Hong Kong Retail Business Plan

This assignment requires students to develop a detailed business plan for a hypothetical all-you-can-eat Korean restaurant in Ontario, California. The plan must analyze the competitive landscape of the Hong Kong retail market, including factors like consumer behavior, economic trends, and legal regulations. Students will need to identify target customers, marketing strategies, operational plans, financial projections, and risk assessments specific to the chosen business concept within the Hong Kong retail environment.

ENTREPRENEURSHIP
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Table of Contents
INTRODUCTION........................................................................................................................................................................................................1
Description of the venture........................................................................................................................................................................................1
Business aspiration...................................................................................................................................................................................................1
Organization of the business and key players...........................................................................................................................................................1
1. Owner role and qualifications...........................................................................................................................................................................1
2. Company legal structure...................................................................................................................................................................................1
3. Management team: role and qualifications.......................................................................................................................................................2
4. Employees: Role and qualifications..................................................................................................................................................................2
5. Contractors/vendors: role and qualifications....................................................................................................................................................2
Financials plan..........................................................................................................................................................................................................2
1. Anticipated operating cost of the business........................................................................................................................................................2
2. Anticipated investment requirements................................................................................................................................................................3
3. Anticipated revenue profroma cash flow projection for first five years...........................................................................................................3
4. Payback point....................................................................................................................................................................................................4
5. Anticipated return on investment of three years...............................................................................................................................................4
Marketing/Sales........................................................................................................................................................................................................4
1. Summary of a marketing/Sales strategy...............................................................................................................................................................4
2. Marketing/Sales requirements for the business....................................................................................................................................................4
A. Price of goods and services..............................................................................................................................................................................5
B. Product..............................................................................................................................................................................................................5
C. Promotion.........................................................................................................................................................................................................5
D. Place.................................................................................................................................................................................................................6
3. Competition..........................................................................................................................................................................................................6
Operations.................................................................................................................................................................................................................6
1. Business Location.............................................................................................................................................................................................6
2. Plan for operations............................................................................................................................................................................................6
Legal and Sundry issues...........................................................................................................................................................................................7
1. Legal and related issues....................................................................................................................................................................................7
2. Plan to manage legal issues...............................................................................................................................................................................7
Major challenges.......................................................................................................................................................................................................7
CONCLUSION............................................................................................................................................................................................................8
REFERENCES.............................................................................................................................................................................................................9
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INTRODUCTION
Looking to the volatile era, developing a well-crafted, realistic and compelling business plan seems too tough; however, it is really
important to attract investors, borrowers and others. It is because, venture capitalists are highly concerned with the quality of proposed business
plan and its managerial structure because sound plan make them confident about business success whereas poor plan indicate likelihood of
failure. Business plan provides them future insight so that they can make rationale investment decisions. Buster is a small sized retail store
located in the Lobby of a large office building. This business plan describes a proposed venture to expand Buster’s from a one-store to two-store
operations. The report aims to develop a well-organized business plan taking into consideration all the key aspects including business structure,
managerial team, personnel plan and others. Financial projection is one of the most important aspects of plan constructed that investors and
lenders examines before investing money in the new business to eliminate risk. Thus, the report will construct a financial which inform
stakeholders about future cost and return as well. Besides this, marking plan, operational plan, legal and sundry issues and other business
challenges will be prepared.
Description of the venture
Currently, Buster is running its operations as a small sized retailer in the lobby of large office building that occupies just 1000 square feet
space. It generates an annual revenue worth $150,000 - $300,000 per year by offering people a couple of items including snacks, pre-wrapped
sandwiches, bottled beverages, greeting card, newspapers, paperback books and small gift items that attracts building’s tenants. In order to
expand the business, entrepreneur is interested in occupying a new office building that is two block away from the current office premises. By
this, business will be able to expand its scale, operation size and meet set targets of sales and profit maximization.
Business aspiration
The main reason that encourages Buster to expand its one-store operations to two-store operations is its business aspiration that is to
expand the establishment to become a large chain of 10-15 stores situated in downtown office building. It only can be fulfil through expansion
and opening two-store business will be just a step towards such aspiration. Hence, it can be said that proposed plan will significantly contributes
towards attaining long-term business vision.
Organization of the business and key players
1. Owner role and qualifications
The Buster’s business is solely owned and operated by the founder named, Marsha Jones, a sole proprietor or owner of the business. She
owes liability to bring creative ideas and new thoughts in line with the challenging market world so as to make creative plans and assure
successful survival. Sound and rationalized growth strategies and plans are developed by owner to run operations successfully in the competitive
market.
The proposed store will not bring any change in existing ownership structure and it will be managed by Ms Jones. She will play a role of
business planner and takes necessary steps like location selection, financial requirement, business registrations and satisfying all the legal
requirements including licenses and permits. She is the leading, superior authority comes at top hierarchy, and every new plan or strategy must
be approved by owner first before implementation (Levy, Weitz and Grewal, 2012). In the unpredictable market changes such as changing
demographics, customer choice, preferences, and other factors, Jones continually keep track of market changes to find out new opportunity,
examine existing risks as well, and make plans accordingly to grab benefits of opportunity and combat threats. She also keeps her eye over
competitor’s action, steps, and turn creative ideas in reality for their own business to stay competitively strong. She is responsible for each and
every aspect of operations from planning to merchandising or overseeing routine functions (Lai, 2012).
She had 10+ years of experience working in the retail sector. She completed his post graduation degree in Master of Philosophy in
Technology, Leadership and Entrepreneurship from Hong Kong University of Science and Technology in 2006 and previously she had worked
for many establishments including USelect, Twins Co and Prizemart and under his leadership, business recorded a good annual growth rate in
sales by 12.5%, 18% and 15% respectively.
2. Company legal structure
Company is running its operations in the form of sole proprietorship wherein the entire business is solely owned, regulated, administrated
and operated by Marsha Jones. She alone owes the liability to run the business activities and oversee its day-to-day transactions. Ms Jones is the
single decision-making authority and all the business profits as well as losses are available to the owner (Dima and Grabara, 2013). She has
unlimited liability and in case of insolvency, she would require to sell-off her personal assets too to pay-off all lenders and creditors.
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3. Management team: role and qualifications
Although, currently, business is handled, supervised and controlled by owner, Marshal Jones but after expansion to two-store, she may
face difficulty to look all the aspects including marketing, sales, operation and finance. Therefore, it is decided to hire an operational manager as
an in-charge of regular oversight of daily transactions (Chang, Kivela and Mak, 2010). Manager will work under the supervision of owner and
will be liable to ensure proper staffing, sound inventory management, cost management and other aspects.
Required educational qualifications:
 Diploma course
 Minimum 4 - 5 year working experience in Retail sector
Skills requirement
 Good analytical skills
 Highly adaptable to change
 Strong people management skills
 Sound leadership skills
Jacob Williams who had completed postgraduate Diploma in Entrepreneurship and Innovation Management from Hong Kong University
School of Professional and Continuing Education (HKU SPACE) is decided to hire for the post. He started his career with A&M and also
worked for Best Mart 360 and 759 Store in Hong Kong.
Role of operational manager
 Mr. William will play a senior role and look towards all the daily activities and merchandising transactions.
 To ensure delivery of efficient services tailor customer expectation and needs.
 To monitor, regulate and examine current or existing provisions or strategies to make highly effective plans
 To evaluate and analyze business performance and report it to the owner, Ms. Jones
 To implement sound quality management and assurance system targeting customer satisfaction
4. Employees: Role and qualifications
Currently, business has only two employees and each one work at the store for 30 hours a week. For the expansion, 2 more workers will
be hire and just require either bachelor or post-graduate or diploma degree. They will play an important role because whatever services and
products are being offered to customers is offered by workers only. They will be liable to follow operational head’s order, complete all the
assigned work and duties timely, and report their performance ()Verkuil, 2015. Workers must have background knowledge and minimum 2-year
working experience in Hong Kong retail sector. They must be able to establish a strong connection with customer, deliver them required
products and services and solved out customer problems. Moreover, they require basic computer knowledge including MS word and MS Excel
and good communication skills. For the post, it is decided to hire two workers, Lucas and Simon. Lucas had completed Bachelor of Commerce
whereas Simon had completed its Bachelor of Business Administration from Hong Kong Shue Yan University.
5. Contractors/vendors: role and qualifications
Buster will buy all the food products like sandwiches and canned beverages from Amoy Food Ltd that is a private limited company
engaged in food processing industry. Company had well-known market image through delivery of food items such as frozen foods and instant
foods that are offered all over the world (Zhang, 2016). Being a vendor, Amoy Ltd plays an important role because quality food items help
Buster to match expectation and desires of consumers so strongly however, poor delivery tends to decrease satisfaction among customers.
Financials plan
1. Anticipated operating cost of the business
Operating costs includes all the regular spending that Buster will occur to carry out day-to-day activities. As said earlier, that it will hire
two additional staff members who will pay at a hourly pay of $10 and operational manager will be paid at an annual salary of $96,000 total
payroll for a year will be $188,160 at monthly cost of $15,680. Monthly rental charges of the retail building are $15,000 while on marketing,
other expense and loan repayment will incur a cost of $476, $542 and $989 respectively with total operating cost of $32,686.
Particulars Amount
Payroll $ 15,680.00
Rent $ 15,000.00
Sundry expenditures $ 476
Marketing $ 542
Repayment of loan $ 989
Operating costs $ 32,686
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2. Anticipated investment requirements
Particulars Amount (In Hong Kong Dollar)
Furniture & fixture $ 10,500.00
Signage and initial marketing $ 4,000.00
Initial Inventory purchase $ 50,000.00
Legal cost $ 2,000.00
Equipments (cash register, computer, camera etc.) $ 4,500.00
Operating costs $ 2,000.00
Rent in advance $ 15,000.00
other preliminary expense $ 2,000.00
Total costs $ 90,000.00
Out of total required investment, $90,000, $20,000 will be invested by owner Marsha Johns from her personal saving, $20,000 will be
taken from friends and family members and remainder $50,000 will be borrowed from bank loan at 6% interest rate per annum (Van Auken and
Horton, 2015).
3. Anticipated revenue profroma cash flow projection for first five years
Particulars
Pre-
operating
year April May June July August
Septem
ber
Octobe
r
Novem
ber
Decem
ber
Januar
y
Februa
ry March Total
Revenue from sale
of food products
$
15,000
$
15,600
$
16,224
$
16,873
$
17,548
$
18,250
$
19,162
$
20,120
$
21,126
$
22,183
$
23,292
$
24,456
$
229,835
Revenue from sale
of other items
$
19,800
$
20,295
$
20,802
$
21,322
$
21,855
$
22,402
$
23,186
$
23,997
$
24,837
$
25,707
$
26,606
$
27,538
$
278,349
Own investment
$
20,000
Financial
assistance from
friends and family
$
20,000
Bank loan
$
50,000
Total revenues
$
90,000
$
34,800
$
35,895
$
37,026
$
38,195
$
39,403
$
40,652
$
42,348
$
44,118
$
45,964
$
47,889
$
49,898
$
51,994
$
508,183
Expenditures
Rent
$
15,000 -
$
15,000
$
15,000
$
15,000
$
15,000
$
15,000
$
15,000
$
15,000
$
15,000
$
15,000
$
15,000
$
15,000
$
165,000
Payroll -
$
15,680
$
15,680
$
15,680
$
15,680
$
15,680
$
15,680
$
15,680
$
15,680
$
15,680
$
15,680
$
15,680
$
15,680
$
188,160
Beginning stock
$
50,000 - - - - - -
$
6,000
$
7,500
$
9,000
$
10,500
$
12,000
$
13,800
$
58,800
Sundry
expenditures
$
2,000
$
450
$
455
$
459
$
464
$
468
$
473
$
478
$
482
$
487
$
492
$
497
$
502
$
5,707
Marketing
$
4,000
$
542
$
542
$
542
$
542
$
542
$
542
$
542
$
542
$
542
$
542
$
542
$
542
$
6,500
Furniture &
fixture
$
10,500 - - - - - - - - - - - - -
Legal costs
$
2,000 - - - - - - - - - - - - -
Equipments
$
4,500 - - - - - - - - - - - - -
Working capital
$
2,000 - - - - - - - - - - - - -
Repayment of loan
$
989
$
989
$
989
$
989
$
989
$
989
$
989
$
989
$
989
$
989
$
989
$
989
$
11,870
Total costs
$
90,000
$
17,661
$
32,665
$
32,670
$
32,674
$
32,679
$
32,684
$
38,689
$
40,193
$
41,698
$
43,203
$
44,708
$
46,513
$
436,037
Net cash flow
$
-
$
17,139
$
3,230
$
4,357
$
5,521
$
6,724
$
7,968
$
3,660
$
3,925
$
4,266
$
4,686
$
5,190
$
5,481
$
72,147
Loan repayment schedule
PmtNo
.
Paymen
t Date
Beginning
Balance
Scheduled
Payment
Extra
Payment
Total
Payment Principal Interest
Ending
Balance
Cumulativ
e Interest
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1 1/4/2019
$
50,000.00
$
11,869.82
$
-
$
11,869.82 $ 8,869.82
$
3,000.00
$41,130.1
8 $ 3,000.00
2 1/4/2020
$
41,130.18
$
11,869.82
$
-
$
11,869.82 $ 9,402.01
$
2,467.81
$31,728.1
7 $ 5,467.81
3 1/4/2021
$
31,728.17
$
11,869.82
$
-
$
11,869.82 $ 9,966.13
$
1,903.69
$21,762.0
4 $ 7,371.50
4 1/4/2022
$
21,762.04
$
11,869.82
$
-
$
11,869.82
$
10,564.10
$
1,305.72
$11,197.9
4 $ 8,677.22
5 1/4/2023
$
11,197.94
$
11,869.82
$
-
$
11,197.94
$
10,526.07
$
671.88 $ - $ 9,349.10
Payroll
Payroll Hourly pay Daily pay Monthly pay Annual pay
Employees 4 10 1920 7680 92160
Operational manager 8000 96000
Total payroll 188160
4. Payback point
Payback period = Initial investment/Annual cash flow
= $90,000/$72,147
= 1 year 3 month
Thus, Buster will recover initial investment of $90,000 within 1 year 3 month.
5. Anticipated return on investment of three years
ROI is used to examine the effectiveness of investment opportunity available to Buster. Taking into account 8% increase in the
profitability, ROI is computed as follows:
Particulars Year 1 Year 2 Year 3
Profit 71097 74651 78384
Investment 90000 90000 90000
Return on investment 79.00% 82.95% 87.09%
Marketing/Sales
1. Summary of a marketing/Sales strategy
In tough and extremely challenging market, marketing becomes an important facet of business operations and currently, companies put a
lot of focus on marketing efforts to encourage a good clientele base to actually purchase and consume the offerings to satisfy their demand.
Company will charge highly competitive prices for all the superb quality products and services. Print media advertisement and point of sale
advertisement will be followed under the promotional strategy (Luan and Sudhir, 2010). However, its two-store location will be its single
distribution channel network from where company will sell its offerings.
2. Marketing/Sales requirements for the business
Marketing is the procedure that includes all the efforts made by entity in respect to promote their product selling through different means
such as advertisement, personal selling, social-media marketing and others (Armstrong and et.al., 2015). It is the way to teach existing as well as
potential buyers about the benefits with business offerings over competitors. Thus, by this way, it can be considered as a forward-looking
method with the key goal to attain sustainable competitive benefit. However, in uncertain world, it becomes too challenging to create an
appropriate marketing mix. It includes all the factors that are under the control of the business entity and used to influence people to make actual
purchase. In other words, a mixture of various marketing tools that an entity uses to pursue their targeted marketing objectives is called
marketing mix (Huang and Sarigöllü, 2014). It mainly covers four elements (4Ps) that are product, price, place and promotion. In order to attain
success in the competitive retail sector, following marketing mix has been decided for Buster, presented below:
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A. Price of goods and services
Price is one of the most important elements that have strong influence over buyers before final purchase decisions. It refers to the value
of an item or services that consumer buys. It not only important for the customer as they need to pay charged prices to the firm as a consideration
to the company but also important for the organization because their successful survival, growth, profit and revenue affects by price. ( Kim and
Hyun, 2011) It helps firm to shape buyer perception, usually, consumer thinks that a low price simply means inferior quality good whereas, on
the other side, not all the users can purchase a highly priced item. Therefore, company needs to consider their profit target and customers
affordability to set an appropriate pricing policy. After contraction, currently, retail sector of Hong Kong is on steady recovery ( Hong Kong
retail sector marks sixth consecutive month of growth, 2017). The sector is continuously evolving that requires experts and sound knowledge of
market to stay ahead.
In order to bring a good growth in Buster’s customer base, it is decided to follow a competitive pricing policy, in which, a balanced
margin will be added to the cost to set prices. It is a mid of market penetration and market skimming price in which neither too high nor too low
prices will be charge. Price will be deciding after assessment of customer affordability to examine their willingness to pay ( Parker and et.al.,
2016). Affordable price mechanism will attract a good clientele base to the firm and contributes towards sales and profit maximization; at the
same time, it also helps to eliminate risks involved in market penetration and skimming policy because former charges very low prices that
discourage competition whereas in later, initially, firms set high prices to satisfy first customer demand and thereafter, prices are cut to attract
other customers, suitable for highly-sensitive market segment (Burnett, 2015).
B. Product
There are various types of products and services that are being offered to you that being offered to public. Buster is a currently running
their operations at a small sized retail shop where it is offering customers a large variety of goods. Company decided to purchase all the food
items from Amoy Food Ltd that is a well-known organization and provides the best quality food (Fung and Choi, 2018). By delivering superb
quality goods and services to target audiences, Buster will be able to satisfy customer food choices such as snacks, pre-wrapped sandwiches,
canned beverages and others. Besides this, product portfolio of the firm also includes delivery of greeting card, newspapers, paperback books
and small gift items (Armstrong and et.al., 2014). These items will help firm to attract tenants of the building quality food choices considering
the demand and needs of final buyer will enable firm to enhance customer satisfaction level (Kuang and Bhat, 2017). Operational manager of the
firm pays special attention to the product quality and keep all items safely by complying with quality management and assurance system. It
follows a straightforward merchandising approach wherein merchandisers place order as per the procurement budget taking into account
inventory and delivery lead-time (McKeever, 2016).
C. Promotion
Promotion refers to the way to communicate or inform all the audiences about the relative strengths of a product or services over
competitor’s offerings. Buster’s promotional strategy is very clear and it relies only on straightforward promotion to provide benefits to the
consumers. It will use in-store promotion strategy which seems highly effective to aware consumers and build unique image. Point of Sale (POS)
advertising, print media advertising and newspaper advertisement will be used by the entity to draw customer traffic and maximize total
revenues (Weisberg, 2015). Besides this, items that are available in store for long time will be sold at discounted price, thus, company will
follow discount tactic as a promotional weapon to attract a considerable audience to come and purchase the item at lower prices. Delivery of
quality products also promotes word of mouth (WOM) publicity.
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PriceCompetitivepricesPlacePhysicalstoresPromotionIn-storepromotionNewspaperadvertisementPrintmediaWordofmouthpublicity

D. Place
Compared to source of product and merchandising, it is really tough to find a perfect location for store. For the current business
expansion plan from one-store retail to two-store retail shop, all the products and services are only offered to the public through the location.
Thus, office premises will be the single platform to sell company’s products and services. Every customer needs to come to the physical store
and purchase required item.
3. Competition
Retail sector is highly competitive sector where it is very difficult to differentiate the goods whereas as customer choices and preferences
changes rapidly which are uneasy to predict. Marketers feel tough competitive challenges from rivalry organizations in terms of their customer
base, sales and profitability. Company will face tough competition from other firms operating in the market in same sector. The main competitor
for the Buster business includes following:
USelect: It has 15 stores all over Hong Kong, most of which are discounted grocery shops. A considerable proportion of its stock is
bought from the leading British retailer, Tesco Plc. It provides wide range of food items and services to people including wine, juice, pasta,
snack foods, yogurt, cheese, butter, frozen food, vegetable and others. As company offers Tesco branded items, which itself assure good quality
products. Payments are received in both cash or credit card (Stewhart, 2017). However, currently, firm is struggling in its inventory
management, as not all the items are available at any customer visit; as a result, customer prefers other stores.
Prizemart: It is one of the well-established retail stores with 24 stores, few are selling frozen food items and others are offering dried and
canned items as well as household goods. These remain busy all the times and offer a good bargain on goods when they are bought in bulk. It
also offers wide range of chocolates, snacks at well prices, and accepts payment only in cash (Stewhart, 2017).
Twins Co: It is one of the specialists in all the baking related items in Hong Kong retail market. The business is currently operating in the
market with three stores such as Yau Ma Tei, Tseun Wan and Wan Chai that offers butter, food colouring, cake-tins, muffins, flavouring and
others at decent discount. Company did not accept credit cards and accept cash only.
Operations
1. Business Location
The Buster will be expanded to two-store shop that is located in Yau Ma Tei, Kowloon. It is found perfect location for business because
it is located between Tsim Sha Tsui and Mong Kok that is well famous among tourists due to Temple Street, one of the well-known open-air
market in Hong Kong. The place is well surrounded by popular cultural destinations ilke Tin Hau Temple, Yau Ma Tei Police Station, Yau Ma
Tei Theatre and others. There are number of Hindu temples too with too famous street market; Temple Street Night Market and Jade Market.
Former is very popular among locals and tourists for cloths, traditional wears, arts, phone accessories, sunglasses and others. Moreover, it is
famous among local eateries (Watson, 2016). Thus, it is clear that Street Night Market will be definitely a stunning location for the business
where maximum number of buyers can be attracted and can be offered with couple of items. Buster will be able to serve a considerable customer
base at such a location and generate high revenue and assures good return.
2. Plan for operations
Currently, both the employees that are currently employed in Buster are working just for 30 hours a week however, there are no legal
binding on the business operating in Hong Kong to run operations just for 5 days. Even Hong Kong is considered as the place where workers
need to work so long may be 9:00 to 18:00 PM. Thinking from both the side of employee and business itself, it is decided to expand current
hours of operations from 30 hours to 48 hours. It means the retail outlet will remain open for all the six days from Monday to Saturday and all
the workers need to work minimum of 8 hours a day. However, in the busy time, if they need to work for overtime, then, they will be pay 1.5
times of the normal hourly pay. It will facilitate customers to buy goods and services during extended working hours.
All the food items will be bought from Amoy Holding Ltd and offered to final customer at competitive rates. However, other items like
gifts, greeting cards, newspaper that attract tenants of building will be purchased from localized shops. Operational Manager will make sure that
all the food items keep safe and found hazard-free from consumers perspective valuing their health requirements (Uncles, 2010).
The main operational difficult that may arise is inventory shrinkage as in the retail market because it is often seen that many-times,
customers do not found product at the shop and as a result, they prefer visiting other retail store to meet their specific demand, needs and wants.
Thus, in order to avoid such difficulty, operational manager will utilize Enterprise Resource Planning so as to keep computerized inventory
management. ERP provides details of available inventory items along with opening inventory, incoming and outgoing during the period.
Operational Manager owes accountability to regularly check the inventory details and whenever stocked item goes under danger stock or
minimum safety place, then order must be placed immediately. It is because, if it is placed on the point of nil inventory stock, then the process of
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order placement and recovery of goods take some time, called lead-time (Ghezzi and et.al., 2015). During such period, Buster will not be able to
serve customers. Therefore, it needs to make sure that orders are placed timely to avoid any situation of shrinkage or shortage.
Legal and Sundry issues
1. Legal and related issues
Every business needs to follow applicable legal rules and regulations while running their business activities and functions. For the given
business case, Buster is subjected to the several legal challenges. For instance, in the merchandising operations, entity needs to make various
contracts with suppliers and others. Besides this, in Hong Kong, companies who are engaged in running commercial activities and trading
functions need to follow HK commercial law (Finch, 2016). Complying with this, business need to register their business and follow other rules.
However, if in any circumstance, Buster did not abided with its legal principles and rules, then, legal issues can take place.
2. Plan to manage legal issues
Company is require to comply or adhere with all the terms and conditions mentioned in the contract made to avoid any possibility of
legal disputes with stakeholders like suppliers and others. Moreover, as said, commercial law issues can be avoided through ensuring full
adherence with the commercial law act. In this, company did not comply with the provisions of registration and other regular business activities.
It covers rules and regulations for sale of goods and trading activities, in which, a contract or sales agreement is created between seller and buyer
(Commercial Law in Hong Kong, 2016). Bill of sale is one of the most important documents which make it essential for the Buster to draw a bill
for all the goods and services sold to customer. Despite this, business name will be copyrighted to secure Intellectual Property right and avoid
any legal complexities.
Major challenges
In the current competitive age, none of the establishment is free from the market challenges. With reference to the cited case scenario,
business is subjected with following key challenges or threats, explained below:
Intense level of competition: As discussed earlier, that retail sector is too competitive market where there are large numbers of traders
who are delivering similar kind of goods and services to customers. Buster will face direct competition from Prizemart, Twins Co. and USelect,
thus, the market seems too challenging and competitive and in order to ensure successful survival, company needs to create unique growth plans
and strategies (Simón and Revuelto, 2016). Buster will assure its competitiveness in the market through delivering great quality food products
along with the additional items that found attractive for building tenants such as gifts, greeting card, newspaper and others.
Changing consumer preferences: Retail industry of Hong Kong is experiencing dramatic and sudden evolution in the behaviour of
customers since 2010. Technology is one of the most important component that affected customers such as embraced mobile tech, social media
marketing, online purchasing and many others. Just like North America and Europe, unshakeable retail firms like Marks and Spencer, Sears,
Macy’s and Nordstrom scrambling to keep up with knock-on effects of online migration, Hong Kong is facing the same situation in the field of
departmental stores and clothing sector. Due to such situation, large-sized retailers had closed its shops with the speedy shift to online shopping
as a considerable proportion of their buyer base had starting shopping online (Lloyd, Yip and Luk, 2011). In order to stay competitively strong,
companies not only can offer whatever they want to sell but need to understand what customer need and deliver goods and services as per
customer specification including size and colour specifications.
Firms use omni-channel marketing strategies to leverage flexibility and create a unified image in the mind of customers (Hong Kong
retail market review and market outlook, 2017). Although, initially, it is too costly and even difficult too to execute omni channel marketing due
to infrastructural changes, aggressive marketing and training requirements but ultimately, it drives many benefits to the customers. Considering
market changes, retailers need to introduce significant changes on payment side including s-commerce and m-commerce platform that are
steadily growing in the Hong Kong. To overcome challenges and assure success, Buster requires keeping track of changing buyers’ behaviour
and shopping preferences and creating a seamless shopping environment for all.
Market challenges: Retail Management Association of Hong Kong had projected that in future retail sales may decline exacerbating the
projection in fact that retailers are struggling with increasing operational costs (Chia, 2016). Inflation, changing cost of borrowing and others
also expected to bring financial turbulence for the business. Rising operational costs bring difficulty for the firm to maintain an affordable
margin over the product costs to set prices.
Workers conflict: As Buster will hire two more staff members therefore, it may be possible that conflicts may take place due to
differences in their thoughts, working styles and perception. Workforce management is not an easy task even it seems too tough to manage
workforce effectively. Conflicts among employees create a negative image and also reduce their productivity due to stress. Moreover, it
negatively affects work culture and team-working practices as no one may be interested to collaborate or cooperate with other and do not assist
each other in work completion. In order to avoid conflict, it is the duty of operational manager to promote team working and creates a familiar
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and healthier working environment by providing those equal opportunities without any unfavourable treatment and valuing their efforts (Miller,
2012). If in any circumstance, conflict occurs among staff, and then manager needs to discuss with both the parties, listens them and find out a
middle solution that is respected by both.
CONCLUSION
The business plan examined that expanding currently running one-store retail shop to two-store will be definitely a great opportunity that
will enable business to expand their customer base, generate good revenue and increase their profitability and offers an attractive return to the
investors.
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