Entrepreneurial Business Analysis of Arcadia Group in Retail Sector

This article analyzes the entrepreneurial business of Arcadia Group in the retail sector. It includes a literature review, market analysis, marketing mix, and promotional strategy. The aim is to increase the scale of the business and provide high-quality clothing to customers.

Business Management
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Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Relevant entrepreneurship business with literature to include ideas and concepts with
credibility, ethical and informed business...................................................................................3
Alternative sources of business finance and their relevance to the contemporary business
practice involving ethical practice...............................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business Management is the process of managing the coordination and organization of the
activities which are being framed within organization (Komarova, 2019). Arcadia Group is the
entrepreneurial business which was being launched by Philip Green which sells the products and
services in retail sector.
Thus, it will be analyzed from the proposal that the entrepreneurial business Arcadia Group
is concerned of how major changes and ways through which aims and objectives are being
prepared. Along with this, literature review will be performed which will help in creating
importance of how the business will change over years and its importance in lives of customers
by selling of products and services. Various alternative sources through which financing can be
done for Arcadia Group to increase sales and profits and that business seeks growth and
development will also be analysed and described at large scale. The financial projections in
financial plan will also be described.
MAIN BODY
Relevant entrepreneurship business with literature to include ideas and concepts with credibility,
ethical and informed business
Overview of the Business -
The entrepreneurial business which is being taken is the Arcadia Group which is being run
by Philip Green. This is the entrepreneurial retail business which is being inculcates high street
clothing and the retailers such as Topman, Topshop and Miss Selfridge. This entrepreneurial
business is owned by Philip Green who focused on making the scale of growing this
entrepreneurial business at large scale and was successful in doing so. Philip Green is currently
the CEO of his own company and business which was being started (Abdullah and et.al., 2018).
This retail business was set up through loan and initially it started with selling and importing
jeans. The business grew more as Philip Green focused more on initiating and making the
business reach success. There were slowly and gradually more retail and clothing stores which
made earn the business across the globe and with this potential the business was created
successfully by Philip Green largely.
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Aim – To increase the scale of business so that it outgrows more in retail sector across the
Globe.
Objectives –
 To evaluate the importance of entrepreneurial business by making it a Global brand.
 To increase the sales of the business by 8% in 5 years.
 To provide high quality clothing by satisfying the customers.
Literature Review –
According to Sisson, (2017), The Arcadia Group has been serving its best to the customers
or the buyers by making them aware of the business and reaching them through the market. This
has gained the entrepreneurial business more of what is known as the business tactics and the
information through which the entrepreneur Philip Green is focusing upon. This entrepreneurial
business is fast growing on the scale through which the clothing and the other retail products and
services are being served to the customers’ at large scale in the market. Entrepreneurial business
is very important in knowing that the self regulatory businesses helps in achieving the success on
own terms and conditions. The main purpose of this retail business is that it helps in delivering
the products and services to the customers as per their needs and requirements. This business
idea which is being delivered for the sake of customers to reach the retail brand and make their
needs for the product understandable is validated through some of the ethical and information
which is related to the business.
According to Çanakoğlu and et.al., (2018), There are five major types of entrepreneurship
which are mentioned here. These are – Social entrepreneurship, scalable start – up business
entrepreneurship, big business entrepreneurship, small business entrepreneurship and innovation
entrepreneurship. These entrepreneurship businesses helps to grow the business and analyze the
ways through which all possible factors of what are the risks and the benefits in the business are
known. This business entrepreneurship which is the clothing business helps in analysing and
evaluating business scale through which all possible factors and aspects are being analyzed at
large scale. This business venture helps in knowing and valuing the purpose through which retail
sector can grow its scale of customers on the market by providing them their essentials and
needs.
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According to Koester, (2017), This retail business focuses on expanding its scale around the
whole globe by reaching to the customers and making them available rich quality clothing.
Entrepreneurship business helps in making the business grow on the scale of what are the major
possibilities of growing at an advanced level and this helps in making and framing base of
business at large scale. The main thing which is being observed in the entrepreneurial business is
that the retail businesses have a chance of growing and developing in market and this inculcates
an opportunity for the new business and helps in growing it worldwide.
Market Analysis – The market for retail entrepreneurial business can be identified with the help
of SWOT Analysis and PESTEL Analysis. These are explained as below –
SWOT Analysis – The SWOT analysis can be explained as –
Strength – Strengths of Arcadia Group are the competitive edges which helps in giving the
customers the best of the services through their service lone and gain the competitive edge over
the years (GURL, 2017).This will help the business in measuring the scale of success in the
business.
Weakness – Weaknesses of Arcadia Group includes lack of capital or cash flow and along with
this the major weaknesses are lack of education in the retail sector might lead to the drawback
and failure of business. Poor management skills also are the major weakness of how the Arcadia
Group is facing many difficulties (Teoli and et.al., 2019).
Opportunities – Identifying the new target market will help the Arcadia Group in growing its
retail business as this will helps in reaching out to many customers in the market. By conducting
customer surveys Arcadia Group can analyze the customers’ requirements and needs.
Threats – There are many competitors of Arcadia Group in the retail sector. Changes in the
economy which may lead to recession and some legal issues with the customer is also a threat
(Vlados, 2019). These are the major threats which Arcadia Group has and might face in the
market thereafter at large scale.
PESTEL Analysis – The PESTEL Analysis is described as below –
Political - New legislations amplify the process and entrepreneurs go through. Arcadia Group
faces many regulations while growing their business. The increase in inflation, taxes, regulatory
forum and labor costs much to the company (Pan and et.al., 2019).
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Economic – Entrepreneurship business such as Arcadia Group positively affects the whole
community and society. Arcadia Group has increased its scale of business within the country and
across the globe.
Social – The Arcadia Group has tuned in with the customers in selling the products and services
to them as per their requirements and needs at large scale within the market structure (Nurmi and
et.al., 2018). The products and services are being sold to the customers.
Technological – Technology has helped the Arcadia Group in knowing the business more closely
and making effective and efficient the processes through which the products and services are
being made available to the customers.
Environmental – The environmental factors are very helpful in taking concern of how the
businesses are to be set up and through this, Arcadia Group is taking concern of not to impact
and affect the environment (Kairuz and et.al., 2020).
Legal – There are various legal formalities which are to be fulfilled and Arcadia Group has been
following and practicing the legal formalities through which the possibilities of growing the
business on legal terms is done at large scale.
Therefore, with the help of SWOT and PESTEL Analysis, the entrepreneurial business in
the retail sector which is the Arcadia Group has helped in knowing the various factors through
which large number of customers can be reached out in the market and keeping the trace of the
customers’ needs and requirements at large scale (Matovic, 2020). Entrepreneurial businesses
help in knowing the scale of how the business grows effectively and efficiently largely.
Marketing Mix – Marketing mix is helpful in knowing the reach of business in the market. It is
therefore explained for the Arcadia Group through the 7P’s in following manner –
Product – The product which the Arcadia Group is selling the customers is the clothes which are
largely being provided to them at large scale and this has helped in knowing and analyzing the
scale through which the services are to be provide to the customers as per their needs and
requirements (Thabit and et.al., 2018). The clothing of Arcadia Group is taking concern of the
customers in providing them desired services at large.
Price – The price which Arcadia Group has made available for the products and services is made
reasonable to the customers. This has helped the customers in affording the products and services
of the Arcadia Group. Usually the entrepreneurial businesses are based on how the businesses
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grow and this depends on the pricing factor which helps the customers to buy the product at large
scale within the market structure.
Place – Place is defined as where the products and services are being produced which in case of
Arcadia Group is UK. It is the entrepreneurial business which is expanded at various places and
is preparing to scale on the global level so that the business achieves great heights and
opportunities are made available at large scale (Lim, 2021). Right place helps in expanding the
promoting the products and services at large scale and this helps in creating value for the
business.
Promotion – Promotion helps in marketing of the products and services of Arcadia Group and
through that it reaches the varied number of customers which are buying the products while the
business selling it. Arcadia Group is taking over its promotional activities with the help of
creating effective advertisements, through sponsorships etc. It helps in promoting the products to
the customers’ at large scale and this helps in making and creating valuable outcomes from the
business being taken.
People – People includes the staff and the employees working at Arcadia Group which helps in
the business to run the scales of how effective and creatively the teams are working towards
achieving great success along with growth and development (Blut and et.al., 2018).
Process – There are various steps which are being referred in the delivery of products and
services and this helps the customer and the company in making and framing the products and
services through a clear and step wise process so that there are no delays in the delivery of the
products to be reached to the customers. The process which the Arcadia Group is taking concern
of done with the help of how the process is able to generate the revenue and through this the
main aim is achieved.
Physical Evidence – Physical Evidence are the products and services which are being processed
and made to be delivered and reached to the customers through the market structure which is
being framed by the company or the entrepreneurial business set up (Pomering, 2017).
Promotional Strategy – The promotional strategy which Arcadia Group uses is how the
strategies are being formed for the long run process. This helps in daily trading and planning
through which all the purpose of the products and services are being designed for the customers
and this helps in making the market structure effective and significant at large scale. The
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business strategic planning is for long – term and this helps in daily trading which enables the
growth and development of the services and products to reach to the customers.
The retail decisions are being taken to evaluate the market structure and the analysis
through the market. The retail decisions are being taken by maximizing the opportunities and
minimizing the risks (Odinokova and et.al., 2018). The company or this entrepreneurial business
uses EDITED to ensure that they are taking an informed decision and this has helped in making
and framing the scale through which the promotional strategy is being framed so that the
business achieves growth and success over the years. The main target of the business is to
achieve the strategies by formulating the new strategies so that the changes are being observed
and the Arcadia Group is able to frame the basis through which all the effective and efficient.
The Arcadia Group is making and tracing the business through the eyes of how the business
seeks growth and development in the market and that maximum number of customers reach the
products and service which are being made available to them at large scale (Olanrewaju and
et.al., 2020). The Arcadia Group’s main strategy is focusing on the trading with long – term
planning and this helps in making and framing the scale through which all possible facts and
information for the strategy formulation are being made and denoted to the customers and for the
market.
Arcadia also faced many problems and difficulties in the past years through which the
business had a great downfall. This fashion retail business had to make and innovate some very
basic and important decisions regarding the growth and development. Therefore, Arcadia Group
focused on the promotional strategy to be effective and significant on the scales through which
they created an online platform and focused on increasing the sales and profits (Olanrewaju and
et.al., 2020). Arcadia Group thus focuses on the creating the online stores and this helped the
business in achieving the online platforms through Instagram, Facebook and Twitter and through
its website which provided the products and services and solved all queries of the customers’ at
large scale. Arcadia Group also is progressing towards the market structure which is helping in
knowing the basis through which all possible factors of how the market is to be captured is
known and this has helped the business in delivering the main aim through which the expansion
of the business is being done at large scale.
There has been a dramatic change in the promotional strategy which has been created for
the growth and development for the business. Arcadia Group has also expanded its business
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through third – party retail partners which have been helping this entrepreneurial business to
know more about the market structure through which all possibilities of expanding the brand
along with its products and services is diversified at large scale among the customers within the
market.
Alternative sources of business finance and their relevance to the contemporary business practice
involving ethical practice
Financing of the business is very important as it helps in knowing what are the major sources
through which the business is earning profits. Financing in business helps in evaluating and
scaling of the profits at large scale. This has also helped in knowing the business through which
all the perspectives of how the profits are gained in the market through the selling of the products
and services which Arcadia Group is focused upon (Eniola, 2018). Finance helps in up levelling
the business through which all the perspectives are being carried forwarded to the growth and
development of the business. Sources of business financing helps in acknowledging the base
through which all the major changes are taken into consideration and this has helped in knowing
the market scale through which the business strategies are framed and are changed accordingly.
Sources of business finance can be done through retained earnings, working capital loans,
letter of credits, venture funding, equity, term loans etc. The entrepreneurial businesses raise the
funds through which the customers’ are able to add value to the products and services of Arcadia
Group. Financing through these sources helps the businesses are able to take concern of the
major changes through which the strategies are being formulated and this helps the business in
taking the major areas of market (Stack and et.al., 2017). The financing in the business also are
based on time, sources of generation, ownership and control etc. The business needs are being
fulfilled by these sources and this helps in making and framing the scale through which all
perspectives are known related to the market structure and financing of how business is being
done.
Financing helps in making and framing the business through which the strategies are
being formulated in Arcadia Group and this helps in creating such important practices which
helps in creating value to the business. Importance of financing and its sourcing in business
practices helps in acknowledging the major practices through which all the essential aspects are
known and this helps in generating the funds for the new entrepreneurial business being worked
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upon especially in the retail sector (Eniola, 2021). The continuous transaction and the daily
maintenance of the cash flow are being performed for running the business at large scale.
Managing and monitoring the funds regularly is the best practice which is being done in the
business and this should be performed at the scale of how the businesses are considering the
important aspects through which they are able to make and initiate the changes which are being
taken over. Financial management is the most important aspect for the company as it helps in
reviewing the profits and losses which the business incurs per year. And this also helps in
changing the patterns accordingly.
Entrepreneurial businesses such as Arcadia Group creates funding and financing
significantly in the market by selling the products and services as per the needs and services of
the customers and this helps in making the business known that what are the changes which are
to be taken place. There are various strategies which are being formulated at large scale through
which the financing is being done (Connolly and et.al., 2017). Paying the funds for the benefit of
the business s not just the prime goal rather providing the salary to the employees of the
company is also one of the important tasks which is being done and performed and to be
considered. Therefore, the entrepreneurial business such as Arcadia Group which is being taken
runs effectively and efficiently by analyzing how the business is performing in the market
structure at large scale in an effective and skilful manner possible.
Cash Flow statement
Month July August
Septemb
er October
Novemb
er
Projected Collection from sales 50742 60742 69742 65743 53743
Investments 3000000 0 0 0 0
Inflows 3080742 98742 114742 110743 85743
Payment to Suppliers 0 30000 32000 35000 44000
Equipment 1500000 0 0 0 0
Plant and property 1000000
Maintenance 125 125 125 125 125
Utility Expenses 133.33 133.33 133.33 133.33 133.33
Legal expenses 0 100 100 100 100
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General Expenses 35 35 40 50 40
Rent 0 0 2000 0 0
Insurance 0 0 500 0 0
Power 250 280 450 400 320
Salaries, Benefits and Wages 20000 20000 20000 20000 20000
Total Expenses 2520668.3 20798.3 23473.3 20933.3 20843.3
Total Outflows 2520668.33 50798.33
55473.3
3
55933.3
3
64843.3
3
Net Cash Flows 560073.67 47943.67
59268.6
7
54809.6
7
20899.6
7
Financial
projections
Sales £
10,000.00
Sales of By-products £
1,200.00
Net Revenues £
11,200.00
Materials £
300.00
Labour £
300.00
Overhead costs £
200.00
-
Cost of goods sold £
800.00
Gross profit 93% £
10,400.00
Other Expenses:
Rent Expense
£
645.00
Marketing cost
£
500.00
Salaries £
1,000.00
General expense £
100.00
Legal expense £
200.00
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Maintenance expense £
300.00
Utility Expenses £
200.00
Total Other
expenses
£
3,695.00
Earnings Before Tax £
6,705.00
Less: Tax @ 30% £
2,011.50
Earnings After Tax £
4,693.50
CONCLUSION
Thus, it is being analyzed from the above proposal that the entrepreneurial business Arcadia
Group is concerned of how major changes and ways through which aims and objectives were
being prepared. Along with this, literature review was being performed which helped in creating
the importance of how the business changed over years and its importance in lives of customers
by selling of products and services. Various alternative sources through which financing can be
done for Arcadia Group to increase sales and profits and that business seeks growth and
development was also analysed and described at large scale. The financial projections in
financial plan was also described which helped in knowing major and important aspects included
in plan to ensure smooth sailing of business. Along with this, main aim of business was also
finalized which helped in knowing aspects through which all possible factors of how the
entrepreneurial business is achieved.
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