XGBBMM 5102 Business Development Report: Beauty World Cosmetics

This report provides a comprehensive business development analysis for Beauty World Cosmetics, focusing on identifying growth opportunities, developing a funding plan, setting financial goals, outlining sales and marketing activities, and assessing team needs. The analysis includes a SWOT analysis, STP segmentation, Porter's Five Forces model, and Ansoff Matrix to evaluate the competitive landscape and potential growth strategies. The funding plan explores options like bank loans, personal funds, and venture capital, with a preference for bank loans. Financial goals are established through cost forecasts and income statements, calculating a break-even point. The marketing plan emphasizes social media strategies and tactics to enhance sales and attract customers. The report concludes with recommendations to enhance the business operations and achieve sustainable growth. Desklib offers a platform for students to access similar past papers and solved assignments.

XGBBMM 5102
Business Development
1

Executive Summary
Business environment is dynamic and there is need to analyse the condition in the market so
that they are able to achieve success. There is opportunity analysis done in this report.
Afterwards financial plans are formulated so that they are able to work effectively. The
formulation of marketing plan facilitates the company to enhance sales. In the end the team
management is mentioned in this report. It is necessary to analyse all the growth options and
choose best among them. This will help them to use money in right direction so that they are able
to get maximum return on investment.

Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Opportunities for growth.............................................................................................................4
Funding plan................................................................................................................................6
Financial Goals............................................................................................................................7
Sales and marketing activities.....................................................................................................8
Team needs .................................................................................................................................9
Recommendation.......................................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12
Books and Journals ..................................................................................................................12

INTRODUCTION
Business development means analysing all the important aspects of business organisation in
order to develop the business effectively. This report is based on analysing the condition of
business and discussion related to factors that impacts the business organisation (Zahorskyi and
et.al., 2019). Beauty world cosmetics is taken into consideration for this report. The competitive
analysis and target market is identified in order to analyse the opportunities present in the
market. The channels that the business organisation can choose in order to enhance their business
operations are also analysed in the report. Financial needs of the business are identified and then
best source of finance for the company is selected. The financial goals of the business are set by
preparing Prepare profit, revenue, and cost forecasts. Afterwards, marketing plan is prepared for
the company so that they are able to achieve the goals and objectives appropriately. The key
skills required by the team managing the work are analysed in the report and the need of training
is also being analysed. In the end recommendations are mentioned to enhance the business.
MAIN BODY
Opportunities for growth
The business environment is diverse and there is need of knowing internal capabilities and
strengths by the business organisation.It is important for a business organisation to analyst
opportunities of growth. Before wards, it becomes important for them to know about their
internal factors for that reason Beauty world cosmetics will conduct SWOT analysis.
Strengths
 The time of opening and closing the
enterprise is more and that assist the
customers (Ensslin and et.al., 2018).
 They provide quality products to the
customers and that builds loyalty.
Weakness
 There is lack of staff training and that is
the reason they are unable to work
effectively.
 There is lack of specialised employees.
Opportunities
 They can enhance quality of the
services so that the customers
become loyal for them.
Threats
 There are so many competitors present
in the market that is threat for the
business organisation.

STP
There is need to decide the target market for the business. So that the Beauty world
cosmetics can focus on them.
Segmentation: There are so many basis of segmentation. There is need to group the
heterogeneous customers in homogeneous groups (Ramadani and et.al., 2018). The basis is
demographic, psychographic, behavioral and geographic segmentation.
Targeting: Beauty world cosmetics targets consumers of all age range, religion and
socio-economic status interested in more affordable cosmetics. The people age group 16-
40 years. Both male and female are targeted by Beauty world cosmetics. They have analyzed
thatfemales spend more money on the the products being offered by them.
Positioning: It helps to create an image of the brand in the mind of customers. It is
necessary to set good brand image so that customers are attracted towards the brand. They serve

affordable products to the customers. They have image of serving quality cosmetics at affordable
price.
Porter five forces model
This helps to analyse competition in the market. There are various competitors that are
present in market. A company must formulate such strategies that helps them to gain competitive
lead and attract more customers. There are five forces related to Beauty world cosmetics that are
evaluated below:
Threat of new entrants: There is good profitability seen in cosmetic industry. This
attracts new business organisation towards the industry. This shows there is higher threat of new
entrants in the market (Ghanbari, and et.al., 2017). Beauty world cosmetics must maintain
quality of their products so that they do not face any issue due to the new entrants.
Bargaining power of customers: There is high competition present in cosmetic
products. This shows the power of buyers is also high in the market. The beauty world cosmetics
must work to retain the customers in the company.
Bargaining power of suppliers: The suppliers have low power in the cosmetic industry.
There are so many players that are available in the market. The beauty world cosmetics must
maintain good relation with the suppliers so that they are able to get products on time.
Threat of suppliers: There are so many competitors that are present in the industry and
that clearly shows that there is high threat of substitutes (Budzianowski, 2017). In this regard,

beauty world cosmetics work to maintain quality of the products as it helps them to retain the
customers.
Rivalry among industry: There are so many players that are indulged in business of
cosmetics. There shows that there is high competition that is present in the industry. The
company must work to promote their products better than that of competitions and gain
advantage over them to work effectively.
Ansoff Matrix
There are various opportunities that are present in market. The beauty world cosmetics
must analyse the market conditions so that they are able to grab best opportunities in the market.
The four strategies available are as follows:
Market penetration: In this strategy the company focuses on existing product in existing
market. The aim is to increase the share in the market so that they are able to enhance sales of its
products and services (Page and et.al., 2017). The beauty world cosmetics must use this strategy
in order to operate effectively in the market. They must decrease the price of their products so
that they are able to enhance new customers in the market. They must also enhance expenses in
promotion and that help them to establish good image in the market.

Product development: in this strategy to business organisation focuses on developing a
new product to cater the needs of existing market. There is requirement of research and
development so that they are able to explain the product range in a proper manner. It is analysed
that Beauty World cosmetics already have wide variety of products that satisfy the needs of their
customers.
Market development: in this strategy the business organisation selects a new market for
their existing products (Lee and Black, 2017). They have to analyse the needs and wants of the
customers in New Market so that they are able to analyse that their product will be able to satisfy
their needs and wants or not.
Diversification: the form enters a new market with new product under this strategy. It is
risk care for a company to start in a new market and with a new product. It is necessary to
develop the product in effective manner and serve the requirement of new customers.
In regard to beauty world customers, they must use penetration strategy so that they are
able to enhance the sales by attracting existing customers in effective manner.
Funding plan
Finance plays a major role in enhancing the operation of business organisation. It is
necessary to analyse the requirement of the finance so that they are able to provide best to the
customers (Tuzovic and Paluc, 2018). There is need to analyse that the conditions of market keep
on changing and it becomes essential for the business organisation to take necessary actions for
improvement. There are various options that are available in the market. There is need to analyse
the need of finance for growth of business. There will be expenditure in marketing so that beauty
world cosmetics are able to attract the customers and serve them effectively. The various sources
of finance that are available in the market are as follows:
Bank loan: The loan from bank helps the company to arrange the money with fixed rate of
interest and principle amount. The rate of interest must be paid within right time frame. It is a
secured source of finance.
Personal money: The saving of the business owner that can be used by a company. The
money of relatives and friends must be used so that they are able to use the money and achieve
success.

Venture capital: They are form of private equity that help to invest in business
organisation so that they are able to enhance the business operations (Kulyk and Škodová
Parmová, 2017).
The use of bank loan will be done in order to finance the business. It is a secured mode of
finance and will help beauty world cosmetics to enhance its operations.
Financial Goals
There is need to be prepared with the finances so that they are able to achievce goals of
the company. The financial goals of company must be achieved and the target must be to
enhance return on investment.
Costs for cosmetics business:
Sales: $ 500000 for 5000 units
Cost of sales: $ 170000
Commercial space (Land): $ 150000
Renovation and Décor: $ 230000
Kitchen appliances: $ 115000
Furniture : $ 40000
Business Technology: Software: $40/ month
Hardware: $450
Fixed cost - Licenses and Permits: $ 41500
Insurance coverage: $ 1000
Variable expenses - Administrative charges: $1850
Marketing: $200
Insurance Coverage: $$10000
Salary: $ 30000
Utility expenses: 20000
Income statement (Forecasted)
Particulars $ $
Sales 500000
Less: Cost of goods sold 170000

Gross Profit 330000
Less: variable expenses 62050
Administration expenses 1850
Marketing 200
Insurance coverage 10000
Salary 30000
Utility Expenses 20000
Less: Fixed Expenses 42500
Licenses and Permits 41500
Insurance coverage 1000
Net Profit 225450
Break even point = Fixed Expenses / Sales – Variable cost
42500 / (500000 – 170000 – 62050)/5000
= 42500 / (267950/5000)
= 42500/53.59
= 793 units
This is required for the firm to sell at least 793 units for earning its profits.
Sales and marketing activities
There is need to create proper plan that helps a business organisation to establish strong
position in market. A proper plan is necessary for the success of company. They are planning to
enhance there operations by using social media marketing so that they are able to achieve
success and that is related to enhancing sales of the company. The marketing and sales plan for
Beauty world cosmetics are as follows:

Situation analysis: The situation of the business organisation is studied in this factor.
They are planning to enhance the business operations so that they are able to attract more
customers. It assists to enhance the sales of the company and serve more and more customers.
Objectives: The marketing and sales objectives set by Beauty world cosmetics are as
follows:
 To use social media platform in order to attract 5% customers quarterly.
 To enhance sales of the company by 10%
Strategy: The use of social media strategy will help the company to enhance the sales of
organisation (Fedulova, Piatnytska and Lukashova, 2018). There is use of free samples in order
to attract more and more customers so that they are able to enhance the sales.
Tactics: The company must use the right tactics so that they are able to achieve objectives.
The use all the Ps will help the company to achieve success.
 Product: They provide high quality products to the customers so that they are able to
serve the needs and wants of customers effectively.
 Price: The use of value pricing strategy will help the business organisation to provide best
to customers. The affordability of the products will serve the needs of the customers and
provide high quality at the same time.
 Place: They have its operations in Brixton.
 Promotion: The company will use social media marketing via Instagram, Facebook,
YouTube so that they are able to enhance sales of the company.
Actions: Beauty world cosmetics will provide training to the employees so that they are able
to attract the customers. They will work to enhance the skills and then relations with the
customers. All the actions will be directed towards attaining the objectives of the company.
Control: The use of benchmarking will help the company to control the business. At the
same time KPI will also be used by Beauty world cosmetics will satisfy the objectives of
company. The conversion rate and enhance in sales will help the beauty world cosmetics to
control the progress.
Team needs
Employees of the company are working asset of the company. There is need to analyse the
skills that are required by the staff members of company. So that they are able to achieve
objectives of business and attain success (Sotnyk and et.al., 2020). There is need of

communication skills, team working skills, decision making skills, time management skills so
that they are able to complete the work effectively.
In order to achieve success at the present scenario, there is need of digital and technical
skills. The employees will be provided training to enhance the intellectual skills. Along with that
there is need of providing courses of digital marketing so that they are able to work effectively.
The proper training provided to the employees assist in enhancing the performance of the
employees. They must be motivated so that they are able to work in proper manner and attain
success to enhance the sales of the company. By regularly checking the performance of the
employees a company is able to achieve success.
Recommendation
There are various points of recommendation for the company:
 They must conduct proper research and development so that they are able to know about
customers needs and wants. It is necessary to take innovative actions and work in such a
manner that customers are satisfied.
 There are so many competitors that are present in market. The company must maintain
quality of the products so that they are able to gain lead over the competitors. They must
try to take right actions so that they are able to enhance performance of the organisation.
 They must use social media marketing so that they are able to raise awareness of the
company. They must work to build relations with the customers and satisfy the needs and
wants of the customers in appropriate manner.
CONCLUSION
From the above report, it is analysed that the business organisation keeps on changing. The
company must work to know about the changes in market. SWOT analysis and Porter five forces
model is use to know about the internal factors and competitive analysis in the market. There is
use of funding options and plan so that they are able to achieve success. They must formulate
effective marketing plan so that they are able to achieve the objectives. The company must work
to know about the skills that are required by employees so that they are able to attain competitive
advantage.