Fundamentals of Business in Canada.

Running Head: Fundamentals of Business in Canada
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Fundamentals of Business in Canada
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Fundamentals of Business in Canada 1
Contents
Business Name...........................................................................................................................2
Business Objectives and Industry Overview..............................................................................2
Ownership Plan..........................................................................................................................3
Mission Statement......................................................................................................................4
Product / Service Description.....................................................................................................4
Market Analysis.........................................................................................................................5
Marketing Plan...........................................................................................................................5
Competitive Analysis.................................................................................................................6
Organization Structure...............................................................................................................7
Startup Expenses........................................................................................................................8
References..................................................................................................................................9

Fundamentals of Business in Canada 2
Business Name
The company is present in the environment of Canada where fashion industry is
highly profitable. Therefore, the organization aims to enter in the clothing retail segment of
Canada. The company is going to announce of the name of the business in the market that
would be New Street Fashion Company.
Business Objectives and Industry Overview
Below mentioned are the list of goals and objectives of the company New Street Fashion
that the business would implement after its inauguration in Canada market:
 Attract customers and attain equilibrium in the initial year
 Attain profitability of 25% after first year and maintain consistency for next 4 years.
 Attain market share in fashion segment of 15% in the initial 5 years of inauguration.
Talking about the fashion industry analysis of Canada, it should be noted that the
Canadian fashion industry holds value of 43.6 billion Canadian dollar in the worldwide
environment. This data involves the revenue earned by the companies in respect of clothing,
accessories and footwear as well. The fashion industry provides employment to 44500 people
in Canada which can be said that the industry provide sustainable living to many people in
the society. 96% of people in Canada expend their income on clothing and fashion industry
while other 4% is spent on food, transport and other segments. All in all there are 25000 retail
and wholesale fashion companies present in Canada and total turnover of fashion retailers
was 28 billion Canadian dollar. Two biggest fashion companies in the given industry are
Hudson Bay and Gildan Activewear (Fashion United, 2020).
Considering environmental conditions of Canada, it should be noted that political
environment of Canada because it has strong ties with strong nations like USA and European

Fundamentals of Business in Canada 3
Union. The GDP of the nation is stable that is eventually upraising the economy as well. The
country is a part of G20, WTO, OECD and Commonwealth of Nations as well. The nation
has diverse economy that provide opportunity to people to work for achieving growth and
productivity in the society. The nation also draws attention of the investors due to its
favorable environmental conditions. The country is the 2nd largest nation in the world in terms
of area but the population is saturated to an optimum level. Therefore, it can be said that the
nation has wide diversity of resources and space in the environment that can be used of
companies in increasing their growth and profitability in the environment. Lastly, it should be
noted that technology is widely available in the market of Canada that supports the
companies in upraising their products and services to provide better benefits to customers in
the society (Government of Canada, 2020).
Ownership Plan
The company would inaugurate New Street Fashion itself as a form of sole
proprietorship ownership. It should be noted that the company has limited funds for the
business and initially they focus on capturing smaller target segment and then significantly
growing to the larger market. Sole proprietorship is adequate for the organization because it
would provide complete control to the organization. This type of business structure does not
have separate existence from the business owner. This type of structure is the simplest form
of business does not involve paperwork or large scale extensive operations (Queiroz, &
Oliveira, 2014).
This type of ownership structure involves the type of structure in which the business
owner is personally responsible for the debts of the business. The biggest advantage of this
type of business structure is that the owner is the boss in this type of business and he does not
face any type of interference of any person. The profit is saturated to the owner of the

Fundamentals of Business in Canada 4
business only and the owner does not need to share the profits with any other person related
to the business. Thirdly, it should be noted that the start up costing of the business low
because they initially work with less number of employees. Thus, it should be said that there
are several advantages of using this type of ownership structure, but many disadvantages
might also be faced by the organization like, the owner faces the problem of unlimited
liability with them (McKeever, 2016). Also, there is presence of limited financial resources
with the organization and in order to attain more capital, the business would either need to
change the ownership structure or attain loan from financial institutions. Lack of continuity of
transactions and high competition increases the risk of the business to survive in the
competitive environment. Thus, in this way, it should be noted that just like benefits, there
are several risks present with the organization New Street Fashion in adopting sole
proprietorship ownership structure in the business environment (Schölin, Ohlsson, &
Broomé, 2017).
Mission Statement
The mission statement for the organization New Street Fashion states that the
organization aims to provide cool and casual wear clothing range to the customers that best
suits their level of comfort in the environment.
Product / Service Description
The company would offer diversified range of clothing products in the environment.
Casual wear works as a forte for the business but apart from that New Street Fashion also
aims to provide accessories for women as well. The products are served to the customers in
the environment keeping in mind their interest and current trends prevailing in society. With
the changing jobs and culture, people have started working more from home or wear casual
clothes at office as well. Therefore, the organization has introduced a suitable range of

Fundamentals of Business in Canada 5
clothing in the environment that people can wear at home as well as outside as well. Apart
from that, accessories provided by the company would provide a trendy and fashionable look
to the wear of the customers. All the products are supplied to the customers at income
friendly rates in the market as the organization works to capture the interest of middle income
level customers in the environment (Vajarodaya, & Fernando, 2019).
Market Analysis
The company is going to target the people belonging to age group of 14 to 55 years in
the environment. As the organization provide products that fall in the category of casual wear
in the environment, therefore such products are worn by all the people in the society
irrespective of their age. Younger people wear such products to get a cool look, office going
people wear it to attain comfort and elder people wear such clothes because they find it
soothing. Therefore, it can be said that all people have their respective reasons to wear
products of New Street Fashion in the environment (Strähle, & Müller, 2017). The company
should target people belonging to all income level present in the environment of Canada.
These are people who show loyalty towards the brand once they start liking the products and
services of the organization. Lastly, it should be noted that these are people who try need
brands in the environment and hold a regular shopping tendency in their behavior as well
(Sullivan, & Hyun, 2016).
Marketing Plan
Price: as mentioned above that the company would manage the pricing strategy in such a way
that it attracts the people of all income level. The company New Street Fashion would make
use of cost effectiveness pricing strategy in the business environment so as to help customers
attain fast fashion products in the environment. The pricing strategy of the business would
make the products available to all customers present in Canada due to which the business

Fundamentals of Business in Canada 6
would be able to increase its sales in the environment. The pricing strategy would act as a
competitive feature for the business and would help the company in eliminating competition
(Hisrich, & Ramadani, 2017).
Place: the place and distribution strategy explain that New Street Fashion would supply the
products in all of Canada through online and offline platforms. The company would make use
of suppliers present in the domestic environment of Canada who would help the business in
delivering the products to customers present in Canada on time. Thus in this way, the place
strategy would reveal its effectiveness in the business environment Canada (Wanniachchi, &
Kumara, 2016).
Promotion: the promotion strategy explains that the company New Street Fashion would
make use of both online and offline promotion techniques in Canada so as to attract the
interest of customers in the environment. The company would initiate online campaign on
social media platforms like Instagram, Twitter to promote the brand name of New Street
Fashion Company. While, the will also keep hoarding on several prospective locations so as
to let people know about this new brand in the environment (Damke Junior, Gimenez, &
Damke, 2018).
Competitive Analysis
Strength: the biggest strength of the company is its fast fashionable products provided to the
customers at economic rates in the market. It should be noted that the company offer wide
range of casual products that are available to all income level that increases the target
segment of the business.
Weakness: the company work only in casual segment of clothing range due to which it limits
the scope of business as it does not provide high ended fashionable products in the

Fundamentals of Business in Canada 7
environment. Therefore, the customers might go to different brands if they want to purchase
highly trendy and fashionable products in the environment (Thompson, & McLarney, 2017).
Opportunities: if the startup grows with an expected speed then it brings various opportunities
for the company New Street Fashion as well. Apart from casual clothing and accessories
range, the company could step into high income level products as well so as to satisfy the
needs of high income level customers at a greater level.
Threats: high degree of competition acts as a biggest threat for the company New Street
Fashion in the business environment of Canada. As it is known to all that the nation has
highly profitable fashion industry due to which there and ‘n’ number of companies fighting
under this industry in order to attain a reputable position. Therefore, working under such
pressure acts as a biggest threat for the company. Lastly, it should also be noted that along
with high competition, the business also faces the threat of changing trends in the real world
environment.

Fundamentals of Business in Canada 8
Organization Structure
The company New Street Fashion makes use of divisional organizational structure in
the business environment. This type of structure helps the organization in segregating the
business functions at different levels on the basis of the division present in the organization
like finance department, manufacturing department, IT department etc. This structure
provides power to each department head to take decision on their own for the growth of their
department. Therefore, every department would work to achieve success for their segment
that would eventually convert the success for the business. Thus it should be noted that this
structure divides yet unite the functions of the company towards a common goal
(Kuznetsova, & Karpenko, 2018).

Fundamentals of Business in Canada 9
Startup Expenses
Through the below mentioned explanation of the budget, it can be seen that the
company would invest the capital of $ 100000 on below mentioned expenses. The budget
explains the critical areas where the business would invest the given sum so as to attain
equilibrium and profitability in the coming years.
EXPANSION REQUIREMENT
BUDGET
REVENUE 120000
TOTAL 120000
EXPENSES
start up cost 20000
Legal expenses 10000
raw material 15000
salaries 19000
promotion 10000
depreciation 4000
shipping 6000
sales expense 7000
others 9000
total 100000
References
Damke Junior, E., Gimenez, F. A. P., & Damke, J. F. W. (2018). Strategic configurations and
performance: a study in micro and small business retailers. RAUSP Management
Journal, 53(1), 11-22.
Fashion United, (2020). Canadian Fashion Statistics. Retrieved from <
https://fashionunited.ca/statistics/fashion-industry-statistics-canada/>

Fundamentals of Business in Canada 10
Government of Canada., (2020). Apparel industry profile. Retrieved from
https://www.ic.gc.ca/eic/site/026.nsf/eng/h_00070.html
Hisrich, R. D., & Ramadani, V. (2017). Entrepreneurial Business Planning. In Effective
Entrepreneurial Management (pp. 17-32). Springer, Cham.
Kuznetsova, I., & Karpenko, Y. (2018). The technology of budgeting enterprises with the
divisional structure. Innovative Technologies and Scientific Solutions for Industries,
(1 (3)), 96-102.
McKeever, M. (2016). How to write a business plan. Nolo.
Queiroz, J. P. D., & Oliveira, B. (2014). Benefits of the marketing information system in the
clothing retail business. JISTEM-Journal of Information Systems and Technology
Management, 11(1), 153-168.
Schölin, T., Ohlsson, H., & Broomé, P. (2017). The role of regions for different forms of
business organizations. Entrepreneurship & Regional Development, 29(3-4), 197-214.
Strähle, J., & Müller, V. (2017). Key aspects of sustainability in fashion retail. In Green
fashion retail (pp. 7-26). Springer, Singapore.
Sullivan, P., & Hyun, S. Y. J. (2016). Clothing retail channel use and digital behavior:
Generation and gender differences. Journal of Business Theory and Practice, 4(1),
125-138.
Thompson, J., & McLarney, C. (2017). What effects will the strategy changes undertaken by
next Plc have on themselves and their competition in the UK Clothing Retail Market?.
Journal of Commerce and Management Thought, 8(2), 234-264.

Fundamentals of Business in Canada 11
Vajarodaya, C., & Fernando, M. S. C. L. (2019). Factors Influencing Purchase Intention
towards a Retail Clothing Company. International Research E-Journal on Business
and Economics, 3(1).
Wanniachchi, N. H., & Kumara, W. V. L. (2016). A Study on Impact of Visual
Merchandising on Consumer Buying Behaviour in Clothing Retail Stores.