Essay: Statement of commerce of british chambers

Situational Analysis

UK Market Analysis

As per the statement of Commerce of British Chambers said at the conference yearly “The revolve of global economy from the previous year have been remarkable”, specified the extent of the blow since financial year. This will give the foundation of support for continuous growth of UK market inside global economy and offer a supportive environment.

The reason behind the growth in the UK economy was because of three most important factors.

• Recovery of Confidence
• Asia Growth and Other promising markets
• Impact of financial system strategy

If confidence builds the spending on private sector recovers. UK exports better performance helps them to reimburse for the continuous low demand for domestic and industrial goods. In spite of the depressing headlines released the UK economy is performing better in the world.

United Kingdom is the most important and developed country in the economy and stands 6th position in the world economy in terms of GDP (Gross domestic product). It also stands in the 6th position In terms of purchasing power. UK enters into recession in the year 2008faced the most horrible recession in the year 2009 and improved the growth in the economy at the end of 2009. The world’s most globalized country is UK. London the capital is the foremost financial hub in UK economy for worldwide business. UK plays an important role in the world economy. London stands in the 6th place as a largest city in world economy. It produces around 30% of the UK economy and GDP. Service industry is the main industry of UK. In the starting of the year 2010 the GDP and the economy has increased by 0.3%. UK left the recession on 26th January 2010.

Product & Technology Analysis

Lender	Services	Rate	Max LTV	Fee	Mortgage Type
ABC	Online Mortgage	3.20%	80%	£0	Variable
Chesham BS	Online Mortgage	5.74%	90%	£0	Fixed
Norwich and Peterborough BS	Online Mortgage	5.74%	85%	£0	Fixed
HSBC	Online Mortgage	5.99%	90%	£0	Variable

Technologies

Innovation substance the one who innovates will be the leader in mortgage market. Initially we need to realize the relentlessness of the problems facing by the lenders and facilities facing. It is not time to stop or outsource the technology but we need to change the method of using the technology so as to achieve the success in the mortgage market from investor, to lender, to servicer.

By introducing Online Residential Mortgage Lending Product in the market it gives more opportunity to create a centre of attraction to the customers towards the mortgage loans and helps them to attract more customers to purchase the houses. We are dedicated to give confidence to the customers that we will provide good houses at a reasonable price and interest so that they can afford to purchase the property at a reasonable cost.

We also provide easy repayments of the mortgage by giving reasonable time duration to the customers so that it will be easy for them to repay the mortgage. We provide services like, showing the properties through online so that they do not need to go directly to the place of the property to see. This reduces the time of the customer as has an easy access to find the mortgage property. By making the mortgage process online it reduces the time and cost in finding the mortgage by providing wide range of options and information. The online process links to the lenders, credit providers etc..

Important Features

• Low process charges and in less time
• Availability of information and easy access to the information through online 24/7
• Easy documentation
• Reasonable interest rates
• Online Repayment
• 24/7 customer help desk
• Interest rates based on the credit history
• Low mortgage rate for the first two years

Process to open an account for online residential mortgage lending

• Open an account in just few minutes.
• Should be a UK resident
• Should have a UK current account
• Current account number
• Bank sort code
• No time limit
• No entry fees.

Swot Analysis

Competitor Analysis

To sustain in the market with the competitors we need to be more innovative in attracting the customers and in building the confidence of the customers. We should provide wide range of service and offers and comparatively less charges compare to the competitors. It is very difficult to be the leaders and to sustain in the market. To be successful in competitive era we have to think innovatively. Need to persuade the behaviour of the competitor for the advantage of the firm. Availability of information about the competitors to analyze and forecast. Having enough information about competitors to analyze.

Components of Competitor Analysis

How to exploit opportunities

We have to identify the opportunities in the market. Once after identifying opportunities they need to be direct and study the plan which we should take. Make sure that the opportunities will fit in our business. Monitoring the competitors and analyzing the regions in which they don’t work and which customers they are not targeting, those customers will give the business to the organization. We need to grab the opportunity when it arises to capture the market and to be successful.

How to Handle Weaknesses

Our weaknesses should not be the strength to our competitors. We need to convert our weaknesses into strengths to sustain in the competitive era. Need to plan the strategy appropriately to overcome the weaknesses. Organization should concentrate on the weakness of the competitor and need to identify the weakness and should find out in which areas they are lacking and we need to plan the strategy to capture the competitors market. Strategies should be implemented in a proper way to be successful in the business in which they are. The planned strategies are directed by the senior management of the organization. Customer satisfaction is very important to overcome the weaknesses.

Marketing Research

Required Information

Marketing Research plays a major role which links the customer, consumer and public to the dealer with the information only. We need to recognize and describe the opportunities and threats, produce and predict the marketing actions, performance should be monitored and need to improve if necessary. Information available will help us to resolve the issues which occur in the organization. Information should be collected by using different ways.

Marketing research is done based on the past records and predicting the future which provides present and useful information about the situation of the market which in turn helps the organization to gain the competitive benefit within the short period. There are two ways of marketing research.

• Primary Research
• Secondary Research

Primary Research

In primary research information is collected by using surveys in the market, conducting interviews (Telephonic and Group), questionnaires and contacting the customers directly. Research is done based on the requirement of the organization. This research is usually based on different techniques. Research main objective is to identify the expected customers.

Secondary Research

In secondary research we collect information from the past records and from news papers, journals and through media. Information is also available in agencies. Primary research is more expensive than secondary research and it does not require innovative methods. Our marketing team will do the outdoor interviews in the areas of South England.

Marketing Strategy

Marketing strategy is to know the feedback of the customers and advertising strategies is to attract customers. We follow different advertising strategies to launch our new Online Residential Mortgage Lending product. These are performed right through the year. Marketing strategies are started before launching the product. These strategies are performed to improve the market growth and to increase the sales of the product.

Number of Advertising Strategies

There are different types of Advertising strategies which are performed by the organizations. Strategies vary from organization to organization based on nature of business. Types of advertising strategies are.

• Electronic Media
• Tele Calls
• Trade shows
• Promotions
• Magazines, Newspapers

Advertising through electronic media such as Radio, Television, Emails, etc… By advertising through this we can reach millions of customers in a short time. While advertising we need to provide a detail information about the product and benefits of the product.

Tele calls will be used to call the customers and inform them about the newly launched product and the services providing. Various promotional activities are used to promote the product so as to reach the customer. Advertising in newspapers and magazines will also help us to reach the customers. Advertising in the internet and financial hubs such as setting up blogs in website, which are most frequently accessed by the people. Before performing all the strategies we need to identify the target customers to prepare the appropriate plan of actions.

Distributing the pamphlets in the busiest areas where we can reach the target customers to promote the product and the new service which we are providing. Advertising in the tradeshows and putting the hoardings on the roads. These all strategies play a vital role in reaching the targeted customers so as to achieve the predetermined goals and to be successful in the competitive market.

Measurement of Strategies

Strategies are planned based on the approved financial budget and this will be supervise by the top management to check whether the funds are used properly are not and also to take effective measures to stop the misuse of the approved funds. If the funds are planned and use properly then we can achieve the predetermined goals of the organization.

Along with the financial budget the top level management will also monitor the performance of the employees and compare the actual results with the predicted targets. If the operation and performance goes wrong they take effective measure and suggest for the developments and if necessary modifying the plan. They need to plan the strategies based upon the approved revenue.

Implementation

Realistic Implementation Schedule

Once the management has approved the Online Residential Mortgage Lending product, we will start the process for launching the product in the market. We need to follow few steps for launching the product.

• Modernize the software and designing the website with the latest technology as user friendly for using in launching the product.
• Revise online facilities for the customers to register.
• Making sure that the entire information is available in online.
• Training the employees for online help to the customers.
• Preparing necessary materials f
  or advertisements about the product.

Approximate human resources

Initially we recommend 40 employees to operate this business which includes 3 managers, 6 senior staff and 30 junior staff. Later the employees will be recruited based upon the success and the flow of the business.

Critical Paths

Before launching the product in the market we need to perform few activities.

Task Description Estimated Days

A Marketing Research 30

B Organize the manuals 60

C Publishing of Material 10

D Advertisements 40

E Training the Employees 30

Task Description Estimated Days

F Implementing new Facilities 15

on Website

G Planning Portfolio Management 10

H Risk Analysis 60

What if’s Scenario

What will happen if we won’t achieve predetermined goals and if the customers and profits are lower or higher than expected.

After launching the product if the results go wrong and are not up to the expectations and new product launch fails, we will reengineer the marketing plan or prepare and implement the new plan. It takes some time to be successful in the market while launching the product, as we can’t expect results in short term. Initially the profits will not be more but the customers and the overall profit will increase.

To avoid all these scenario we need to be very careful while planning the marketing plan and we should be very cautious while implementing these plans. To overcome these scenarios we need to implement the marketing plan as the management has planned to be successful.

Financial Summary

Breakdown of marketing cost

	1st Year				2nd year				3rd year
Expenses	QT 1	QT 2	QT 3	QT 4	QT 1	QT 2	QT 3	QT 4	QT 1	QT 2	QT 3	QT 4
Research	125	125	125	125	155	155	155	155	155	155	155	155
Electronic Media	80	80	80	80	90	90	90	90	100	100	100	100
Magazines	60	60	60	60	60	60	60	60	60	60	60	60
Tele calls	40	40	40	40	40	40	40	40	60	60	60	60
Trade show	110	110	110	110	120	120	120	120	130	130	130	130
Sponsors	250	250	250	250	280	280	280	280	325	325	325	325
Promotions	60	60	60	60	60	60	60	60	60	60	60	60
Outdoors	120	120	120	120	130	130	130	130	140	140	140	140
Total	845	845	845	845	935	935	935	935	1030	1030	1030	1030
Operating Expenses
Expenses	180	180	180	180	200	200	200	200	230	230	230	230
Incentives	80	80	80	80	90	90	90	90	90	90	90	90
Total	260	260	260	260	290	290	290	290	320	320	320	320
Grant Total	1105	1105	1105	1105	1225	1225	1225	1225	1350	1350	1350	1350

Number of Clients

After launching the Online Residential Mortgage Lending Product we plan to generate customers of 1000 to 2000 over the next 3 years.

Approximate Revenue estimate of next three years

Below is the financial summary of the expenses, income and profit of our business.

	1st Year	2nd year	3rd year
Capital Invested	800,000,000	1,500,000,000	2,500,000,000
Interest Income	25,600,000	48,000,000	80,000,000
Interest Expenses	5,120,000	9,600,000	16,000,000
Net Interest Income	20,480,000	38,400,000	64,000,000
Impairment Loan	19,200,000	36,000,000	60,000,000
Operating Expenses	1,105,000	1,225,000	1,350,000
Profit Before Tax	175,000	1,100,000	2,580,000
Tax	49,000	308,000	722,400
Profit After Tax	126,000	792,000	1,857,600