Entrepreneurship and Business Development: A Business Plan for Funsies in Clothing-Retail Industry in Wales, UK

This report presents a business plan for Funsies, a new clothing-retail venture in Wales, UK. It includes industry analysis using Porter's five forces, market analysis using STP, organisational analysis using SWOT, financial feasibility, and value chain analysis. The report aims to provide effective market entry strategies for the new venture.

Entrepreneurship and
Business Development
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Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
New Business concept............................................................................................................3
Industry analysis (Porters five forces )...................................................................................4
Market analysis (STP)............................................................................................................5
Organisational analysis (SWOT)............................................................................................7
Financial feasibility................................................................................................................8
Value chain.............................................................................................................................8
Business model canvas ........................................................................................................11
Potential risk and its mitigation plan....................................................................................12
Conclusion.....................................................................................................................................14
References .....................................................................................................................................15
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Introduction
Within the globalised business, digital and new technologies of innovation is using within
an organisation for the growth of new venture in market. Human creativities are the main
entrepreneurial mindset that are useful for initiating the new idea to develop the sustainable
business market (Anderson and et. al., 2019). This report includes the process of establishing a
new business with the effective market entry strategies. The main idea for the new business is
related to Clothing-Retail industry in the main street of Wales, UK. The name of the new venture
is “Funsies”. This main purpose of the report is to develop a business plan by including the
identifying different industry, market and organisational analysis. Furthermore, the business
model canvas and risk mitigation plan that is used for completing business plan.
Main Body
New Business concept
Starting a clothing business require a significant passion for the industry, the companies
or ventures wants to combine their talent with fashion and retail industry. This will be helpful for
to gathering data about marketing information within the business plan. Every year the Clothing-
fashion industry is driving different data collection for making high competition in market and
related to their chosen marketing area. Collecting information for the particular market is one of
the biggest issue and it is considered for challenging nature that impacts on hundreds of factors.
There are different perspectives for personal version of brands that is related to the clothing retail
industry. It is useful for established a new business venture in same industry (Cervantes-
Guzmán, 2021). The new business is associated with the clothing-retail industry which is a
clothing store in Wales, United Kingdom. The name of the shop is “Funsies” which derives the
meaning of joy and fun. The concept of the new business is related to the key components of the
products and services offering by the owner to their valuable customers. The main products of
the business are related to fast-fashion clothing for men, women and teenagers. Their target
market is basically the young people who are attracted towards the fast-fashion and the one who
prefer the regular changes in the lifestyle on daily basis. The special attribute of the business is to
serve their customers with the best quality clothes fascinated with new and innovative market
trends. The scale of the business is small and start-up is established in the main street of Wales,
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UK. The major stakeholders of the business are customers, owner, suppliers, clothing factories
and employees.
Industry analysis (Porters five forces )
Industry analysis is referred to market assessment that is crucial in nature because it
applies on the understanding of businesses and examine the major market conditions. This is
helpful for forecasting the demand and supply for effective financial returns and establish the
business as per the effective marketing opportunities. It is very important for the small business
that will be helpful for identifying the stages and achieve benefits related to effective saturation
points for the growth in market (Industry Analysis, 2021). In order to use the industry analysis,
porter's five forces is able to developed the industry analysis and complete the use of clothing
industry by addressing competitive strategies. This model includes the five stages that are helpful
for understanding industry analysis of clothing industry.
 Bargaining power of the customer: Bargaining power of the customer make an impact
on the growth of the company to make effective impact on the major challenges.
However, these customers may affected by different factors as a group to the clothing
industry. At the time of 21st century, customers are able to informed and make several
alternatives for the growth and several brand in the market. There is high level of
competition for the new industry and that is the reason that the customer have high
bargaining power to the company.
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Illustration 1:
Five Forces Analysis of Fashion Retail Industry, 2021

 Bargaining power of Suppliers: On the basis of the industry analysis, it is found that the
suppliers of the clothing industry doesn't make a strong impact (Dabić and et.al., 2020).
The reason for getting effective suppliers of the industry are not having high impact on
the suppliers. For the new business venture, the suppliers have low impact as there are
large number of supplier availability who are dealing in same industry.
 Threat of new entrants: This section of the company is helpful for analysing the need of
competitive forces for having a unique feature. With different investment and marketing
decisions the threat of the new entrants will be helpful for completing the market
analysis. For the Funsies, threat of the new entrants are plays not a significant role in
fashion industry. As there are very few market competitors who wants to enter into the
clothing industry.
 Threat of substitutes: The threat of the new substitute, comes from the clothing-retail
industry that is low within the industry. This industry always competes with another
industry and produce the similar items. Substitute firms are known for having same
functions or quality in lesser prices (Ferrandiz and et.al., 2018). With the help of
providing better quality and utility that is related to organised data and start-ups to
manage with their substitutes. For the Funsies, company is facing low threat of their
substitute products.
 Competitive rivalry: There are different number of participants in industry and their
respective market shares are used to make competitiveness within an industry. Clothing
retail industry is remarkable for the intense level of competitive rivalry in the market and
make systematic products range in the market. In the Funsies, face the strong competitive
rivalry for the strong approaches. Some of the major competitors are Diverse, H&M and
Zara (Five Forces Analysis of Fashion Retail Industry, 2021).
Market analysis (STP)
Segmentation, targetting and positioning is the core concepts in the modern use of
marketing analysis. It is related to converting most effective businesses to deem the effects of
marketing strategies on business. In nutshell, STP means segment the market, target their
selected customers with effective marketing campaign as per the preferences of the customers
(Segmentation, Targeting and Positioning (STP) Model, 2021).
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Segmentation approach: There are different approaches that are used to make a
subdivision of the market into different segments and similar characteristics. The two main
segment used by the Funsies, are demographic and psychographics. In order to expand the
market, it is important to choose different sectors in religious, culture and lifestyles manner.
Funsies, use the high quality of fashion in clothing industry at low prices and typically divide the
classes in working, lower and high class people and students. The main age group that are
focused by the new venture is in between the age of 18 to 25 years.
Targeting strategies: The selection of the valuable customer in the business to sell their
products and services are included in the targeting strategies. The main targeted customers of
Funsies, are the one who wants the fashionable and trendy products in market. With the help of
low pricing strategies and organisation culture, company can make effective strategies for
targetting the customer (Goryushkina and et. al., 2019). Furthermore, the middle class people and
working class employees are the main targets. So it is important for the Funsies to analyse their
market and use effective targeting strategies to work and grow in market. The use of consumer
and high brand loyalty is related to work with multiple retailers in the perfect fashion for the high
classes pieces. Further, to attract their customers at high scope, the company is needed to make
an effective STP analysis.
Positioning strategies: There are different strategies that aim is to considering the
approach and make competitive analysis in relative brand to analyses. Customers and brand
values are needed to be changed and make high quality clothing at the best and affordable
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Illustration 2: Segmentation, Targeting and Positioning (STP) Model, 2021

pricing strategies (Gu and et.al., 2021). The venture should work with economically, socially and
environmental friendly approaches for the growth of market analysis. Different positing
strategies are related to based on product, price, quality and competition.
Organisational analysis (SWOT)
Organisational analysis is one of the significant process that is helpful for generating the
growth, personnel and operational activities that are related to make a work environment. This is
needed to be considered that organisational analysis is one of the beneficial activities to enable
the management process for identifying the strength and weakness to eliminate the problems
(What Is Organizational Analysis? , 2021). For conducting the organisational analysis, Funsies
try to conduct the SWOT that actually help the company to analyse organisational perspective
within the company.
 Strengths: This will include the attractive design of the shop, building up the good image
and providing their customers, good and valuable image for the production analysis
(Lamine, and et.al., 2018). One of the positive factor to Funsies, is enhancing and
maintaining growth for organisational objectives and reach to the different perspectives
to reach goals and objectives.
 Weaknesses: For the Funsies, the weaknesses are assuming the very high price and fast
changes, small series with large number of models, high cost in set-up and optimization
of the products. All of these aspects are worked as weaknesses of the company and
needed to be used an established solution for future use.
 Opportunities: There are different opportunities are related to new fashionable products,
while using tough competition in the market is the effective opportunities of the industry.
It will be helpful for analysing the market condition and gain different sectors and
growth. Opportunities of the clothing retail industry are very high and useful for the
market need and growth in the industry.
 Threats: Some of the market and organisational threats are related to availability of the
substitutes, lowering the price, better distribution of suppliers, competitors and quick
obsolescence of technologies within market. This would be helpful for the company to
work and align different sources to achieve organisational perspective for the growth of
the new venture.
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Financial feasibility
This mainly focus on the financial aspects of the study, as it make an access on the
economic viability of the new venture by analysing start-up cost, operating expenses and cash
flow. The business plan, help the financial feasibility of the Funsies, show that the return on
investment is equal to the required return of entrepreneur (Wang and Richardson, 2021). This is
helpful for establishing the new business and make changes as per the growth and need of the
company in an effective and suitable manner.
Value chain
Value chain is the model that actually affect the buyers who are willing to pay for the
company's products or services. The main difference between the total value and total cost is to
performing activities for the firm's activities and margin within the company. There are different
ways that are helpful for the organisations to realize the profit margin that actually depend on
their abilities and manage different activities related to value chain of the Funsies. The main
reason for conducting value chain analysis is associated with performing activities and
converting the inputs into outputs (What is Value Chain Analysis?, 2021). There are different
activities that are classified that are generally related to primary and supported activities that are
explained further:
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Primary activities:
There are major primary activities that are related to make a concerned source for
creating and delivering the products in significant manner. The five main area of the company
are related to inbound logistics, operational, marketing and sales, in last the services.
Inbound activities: This is refer to the situation where the company use their suppliers
and increase growth in producing products. It will be helpful for the company to deal with
company's organisational structure and make systematic growth in end of product development
(Melese, 2018).
Marketing and sales: Marketing make the growth within the company which is helpful
to targeted towards the customer group of market. The company can use effective marketing mix
and make appropriate competitive strategies that are deal with the competitive and promotional
mix contents.
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Illustration 3: value chain analysis, 2021

Services: After the need of products and services the organisation needed to serve the
best product to their customers. In Funsies, their employees at every stage and levels company
should try to give best and gain competitive advantages for smooth and essential process for
satisfying their customer to meet their demand in market.
Outbound: All the activities that are helpful for distributing final products to get
effective customer and considered the outbound logistics in the market. It will be helpful for the
company to provide home delivery services but at the same time include the storage and
distribution services in market.
Operations: This is the procedure that is helpful for converting raw material into the
finalised products and services. This will be helpful for analysing the marketing conditions and
achieve the targets as per the growth of marketing conditions and labelling the branding in
effective manner. These operations are used to make appropriate operational activities and gener
the cost within the market.
Support activities:
These activities are referred as considering the primary and secondary activities of the
new venture for achieving organisational activities. The main areas that are covering in this
section are helpful for; procurement, technology development, human resource management,
infrastructure development.
Attractive infrastructure: The need for using an attractive infrastructure is helpful for
generating different functions and activities in efficient manner. Furthermore, the owner of the
company have to make sure about financing the venture, make legal structure and work
effectively for the growth of organisational development (Ndou and et.al., 2019). Inefficient
infrastructure and waste resources become the reason for declining impact on the firm's
reputation for analysing the company's value chain in market.
Human Resource Management: The main role of HR is to recruit, train and develop the
people for considering the organisational perspective. The managers of new venture will be
helpful for motivating the other employees. This could be beneficial for the clothing industry as
it will be helpful for gaining competitive advantages for the use of purchasing and effective
services to their employees.
Procurement: This is the department that is helpful for considering the sources of raw
material for the use of business and obtain the best price for completing their financial and
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operational activities. The main challenge for Funsies, is to obtain the the quality for managing
their budget and achieve in desired manner (Trapp and Kanbach, 2021).
Business model canvas
Business model canvas is one of the great tool that help the company to understand the
business model. It will be helpful for considering the different insights and different customers to
serve in market through the use of different channels (Radwan and Daoud, 2021). With the help
of business canvas model, the company is needed to understand the different strategies to gain
competitors analysis for using appropriate strategies and method for understanding the business
in market.
Key Partners:
 Local
textiles
 Fashion
magazines
 Malls
 Legal
firms
 clothing
Factories
in Wales
Key Activities:
The main
activities of the
new venture are:
 Store
administra
tion
 Inventory
manageme
nt
 Sales
Promotion
 customer
manageme
nt
Value
Proposition:
The fast access to
the major fashion
trends at
affordable prices.
Mainly providing
best quality to the
customers.
Customer
Relationships:
Allow the
customers to
return products
within fixed
period of time.
Providing them
the global trends.
Providing online
information about
sales, discount or
any other
information.
Customer
Segments:
 Who love
shopping
 Students
 All
income
customers
 Age group
people of
18-25
years
Key Resources:
 Shop
 Online
websites
 Suppliers
Channels:
 Central
mall
 Websites
 Retail
outlets
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Cost Structure:
The main segment that are used for the cost
structure that is related to selling, promotions,
management and IT people.
Revenue Streams:
The main revenue stream for the company is
their online and offline store.
Potential risk and its mitigation plan
Risk Screening: There are two type of qualitative and quantitative models, for the
qualitative model risk Risk screening is used by the company. Here, the owner screen the
potential risk of the new venture. Some of the major risk is to rise funds from different sites,
using sustainable development products and the changing environment in clothing-retail industry
(Ramadani and et. al., 2019).
Event Tree: When it comes to quantitative models, then the owner of the Funsies, use
Event Tree, that also known the fault tree. This is related to make probabilistic risk assessment,
failure modes and different effective analysis.
Risk mitigation plan
Risk Mitigation plan Contingency
plan
Pre action score
(Out of 10,
Post action score
(Out of 10,
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where 10 is high
risk and 1 is low)
where 10 is high
risk and 1 is low)
Need more
attention
They should pay
more attention to
monitoring
friction in
between the
developed and
emerging
markets.
Make suitable
policies for
declining the risk
in future scope of
the company.
7 2
More
sustainability
Reduce the
pollution as soon
as possible.
Taking significant
actions for
completing the
demand of their
customers.
Use appropriate
sustainable plan
and make
systematic
changes as per the
growth and need
of the company.
6 3
Recalibrating the
digital
Use of more
digital
technologies by
adopting right
way and methods.
It will be helpful
for them to
recalibrating the
use of digital
technologies.
To use efficient
human resources
for managing
digital
technologies.
8 2
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Conclusion
From the above business plan it is considered that to develop a new business plan,
marketing, industry, organisational and financial feasibilities are helpful for gaining more
information. This is very important for the market and also for economic growth to work in
sustainable manner and manage effective growths. The concept of an entrepreneur has been
defined for the growth and detect new innovation for the use of environmental growth and need
of businesses. This business plan on clothing store is effectively gain business model canvas and
show major risk on the basis of different future situations.
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