Sparkling Skin Care Business Plan and Ethics

The assignment provides a detailed business plan for Sparkling Skin Care, including a budgeted cash-flow statement, market analysis, and marketing strategies. It also discusses the ethics of collaborating with a company that has been legally accused and engaging in unethical practices. The report concludes by emphasizing the importance of preparing a business plan for setting up a new business venture successfully.

SETTING UP
A
SMALL BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Summarizing the business plan...............................................................................................1
2. Name of the business..............................................................................................................2
3. Visual identity for the new business.......................................................................................2
4. Creating the values that helps in promoting the new business................................................2
REFERENCES................................................................................................................................3
TASK 2............................................................................................................................................3
1. What is primary research........................................................................................................3
2. What is Secondary research....................................................................................................3
3. What is qualitative research....................................................................................................4
4. What is quantitative research..................................................................................................4
REFERENCES................................................................................................................................4
TASK 3............................................................................................................................................5
1. The complying of Equality and Diversity law in recruiting process......................................5
2. What are the rights that new employee have in company......................................................5
REFERENCES................................................................................................................................5
TASK 4............................................................................................................................................6
1. Dilemma facing by Sparkling Skin care.................................................................................6
REFERENCES................................................................................................................................6
TASK 5............................................................................................................................................6
CONCLUSION................................................................................................................................8

INTRODUCTION
Preparing a business plan is essential in order to get complete insight of the operation and
management activities of starting a new business venture. Business plan assist in getting all the
necessary information that are required in order to start a new business. The present report will
demonstrate a business plan of Sparkling Skin Care. A complete business plan will be presented
which helps in setting up the different business operations. The report will discuss ethical
dilemma that has been facing by company. Report will also include a budgeted cash flow of
Sparkling Skin Care
TASK 1
1. Summarizing the business plan.
The purpose of preparing a business plan is to setting up a company's strategic
management in order to effectively manage, operate and properly set up the administration of the
company. It is very essential to prepare a business plan as it will reflect the key operations and
all the aspects that are necessary in starting a new business. Business plan is important to help in
overviewing every step and keeps the operations towards the goals and mission (Levy, Weitz and
Grewal, 2012). A new business plan of Sparkling Skin Care Company will deals in cosmetic
products is prepared, its main goal and mission of the new plan is to create the cosmetic products
for both men and women with low chemical products which helps in providing the organic skin
care products.
Business plan for company will include:
Industry: Sparkling Skin-care will operates its business in cosmetic industry of UK. It offers its
beauty products which includes sun-scream and body moistures etc. Cosmetic industry has a
wide scope, where using low chemical products is in latest trend.
Location: Sparkling Skin-care store will be opened in the local market area Green-ford, London,
UK. It is a large suburb area of London.
Target Customer: Target market strategy will be based on the customers who are looking for the
quality skin products but with less chemical in its ingredients. The main customers of Sparkling
Skin-care would be both male and female. As the shop is located near market area, it would help
in attracting the walk-in customers.
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Business model for the new company:
Key partners: Sparkling Skin-care will be established on Sole proprietorship basis.
Key Activities: New business will engage in manufacturing and selling the best quality of
cosmetic products (Finch, 2013). The distribution channels activity will includes suppliers of raw
material to manufacturer and than in retail stores.
Customer Segments: Main customers for Sparkling Skin-care will includes the male and female
both, it offers products for all age group customers.
Cost structure: The major cost for the company would be of suppliers, ans stock of products in
retail store. The staff salary and promotional activities like hoarding, promotion through
distributes are major expenses. The major source of funds would be bank loan and some personal
savings. Initial capital invested would be 20000 pounds.
2. Name of the business.
Sparkling Skin Care company.
3. Visual identity for the new business.
The logo of the new business is:
4. Creating the values that helps in promoting the new business.
Values of business will include:
Equality:
Sparkling Skin-care will aims to offer different varieties of cosmetic product to without
any discrimination on the basis of age, gender or income status (Schaper and et.al., 2014). The
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products are available for all customers which helps in satisfied their wants as well as helps in
maximizing sales and profitability of business.
Social:
Sparkling Skin-care will take care of the wants and preferences of customers regarding
the cosmetic products. It will offer the products with low chemical which prevents the skin
effects. The product offers at reasonable prices that will be affordable for all customers.
Diversity:
The store will always welcome all kinds of customers irrespective of their language or
country, it will help in making the store more diverse. Store will not promoting the products on
particularly for fair skin customers. The skin products will be offered to the customers with
different skin tone it will assist in promoting the value and hence sales will be increased.
REFERENCES
Levy, M., Weitz, B. A. and Grewal, D., 2012. Retailing management (Vol. 6). New York:
McGraw-Hill/Irwin.
Finch, B., 2013. How to write a business plan (Vol. 35). Kogan Page Publishers.
Schaper, M. T. and et.al., 2014. Entrepreneurship and small business.
TASK 2
1. What is primary research.
In this market research, the information cones directly from the market and from the
target customer which will assist in providing the new and current data regarding the product that
are been offered. The main objective of primary research is to relevant information about the
current trend and preferences of customers regarding the beauty and cosmetic products (Brace,
2018). While doing primary research the owner himself ask the customers or target audience
about the product through e-mails, phone survey, of face to face interview. This information of
primary research is very essential as company can get the accurate data about end users it self.
2. What is Secondary research.
This market research involves taking information from activities or operations of the
competitors. This information are based on the data from different bogs, article or other public
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sources which includes the current information about the beauty and skin care trend in market..
Secondary market research is cheaper and quick in comparison to primary research but it is not
that much effective (Gustafsson, Herrmann and Huber, 2013). The information from the
secondary research is essential as it gives wide range of data from different location and
customers regarding their preferences and needs from beauty and skin products.
3. What is qualitative research.
This kind of market research is based on methodology that helps in focusing on the
peoples feelings, their and the way they choose the products in market. Qualitative research is a
method of market research which helps in getting data through open-ended and conversational
communication like through the information gathered from primary research (Brace, 2018). It is
synthetic method which can be done through thematic approach which gives more insight view
of customers need and preferences.
4. What is quantitative research.
It is more structured than qualitative research. Quantitative research is more of the
statistical and numeric based research. The information that are collected through various will be
presented through different mathematical and statistical calculation like through graphs that are
statistically valid (McQuarrie, 2015). The information from quantitative will help it more
effective to make proper prediction on the business.
REFERENCES
Brace, I., 2018. Questionnaire design: How to plan, structure and write survey material for
effective market research. Kogan Page Publishers.
Brace, I., 2018. Questionnaire design: How to plan, structure and write survey material for
effective market research. Kogan Page Publishers.
Gustafsson, A., Herrmann, A. and Huber, F. eds., 2013. Conjoint measurement: Methods and
applications. Springer Science & Business Media.
McQuarrie, E. F., 2015. The market research toolbox: a concise guide for beginners. Sage
Publications.
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TASK 3
1. The complying of Equality and Diversity law in recruiting process.
Equality of opportunity is an important aspect that company has to follow. As per the
Equality law 2010, every employer has to ensures that all the applicants should be protected from
any kind of discrimination. The law ensures that during the time of interview all the applicant
should be treated fairly without any discrimination on any ground. Complying of equality can be
achieved by making policies that there will be no discrimination of the applicant at the recruiting
process.
According to the Equality Law 2010, the employer can not discriminate between the
applicants on the basis of age, disability, gender, race, religion and belief etc. Company has to
make the job description as according to the skills they required and offer job as per the
objective, but had to give equal opportunity to the applicants without any discrimination (Marais
and Pretorius, 2015). Complying diverse in company can be referred as to make sure that there is
no discrimination or ant type of stereotyping in the recruiting and selection process. As per
Equality law, employer should have positive approach towards having diverse workforce.
2. What are the rights that new employee have in company.
As per the law of Employment right 101, the new workers or employees in the company
has basic rights which includes the basic wages, fair compensation, right of privacy. The new
employees in Sparkling Skin care will also have the right to be free from any kind of
discrimination on the basis of age, gender, race, nationality etc (Cramer, Little and McHatton,
2018). As per the Employment Protection act 1975, it helps in providing rights to the employees
which includes unfair dismissal, reasonable notice before dismissal. The employees has right to
know the information about the company's activity and goals and mission of the company
REFERENCES
Marais, M. E. and Pretorius, J. L., 2015. A contextual analysis of the hate speech provisions of
the Equality Act. Potchefstroom Electronic Law Journal/Potchefstroomse Elektroniese
Regsblad. 18(4). pp.902-942.
Cramer, E., Little, M. E. and McHatton, P. A., 2018. Equity, Equality, and Standardization:
Expanding the Conversations. Education and Urban Society. 50(5). pp.483-501.
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TASK 4
1. Dilemma facing by Sparkling Skin care.
As per the scenario, by collaborating to a popular website for the promotion will
definitely help in promoting the business on different platform. It will assist the company in
increasing its sales and making profit (Demirtas and Akdogan, 2015). But, id considered as the
business ethics Sparking skin care should not collaborating to such a company which is already
legally accused and engaging with such unethical practices in their business. It is because uniting
with such company can also affect the goodwill of Sparkling skin care in market. Uniting
business activities with legally accused company can affect the interest of stakeholders like
investors and creditors, as they may get worried for their money invested in company. Customers
may loose trust on the product offered and promoted through such company. Most importantly
the employees my get demotivated, as collaborating to a company which accused of harassing
and bullying its employees can also affect the behaviour of their employers.
Collaborating with such company will also affect its value of its equality and not
discriminating anyone of any basis. There are many unethical practices that are being faced in
many businesses. As per the Human Rights, there should not be any discrimination , bullying or
harassing anyone in workplace (Sekaran and Bougie, 2016). It is very important to provide and
have policies of giving training to employees on being and practise the ethical behaviour.
REFERENCES
Demirtas, O. and Akdogan, A. A., 2015. The effect of ethical leadership behavior on ethical
climate, turnover intention, and affective commitment. Journal of Business Ethics. 130(1).
pp.59-67.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
TASK 5
Budgeted cash-flow Statement:
Particulars
Initial
investm
ent
Janu
ary
Febru
ary
Marc
h April May June July
Augus
t
Septe
mber
Octob
er
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product and
Services
Sun
scree
n
Sun
screen
Sun
screen
Sun
screen
Sun
screen
Sun
screen
Sun
screen
Sun
screen
Sun
screen
Sun
screen
Number of
buyers 2500 2625 2756 2894 3039 3191 3350 3518 3694 3878
Avergae
selling price 12.45 12.45 12.45 12.45 12.45 12.45 12.45 12.45 12.45 12.45
Total revenue
from
beverages
3112
5 32681 34315 36031 37833 39724 41710 43796 45986 48285
product and
Services
body
moist
uriser
body
moistu
riser
body
moistu
riser
body
moistu
riser
body
moistu
riser
body
moistu
riser
body
moistu
riser
body
moistu
riser
body
moistu
riser
body
moistu
riser
Number of
buyers 4500 4635 4774 4917 5065 5217 5373 5534 5700 5871
Average
selling price 6.52 6.52 6.52 6.52 6.52 6.52 6.52 6.52 6.52 6.52
Total revenue
from Snacks
2934
0 30220 31127 32061 33022 34013 35033 36084 37167 38282
Total revenue
(Inflow)
6046
5 62901 65442 68092 70855 73737 76744 79880 83153 86567
Operating
expenses
Salaries 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000
Advertisement 250 250 250 250 250 250 250 250 250 250
Machineries 1500 0 0 0 800 0 0 200 0 0 200
Furniture 1200 0 150 0 0 0 350 0 0 80 0
Equipments 800 0 0 350 0 300 0 0 0 0 400
Supplier 200 0 250 0 0 80 0 0 350 0
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commission
Total
operating
expenses
(Outflow) 3500 5450 5400 5850 6050 5550 5680 5450 5250 5680 5850
Net cash flow -3500
5501
5 57501 59592 62042 65305 68057 71294 74630 77473 80717
Capital
investment 20000
Opening
balance of
cash 20000
1650
0 71515
12901
6
18860
9
25065
0
31595
5
38401
3
45530
7
52993
7
60741
0
Closing
balance of
cash 16500
7151
5
12901
6
18860
9
25065
0
31595
5
38401
3
45530
7
52993
7
60741
0
68812
7
Break-even analysis
Selling price 18.97
Fixed cost 63000
Variable cost 10.11
BEP= Fixed cost/ Selling
price -variable cost
7110.60948
08127
CONCLUSION
By summing up the above report, it can be concluded that preparing a business plan is
essential for setting up the new business venture successfully. The above report has concluded a
business plan for skin product named Sparkling Skin Care.
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