에는 오버사이즈랑 뿔테 많이 찾으세요. 색상은 블랙이나 호피 계열이요.

나: 요즘 가장 걱정되는게 어떤 거라고 생각하세요?

매니저: 아무래도 경기 자체가 다운되어 있으니까 전반적으로 안되는 거지 안경 산업만 특별히 안되는 것 같지는 않아요.

나: 회사에서 가장 중요시하는 가치관은 무엇인가요?

매니저: 슬로건 말씀 하시는 거면 올해는 명사가 생각이고 작년은 열정이었어요. 고객님들께 권해드리고 만들 때도 고객님들을 위해 생각해서 만드는 것과 그냥 만드는 것은 천차만별이거든요.

Me: What do you think your competitors are?

Manager: Relatively, the main competitor is Look Optical. There are many in personally including 1001, Davinci, Glassstory, etc. All companies have many stores in Seoul.

Me: What do you think that makes your company so special from other companies?

Manager: Our shop is much more freely open and stylish than past opticians. Employees’ style and store’s design are also fashionable.

Me: Are there any special trends among young people these days?

Manager: Nowadays, young people look for over-sized and horn-rimmed glasses. Colors are black or tiger skin types.

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Me: What are your most concerned about recently?

Manager: Since the economy is down overall these days, I think it is general concern on all business not just on eyeglass industry.

Me: What is the most important value that your company emphasis?

Manager: If you are asking me about a slogan, the term for last year was ‘passion’, and ‘thinking’ this year. When manufacturing glasses, just making without any thinking and making with the effort that put value on customers are totally different.

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Appendices C

-Actual images of Look Optical Hanyang Uni. Store and ALO Garosugil Store

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Appendices D

-Survey hold by 20 random people of my acquaintances in age of between 20 and 25, about how they want to be looked to others with glasses on.

intelligent10%

well suited20%

charaterful5%

stylish65%

Eyeglasses

intelligentwell suitedcharaterfulstylish

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