Progress Report

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Progress Report Week 10: SmartCart (Shopping Has Never Been That Fast!!!) 1. Financial Plan
The start-up expenditures for SmartCart, Inc are summarized as below:  | Year 1| Year 2| Year 3|
 |  | |  |
Revenue (Sales)|  |  |  |
 |  | |  |
SmartCart System Sales| $ 40,376,000.00 | $ 204,820,000.00 | $ 819,378,000.00 |  |  | |  |
 |  | |  |
Total Revenue| $ 40,376,000.00 | $ 204,820,000.00 | $ 819,378,000.00 |  |  | |  |
Operating Expanse|  | |  |
 |  | |  |
Manufacturing Expense| $ 1,500,000.00 | $ - | $ - | R&D Expense| $ 200,000.00 | |  |

Personnel Salary| $ 156,000.00 | $ 468,000.00 | $ 780,000.00 | Capital Expenditures| $ 36,414.50 | $ 73,930.50 | $ 181,190.50 | Fixed Asset| $ 1,500.00 | $ 4,500.00 | $ 7,500.00 | Warehousing| $ 3,564.00 | $ 17,820.00 | $ 71,280.00 | Copyright registration costs| $ 345.00 | $ - | $ - | Legal Expanse| $ 205.50 | $ 10.50 | $ 10.50 | Rental Expanse| $ 10,800.00 | $ 21,600.00 | $ 32,400.00 | Misc. Expanse| $ 20,000.00 | $ 30,000.00 | $ 70,000.00 |  |  | |  |

Consulting Services| $ 90,000.00 | $ 450,000.00 | $ 450,000.00 | Promotion | $ 756,000.00 | $ 156,000.00 | $ 156,000.00 |  |  | |  |

Total Operating Expenses| $ 2,538,414.50 | $ 1,221,861.00 | $ 1,748,381.00 |  |  | |  |
Profit before Taxes| $ 37,837,585.50 | $ 203,598,139.00 | $ 817,629,619.00 |  |  |  |  |
Taxes (10%)| $ 3,783,758.55 | $ 20,359,813.90 | $ 81,762,961.90 |  |  |  |  |
Net Profit| $ 34,053,826.95 | $ 183,238,325.10 | $ 735,866,657.10 |

Consulting expanse indicates that expanses both the industry and practice of helping organizations improve their performance primarily through the analysis of existing business. Consultancies may also provide organizational change management assistance, development of coaching skills, technology implementation, strategy development, or operational improvement services. 2. Competitor Analysis

SmartCart is a company that sells a system (the supporting sale software and hardware e.g. scanner, scale, kiosk, and security gates) globally. Currently, there is no other company works in this area. So, we do not have direct competitors. However, there are two indirect competitors. We called these competitors indirect because they are grocery stores which have advanced technology similar to our innovation. The first indirect competitor is Kroger grocery store in the USA. This grocery store collaborates with Fujitsu USA to create an automatic checkout machine. The idea of this machine is like of an X-ray machine in the airport. Instead of using it for security system, this machine is used to detect bar codes or printed Universal Product Code (UPC) number of products by utilizing Radio Frequency Identification (RFID) and Optical Character Recognition (OCR). By using this machine, the cashiers just need to lift the products from the cart onto the machine's conveyor belt, and the conveyor belt will automatically run and allow the products to go through a scanning tunnel, where...
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