Case Study Hillstone

Financial and operational plans:

1. Expected revenues and profits

Hillstone when sells a Tron, they will sell at a price of $300. The cost of per shoe to Hillstone is $195. They make $105/shoe, if estimated by the projected figure they expect to sell nearly about 2000 shoe in their first quarter. Their expected revenue is about $600,000 in their maiden quarter. With a margin of $105/shoe the total will be $210,000 by selling 2000 pieces. The profit is within this margin of $105, which they expect to be around 20-25% initially which comes out to be $40,000 to $45,000. ]

2. Projected Budgets, schedules and responsibility

With the given budget of $30,000 they plan to launch their shoe. They have divided their funds as follows:

Particulars Due

How valuable is acupressure in today’s world. How it can improves one’s health physically and mentally. Since it’s a unique idea we as a company want people to not only buy the product we want them to understand the reason why they should buy Tron.

- Creating a market: Hillstone already has decided its target audience but by marketing they want people to relate themselves to the product. We want our potential audience to realise the serious benefits to Tron. We want to create our own individual market

- Creating enigma: since Tron is the only smart shoe in the world by marketing they believe to create a massive level of excitement amongst the people which they believe are their potential buyers. We tend to do it by marketing in such a way that people are looking forward for the launch. We believe in creating an aura of suspense.

Financial objectives:

Revenue

Common financial objectives for survival include collecting on all outstanding debts on time and in full, de-leveraging by paying off debt and keeping income levels consistent.

Return on Investment

Return on Investment is a financial ratio applied to capital expenditures. ROI can be applied to two basic scenarios. First, ROI is concerned with the return generated by investments in real property and productive equipment. We want to make sure that the buildings, machinery and other equipment we buy generates sufficient revenue and profit to justify the purchase cost.

Societal objective of Hillstone

1. We have a tie up with the New Zealand breast cancer foundation. We believe in giving back to the society as well. We will donate $2 for every shoe purchased to this foundation. This will keep us create a brand image of a company which believes in helping the section of society. We will attach a pink ribbon to the box of the shoe in which the shoes is packed and the delivered. This ribbon will be a symbol to breast cancer awareness.

2.

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