STRATEGIC BUSINESS PLAN

Emily W. SatterfieldMSM 520 Management of ResourcesDr. Sheila Boysen- Rotelli28 Feb 2014

Atlantis Pools Company

3675 US 17 Bypass,Murrells Inlet, SC 29576

(843) 357-1729atlantispoolsusa.com

1

Table of Contents

I. Executive Summary 3

II. Description & Services of the business 4

III. Form of Ownership 5

IV. Strategy formation 6-10

V. Marketing function 11-14

VI. Operational Structure 15-16 VII. Financial Data 17 VIII. Appendices 18-19

IX. Bibliography 20

2

Executive Summary

1.0 Company History

Atlantis Pools started from a couple’s simple desire to have a pool for their family, way back in

2006. Vonni and Scott Anderson researched for a general understanding on the trade and

successfully installed their own pool in their back yard, without hiring a pool company. In 2007,

a family friend was looking into installing a pool and once again, Scott and Vonni undertook the

installation of the pool as a new project. They successfully installed the pool, without anything

but their experience from their own pool installation the year prior. In 2008, they decided to

open a small 1,000 square foot show room for pools. Soon, they began installing pools, and

began selling chemicals and conducting water and chemical testing, also they began cleaning

pools and installing spas to build their company name and reputation. Atlantis Pools has relied

largely on word of mouth advertising and internet searches for their most steady means of

spreading their name, which has served the company well.

1.0.1 Location

Atlantis pools is located in 3675 US 17 Bypass, Murrells Inlet, South Carolina 29570.

1.0.2 Mission Statement

The mission at Atlantis Pools is to bring people together and help make memorable family

moments. Atlantis Pools also attempts to push the pool industry into a new direction with total

customer dedication and with unique recreation area designs.

3

Description & Services of the Business

Atlantis Pools is an all encompassing pool company which offers pool construction, maintenance

services, and consumer products related to the entire pool industry. It specializes in in-ground pool

installation and sculpting beautiful landscapes and building creative hardscapes. The focus on the

hardscape and landscape are meant to improve the entire recreation area and swimming experience

which also serves as a competitive advantage for the company because this creates a niche Atlantis

Pools can capitalize on and lets them continue to create a reputation for the company.

The company also sells and installs a variety of spas. As for their additional services, Atlantis Pools offer

pool cleaning, water and chemical testing, pool repair and maintenance, and also stock a variety of pool

chemicals for sale at their store in Murrells Inlet, South Carolina.

Atlantis Pools also offers pool maintenance and repair services. Pool maintenance is a big part of the

pool industry and this is a common service offered by Atlantis Pools because it is such a big side to the

industry. Pool repair is not done as often, but is still a service offered. Atlantis Pools carries a large

selection of pool chemicals and consumer products. The company will also test water and conduct

chemical evaluations for existing pools as needed.

4

Form of Ownership

Atlantis Pools is registered out of Horry County, South Carolina as an S Corporation, under the name

Myrtle Beach Pools and Spas. The company is owned by the husband and wife team of Scott Anderson

and Vonni Anderson.

Atlantis Pools operates as an S Corporation. With that being the form of ownership there are certain

requirements the company must meet, or limit themselves to, in order to qualify as an S Corporation.

These requirements are as follows: the organization must be a domestic company with no foreign

shareholders; the company must not have more than one class of single stock; there must not be any

corporate shareholders, meaning no corporations may have stock with the company; there must be no

more than 100 shareholders, and those can only be individuals, estates, and certain trusts; lastly, all

shareholders must consent to being an S Corporation (Melvin,2011).

Atlantis Pools fall within all the criteria needed to be classified as an S Corporation and benefit from

certain advantages offered to an S Corporation. The two biggest benefits offered are the tax

classification and the limited liability protection. The tax classification allows Atlantis Pools benefits from

the pass through tax treatment, which means the company does not pay corporate tax and therefore is

not subject to double taxation as with a C Corporation. This also allows Atlantis Pools to use losses to

limit their tax liability. The limited liability simply means if the company were to fold the individuals

involved would not be personally financially responsible for the company, as with a sole proprietorship

and the general partners of a partnership (Corman et al, 2009).

5

Strategy Formation

3.0 SWOT Analysis

The goal of a market analysis is to determine the attractiveness of a market, both now and in the future.

Organizations evaluate the future attractiveness of a market by gaining an understanding of evolving

opportunities and threats as they relate to that organization's own strengths and weaknesses, hence the

use of the SWOT analysis to better understand the competitors and have a competitive advantage over

them. SWOT, simplicity and catchy acronym perpetuates it's usage in business as a tool used to assess

alternatives and complex decisions situations. It is the starting point for strategic planning and is a

written analysis of the Strengths, Weaknesses, Opportunities and Threats to a business entity. Not only

should a SWOT be used in the creation stage of the company but could also be used throughout the life

of the company. A SWOT analysis may also be written up for the competition to understand how to

develop the marketing and product mixes (Helms & Nixon, 2010).

It is from the analysis that the installation of the swimming pools in the location identified was viable as

well as the sculpting beautiful landscapes and building creative hardscapes. As for their additional

services, Atlantis Pools offers pool cleaning, water and chemical testing, pool repair and maintenance,

and also stock a variety of pool chemicals for sale at their store in Murrells Inlet, South Carolina. Most of

their competitors mainly major in installation of the pools and offer pool cleaning. The additional

services, offers Atlantis pools an added advantage.

3.0.1 Market Environment (Industry Overview)

In the United States of America the swimming pool industry is a multibillion dollar industry. It is an

industry that resides within the recreation industry and encompasses public and private pools. The

6

swimming pool industry has a couple of branches. There are service companies that conduct the

business of cleaning and maintaining the pools. This would also includes the chemical manufacturers, as

well as the pool equipment manufacturers and retailers that supply these products. The maintenance

branch is the back bone of the pool industry. The second branch of the swimming pool industry is the

construction side. This includes the wide variety of companies that construct the swimming pools, from

breathtaking in-ground pools and recreation areas to the companies that install simple, underwhelming

above ground pools with only an aluminum ladder granting access to the water. As with all things,

people have different needs and budgets and all of these companies serve a purpose within the

construction component of the industry.

A unique facet of the swimming pool industry is that there are no dominating companies within the

industry. There are only small companies that have a dominate position within their specific area of

operations. This creates an advantage for the small business’ in the area to compete honestly and not be

ran out of town by a big national franchise as usually happens with retail and restaurant industry.

In the past decade the swimming pool industry had been on a decline (appendix B). With the economy

suffering, people have not been purchasing pools, but that is changing as the economy stabilizes and

families get more money in their pockets. The success of Atlantis Pools is an accomplishment for the

company, because the company started their business as the economy and the pool industry was at its

lowest and they have managed to keep the business strong and now thriving with the recovering

economy.

In the Horry County area, focusing on the Murrells Inlet and Myrtle Beach area, there are a total of 5

pool companies that are direct competition for Atlantis Pools. Most of their competition is significantly

7

older than their company, which means they most likely have a stronger reputation in the area and have

their business well seated in the area.

3.0.2 Marketing Strategy

Marketing strategy is the process of utilizing and concentrating on the business resources towards the

opportunity in the market so as to maximize profit and have a competitive advantage. It entails a

combination of research, creativity and intuition that comes about through thinking of what should be

incorporated in marketing, to achieve the goals of the business. The goal of Atlantis Pools is the

installation of in-ground swimming pools, to bring people together and help make memorable family

moments. The business attempts to push the pool industry into a new direction with total customer

dedication and unique recreation area designs by building creative hardscapes, as well as the provision

of other services and products like pool cleaning, repair and maintenance; and a stock of variety of pool

chemicals for sale at their store respectively. Based on its location, Murrells Inlet, South Carolina, the

target market for the business is for retirees and middle class families and people with vacation homes.

This is a key point of interest for Atlantis Pools as this will be the same target market in the future, a

time frame of five to ten years.

1.0.3 Marketing Mix Strategy

The marketing strategy involves the marketing mix which comprise of the four P's: Price,

Product, Promotion and Place. The marketing strategy combines the 4 P's to meet the

company's objective of providing the customers with value.

8

Product

The product offered by Atlantis Pools is the installation of the in-ground swimming pool, sells

and installs a variety of spas and additional services like pool cleaning, water and chemical

testing, pool repair and maintenance, and also stock a variety of pool chemicals for sale at their

store.

Price

The price determines the profit and has to be competitive. Pricing needs to take the customers

threshold into account. Coming up with the price is based on the cost of our products benefits

that customers will get and comparisons with other business offering the same market

penetration will be applicable.

Promotion

As Atlantis Pools operates now, marketing is limited to a publication in a local periodical that

appears in the Murrells Inlet area. They put an advertisement in annually, but that only appears

in a few installments. The other marketing strategy the company employs is participating in a

trade show in Myrtle Beach, SC, once a year. This is a more desirable method of advertising due

to their preference to interact with people in person. For this trade show, they take a pool out

and put it on display and set up a table with all their information pertaining to Atlantis Pools

and showcase some of their past work and market face-to-face rather than use of billboards

and commercials.

9

Most people hear of Atlantis Pools by word of mouth or find the company online. Their website

maintenance costs are low and in today’s business environment a company cannot maintain a

significant competitive advantage without having a website as a minimum.

Place.

Atlantis Pools is situated Atlantis Pools is registered out of Horry County, South Carolina as an S

Corporation, under the name Myrtle Beach Pools and Spas. In the Horry County area, focusing

on the Murrells Inlet and Myrtle Beach area. This location is ideal both in terms of the benefits

offered by Atlantis Pools and the proximity to the beach.

10

Marketing Function.

4.0 Marketing Objectives

Atlantis pools in addition to the installation of underground pools, cleaning and maintenance of the pool

and the sale of cleaning products, have an added scope of building creative hardscapes. This is objected

to raise sales by $1000 every quarter to show a slow but steady increase in productivity. The forecasted

monthly sales being $20,000.

4.0.1 Marketing Plan

Marketing plan is the roadmap to accomplish what was on the marketing strategy so as to achieve the

business goals. It outlines the specific actions that one will take to market their product or service to the

customers, in essence, it is the application of the market strategy.

The marketing plan will look into the marketing objectives of the business, the situational analysis of the

internal and external factors that influence the marketing strategy the target market of the business and

the strategies to be used for the realization of the goals hence profit for the business.

4.0.2 Situational Analysis (SWOT)

Strengths

A unique strength for Atlantis Pools is the total dedication to each project and customers and their focus

on creating unique pool areas. Each project is taken on not as a replication of another, but as a fresh

project. The unique hardscape and landscape for each project give each pool a unique voice for each

11

customer. The company works closely with each customer to create an individualized recreation area

that will meet their needs. They always attempt to execute above the expectations of the customer and

create a space that will last for a lifetime and continue to bring fun times for the customer’s family and

friends.

Weaknesses

The fact that the business is completely owned and operated by only Vonni and Scott Anderson (the

couple) can be valued as a weakness. This is based on the demands that are placed on each of them and

because projects are time and energy consuming this can strain them as individuals. Because of this they

may not be able to expand into additional projects and run simultaneous projects as comfortably as they

could with additional employees. The couple operates the company with one employee and only uses

outsourced specialists when the demand is needed.

Opportunities

Aside from a small advertisement in a local periodical, Atlantis Pools relies mainly on word-of-mouth

(WOM) advertising and internet searches. An opportunity with internet advertising would be to pay for

a top search position with Google or Bing. This would help them get noticed on a larger scale and by a

target audience. As opposed to radio or television advertising, although those mediums are great, most

people exposed to your advertisement are not interested, whereas a top search position on a search

engine means people searching for that service are directly exposed to the company.

Threats

A main threat to the business are the competing pool companies that are in the area. Most of the

competing pool companies have been in the area much longer than Atlantis Pools, so they must keep an

12

eye on their competition. While the recovering economy has been serving the company well, this also

opens them up to more competition as they could have to bid for customers against a competing

company.

4.0.3 Target Market

The target market is strategically based on its location, the beach where the clientele is for

retirees and middle class families and people with vacation homes. According to Williams, 2012

a business efficiency in understanding and responding to a particular target market customer

needs enhances a marketing relationship that eventually contributes to the bottom line by

reducing cost and increasing revenue. It builds on a sustainable competitive advantage as well

as customer loyalty.

4.0.4 Competitive Assessment

Competitive Assessment looks into the strengths and weakness of the competitors and what Atlantis

Pools has to do to have a competitive advantage.

Strengths and Weakness

The competitors of Atlantis Pools major strength is resource, human resource that they employ. This is a

major disadvantage as Atlantis is a family operated business that is managed by the owners, the couple.

Whereas the competitors can deploy the workers to accomplish the work, Atlantis does outsource if

need be. Resources are inputs into a firm's production process and include assets, people and their

13

skills, patents, knowledge and organizational processes. Competitive advantage comes not from any

individual resource but through combining and integrating sets of resources. Capability is the capacity

for such sets of resources to perform an activity. Through continued use, capabilities become better and

better and more difficult for competitors to understand and imitate. It is this inimitability that allows

firms to achieve competitive advantage (Barney, 1991).

It's weakness however is that the competitors lack differentiation which entails offering a product or

service that is perceived as unique throughout the industry and as such offers unique attributes that are

valued by customers. Much as they offer warranties, Atlantis has a major focus to not just install the

pool but also install the unique hardscape and landscape for each project giving each pool a unique voice

for each customer. The company works closely with each customer to create an individualized recreation

area that will meet their needs. They also offer other services like cleaning and maintenance of the pool

and sale of the pool cleaning products

4.0.5 Competitive Advantage

Porter's (1980, 1985) approach to competitive strategy and competitive advantage included the

development of three generic strategies that could be used either individually or in combination to

outperform competitors. These strategies are overall cost leadership, differentiation and focus on a

particular market niche. Going beyond the minimum legal requirements is what is likely to lead to

differentiation within the service environment. Also, by having a business strategy in place by planning

and use of strategy rather than tactics. This is what Atlantis need to implement and have in place so as

to have a competitive advantage over its competitors.

14

Operational Structure

5.0 Management and Organization

Atlantis Pool company is a small company that is owned by a couple and has one employee. The

project manager does the managing and coordination and outsourcing of some operations is

employed upon need.

5.0.1 Project Manager

This is the person who manages the physical installation of the pools. Surveys the job sites,

price quotations, does the quantity surveys, set the logistics for the digging the hole, (dig site)

and use of the back hoe and the crane for lowering the actual pool into the hole. Ensures that

the concrete/ tile is poured right. Electrical (for pool lights and jets. ) and plumbing operations

(for jets and cleaning attachments) is conducted right. Hardscape and water fountain

construction is also under his scope.

5.0.2 Administration Manager

This is the person who controls finances and pay. Controls marketing. Works as human

resources. Meets with customers and set appointments. Communicates with outsourcing

companies of heavy equipment. Procurement of supplies for job site and products for store

sales such as pool chemicals for cleaning, pool area furniture and floatation devices and pool

games (volley ball/basketball/noodles/beach balls).

15

5.0.3 Store Clerk

This is the person who interacts face to face with customers in store and sells the products.

Works cash register. Takes inventory and sends up to administrator what is needed for

inventory. Receives calls and any in store issues with customers. Most directly involved with

store based customers including walk-ins.

5.0.4 Subcontractors

The excavation is always outsourced due to the fact that it is cheaper for them to have this

done as a one time job by an outside company, as opposed to buying and operating the heavy

construction equipment themselves, which has been done before, but has proven to be more

cost than return. The subcontractors services are fast and cheap which contributes to the

success of the business as a whole.

5.0.5 Monitoring Performance

This is key not only to set a track record to re-evaluate what is not working but to give the company a competitive advantage. Monitoring of objectives set in the store sales for the set goals in terms of finances. Popularity of certain products in relation to the other companies in the same business is also monitored and appropriate marketing implemented. Marketing efforts are also compared to the installation of projects and sales. For example, web adverts and radio adverts are as not as effective as the trade show held in demonstration of exactly how the company works to the public

16

Financial Data

A budget is a tool that helps to plan ahead by helping one to identify a potential problem and fix it or to

capitalize on a potential opportunity that one had not initially recognized. In addition, it makes it

possible to prioritize the allocation of funds as well as enhancing the business operations with added

clarity and efficiency (Benoit, 2009). The monthly financial requirements or a budget for the Atlantis

Pool Company is as follows:

I started the budgeted sales/income at $20,000 per month which is expected to increase monthly by

$1,000 every quarter to show a slow but steady increase in productivity. I also included the salary of

the employee with $12 dollars per hour with a 40 hour work week. This will incur a monthly salary

expense of $1,920, in addition to the couple's pay of $ 5,000.

The second expenses is the ceramic tile which cost $15.95 each. This will be listed as an advertising

expense. For the purpose of this return on investment, I have Atlantis Pools ordering 10 tiles every

month at $159.

17

Appendices

Appendix A:Atlantis Pool Company Budget

Categories ExpensesBudgeted Actual Difference

Fixed Expenses

Rent 2500 2000 500

Salaries 6920 6920 0

Health Insurance 240 250 10

Business Insurance 200 200 0

Loan payments 300 300 0

Variable Expenses

Delivery Charges 100 100 0

Bank service charges 80 100 20

Advertising159 159 0

Office expenses 80 100 20

Repairs and Maintenance 200 200 0

Professional fees 200 150 50

Supplies 3000 3500 500Telephone 100 100 0

Utilities 220 250 30

Sales tax 400 400 0Total 14,699 15, 079 380

Income

Budgeted Actual Difference

20,000 19,000 1,000

Profit (Loss) 5,301 3,921

18

Appendix B:

www.poolspanews.com

Appendix C:

Murrells Inlet, South Carolina Income Levelswww.movoto.com

19

Bibliography

Barney, J. (1991). Firm resources and sustainable competitive advantage. Journal of Management 17( 1)

99-120.

Benoit, J.(2009). How to create a single budget.

Retrieved https/www.entrepreneur.com/article/201670

Corman, J., Lori, P. , & Robert, L, (2009). Small Business Management: a planning approach. Ohio. Cengage Learning.

Melvin, S, (2011). The Legal Environment of Business: a managerial approach. New York. McGraw-Hill.

Helms, M., Nixon, J (2010). Exploring SWOT analysis-where are we now? Journal of Strategy and

Management 3 (3) 215-251

http://www.poolspanews.com Retrieved 12/14/2013

Porter, M. (1980) Competitive Strategy: Techniques for Analyzing Industries and Companies, The Free

Press, New York, NY.

Porter, M. (1985) Competitive Advantage: Creating and Sustaining Superior Performance, The Free

Press, New York, NY.

20