Functional Business Plan for Elegant Fashion: PESTLE and Porter's Analysis

This report discusses the functional business plan for Elegant Fashion, a startup dedicated to women's fashion. It includes a PESTLE analysis and Porter's Five Forces model to analyze the external business environment and make recommendations for the business. The report also discusses various functional units such as marketing, human resources, and finance. The chosen ownership structure is sole trader. The report concludes with recommendations for startups to understand the business environment and maintain effectiveness.

Individual Report

Table of Contents
Introduction.................................................................................................................................................3
Overview of the Report...........................................................................................................................3
Start- up Business Structure........................................................................................................................3
Choose a Start-Up business of your choice..............................................................................................3
Functional Business Plan.............................................................................................................................4
Think about how to make that business functional..................................................................................4
Macro Environment (PESTLE Analysis)....................................................................................................6
PESTLE Analysis....................................................................................................................................6
Micro Environment (Porters five force model)............................................................................................9
Recommendation.......................................................................................................................................11
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13

Introduction
Overview of the Report
In the current scenario, most of the people utilizing their creative mind and start a
business by their own so that they can get effective reorganization and provide their contribution
in the development of the country economy. In United Kingdom, most of the people who have
talent and amazing business idea are looking forward to start a business and formulate their new
startups and adopt specific type of business and ownership. It is necessary for the new startups to
generalize the market situations and also identify the impact of the business environment so that
business owner can appropriately maintain their performance level at the whole market place. It
is analyzed that the company's business situation mainly permits it in order to recognize the
appropriate possibilities to stay ahead of the competition. Various prospects for business success
are provided by business atmosphere. There is a requirement to recognize it and it aids a business
in discovering and utilizing favorable possibilities ahead of competition. In order to conduct this
study, a business plan related with the startups considered. This business plan is focus on the
startup and the ownership structure of the startups is chosen as Sole trader. In the report, internal
and external environment is considered in order to make the organization more functional.
Start- up Business Structure
Choose a Start-Up business of your choice
In this report, the primary concern is on the business plan which is all about the “Startup”. This
startup is mainly based on the sole trade business. The name of the startup is “Elegant fashion”
this startup is mainly dedicated toward the women’s and their fashionable items including cloths,
makeup, accessories and other luxuries and fashionable goods. For this startup named “Elegant
fashion”. Owner of the business adopted Sole trader ownership. The explanation of this type of
business are given below-

Sole trader
A sole trader is mainly known as either a single owner, is a straightforward business structure for
which 1 individual owns and also operates the whole operation. A lone trader is allowed to keep
whatever profits after taxes, but is also responsible for all losses incurred by the business. A sole
proprietor is a corporate structure in which one person owns and operates the whole company.
Self-employed people, on the other hand, are those who operate a business or undertake
freelance work and pay income taxes through into the Self Evaluation framework rather than
PAYE (Anand and Mantovani, 2021). For this startup, sole trader is chosen because it can help
to maintain the effectiveness of the business and owner has the right to think about the business
and also take risk and decision of the development of the business.
Functional Business Plan
Think about how to make that business functional.
In order to improve the profitability and applicability of the company, owner of the business can
focus on the development of the business and also adopt some specific functional unit which can
helpful to maintain the applicability of the business (Bell and Rochford, 2016). Owner of the
“Elegant fashion” needs to adopt some functional units in order to improve the business
functional areas. The explanation of various functional unites are as follows-
Marketing
The effort intended to make your product and service perceived in a favorable manner by your
audience is referred to as marketing. Because of its broad interpretation, management
encompasses practically all aspects of a company's activities, including advertisements, sales,
and products and services delivery to a single client or organization. For the development of the
company that is “Elegant Fashion”. It is necessary for the company to focus on their marketing
operations (Burns and Dewhurst, 2016).

 Need to focus on the target audience's attention is captured through marketing.
 Marketing is the process of persuading a customer to choose your service or product over
a potential competitor.
 A consumer is given the appropriate option to make the easy selection thanks to
advertisement.
Human Resource
In order to maintain the business operations , it is necessary to focus on the HRM
activities. Basically, HRM methods are responsible for managing people in the workplace in
order to fulfill the organization's purpose and strengthen the culture. HR Mangers cam aid
appoint additional professional only with capabilities needed to advance the company's goals, as
well as assist with the training programs of present workers to accomplish objectives, if done
correctly (Fozer and et. al., 2017).
HRM is an appropriate aspect of sustaining or increasing the health of a business because an
organization is only as successful as its employees. HR managers can also keep an eye on the
employment market in order to keep the business current. This might entail ensuring that salary
and benefits are equitable, that conditions and events are organized to avoid the employees from
becoming burnt out & that job duties are tailored to market conditions. Elegant Fashion owner
need to focus on the HR activities and operations so that manager can appropriately maintain
their business and employees related activities (Grassi and Vallati, 2019).
Finance
The successful planning, organizing, and regulating of monetary resources is referred to
as financial management. Financial planning largely involves the judgments & consideration
about the quantity of expenditures, the supplies and range of capital utilization, and the amount
of profit made from the same. It entails employing various management strategies to an annual
business sources in order to maximize revenues (Grail and et. al., 2019).

The financial manager of the company is considered as the head of the overseeing and also
responsible to managing the business' future reporting, investment portfolios, bookkeeping, and
financial analysis of all types. In additional to the regulatory framework, it must oversee the
company's cash flow management methods. Elegant Fashion owner needs to focus on their
financial management and also consider an appropriate financial plan in order to run the business
operations.
Macro Environment (PESTLE Analysis)
PESTLE Analysis
This analysis is helpful to analyze the external business environmental situation which mainly
concerned about the political, economic, social, technological, legal, & environmental factors, as
well as their favorable & unfavorable influence on Elegant Fashion company operations, is
provided below -
 Political Factor - In this factor , various terms are involved such as taxation policy,
import tariffs, economic stability and instability, and international commercial policies
are only a few of these influences. This aspect has the potential to have a direct impact on
Elegant Fashion operations. Company is largely concerned among all political concerns,
as well as guaranteeing social stability, in order to operate efficiently in a number of
geographic regions. Company complies with all local government regulations and laws,
which benefits the company's performance. The stability of the administration may
occasionally impair a company's marketing and tactics, thus impacting its economic
security (Gupta and et. al., 2019).


Figure 1PESTLE Analysis Example, 2021
 Economic Factors – In the economic factor, some appropriate factors are involved such
as economic expansion, macroeconomic indicators, labor participation, minimal wage
rate, interest rate, inflation, and profession were all evaluated in this category. Because
each of these economic elements has an influence on Elegant Fashion company activities,
the company must consider them all. Appropriate pricing strategies and fluctuations in
the currency value are two essential considerations that benefit economic output. When a
corporation comes into touch with other foreign nations with good growth rates, it might
have a detrimental influence on its promotion. The inflation rate is constrained by every
setback in the firm's present activities (Hassan and Alanazi, 2018).
 Social Factors - Inter operations, revenues, profession, age, geography, and customer
shopping power are all taken into account. Company must pay close attention to this
entire topic in order to appropriately manage all of their actions. Elegant Fashion focuses
on cutting-edge technology and incorporates yet other capabilities into its commodities,
all of which are beneficial to companies. Some generational swings and rapid
adjustments in customer taste might be detrimental to a business.

 Technological factor – Technical breakthroughs, technology advances, and increased
programs are all considered technological aspects. Elegant Fashion is a factor such as
technological corporation, thus it will be more comfortable with technology and uses
technically advanced applications that may have a considerable influence on the
leadership of the company. The fact that a few technological items are pricey has a
negative impact on sales margin (HIREMATH, 2021).
 Environmental Factors - Climate warming, erosion, overcrowding, and the pace of
sustainability are only a few of them. These characteristics are of particular concern to
company, who wants to determine their protracted sustainability. To increase the
company's environmental sustainability, Elegant Fashion has established a green
marketing strategy. Changes affecting vegetation types might have a negative impact on a
company's management (Jafari and Othman Soleiman, 2020).
 Legal Factors – All legal issues, lawful actions, legal principles and processes, and laws
are included in the legal component. Elegant Fashion complies with all legal standards
and preserves legal aspects of their operation that benefit the company. Elegant Fashion
must also deal with the laws in question, and the administrative structures and procedures
of most of those regions of the world may be harmful to the corporation.

Micro Environment (Porters five force model)
Porters five force model
Michael E. Porter ’s model is a basic idea in competitive forces that he established in 1979. Its
approach has now become the accepted practice for analyzing the factors that influence
production. All of these factors have an impact on entrepreneurial activity and the institution's
prosperity. The section provides an overview of this paradigm in the framework of the Elegant
Fashion organization:-
 New entrants – New entrants, or the potential (and probability) of competing firms
joining an industry, are the first influence in Porter ’s Five Force model, boosting
conflict. The barriers to access typically dictate the possibilities of entry. Rivals will rush
in if the stakes are modest and require little initiative, time, or currency. Elegant Fashion
is the best corporation, thus entrants have a minor influence. The force of new entries is
more because Elegant Fashion is the startup and there is lot of competition (Mahat and
Goedegebuure, 2016).
 Bargaining Power of Suppliers – Due to the huge number of providers in the market,
supplier bargaining strength is moderate. When there has been a big market for
manufacturers, the company works with a variety of merchants to provide the highest
possible performance. Elegant Fashion value chain has to be updated, and it needs to
appeal to a wide range of customers.

Figure 2, Porter’s Five Force Framework, 2020
 Bargaining Power of Buyers - Buyers' negotiating strength in the context of Elegant
Fashion is high because there are so many consumers in the market who may have a
choice of where they want to spend their money, and also because people are the
monarchs of the market. The corporation must deliver the greatest services to its
customers in trying to entice consumers and get an edge over its competitors, it was
concluded. Customers may promote their things in the supermarket and target certain
demographics, providing a larger audience to understand about their useful services.
Consumers having more purchasing power in the example of Elegant Fashion (Nouri and
Soltani, 2017).

 Threat of Substitution – Customers can move to a different provider and continue to
use their own buying strategy. Simple reductions and deals, along with low-cost
packages, are thought to draw locals to the phone, allowing it to maintain market
confidence. The danger of replacement is minimal, notwithstanding Elegant Fashion
well-structured marketplace.
 Competitive Rivals – Corporate rivalry is the main factor which affects the
organization. There are so many rivals. As an outcome, Elegant Fashion must evaluate its
competitors' current positions and design a strategy to enhance efficiency by meeting
client requests. The competition' force is minimal because Elegant Fashion is startup
business (Zhao and et. al., 2016).
Recommendation
On the basis of this study, it is recommended that it is critical for a startup to comprehend the
business environment while also maintaining efficiency. In today’s climate, most people are
using their creative thinking to start their own business so that they can benefit from effective
consolidation and support the growth of the economy. Most people with expertise and a fantastic
business plan are eager to create a business, build their new firms, and embrace a specific style
of business and ownership at this time. Startups need to use appropriate organizational structure
and also follow various competitive analysis frameworks so that they can take more competition.
Startups need to conduct strategic planning and also adopt most effective strategic management
techniques apart from the Startups need to utilize effective marketing strategies for the
advertising and promotional purpose.

Conclusion
According to this report, it can be concluded that it is necessary for the startup to
understand the business environment and also maintain the effectiveness. In the present
environment, most of the individuals applying their creative thinking and establish a firm with
their own so how they can receive effective restructuring and make their support in the growth of
the economy growth. In this time, most of the individuals who have skill and great company
concept are looking forward to open a business and construct their new businesses and adopt
certain style of business and ownership. In this report, various functional unites are discussed and
also PESTLE And Porters analysis is also discussed.

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