Ralph Beishline, Jordan Pszonek

Krista Reynolds, & Marina Long

Into to Business
Spring 2013
Charge Co.

Table of Contents

Introduction
Business Description
Leadership Description (chapter 14)
Human Resources Description (chapters 14, 15)
Marketing Description (chapters 11, 12, 13)
Financial Description (chapters 8, 9, 10)
Interrelationships
Operations Technology Plan (chapter 16)
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E

Page #
1-2
2
3
3-5
5-8
9
9
10
11
12
13-14
15
16

Introduction
The name of our business is Charge Co. We have chosen to place our business in
Silicon Valley, Ca. We chose this location because our goal to better our products
merchandising and sales, is to join up with Apple. Apple is located in the heart of Silicon
Valley, which is also a competitive place to out a new product out on the market.
PROS OF LOCATION
This location would put us at the heart of
the technology world, Silicon valley is

CONS OF LOCATION
This is a very competitive place to have a
company; many new companies are trying

booming for those in the technology

Industry.
Apple is located in Silicon Valley.

to launch their new technology or product

in this area.
High price/ City priced Real estate can
drive warehouse and office costs up.

Our goal is to provide a quality product to our customers at a low and reasonable
price.Our business will be a C-Corporation with the hopes to have a business contract
with Apple. We want a C- corporation so we can have stock and investor advantages.
This type of corporation will be best for Charge Co. because it offers a large business
plan for our company; it offers unlimited stock options, and tax advantages.
PROS OF C-CORP
Unlimited stock
Tax Breaks

CONS OF C-CORP
Many people own stocks

We plan to start out our business by funding it through each partner (four partners in
total), our plan is to start our business off with as much ownership as the partners can
have. When our company grows we plan to find some type of an investor such as an
angel investor to help provide loans we need to grow our company. We may later decide
1

to turn to a Investment bank for loans depending on how our company grows in size
and on what type and size loans we may need in the future.
PROS OF INVESTORS
Having the money to grow bigger and
having time to pay back loans.

CONS OF INVESTORS
Having to pay back loans with a set
interest rate.

Business Description

Our product is one of the first of its kind. Our product is a set of headphones that hold a
charge, that when plugged into your cellular device (iPhone) can use the charge from
the headphones to charge the actual phone itself. This product helps the consumer
have a convenient way to charge their phone on the go, instead of the traditional wall
outlet. The headphones are accompanied by a retractable cord and charger that allows
them to be plugged into the wall and pre-charged for prior use. This product provides a
convenient way for the customer to listen to their music, watch videos or take phone
calls on their phone, while charging their phone at the same time. This allows the
customer to go on long trips away from an outlet source and enjoy their phone. Our
product is unique from any other headphone out there due to the fact that it is the only
product of its kind. No other headphone has been created to charge the phone while
using the phone. We will use your typical assembly line type factory set up for creating
this product in production. For Raw materials our plan is to import goods and export
some labor overseas to keep costs low for production. To address quality control our
plan is to carry out a series of test batches of our product and run our product through
many focus groups to get the opinions of the customers. We want our product to be the
best out there on the market. See Appendix A for code of ethics.
Leadership2 Description

Each team member has acquired the same leadership style,

participative/democratic. As a group we have decided on each of our individual
strengths that allow each member to retain the final say over our decisions for that
particular part of the business. Ultimately, participation and input from everyone team
member is welcomed and encouraged. Each member will offer guidance in the decision

making process when they feel it is necessary. With the participative leadership style
being a commonality between all of the team members, we hope to have a motivated
and creative decision making process that will help to launch our product and run a
successful business.
Human Resources Description
At Charge Co. our employee recruitment and selection process will first begin
inside the company. We will look to promote current employees that already know the
job so they will not have to be trained. If that method fails we will put postings for the
position on websites, such as Monster.com. In addition to posting the position on
websites we will also send a recruiter around to colleges with highly ranked business
and communication departments. Once we have assembled a field of applicants for the
position we will narrow down the list by eliminating candidates that do not have a
bachelors degree in business, communication, or even a computer science degree
depending on the position. Next, there will be a structured interview for the candidates.
Those who make it through the interview process will have a back ground check
preformed. Anyone with a criminal record will not be considered. Finally, the remaining
3

applicants will take a personality and skill test. The results will be used to determine the
best candidate for the position.
Charge Co. offers two compensation plans. The first is for Sales
Representatives. They will be have a salaried pay from month to month. Second,
headquarters office staff will be paid an hourly wage. Charge Co. also offers its
employees a benefits package. The package you receive is based on your amount of
time with the company. For the first three years an employee works at Charge Co. they

receive two paid sick days and three paid vacation days. An employee can take up to
five vacation days a year, but two of them are unpaid. For the next two years the
employee works for Charge Co. they gain an extra two paid vacation days per year and
can take a total of seven vacation days a year; three of which will not be paid. Every two
years after that the employee gains one paid vacation day until they have worked for the
company for 10 years, at which time they can take a total of nine vacation days a year.
All extra requested vacation time will not be paid. Charge Co. also has a matching 401k
retirement plan. Charge Co. matches at a 1:1 ratio. We also match charitable donations
up to $500.
Employee Training at Charge Co. begins at orientation. The primary focus of
orientation is to allow the new employee to gain a full understanding of what the
company does, how it works, and what is expected of the employees. Next, the
employees will receive two days of off-the-job training that focuses on how to use the
companys computer system, how the management structure works, and how to
perform the tasks required of their position. Next, depending on the position, the
employee will receive at least two on-the-job training days where they act as an
assistant to a fully trained employee in the same position. This is then followed by 2
4

more days of the new employee being shadowed by a veteran employee to ensure they
have full comprehension of their job.
At Charge Co. employee motivation is created in three ways. First is through
commissions for sales representatives. Next all employees receive yearly bonuses that
increase every three years. Finally, employee motivation is created in team meetings.
The goals will be discussed in the meetings as well as the reasons behind what the

employees are doing. Also the manager leading the meeting will express the importance
of the employees to the goals of the company.
Employee Evaluations at Charge Co. will start off on a monthly basis. The new
employee will be given a performance appraisal every month for the first six months of
employment. These appraisals will be performed by the manager of that department.
After the first six months of employment, an employee will be evaluated twice a year on
their performance by the manager of the department.

Marketing Description
The target market for AMPZ headphones are those 12 to 30 years of age. This
age range captures music listeners from middle school through the start of their careers.
This range particularly accounts for the first time users of smartphones and establishing
AMPZ headphones as the initial listening device allows for the target market to be
captured. In fact, recent research from Project Tomorrow has shown that approximately
50% of high school-aged students own a smartphone and that more than three in five
parents surveyed said they would be likely to buy a mobile device for their child's
education, a ratio which shifted downward only slightly when the question was asked to
rural and/or low-income parents

(http://blogs.edweek.org/edweek/DigitalEducation/2012/10/new_report_half_of_high_sc
hool.html).
Because music is not necessarily limited by other demographics such as gender
and ethnicity, these factors are weighed less heavily. With technological devices being
shipped through the mail system and the availability of media through the internet,

geographic segmentation of the target market is also less critical. Consumers can get
their technological products and have audible media without much hassle in the world of
Amazon and Itunes. AMPZ headphones potentially plays into the psychographic
segmentation by targeting those people age 12 to 30 who may not want to interrupt
others with their media if they are actively engaged in listening to it. The consumers
respect for others in this regard may be a valid element to consider.
Demand based pricing is a form of product pricing dependent upon demand. This
process could be conducted directly in the market through various price points and
examining the products demand resulting from changes in the price. Questioning
consumer focus groups before entering the market could lead to similar insights through
the use of hypothetical pricing.
Building customer relationships is important for businesses since consumers are
often retained if given a quality product at quality value as well as quality service.
Charge Co. will actively make efforts to build customer relations by including a letter of
thanks to the customer for their purchase. This letter will also include a URL to the
Customer Services branch of Charge Co. where consumers will find an email address
6

and phone number to contact a Charge Co. representative with any issues or concerns
they have. By providing quality customer service and a quality product in AMPZ
headphones, Charge Co. hopes to have high customer satisfaction and retention.
The preceding information on customer service is a prime example of the product
strategy of AMPZ headphones. Charge Co. will provide a one-year guarantee on AMPZ
headphones as an element as well. AMPZ headphone packaging will be attractive in its

use of striking colors, which hopes to appeal to the younger end of the target
demographic, while also highlighting elements of increased productivity for the upper
end of the demographic. These efforts of the product strategy make efforts to add
quality to the Charge Co. and AMPZ names.
The pricing strategy of AMPZ headphones has a variety of factors. The primary
factor is that of competition. AMPZ must compete against items from companies such
as Apple, Skullcandy, BeatsByDre, Sony, and Phillips. The price point of AMPZ is
certainly impacted by the price of the goods these companies send to market and AMPZ
must be competitively priced while also having perceived value. The benefit of being
able to recharge your device with the AMPZ headphone also for a shift upward in price
compared to the others since they are currently unable to provide this benefit, but the
shift must be controlled so as to the balance the additional cost with the consumers
benefit.
The distribution strategy of AMPZ headphones has a number of options. A
potential agreement with Apple to provide the headphones for their devices would allow
Charge Co. access to Apples wide distribution avenues and selling outlets and provide
7

further opportunities with each new Apple product while Apple may receive a market
share boost from being the primary supporter of AMPZ technology. Should this plan not
workout, a virtual marketplace will be expanded and focused upon at
AMPZheadphones.com where consumers can place their purchases. Efforts will be
made to get shelf space at technological stores such as RadioShack. Warehousing near
the production factory must also be considered in both cases so as to provide enough

storage at a reasonable price. Either option allows for AMPZ headphones to get to the
customer in a reasonable time.
The promotional strategy of AMPZ headphones is slightly more direct compared
to the distribution strategy. Adverts will be purchased in media centers where
headphones would be used, primarily Youtube and Pandora radio. Partnering with Apple
could allow for the inclusion of media downloads with the products purchase. Having a
college recruiter also serves as a promotional element since we have a product
spokesperson in the center of a hub of our target market. Other promotional strategies
involved directly allowing consumers to have an influence, such as voting on their
favorite of a selection of commercials or having a headphone design contest/vote.
Charge Co. has trademarked the slogan of AMP up your volume and AMP up your
power! as the AMPZ slogan. A logo and other promotional media is included in
Appendix C.

Financial Description
Based on our Income Statement and Balance Sheet the expenses and losses
8

are $17,711.00. If our product is $14.99 per unit, then we would need to sell about 1,182
unites to break even next year. See appendix D for calculations.
Interrelationships
Category
Business
Ownership

Proposed
Change
Attempt to sell
more shares

Advantages
More capital
coming in

Disadvantages Final Decision

More people
holding a
share of the
business,
more people

Going through
with change in
attempting to
sell more
shares in

Leadership

Human
resources

Delicate
someone with
more control
over company
decisions
Lower
salaries, hold
off promotions

Having one
person call
important
shots
Bringing more
money into
business,
paying less in
salaries
towards
employees

Marketing

Increasing The
marketing of
our product

Bringing in
more income
and selling
more products

Finance

Seek out
lowering
producing
costs and
where product
is produced
Keeping same
layouts

Reduce
primary costs

Office
Technology

Same rent
costs 9

responsible
Counters
participative
leadership
styles of the
group
May back fire
on us,
employees
may take this
negatively

Costing more
for the
company to
market
product
Possibility in
quality drop in
product

No change in
office size

Operations & Technology Plan

See appendix

company
Not to change
the leadership
style due to
disadvantages
We will make
this change
for first 4
years of
employees
career, they
will not be
promoted
Slight
increase in
marketing

Looking for
lower
production
costs and
materials
Keeping office
the same

Appendix A
10

CODE OF ETHICS:
Although Charge co. plans on exporting jobs for production overseas, we plan on
providing jobs in the states in the areas of marketing and sales. We want to be able to
help the community by providing jobs and helping out when others need jobs in a hard
economic time. We are looking for new workers right out of school to help them get jobs
in a booming industry. Our goal is to provide the safest work environment to our

employees, along with benefits to help out the workers. We plan to recycle goods to
help out our planet and leave as little of a carbon footprint as we possibly can.

11 B
Appendix

Appendix
12 C

Appendix
13 D
Based on our Income Statement and Balance Sheet the expenses
and losses are $17,711.00. If our product is $14.99 per unit, then
we would need to sell about 1,182 unites to break even next year.
Charge Co.
Balance Sheet
December 31, XXXX
ASSETS
Current Assets
Cash

$2,08
0

Accounts receivable
Inventory
Total current assets
Plant, Property and Equipment
Less: Accumulated depreciation
Net plant, property and equipment
Total Assets

1,500
800
4,380
1,080
$6,00
0
$9,30
0

LIABILITIES
Current Liabilities
$1,20
0
1,200

Accounts payable
Wages payable
Total current liabilities
Long-term Liabilities
Long-term loan

2,400

Total Liabilities

$5,40
0

Charge Co.
STOCKHOLDERS'
EQUITY
Income Statement
Common Equity
For Year Ending December 31, XXXX
Common stock
Sales Revenue
earnings
Cost ofRetained
goods sold

3,000

$1,00
0
15,500.00
3,000
11,625.00

Total
Equity
GrossStockholders'
Profit

$3,
3,875.00
900

Operating Expenses
Total Liabilities
and Stockholders' Equity
Selling expenses
Administrative expenses
Total Operating Expenses

$9,30
2,840.00
0
2,760.00
5,600.00

14

Net Operating Income

1,725.00

Other Expenses
Interest expense
Taxes

225.00
234.00

Net Income
Dividends
Transfer to Retained Earnings

2,184.00
0.00
2,184.00

15 E
Appendix

16