UBM302 New Venture Creation Assessment

This report is a business plan for Alpha Attires, an apparel business in Melbourne, Australia. It includes market research, industry analysis, environmental analysis, competitive analysis, and marketing strategy.

New Venture Creation
Assessment

Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Business plan ..................................................................................................................................3
Executive summary......................................................................................................................3
Business name, vision, mission and objectives ..........................................................................3
Business description ....................................................................................................................4
Opportunity analysis and research ..............................................................................................4
Industry analysis .........................................................................................................................4
Environmental analysis ...............................................................................................................5
Competitive analysis ...................................................................................................................6
Marketing strategy and plan ........................................................................................................6
Management and operations .......................................................................................................8
Financial analysis and projections ..............................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Business plan is described as a descriptive document which entails objectives of an
organisations as well as the means for accomplishing them in a significant manner (Becker-
Leifhold and Iran, 2018). It is considered as a road map which outlines varied aspects in regards
with finance, marketing as well as operational requirements. Main purpose of business plan is to
make identification and evaluation of various business opportunities in regards with technical,
economical as well as financial feasibility. It also helps in articulating varied strategies which are
required for starting a start-up or an enterprise. It also enlightens financial projections, market
research as well as mission statement which are required for a business house for formulating
differential strategies. This business plan is considered as beneficial for securing financing
investors as well as documenting varied strategies for an organisation.
This project report demonstrates an understanding of a devising of a business plan in
regards with a new venture.
MAIN BODY
Business plan
Executive summary
This business plan is devised for establishing a new venture and contains information
which is required by entrepreneurs to source funding as well as plan for expanding it (Blackwell,
2017). This is based on a apparel business which is named as Alpha Attires and it will be
established in Melbourne, Australia. This business plan encompasses of description of products
offered by Alpha Attires along with industry as well as environmental analysis. It also comprises
of market research which is performed for formulating strategies for promoting as well as
advertising the products. Entrepreneurs of Alpha Attires will use digital marketing channels for
promotions. They will have their online stores through their official website and physical stores
at Australia.
Business name, vision, mission and objectives
Company name- Alpha Attires
Vision- Vision of Alpha Attires is to innovate and lead by providing quality products to
their customers on a global basis.

Mission- Mission statement of Alpha Attires is to provide innovative and best quality
products while working through sustainable practices.
Objectives- Main objective of Alpha Attire is to establish their brand name in the
industry. Entrepreneurs have planned to position themselves in market and building their brand
viable. They want that their brand gets re-ionisation and face competitiveness in market in a
strategic manner.
Business description
Products and services- Alpha Attires will provide numerous products in regards with apparels,
footwear and accessories for women as well as kids. They will provide fashionable and
innovative dresses to women for a sophisticated look. Entrepreneurs are willing to design their
own workshop for designing the apparels and accessories.
Unique value proposition- It can be described as a statement which expresses distinctive
selling point of products or services that are offering by an organisation (Ekanem, 2017). Unique
value proposition of Alpha Attires will be use of biodegradable polyester Kapok for extracting of
cotton. This practice will led them to adopt sustainable aspects in their business operations in an
effective manner.
Opportunity analysis and research
Explanation and Justification of chosen market
Entrepreneurs of Alpha Attires have chosen marketplace of Australia as this is considered
as growing industry. Fashion industry has contributed to 27.2 billion Australian dollars in
regards to national economy. It has also created numerous job opportunities for Australian
population and others. In Australia, designers and workers can also be found in an easy manner
which is considered of great significance for Alpha Attires. They can also found excellent raw
inputs as well as well-designed distribution channels which support them in making their
operations viable.

Illustration 1: Contribution of fashion industry towards national economy of Australia
Source: Contribution of fashion industry to the national economy in Australia in financial
year 2021, by economic activity
Industry analysis
Industry analysis can be understood as a procedure through which an organisation can
access their position as compared to their competitors in a specified industry (Finch, 2022). It is
considered as advantageous by organisational managers as it helps them in developing a strong
view point regarding their position in industry. Through this, they can also access varied

activities which are undergoing in industry. By performing industry analysis, entrepreneurs of
Alpha Attires can ascertain the unexplored opportunities that are present in market and can
provide them numerous ways to perform in a better way. It will help them to analyse the industry
dynamics in an effective manner. In order to perform industry analysis in a strategic manner,
entrepreneurs of Alpha Attires can take Porter five forces into consideration.
Porter five forces
Porter five forces can be described as a strategic model which is used by organisational
managers for assessing their competitive environment (Grit, 2019). This model is frequently used
for identifying industry structure for determining a corporate strategy. This model is
implemented to industry segments for having an access of understanding of level of competition
as well as enhance long-term profitability. This model can be beneficial for entrepreneurs of
Alpha Attires in assessing current competition in market through which they can devise their
strategies. This practice will help them to face competition in market in a strategic manner. All
the elements of Porter five forces model in relevance with Alpha Attires are mentioned below:
Competitive rivalry – In relevance with fashion industry of UK, competitive rivalry is
considered as high as there are varied brands which are offering similar products. It is imperative
for entrepreneurs of Alpha Attires to provide discounts and adopt suitable marketing strategies
for facing the competition in market.
Bargaining power of suppliers- In relevance with Australian fashion industry, bargaining
power of suppliers is low as brands can easily switch the suppliers in a strategic manner. This
aspect can be considered as positive for Alpha Attires as entrepreneurs can make better deals
with suppliers in order to gain profitability.
Bargaining power of buyers- In context to Australian fashion industry, bargaining power
of customers is low as people are rational and can make comparative study among the offerings
of differential brands. This practice led entrepreneurs of Alpha Attires to adopt significant
marketing strategies for promoting their innovative products among masses.
Threat of Substitute products- In accordance with Australian fashion industry, threat of
substitute products is considered as high as their exists an intense competition. Entrepreneurs of
Alpha Attires should be ready to face this competition and principally focuses on the dynamic
needs of customers in order to be ahead from competitors.

Threat of new entrants- In regards with fashion industry of Australia, threat of new
entrants is low as it is already densely populated with varied brands. In order to be successful in
this industry, entrepreneurs of Alpha Attires need to offer differentiated as well as innovative
products for making their position strong.
Environmental analysis
An environmental analysis can be understood as a process which aid organisations in
identifying varied external and internal aspects which can impact the business operations with a
positive or negative effect in strategic manner (Hopp and Greene, 2018). Identification of
environmental forces is considered as advantageous for establishments as it aid an enterprise in
ensuring the best options in relevance with success as well as growth avenues. It is also
considered as beneficial for critical assessment of environment-related forces and enhance
decision-making abilities of organisational managers. It is a vital aspect for entrepreneurs of
Alpha Attires to critically assess environmental factors which can impact their business
operations in a significant manner. In order to critically analyse varied external forces that can
influence their operations, PESTLE analysis can be taken into consideration.
PESTLE analysis
PESTLE analysis can be understood as a strategic framework which is used by
organisational managers for scanning and evaluating varied macro external factors which can
influence their business operations (Hopp and Et. Al., 2018). It is considered as beneficial for
organisations as it help in devising varied strategies in exponential manner. This benefits
entrepreneurs of Alpha Attires in assessing market dynamics as well as external factors which
can affect their operations. All the factors of PESTLE analysis in context to Alpha Attires are as
follows:
Political factors- In relevance with Australia, its political landscape is transparent which
provides objectivity to decisions of government in an effective manner. It has also made
alliances as well as connections with other countries which provides them a justifiable political
landscape. This has made the organisations to work in a transparent manner by complying with
framed laws and regulations. This can be an opportunity for Alpha Attires as they can work in
transparent political landscape which helps them in completing their tasks in a strategic manner.
Economic factors- Although Australian economy has been suffered in a tremendous
manner due to global pandemic. However, providing business houses more investment options

has led them to grow their economy and GDP rates in an effective manner. It also considered as
low-cost location for companies who are expending their operations. This factor has also opened
up the ways for Alpha Attires to establish their operations in Australian fashion industry.
Social factors- Australia is a country which essentially supports multicultural as well as
multiracial aspects which supports businesses to perform their operations in a strategic manner.
Australians puts huge emphasis on education which led them to have a rational thinking. People
can compare differential brands in relevance their quality and quoted prices. This can be an
opportunity for Alpha Attires as they can persuade people through their innovative products to
make a rational purchase decision.
Technological factors- Australia is known as a nation which can adopt advanced
technologies in a frequent manner. With the ease of technology, business houses are regularly
update technological innovations effectively for gaining competitive advantage. Entrepreneurs of
Alpha Attires have also adopted newer technologies for bringing innovative products in
marketplace. They have also planned to use digital media and channels for promoting their
products in a strategic manner.
Legal factors- In relevance with Australia, government has framed fair trading laws for
protecting the customers as well as employees. Entrepreneurs of Alpha Attires also has to follow
privacy laws act, 1988 for securing the personal information of individuals in relevance with
business organisations.
Environmental factors-Australian government is very strict to environment protection
laws and its compliance with company. It is imperative for entrepreneurs of Alpha Attires to
make compliance with environmental laws in order to operate effectively.
Competitive analysis
A competitive analysis can be understood as a strategic assessment which encompasses
of performing a descriptive research for gaining insights for products, services and marketing
tactics of competitors (Hutchinson, 2017). It is imperative for entrepreneurs of Alpha Attires to
perform competitive analysis in respect to their competitors such as Alice McCall and Barney
Cools. Competitive analysis in relevance with Alpha Attires is mentioned below:
Basis of difference Alpha Attires Alice McCall Barney Cools
Products Its provide innovative It provide products for It provides products

products which will be
made up of
biodegradable
polyester.
party wears , playsuit
as well as separates.
such as swim trunks,
outerwear, velour and
many more.
Marketing channels Alpha Attires will use
digital marketing
channels for
promoting their
products.
It is an online store
which promote their
products through their
own official website.
It uses combination of
traditional and modern
approaches for
promoting their
products.
Pricing strategy Entrepreneurs of
Alpha Attires will use
penetration pricing
strategy.
It has adopted value-
based pricing strategy
for selling their
products.
It has adopted
competitive pricing in
order to gain
competitive advantage.
Marketing strategy and plan
Marketing strategy can be described as plan or tactic which is formulated by marketers
for reaching to their existing customers as well as turn prospective into subsisting one (Jia and
Et. Al., 2020). Marketing strategy in relevance with organisation essentially encompasses of
unique value proposition data of targeted customers as well as key brand messaging. This
marketing strategy is considered as crucial for assessing what tactic can work in enhancing
customer base as well as gaining insights about the marketplace in an effective manner. Main
purpose of marketing strategy is to identify as well as communicating the benefits of offerings of
business organisation in context to target customers.
It is imperative for organisational managers to devise and implement their strategies as
well as monitor them for making any modifications in them, if necessary in an effective manner
(Lee and Chow, 2020). For setting up of a new business. It is imperative for entrepreneurs of
Alpha Attires to determine their marketing communication channels as well as devise a mix of
specified elements in order to make their brand name viable.

Entrepreneurs of Alpha Attires have devised a marketing strategy which encompasses of
their advertising tactics, promotional channels and many more. They have decided to use social
media platforms like Instagram and Facebook for promoting their products. They also are
entering into deal with Google for their paid marketing services. They have designed their
website which they will use for getting reviews, selling and promoting their products. They are
also planning to take part in upcoming fashion shows for showcasing their designs and making
their brand more viable.
Marketing mix is termed as a combination of specified tactics or actions which are
undertaken by an organisation for promoting their brand in a strategic manner (Mariani,
Bartoloni, and Morelli, 2019). It focuses on multiple areas which are considered as a part of
their comprehensive marketing plan and discuss numerous opportunities for an organisation.
This marketing mix help entrepreneurs of Alpha Attire in planning, developing as well as
executing varied tactics for making their advertising campaign a successful venture. All the
elements of marketing mix in relevance with Alpha Attire are as follows:
Product is termed as an item which is particularly designed for satisfying diverse needs
of segmented customers in an effective manner. For effective marketing of a product, it is
essential to make differentiations in it when comparison has been made with others. In relevance
with Alpha Attires, their major products will be apparels, accessories and footwear for women as
well as kids. In relation to accessories, they will offer trendy necklaces, belts, rings, watches and
hats. They will offer dresses for kids section which will be designed in their cutest and loving
manner. In apparel section, entrepreneurs of Alpha Apparels offer trendy, fashionable and
comfortable clothes to women.
Price is the selling rate which is reflected through willingness of customers to make
payment for a product (Marques, 2020). It is imperative for marketing professionals to add
varied costs in relevance with manufacturing, designing as well as distribution components in an
effective manner while quoting prices for the products. In context to Alpha Apparels,
entrepreneurs are willing to adopt value-based and penetration pricing strategies for performing
their tasks in their in a strategic manner. Through penetration pricing, entrepreneurs of Alpha
Apparels offer their products at low prices at initial level as they want to establish their brand as
well as engage customers with them. For their innovative products, they will adopt value-based
pricing which help in creating a value for their commodities in the eyes of customers.

Promotion is principally concerned with activities of personal selling, developing
personal relation and formulating promotional strategies in a strategic manner (Putra, SE and Ak,
2019). Through this, a suitable communication channel is chosen by the organisation for
delivering their messages to targeted customers. In relevance with Alpha Apparels, entrepreneurs
have decided to use social media platforms, paid marketing and Google services for promoting
their products as well as make their reach to a massive number of people in a strategic manner.
Place is concerned with physical space which can be either online or offline. In relevance
with Alpha Attires, they will provide their products through their convenience stores and official
website.
Management and operations
Management team and ownership details
Entrepreneurs of Alpha Attires have decided to maintain their operations through creating
differential departments such as finance, human resource, marketing and sales. They have
decided to operate it as a partnership firm whereby partners will share the profits in same
proportion. For managing their operations effectively, they have started recruiting candidates for
their various departments.
Roles of team members, skills and qualifications
Proper departments are established for each function and employees will be bifurcated
into teams as per their qualifications and skills. Departments which will be created as marketing,
design, merchandising, pattern making and making more. Entrepreneurs of Alpha Attires are
determined to appoint a combination of freshers and professionals in their team in order to make
it effective. Freshers should have skills such as designing, understanding of fashion industry and
qualification of at least of post graduate in fashion designing. Experienced workforce are
expected to have performed the same tasks for at least of 2 years.
Training needs analysis
It can be understood as a procedure whereby an organisation recognises the need of
training to their employees so that they can perform effectively. Entrepreneurs of Alpha Attires
will assess the training needs of their employees and provides them proper sessions regarding
enhancement of their skills in a strategic manner. Sessions should be provided by entrepreneurs
of Alpha Attires for teaching the employees regarding designing as well as technical skills.
Organisational structure

Organisational structure can be described as system which help organisations in outlining
how specified activities, roles and responsibilities are bifurcated for attaining the objectives and
goals (Teixeira and Pereira, 2019). Entrepreneurs of Alpha Attires will follow a functional
organisational structure as they will segregate the roles and responsibilities among their
employees on the basis of their specialized skills and competencies.
Financial analysis and projections
Sources and uses of capital
Entrepreneurs of Alpha Attires can arrange their capital from variety of sources which are
mentioned below:
Bonds and personal savings- Entrepreneurs of Alpha Attires can take use of their
personal savings, bonds and other investment for setting up their company. Through this, they
have full control on their business operations. However, it lack the chances of using personal
savings in some other business risk related circumstances.
Angel investors- Entrepreneurs of Alpha Attires can source their funds from the help of
angel investors in exchange of convertible debts or a specified stake in ownership. Although,
they can control as well as can interfere in the the business operations. However, they do not ask
for any collateral security as banks.
Entrepreneurs of Alpha Attires use will use the collected capital for running their
functions smoothly in an effective manner. Through this, they will purchase a place for their set-
up of workplace and workshop. They will also use this fund for recruiting their employees as
well as provide them training.
Cash flow projections
Cash flow projections in relevance with Alpha Attires is mentioned below:

Income statement projections
Income statement projection in regards with Alpha Attires is mentioned below:

Break even analysis
Break even analysis in context to Alpha Attires is as follows:

Exit plan
An exit plan can be understood as comprehensive road map which essentially addresses value
creation, legal and financial issues which are involved in operating business operations (Varley
and Et. Al., 2018). Entrepreneurs of Alpha Attires also make an exit plan through merger and
acquisition aspects.
In case they have to close down their operations, entrepreneurs have determined to adopt
the merger or acquisition with other established company in order to gain profitability. With the
help of merger, entrepreneurs of Alpha Attires can increase their market share as well as reduce
the cost of operations.
Milestones
Milestones are the key performance indicators which are considered as important for
measuring the progress as well as success of the organisation (Xu, 2020). Milestones in
relevance with Alpha Attires are as follows:
Revenue growth- It is considered as effective milestone set by entrepreneurs of Alpha
Attires. It will help in measuring their performance in regards with revenue generation.
Client retention rates- It is the rate through which organisational managers assess their
client retention rates. This will help entrepreneurs of Alpha Attires in measuring the retention
rates of their clients when operating their operations.
CONCLUSION
From the above mentioned information, it has been concluded that business plan is
considered as a descriptive document which is used by organisational managers or entrepreneurs
for formulating their varied strategies as well as accomplishing desired objectives. This is
considered as beneficial as it works as a blue print and provide directions to entrepreneurs for
performing their tasks in an effective manner. Porter five forces is considered as essential for
organisational managers to assess competitiveness as well as attractiveness of industry in a

significant manner. PESTLE analysis is used for scanning external forces which can influence
business operations in a significant manner.

REFERENCES
Books and Journals:
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Ekanem, I., 2017. Writing a business plan: a practical guide. Routledge.
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Grit, R., 2019. Making a business plan. Routledge.
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Online:
Contribution of fashion industry to the national economy in Australia in financial year 2021, by
economic activity. 2021. [Online] Available through:

<https://www.statista.com/statistics/1263626/australia-economic-contribution-of-fashion-
industry-by-activity/>