Business Plan for Star Clothing Company

This report covers the business plan for Star Clothing Company, a clothing start-up in the UK. It includes an overview of different types of businesses, the company's structure, macro and micro environment analysis, and impacts on the business. The report concludes with recommendations for the company's future growth.

Title Page
Introduction to Business
Assessment 2 – Individual Report
Start-up Business Type & Business Name
Student Name
Student ID number
Your Lecturer’s Name
Your Cohort /Batch number (class code)
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Table of Contents
Introduction...........................................................................................................................................3
Overview of the Report.....................................................................................................................3
Background of the Company.............................................................................................................3
Main Body (Business Plan).....................................................................................................................4
Different Types of Businesses............................................................................................................4
Your Business Structure....................................................................................................................4
Macro Environment...........................................................................................................................4
Micro Environment............................................................................................................................4
Impacts on your Business..................................................................................................................4
Conclusion.............................................................................................................................................5
Overall argument summary...............................................................................................................5
Recommendations.............................................................................................................................5
References List.......................................................................................................................................6
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Introduction
Introduction
Business refers to the organization or a enterprise engaged in any commercial, industrial and
professional activities . Business can be for profit or non profit organization t, that is carrying
business activities for the betterment of the society(Sheth, 2020). Business can be small as sole
proprietorship to large as corporations. This report is going to cover about the type of the firms
which have been seen in the market and with it's various business structure.
Overview of the Report
This report also cover the analysis of the internal and external factor which has a impact on
the different functions of the business with the help of PESTLE and Porter five force respectively.
Which will help the firm in planning, decision making and control of resources of the firm. This
report also covers the impact of external and internal factors on the business.
Background of the Company
Star clothing is dealing in clothing business , targeting customer of all age group and all
income groups, so that a family can have complete shopping experience under one roof whenever
they wish to buy clothes .The company is facing computation from big brands like Marks and
Spencer ,hush and All Saints. which are big retailers in UK market. Mission is to provide best quality
trendy and comfortable clothes to the family of UK at reasonable price. It provides various offers
such as referral ,discount ,loyalty coupon to increase sales of the company(Mura and Ključnikov,
2018). It is a partnership business which have four partners and all are experienced in their role .
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Main Body (Business Plan)
Different Types of Businesses
Every business organization follow some kind of bureaucracy or hierarchy, where role
and responsibility of an individual is defined . some of the most common structure are as follows:
 Sole proprietorship: is the businesses structure in which there is no separation between the
business and owner in other words tax and liabilities of the business is responsibility of the
owner (Cicek, Kelleci and Vandekerkhof, 2021).
 Partnership: when two or more people comes together for the purpose of carrying any
business, carried by all or any one of them acting for all is called partnership business, they
share profits and losses according to the ratio agreed by all, and profits and loss of which is
taxable and recorded individually in each partner tax return.
 Corporations: Is a type of business in which a group of people called share holders act
together as a single entity. The owner of corporation are share holders who share
consideration for the corporation's stock.
 Limited liability company: It has a taxation benefits like partnership firm and enjoys limited
liability benefits like a corporation company.
Your Business Structure
The star clothing company is having four partners which helps the company in rising more
funds at less risk and effective decision making without diluting the ownership of company. The
decision are taken by the four partners only which helps in maintaining privacy in the firm. All the
partners having knowledge and experience of different business function which helps the firm in
improving it's productivity. The trust and understanding between the four partners helps the
company in gaining popularity and market in such a short period of time (Flegg and et. al., 2018).
Macro Environment
(Application of PESTLE and other business models)
PESTLE analysis is a tool used by the business owners to analyse and keep check on the
macro environment or external environment factors that can have impact on an organization.
 Political factors: are the factors which can directly influence the business of star clothing
company, for instance increase in the tax and tariffs can increase the price of raw material
which will results in decrease in the margin of the company or trade restriction imposed by
the government can acts as loss of revenue for the brand.
 Economic Factors: like economic growth rate ,exchange rate ,inflation and interest rate can
influence the decision and working of the organisation. For example star clothing decided to
repay its debt on a priority because of the increase in interest of the load (Jiang and et. al.,
2020).
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 Social Factors: are related to the social , cultural and demographic trends of the society like
due to the lock down and work from home culture demand of formal wears decrease and
star clothing launched a work from home kit which includes one Cotton t shirt and one lower
which was highly in demand.
 Technological factors: Star clothing company focuses on technological advancement and
automation of its work. The company understands that the only way of having comparative
advantage is to stay updated in technology.
 Environmental Factor: Business need plan how to adapt environment factors because
weather is extremely unpredictable. Sometimes due to the change in environment delivery
gets delayed which harms the image of the company (Chaouk, Pagliari and Moxon,
2020).
 Legal Factors: Is any legal force that states what business can do or cannot do , it is
obligation which are to be full filled by every business entity like all the partners of Star
clothing company have to sigh partnership deed before commencing the business.
Micro Environment
(Application of Porter’s Five Forces and other business models)
 Bargaining power of suppliers: Power of this force is high because the suppliers of
the company is very limited and substituting them is a costly affair. The lesser the
suppliers the more power they have. The company is in batter position when there
are many suppliers of the same commodity (Kulkarni and et. al., 2021).
 Bargaining power of buyers: The power of this force is high because the internet
have empower the customer by providing them information and the clothing
industry customers have many brands choice to choose from, the customer have
significant power to put pressure on the company(Mahat, 2019).
 Threats of new entry: The power of this force is low because it needs huge capital to
invest for entering into the clothing industry , so it is not a challenge for star clothing
to maintain its position in the market and take fair advantage of it.
 Threat of substitutes: The power of this force is quite high because some times the
competitors of the brand like Marks and Spencer ,hush and All Saints are also
offering seasonal discounts and offers which can leads to loss of revenue for the
company.
 Competition of existing competitors in the industry : The number and strength of the
competitors of star clothing company is big ,but the river companies does not
practice aggressive piece cutting or running high paid advertisement campaigns
because of which the force of this factor is moderate(Peltanova Raudenska and
Masarik, 2019).
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Impacts on your Business
The is very important for the star clothing company to keep check on internal and external
factors for planning, organising and controlling their resources so that they can utilize it in a efficient
manner. UK is having a good political stability which enables the company to make long team
policies. Economy is facing high inflation because of which the prices of raw material is increasing
which leads to decrease in revenue of the company (Thomas and et. al., 2021) . The brand is able
to cope up with social factor which helps it in understanding consumer behaviour and develop their
products accordingly. Organization is far ahead in use of technology and automation because of the
young leadership, environment friendly policies are followed in star clothing they understand their
duty towards the environment and society, The firm is registered as a partnership firm and follow
the partnership deeds. It has been seen the force of the power of new entry is low because for
entering into clothing industry a huge amount of investment is required. The number and strength
of the competitors of star clothing company is big, but the rival companies do not practice aggressive
piece cutting or running high paid advertisement campaigns because of which the force of this factor
is moderate. In the clothing industry the threat of substitutes is likely to be high because a frictional
change in the price of the product can result in loss of revenue the competitors of the brand like
Marks and Spencer ,hush and All Saints are also offering seasonal discounts and offers. Bargaining
power of the suppliers is high because the number of the suppliers is less and substituting them can
be a costly affair. Bargaining power of the buyer is high in this industry because the internet have
empower the customer by providing them information about various brand and their products and
the clothing industry customers have many brands choice to choose from, the customer have
significant power to put pressure on the company.
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Conclusion
Overall argument summary
From the above report it has been concluded that star clothing company is a partnership
firm , who is practising good control over their resources by taking good care of internal and external
environment. In the above report proper analysis of the internal factors is done by using PORTERS
five force and for evaluating external factors PESTLE is used. The company has sound market
position and the management is effective and efficient because of which the company has able ton
grow its revenue and is expending continuously.
Recommendations
When star clothing company have develops good image in the market of UK by which they
were able to expand their business in the market like China, America, South Africa and many more.
By doing this not only the sales of the company has been increased but also the profit of the also
been increased.
 In the initial stage if company wants to expand their business in all over the globe they can
use the online platform because this is cheapest source. With the help of this cost of the
products can be minimized.
 The company should focus on its online presence like their website landing page ,social
media and paid campaigns which will help then in increasing their brand image and will able
to reach more potential customer at less cost.
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References List
Sheth, J., 2020. Business of business is more than business: Managing during the Covid
crisis. Industrial Marketing Management, 88, pp.261-264.
Mura, L. and Ključnikov, A., 2018. Small businesses in rural tourism and agro tourism: Study
from Slovakia. Economics & Sociology, 11(3), pp.286-300.
Cicek, A., Kelleci, R. and Vandekerkhof, P., 2021. Determinants of family meetings in
private family businesses. Journal of Family Business Management.
Flegg, E.F and et. al., 2018. UK port preparedness for climate change: The benefits of
appropriate adaptation. In Coasts, Marine Structures and Breakwaters 2017:
Realising the Potential (pp. 297-300). ICE Publishing.
Chaouk, M., Pagliari, R. and Moxon, R., 2020. The impact of national macro-environment
exogenous variables on airport efficiency. Journal of Air Transport
Management, 82, p.101740.
Kulkarni, A. and et .al.m, 2021. What determines vegetation on rock outcrops of the Western
Ghats: the macro-environment or lithotype?. Folia Geobotanica, 56(2), pp.149-165.
Thomas, P and et. al., 2021. A PESTLE analysis of solar home systems in refugee camps in
Rwanda. Renewable and Sustainable Energy Reviews, 143, p.110872.
Mahat, M., 2019. The competitive forces that shape Australian medical education: An
industry analysis using Porter’s five forces framework. International Journal of
Educational Management.
Jiang, X., and et. al., 2020. The role of microenvironment in tumor angiogenesis. Journal of
Experimental & Clinical Cancer Research, 39(1), pp.1-19.
Peltanova, B., Raudenska, M. and Masarik, M., 2019. Effect of tumor microenvironment on
pathogenesis of the head and neck squamous cell carcinoma: a systematic
review. Molecular cancer, 18(1), pp.1-24.
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