BUSINESS DECOVERY PLAN CHAPTER 1: INTRODUCTION5

Business Development Plan

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................5
1.1Background of the business...................................................................................................5
1.2 Rationale for business concept ............................................................................................5
1.3 Selection of scenario..............................................................................................................6
1.4 Terms of reference.................................................................................................................6
1.5 Research objective ................................................................................................................7
1.6 Research questions ...............................................................................................................7
1.7 Tools & theory.......................................................................................................................7
1.8 Actionable assumption .........................................................................................................8
1.9 Time scale ............................................................................................................................9
CAHPATER 2: OUTLINE OF THE BUSINESS.........................................................................10
2.1 Concept statement................................................................................................................10
2.2 Products & services.............................................................................................................10
2.3 Partnership...........................................................................................................................12
2.4 Segmentation ......................................................................................................................12
2.5 Target market ......................................................................................................................13
2.6 Perceptual mapping .............................................................................................................14
2.7 Value added features ...........................................................................................................14
2.8 Services provided ................................................................................................................15
2.9 Windows of opportunity......................................................................................................16
CHAPTER 3: FEASIBILITY RESEARCH.................................................................................17
3.1 Research methodology and data collection methods...........................................................17
3.1.1 Research methods............................................................................................................17

3.1.2 Data collection methods....................................................................................................18
3.1.3 Sampling technique ..........................................................................................................19
3.1.4 Sample size ......................................................................................................................19
3.2 Industry attractiveness........................................................................................................19
3.3 Porter’s five force analysis.................................................................................................20
3.4 Market analysis....................................................................................................................21
Forecasting the business climate................................................................................................22
3.5 Market attractiveness ..........................................................................................................23
3.5.1 Market attractiveness questions and responds..................................................................23
3.6 Product and service feasibility.............................................................................................25
3.7 Legal feasibility...................................................................................................................25
3.8 Technological feasibility .....................................................................................................26
3.9 Organizational feasibility.....................................................................................................26
3.10 Human resource requirements ..........................................................................................26
3.10.1 Human resource management.........................................................................................27
3.10.2 Requirements and selections..........................................................................................27
3.10.3 Human resource development ......................................................................................27
3.11 Financial feasibility............................................................................................................28
3.11.1 Start-up cost ..................................................................................................................28
3.11.2 Operational cost..............................................................................................................28
3.11.3 Break-even point ...........................................................................................................29
3.11.4 Revenue projection 3......................................................................................................29
3.11.5 Sources of finance...........................................................................................................30
CHAPTER 4: STRATEGIC ANALYSIS & BUSINESS MODEL..............................................31
4.1 Swot analysis.......................................................................................................................31

4.2 Ansoff's matrix.....................................................................................................................32
4.3 Blue ocean strategy.............................................................................................................33
4.4 Mc Kinsey 7’s framework analysis.....................................................................................35
4.5 Value chain analysis...........................................................................................................37
4.6 Business model canvas ......................................................................................................38
CHAPTER 5: BUSINESS PLAN..................................................................................................41
5.1 Industry...............................................................................................................................41
5.2 The company .......................................................................................................................41
5.3 The market ..........................................................................................................................42
5.4 Operational plan..................................................................................................................43
5.5 Implementation plan...........................................................................................................43
5.6 Development plan...............................................................................................................44
5.7 Business sustainability .......................................................................................................45
5.7.1 Critical success factors ....................................................................................................45
5.7.2 Risk assessment ..............................................................................................................46
5.8 Financial plan ......................................................................................................................48
REFERENCES .............................................................................................................................50

CHAPTER 1: INTRODUCTION
1.1Background of the business
In this, by considering the market trend business entity has taken decision in relation to
opening fragrance and cosmetic retail shops in Dhaka. The name of the proposed business will
be ‘Rose Petals’. Entrepreneur will open the new cosmetic retail shop in Gulshan, Dhaka because
at this place majority of the offices are running. In addition to this, several diplomats also live at
this place which in turn also contributes in the sales and profit margin of the firm (McKeever,
2016). Business entity will offer quality and branded cosmetics to the customers through such
shop namely Olay, Avon, Loreal, Nivea, Lakme, Dove etc (Markets of the Future in Bangladesh,
2017). Moreover, such products are commonly bought by the customers who reside in
Bangladesh, Dhaka.
By considering this, it can be stated that luggage party goods are offered by most of the
retailers to the customers of Dhaka. Thus, sole trader will offer all the leading brands to the
customers via such retail shop. In this, entrepreneur will target all the people who have high
disposable income and beauty loving office women. In addition to this, focus on offering original
products to the brand loving customers (Yang and et.al, 2014). Along with this, business entity
will focus on persuading customers by making them aware with the products and service of
organization. The present business plan will shed light on the business idea, concept and target
market. Besides this, proposed plan will also provide deeper insight about the extent to which
external factors have impact on Rose Petals. Furthermore, study will also depict financially
viability of cosmetic retail shop.
1.2 Rationale for business concept
The rationale behind the selection of cosmetic’s retail business is that it is economic and
business centre of the country. Besides this, from assessment it has been identified that Dhaka is
one of the fastest growing start up hubs in the world. Hence, it is one of main reasons behind the
selection of Dhaka for starting business venture (Islam, 2016). Thus, by opening retail shop at
Dhaka, firm can attain success by offering beauty products or services to the large number of
customers. In the recent times, interest level of individuals towards the beauty products is

increasing rapidly. Now, both professionals and non-professionals make use of beauty products
so that they can look stylish and nice. Besides this, now individuals prefer to visit salon more in
order to look nice and beautiful. Hence, by taking into consideration such trends organization
has taken decision to open the cosmetic retail shop in Gulshan, Dhaka.. Thus, by offering
cosmetic retail beauty products to Salon sole trader can attain high profit margin. Besides this, by
providing other people with quality cosmetic products firm can be able to achieve its goals.
Thus, all the above depicted aspects are the major factors that must be considered while making
selection of business (Truong, 2015).
1.3 Selection of scenario
Cosmetic industry has become the highly growing sector. In modern era people like to
use cosmetic products in order to look nice. Women and men go to beauty saloon for make over
frequently. There are many cosmetic brands which revenues are increasing continuously every
year. The reason of selecting this business ideas is that, cosmetic retail shop would be able to
grow well and owner will be able to earn more profit through this business. Cosmetic industry of
Bangladesh has market of around 4000 corers BDT. Small retail shop have good opportunities to
earn high profit in this sector (Brenner and Headrick, 2016). By entering into this market Rose
petal will be able to earn high profit and it will help in getting success in the cosmetic industry.
Another objective of opening a retail shop in Gulshan is to enhance satisfaction level of
consumers and gaining international presence. Purpose of the study is to make effective business
plan so that owner can open cosmetic retail shop in Gulshan Dhaka successfully. For that
entrepreneur will have to look upon resource allocation, budget plan, skills require, risk
management aspects. All these things will support the owner in opening the retail cosmetic shop
in Gulshan and getting success in this market.
1.4 Terms of reference
Owner will have to conduct deep research for knowing better about Gulshan location and
cosmetic market of Bangladesh. Individual will allot responsibilities to all involve persons as per
their capabilities and skills. It will support in accomplishing the goal of the organization. Main
objective of opening a cosmetic retail shop in Gulshan Dhaka is that to earn good profit and gain
success in this new market (Suntikul, 2016).

1.5 Research objective
To carry out study in the structured manner it is highly required for the researcher to
develop specific aims and objectives. Moreover, without having clear and precise objectives
researcher would not be in position to conduct study in an integrated manner. Research
objectives, pertaining to the present study, are enumerated below:
 To investigate the trend of Cosmetic Retail sector in Dhaka.
 To identify the risk level that is associated with the business of opening cosmetic retail
shop in Dhaka.
 To assess the viability of concerned business plan in terms of both financial and non-
financial aspects.
 To recommend the suitable ways to an entrepreneur that ensures smooth functioning of
business.
1.6 Research questions
In the field of research, scholar is required to frame appropriate questions by taking into
consideration the objectives. Moreover, questions provide direction to the scholar and thereby
help in conducting study in the best possible manner:
Question 1: What is the trend of cosmetic retail sector of Dhaka?
Question 2: What is the extent to which starting retail cosmetic shop in Dhaka is financially
and non-financially viable?
1.7 Tools & theory
In the present business plan, various tools and techniques have been used. Swot analysis
will be applied in this study that would help in analysing the strengths and weaknesses of Rose
petals. SWOT analysis will be beneficial tool for the current investigation because that would
help in knowing the potential of the cited firm whether it is able to run its business in Dhaka or
not (Vorster, 2014). By using this theory issues in the system can be analysed and effective
strategies will be made so that cited firm can get establish in Gulshan. Dhaka is the new country
for the Rose Petals thus, through SWOT it will be able to know opportunities for the business in

the Dhaka nation. Ansoff matrix theory will also be used in the present business plan. This tool
will assist in making proper aims and objective of establishing the business in the Dhaka. It
would be most effective theory because that would help in addressing risk in the business. In this
way researcher will be able to make effective strategies so that it can enter in a completely
differed market easily (Quynh Trang Nguyen, 2013). Ansoff matrix includes market penetration,
market development, product development and diversification. All these strategies will be
helpful for scholar in getting overview that how it can make effective business plan for the Rose
petals.
Researcher will also include porter's five forces theory in the business plan. It would
assist in knowing supplier's power, customer's power etc. That will aid in knowing factors that
may cause difficulty to the Rose petals in establishing the business in Dhaka. Researcher will be
able to find solutions to these problems so that it can make effective business plan. Another
theory which will be used by the investigator is Mc Kinsey 7’s framework analysis. It includes
strategy, structure, system, shared values, skills, style and staff (LI and ZHANG, 2016). That is
considered as most effective tool for making business plan. This theory will help the researcher
in knowing skills required to enter into Dhaka. In addition, it will give in-depth detail about way
of operating the retail shop in new location so that company can perform well in the new market.
1.8 Actionable assumption
It is considered as most important part of business plan. In this researcher will have to
pay attention on two main assumptions whether consumers want that product or not and whether
business owner will be able to make profit in the new location or not. One of the major
possibility in the business plan will be that people prefer to buy cosmetic products of the Rose
petals. That would help in competition analysis (Stark and et.al, 2015). It is a known fact that if
Rose petals offers some innovative cosmetic products to consumers then consumers demand can
be upwardly drifted. Researcher will have to look upon the fact that business plan can be
prepared in such a manner so that products of the organization can meet customers expectation.
Researcher assumes that Rose petals will earn more profit in the Dhaka’s market.
Researcher will have to do proper market research and have to prepare budget accordingly (Wu,
Yeh and Woodside, 2014). In this way they will be able to make effective business plan, that