BUS5003 - Waltham Clothing: Enterprise and Entrepreneurship Analysis

This report introduces Waltham Clothing, a new casual clothing business, and explores various factors related to its establishment and potential success. It covers key elements such as the business model canvas, entrepreneurial competencies required for the venture, and the objectives of the organization. The report includes a PESTLE analysis to understand the external environmental factors impacting the business, along with a competitive analysis identifying major players in the market. Furthermore, it discusses the products introduced by Waltham Clothing, applies the STP (Segmentation, Targeting, and Positioning) model for effective marketing, and provides insights into sales operations, financial projections, and a SWOT analysis highlighting the strengths and risks of the business. The report concludes by emphasizing the importance of strategic planning and analysis for achieving business goals.

Enterprise and
Entrepreneurship

Executive Summary
Enterprise refers to an idea set up by an entrepreneur in order to earn profitability in business. An
entrepreneur is a person who has abilities to set up and manage a new venture while being
responsible for all the risks associated with the venture. The purpose of this report is to introduce
a new venture along with the objectives and various factors related with the organization. This
report majorly covers factors such as external environment, competition and the threats and
strengths of the business. The findings of this report are that if an entrepreneur and his team
strategize their activities by analysing various models, they can achieve the objectives and goals
of the business.

Table of Contents
INTRODUCTION............................................................................................................................1
Business Model................................................................................................................................1
Entrepreneurial competencies..........................................................................................................2
Objectives of Waltham Clothing.....................................................................................................3
PESTLE Analysis of Waltham Clothing.........................................................................................4
Competition of Waltham Clothing...................................................................................................6
Products introduced in the market...................................................................................................6
STP Model of the respective organisation.......................................................................................7
Sales and operations.........................................................................................................................7
Sales forecast and financial projections...........................................................................................8
Strengths and risks of the business..................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship refers to the ability to develop, manage and run a business with good efficiency
and an entrepreneur is entitled to every risk associated with the organization (Adeyeye, 2018).
Creation of a good business idea is also one of the most essential task of an entrepreneur, the
new venture should have capacity to survive in this competitive market. An entrepreneur is
considered as a powerful transformer of the society as the new ideas and ventures helps in
developing the social community. There are several factors which accounts while starting a new
venture such as the originality of the idea, funding for the new project and a good team to
support the entrepreneur in achieving the goals and objectives. The new venture introduced in
this report is Waltham Clothing, which is a Casual clothing business majorly dealing in t-shirts.
This reports revolves around the introduction of a new venture with its aim and objectives along
with this different organisational criteria’s are discussed by applying several business models.
Business Model
A business concept gives a brief detail about the idea behind starting a new venture, this covers
the details about the offering of the business (Al-Awlaqi, Aamer and Habtoor, 2021). It majorly
consists the objectives, the existing competition in the industry and different approaches to
achieve the goals. Further business model canvas is applied on the organization, this model helps
in communicating the strategies and ideas of the business.
Business Canvas Model:
Key Partners:
 Other
clothing
brands
 Online
media
 Social
media
influencer
s
 Machine
Key Activities:
 Designing
 Manufactu
ring
 Promotion
 Placement
Value
Proposition:
 Doing the
manufactu
ring bit
without
causing
any harm
to
environme
Customer
Relationships:
 Personal
assistance
 Automate
d services-
it helps in
understan
ding the
needs and
characteris
Customer
Segments:
 Men
 Women
 Kids
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Suppliers
 Ecological
and fair-
trade
labels
nt. tics of the
customers.
Key Resources:
 Designers
 Clothing
material
 Machinery
 Managem
ent
Channels:
 Super
markets
 Online
websites
 Social
media
Cost Structure:
 Cost of buying and renting machines
 Logistics
 Clothing material
 Compensation to workers and
employees
 Collaboration fee
Revenue Streams:
 Selling various types of clothing and
accessories
Entrepreneurial competencies
It refers to the traits, characteristics and special knowledge which helps a person in successfully
creating, managing and running an organization (Bilan, Mishchuk and Pylypchuk, 2017). This is
the most essential skill to survive in this competitive market. The entrepreneur and team
associated with the new venture should have this competencies to make business prosperous in a
long run. Entrepreneurial competencies in Waltham Clothing is divided into two parts:
Personal entrepreneurial competencies- These refers to the characteristics that entrepreneur
himself and the team need to develop in order to make the new venture successful (Dahles and
et. al., 2020). Traits found in the people associated with the organisation are as follows:
 Initiative- Entrepreneurship is all about taking risks and initiative, every team member
should display the skills by taking initiative in the organization. This helps in grabbing
the opportunities at right place and at a right time.
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 Persistence- This is the art of continuously putting efforts regardless of the result, this
helps organisation in achieving the desired goals (Hansen and et. al., 2020). A team with
persistence can overcome every difficulty that may come over the course of the business.
Venture initiation and successful competencies- These competencies help in setting up and
successfully launching the new venture. These constitutes to the factors such as growth and
survival of the business in the ever increasing competitive market.
 Enterprise launching competencies- Understanding the nature of business by analysing
the advantages and disadvantages of operating a new venture. The competency to get into
a market with the existing players by developing an efficient market plan is the
essentially seen in the team of Waltham Clothing.
 Enterprise management competencies- This comes into account after the launch of the
venture when different aspects such as manufacturing, distribution and human resource
needs to be managed (Herrmann, 2020). Better management is a prime factor of
sustainability of a business.
Objectives of Waltham Clothing
 Increase product’s market share- This is the most essential objective as this is
directly related with the revenue of the organisation. Waltham Clothing aims to
capture a significant share of market by the end of 2025 by approaching customers
through effective marketing techniques such as social media advertising.
 Install more machinery to increase productivity- After making decent amount of
sales, Waltham Clothing is looking to expand its production by threefold so that they
can increase their supply.
 Expanding business internationally- By the year 2029, the company aims to expand
their business in the neighbour countries that is France and Germany. This objective
can only be achieved if Waltham Clothing is able to achieve its desired goals in
United Kingdom.
 Strengthen customer service- This is a recurring goal and needs to be worked on
continuously, Waltham clothing is majorly focused on providing customers with a
good quality of services in their offline stores and website.
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 Innovation- The clothing industry is totally dependent on the taste and behaviour of
consumer, so Waltham Clothing is open to any kind of innovation that maybe
required in the machinery or the products.
PESTLE Analysis of Waltham Clothing
PESTLE Analysis is a tool used by organisation to understand the external factors of
environment that may impact the operations of company in a direct or indirect way (Hockerts,
2018). This majorly covers every factors and aspects of the external environment that is why this
is considered to be most effective tool of analysis. It helps the entity in strategizing the tasks to
achieve maximum profitability during the course of business.
Figure 1: Pestle Analysis Examples to Unlock Business Growth
(Source: Pestle Analysis Examples to Unlock Business Growth)
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 Political factor- Anything in the organisation that gets impacted by government
intervention is a political factor (Lortie and Cox, 2018). Change in the taxation policy,
trade restrictions and tariffs are the prime examples of these factors. In context of
Waltham Clothing, their profitability gets impacted if there is a change in the UK
taxation policy. Another factor that negatively impacts the goals of business is the change
in the trade restrictions of other countries and to overcome this problem the company can
change its expansion areas.
 Economic factor- This considers every aspect of economy that impacts the operations of
business. Economic policies, growth rate of the economy, inflation, exchange rates and
unemployment rate of the country directly impacts the workings in the organisations. In
context of Waltham Clothing, change in the economy impacts the sale of the company.
This puts both positive and negative impact, a positive impact if the economy is
prospering and a negative impact if the economy is facing challenges.
 Social factor- This refers to the cultural and social factors that impacts the production
and sales of the organisation (McCallum and et. al., 2018). In context of Waltham
Clothing, their business is dependent on the taste and behaviour of consumer. If the
company is able to adapt to the social changes than it is considered as a positive factor for
the organisation.
 Technological factors- This refers to impact on the business due to advancement in the
technology, advancement can be in the production or in the supply chain of the company.
In context of Waltham clothing, setting up business products online puts a positive
impact on the sales of the entity.
 Legal factors- These are the clauses and laws that the company is associated with,
violation of these laws could result in heavy obligations against the company and the
entrepreneur (Meyer, Neck and Meeks, 2017). In context of Waltham clothing, the
company need to work under law while expanding and operating business to avoid the
complications of law and order.
 Environmental factors- The ecological impact of the factors on the business are known
as environmental factors. Factors such as weather conditions and natural disasters directly
impacts the production, Waltham clothing needs to change their clothing types according
to the weather condition. This factors sometimes puts a negative impact on the company
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as there is a lot of stock which becomes absolute after change in weather. To overcome
this problem venture can ensure an effective inventory management or in such case can
sell the stock at discounts.
Competition of Waltham Clothing
Competition in the industry is the major concern of business, every entrepreneur wants to beat
the competition and lead in the market share of the industry (Minola and et. al.,2021).
Competition in the clothing industry is high, there are already a lot of companies that are
operating into clothing and apparels and the barriers to enter in this market is also less as
compared to industry. Few of the major competition of Waltham clothing are as follows:
 Marks & Spencer- They are the biggest competitor of Waltham Clothing as currently
they acquire the highest market share in the industry. The company operates in various
countries and has a good grip over the customer. To survive this competition, Waltham
clothing is going to adapt to the changes and offer their products at good pricing for the
few years so that it can acquire a good customer base in its initial days.
 John Lewis & Partners- They operate in Great Britain, Ireland and Australia with a
significant share of market. To compete with such a good company, Waltham clothing is
going to use good marketing strategy to dominate their presence in the market.
Products introduced in the market
Waltham clothing is going to offer a wide variety of products in their stores, they are going to
produce clothes for men, women and kids. Their major production is inclined towards t-shirts,
they will design a huge variety of t-shirts according to the demand of the consumers.
Product Percentage of production
Men’s T-shirt
Men’s Jeans
Women’s T-shirt
Women’s Jeans
Children’s T-shirt
28%
10%
19%
12%
31%
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STP Model of the respective organisation
STP is a marketing model used in the organisation to increase the sales effectively
(Neumann,2021). This model helps in strategizing the key areas of the marketing. This model is
divided in three parts which are discussed below:
 Segmenting- This part is done by identifying similar set of consumer and then grouping
them as on, this segment is based on dividing several groups according to their traits and
characteristics. In context of Waltham Clothing, they have segmented their audience
according to the gender and age group which helps them in producing goods for the right
customer base.
 Targeting- After division of different groups, the organisation target the audience with
majority. In context of Waltham Clothing, their mass production is of kids T-shirt that is
why their target audience is also kids. They will ensure that their majority of resources
are inclined towards that section.
 Positioning- This refers to making a good position in the brand, Waltham clothing aims
to establish a good image of brand in the mind of consumer and to do this they will use
different marketing strategies. Their main focus will be to attract the mothers so that they
can sell both the kids and women products.
Sales and operations
Sales accounts to the amount of unit that company sold in a particular year and operations means
the activities that an organisation engages in to increase the value of the business. Sales and
operation planning is done in order to avoid wastage of resources, this helps in aligning the
supply and demand of the product (Qiu, Xu and Bhatt, 2021). This is the strategic planning
which helps the business in maximizing the profit as the sales department and the operation
department collaborates to calculate the production capacity and the demand of the product.
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Sales forecast and financial projections
A sales forecast is an estimation of expected sales in the upcoming financial year. This is
prepared to get a general idea of how much profitable the idea could be. A budget focuses on the
expenses that the company needs to make in order to produce the desirable units of goods. A
mixture of this is created to estimate the profit margin of the organization.
Financial projections of Waltham Clothing for the current financial year is shown below:
Estimated expenses Amount(€)
Production expenses
Salaries paid
Rent paid
Commission
Travelling expenses
€245,000
€70000
€50000
€15000
€8000
Total expenses €388,000
Estimated Revenue
Sales
Rental income
Interest earned
€420,000
€40000
€35000
Total income €495000
Estimated Profit(Income- expenses) €107,000
Strengths and risks of the business
Business strengths are considered to be competitive advantage over the other companies
operating in the industry (Valter, Lindgren and Prasad, 2017). These factors help in sustaining
business for a longer period of time. The strengths of Waltham clothing are as follows:
 Good quality material- Waltham clothing offers high quality of material at minimal
price, currently no one in the market is offering this kind of quality at such a low price.
This gives an edge to the organisation as this will help them in acquiring customers.
 Good management team- Management helps an organisation in achieving desired goals
and objectives. Waltham Clothing has managed to group the most talented and efficient
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people in their team, this is one of the major strength which gives the respective
organisation a competitive advantage.
 Personal relationship with customers- This helps in establishing a good communication
between the consumer and the organization. A good relationship develops trust and
customer starts to rely more on the organization.
Business risks are the factors due to which the profitability of the company gets impacted
(Visnjic, Neely and Jovanovic, 2018). A business needs to develop strategies in order to
overcome these risks and threats. Risks associated in Waltham Clothing are discussed below:
 High Competition- This industry already has a lot of market leaders and the risk of new
entrants in this industry is also high. So Waltham Clothing needs to make good strategies
to compete these brands.
 Change in the fashion- Clothing industry is dependent on the taste of the consumer, the
fashion keeps changing and the products that are already manufactured gets obsolete.
This results in decrease in the efficiency and profitability of the organisation.
CONCLUSION
By applying different business model, strategies and budgets it is concluded that the respective
organisation will be able to survive for a long term in the market if it is able to overcome its
threats. The PESTLE Analysis helped in understanding the key external factors and the
advantages and disadvantages associated with each factor. The company will be able to achieve
its objectives if the entrepreneur and team works together in this competitive market.
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REFERENCES
Books and journals
Adeyeye, M.M., 2018. A fundamental approach to entrepreneurship, small and medium scale
enterprises.
Al-Awlaqi, M.A., Aamer, A.M. and Habtoor, N., 2021. The effect of entrepreneurship training
on entrepreneurial orientation: Evidence from a regression discontinuity design on
micro-sized businesses. The International Journal of Management
Education.19(1).p.100267.
Bilan, Y., Mishchuk, H. and Pylypchuk, R., 2017. Towards sustainable economic development
via social entrepreneurship. Journal of security and sustainability issues.
Dahles, H. and et. al., 2020. Social entrepreneurship and tourism in Cambodia: advancing
community engagement. Journal of Sustainable Tourism. 28(6). pp.816-833.
Hansen, D.J. and et. al., 2020. The future is in the past: A framework for the Marketing-
Entrepreneurship Interface (MEI). Journal of Business Research.113.pp.198-208.
Herrmann, A.M., 2020. On the institutional foundations of the varieties of entrepreneurship in
Europe. In The Entrepreneurial Society (pp. 71-90). Springer, Berlin, Heidelberg.
Hockerts, K., 2018. The effect of experiential social entrepreneurship education on intention
formation in students. Journal of Social Entrepreneurship. 9(3).pp.234-256.
Lortie, J. and Cox, K.C., 2018. On the boundaries of social entrepreneurship: A review of
relationships with related research domains. International Entrepreneurship and
Management Journal.14(3).pp.639-648.
McCallum, E. and et. al., 2018. EntreComp into action-Get inspired, make it happen: A user
guide to the European Entrepreneurship Competence Framework (No. JRC109128).
Joint Research Centre (Seville site).
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Minola, T., and et. al., 2021. Corporate entrepreneurship and family business: Learning across
domains. Journal of Management Studies.58(1).pp.1-26.
Neumann, T., 2021. The impact of entrepreneurship on economic, social and environmental
welfare and its determinants: a systematic review. Management Review
Quarterly. 71(3). pp.553-584.
Qiu, S., Xu, Z. and Bhatt, B., 2021. The Sharing economy platforms in rural China: Bridging
institutional voids through institutional entrepreneurship. In Sharing Economy at the
Base of the Pyramid (pp. 75-99). Springer, Singapore.
Valter, P., Lindgren, P. and Prasad, R., 2017, October. Artificial intelligence and deep learning in
a world of humans and persuasive business models. In 2017 Global Wireless Summit
(GWS) (pp. 209-214). IEEE.
Visnjic, I., Neely, A. and Jovanovic, M., 2018. The path to outcome delivery: Interplay of
service market strategy and open business models. Technovation. 72. pp.46-59.
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