Forever Clothing: A Business Development and Value Creation Report

This report provides a comprehensive business development plan for Forever Clothing, a company planning to launch a clothing store in the United Kingdom. The report includes an executive summary, introduction, market and industry analysis, competitor analysis, and strategic recommendations. It explores the opportunities in the UK market, focusing on the innovative use of self-healing materials and natural dyes. The analysis encompasses market research, gap analysis, PEST analysis, Porter's Five Forces, and the company's competitive advantages. The report also covers the company's legal structure, ownership, management team, marketing strategies, financial plans, and contingency plans. Additionally, it outlines the ethical, responsible, and sustainable practices the company will adopt, along with a balanced scorecard and conclusions. The report aims to provide a detailed overview of the company's business development strategy, market analysis, and value creation plan.

Business Development
and
Value Creation

EXECUTIVE SUMMARY
For every company it is essential to conduct market as well industry analysis because
through it they can understand situation and developing decision which lead to conducting
business operations and function in effective manner. Forever Clothing is going to open their
new clothing store at United Kingdom and there are offering wide range of cloth made up of self
healing material as well as natural dye. Through this they need to conduct several activities or
practices such as market analysis, industry analysis, competitors analysis, Balanced Scorecard
and financial as well as operational plan. It is so because this will help in effective decision that
lead to effective conducting of business operations and functions.

Table of Contents
INTRODUCTION...........................................................................................................................3
1. The opportunity............................................................................................................................3
1.1 The opportunity................................................................................................................3
1.2. Industry analysis..............................................................................................................4
1.3. Innovations brought to the industry by the new venture.................................................5
1.4 Strategy.............................................................................................................................6
1.5 Ethics, responsibility, and sustainability..........................................................................6
2. The company and team................................................................................................................7
2.1 Legal structure..................................................................................................................7
2.2 Ownership.........................................................................................................................7
2.3 The advisory board...........................................................................................................7
2.4 The management team......................................................................................................7
3. Marketing ....................................................................................................................................8
3.1 Identification of customers...............................................................................................8
3.2 Number of potential customers and potential sales revenues...........................................8
3.3 Requirements of various customer segments...................................................................8
3.4 Appropriate sales and promotion approaches...................................................................9
3.5 Analysis of how purchase decisions are made, and how/if this behaviour can be changed. 9
3.6 Customer price sensitivity................................................................................................9
3.7 Cost of acquiring and retaining customers.....................................................................10
3.8 Strengths and weaknesses of competitors and ways that competitors are likely to react
when the company enters the market...................................................................................10
3.9 Results from Market Research.......................................................................................11
4 Operating and Financial plans....................................................................................................11
4.1. Conversion of inputs into outputs that customer value.................................................11
4.2 Financial plan.................................................................................................................12
4.3. Contingency plans.........................................................................................................12
5 Conclusions and Balanced Scorecard.........................................................................................13
5.1 Balanced Scorecard........................................................................................................13
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5.2 Main conclusions from the project.................................................................................13
5.3 Limitations and future directions....................................................................................13
REFRTENCES..............................................................................................................................15
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INTRODUCTION
For a company it is essential to develop business and for that they may create value as it
help in conducting work in effective as well as effectual manner. Business development is
considered as entails task as well as processes which leads to development and implementation
of growth opportunities within and among an organisations (Aarikka and Jaakkola, 2012). Along
with this value creating is primary purpose of any business unit in order to develop value for
shareholders for enhancing stock price for ensuring the future of company. This report is based
on the Forever Clothing which is going to offer wide range of clothing for men, women and kids
as well as these cloths are made up of self healing material and these are also made of natural
dye with didn't fade at UK marketplace. For this they are conducting several practices such as
market and industry analysis, different intellectual properties/ patents, strategies for competitive
advantage. Along with this this report will also include legal structure which can be adopt by
respective company as well as it will also include informations related to operating and financial
plans.
1. The opportunity
1.1 The opportunity
 Market research
It is consider as practices which are conducted by a company in order to gather proper
information able the target market and customers (Achtenhagen, Melin and Naldi, 2013). This
plays an essential role in process of developing effective business strategies. In respect of
Forever Clothing they will adopt survey and observation in order to conduct market research.
This is so because through it they able to identify the need as well as requirement of customers
related to clothing and fashion.
 The gap
Gap analysis is define as a method in which a business try to identify the gap among the
what customer's want and what they are offering to them. By conducting this analysis respective
company able to identify requirement of customers through which they can design products
accordingly.
1.2. Industry analysis
 Current competitive situation + PEST
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Political- Political condition of respective company is stable so it will be opportunity for Forever
Clothing to start their business at respective market by offering such a unique clothing products.
Economical- This factors is strong at United Kingdom so at respective place leaving standard
will be high. That will be opportunity for respective company to operate their because peoples of
UK can easily afford it.
Social- It is essential for a this company to understand social factors of United Kingdom peoples
because that will help them in developing more effective as well as impressive products.
Moreover in this they need to consider lifestyle, preference, new trends and so of UK (Austin
and Seitanidi, 2012).
Technological- Peoples of UK are more attracted toward the innovation as well as new
technology so that will be effective for Forever Clothing. This is so because their clothing
products are based on new technology which help in attracting more and more customers.
By this it can be estimate that for Forever Clothing current competitive situation is
moderate because at United Kingdom no other company offer self healing material cloths with
natural dye. But at respective place there are number of companies that are dealing in clothing
and fashion industry.
 Projected strategic moves by current players
For this Forever Clothing may adopt Porter's five force model, which is given below:-
Factors Range Reason
Threat of entry High It is high for Forever Clothing because
at respective industry there is low rules
and regulation (Bocken, Rana and
Short, 2015). Due to which any new
company can enter into industry easily
with new innovation.
Bargaining power of suppliers High This factor will be high for respective
company because there are very limited
suppliers of self healing clothing
material as well as natural dye.
Bargaining power of customers Low It will be low for this firm because
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there is no other companies who
offering self healing clothing. So if a
customers want to purchase it they have
to visit Forever Clothing store.
Threat of substitute Moderate It will be moderate for respective
company because no substitutes are
available for self healing cloth
(Cinquini, Minin and Varaldo, 2013).
But there are also several companies
who offer attractive design which may
attract customers.
Industry rivalry High This factor will be high for Forever
Clothing because there are number of
companies at UK who offer attractive
design of cloths which attract
customers.
 Changes brought to the competitiveness of the industry by the new venture
Forever Clothing is going to introduce new range of clothing products which are made up
of self healing material as well as its colour is not get fade because it company is using natural
dye. Along with this, cloths made up of these material are highly skin friendly, based on new
trends and so on which help company in attracting more and more audiences.
1.3. Innovations brought to the industry by the new venture
 Intellectual property/patents
There are several Intellectual property/patents which are necessary for Forever Clothing
to adopt, from which some are given below:
Copyright: Through this respective company may protect their unique technology and designed
cloth, moreover by adopting this they not able to copyright article of clothing range but help in
securing design like print, pattern and technology (Fedreheim, 2013).
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Trademark: It define as logos, quotes, symbols and signs in a fashion industry at which Forever
Clothing is operating. By adopting this technique firm able to protect their brand name and logo.
Patents: This help respective company in protecting their innovation from getting copied. This
will aid in protecting unique technology of company i.e. self healing material clothing with
natural dye which didn't fade.
1.4 Strategy
 Sources of differentiation and competitive advantage
This can be analyse by value chain analysis, that is explained below in respect of Forever
Clothing:-
Primary Activities
These activities are directly related to the physical creation, maintenance, sales as well as
support of products and services which are offer by a company. In respect of Forever Clothing in
order to manager primary activities, they divided whole practice into sub section which include
practices like management of inbound logistics, operations, outbound logistics, services,
marketing and sales (Jaakkola and Hakanen, 2013). These all activities help respective company
in gaining competitive advantage because they adopt proper software which help in conducting
work in systematic as well as effective manner.
Support Activities
These activities are mainly supported by primary function which are mentioned above.
This activities are also divided into several sub activities such as procurement, human resource
management, technological development, infrastructure and so on. This will also help respective
company in gaining competitive advantage at the marketplace because their management
conduct operations as well as develop store by considering it which lead to accomplishment of
task in most effective way.
1.5 Ethics, responsibility, and sustainability
For Forever Clothing it is essential to conduct those practices which are ethics based as
well as through which they can sustain at marketplace in effective manner (Lenssen and et. al.,
2013). Moreover, it will be also their responsibility to offer quality products that lead to
attainment of desire goal. In order to all this, respective company management may conduct
practices like offer best quality products, they must also follow legal rules and regulations, they
must use natural colour and so on.
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2. The company and team
2.1 Legal structure
Legal structure refers to form in which a company start doing its business at potential
marketplace (Maine, Lubik and Garnsey, 2012). In respect of Forever Clothing they may adopt
partnership legal structure, in which business unit is run by 2 or 20 peoples.
2.2 Ownership
At Forever Clothing ownership will be belongs to the partners of the firm as well as it
will be their responsibility that they must take take trademark of their business ideas, logo and
name so that no other company able to copy it.
2.3 The advisory board
At advisory board there are numbers of members who have strong authority at the
company. In respect of Forever Clothing, their members of advisory board are CEO, Vice
president, employees, director and so on.
2.4 The management team
 Expected contributions by each team
At Forever Clothing every team are expected to conduct particular thing so that company
can attain their goal as well as objective in effective manner. Some of the major expected
contribution of teams are given below:-
Marketing- This department plays a main role in making business successful because they
promote as well as advertise products in effective manner so that more and more customers get
attracted toward them. At respective company marketing team also conduct research so that they
can help in planning things in more effectively and accordingly.
Human resource- Respective department also necessary for Forever Clothing because they help
organisation in hiring most effective employees so that they can attain their desire goal
successful (Michelini and Fiorentino, 2012). Moreover it will also help in conducting effective
planning so that company can attain their desire goal as well as target effectively and
successfully.
Designing- The expectation from respective team is that they design effective cloths so that more
and more customer's get attracted toward them. Moreover it is also expected from them, they
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must conducted market analysis so that they can develop most attractive design according to
customer's need, expectation and requirement.
 Expected salary
The average salary of marketing executive who are working at marketing team is near by
$ 54,412 per year and marketing manager who will lead team will get near by $ 145,620
annually (Pätäri and et. al., 2012). In respect of human resource executive will be approx £
26,236 per year and HR manager will get $ 60,070 on annual basis. Along with this, designing
manager of respective firm will get near about £ 52,332 per year.
3. Marketing
3.1 Identification of customers
The customers of Forever Clothing are men, women and kids of upper class, upper
middle class and middle class peoples. The respective company also develop trendy design
according to which teenagers are also get attracted toward products because they have limited
amount of money to spend on cloths. So dresses made up of self healing material stay long which
save their money.
3.2 Number of potential customers and potential sales revenues
Forever Clothing is estimating 50,000 peoples as a potential customers and they are
estimating to earn approx $ 500,000 to $ 1000,000 in a year through the United Kingdom
marketplace.
3.3 Requirements of various customer segments
 Importance of purchase convenience, rapid delivery, product customization, etc. for
these segments
The target segments of Forever Clothing is women, men and kids of upper, upper middle
and middle class peoples. For all of these segments purchase convenience is essential so that they
visit to store and easily purchase cloths which they required as that will help them in saving their
time and energy (Pekuri and et. al., 2014). Along with this for them rapid delivery of facilities is
also necessary so that customer get free in proper time without staying in queue for long time as
well as customize products is also effective for them. This is so because that will help customers
in getting ready to wear cloth with proper fitting.
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 Ways to effectively access each segment, distributors, a captive sales force, e-
commerce, etc.
The Forever Clothing may access each and every segment by conducting proper
advertisement as well as promotional activities through social media, print media, video and
digital media (Pfitzer, Bockstette and Stamp, 2013). For assessing distributors they may interact
and communicate them so that they can get proper quotations for buying self healing clothing
materials. Moreover in order to get captive sales force respective company may attract more and
more customers towards their store as well as for accessing e - commerce they may develop
effective application from which customers can purchase products.
3.4 Appropriate sales and promotion approaches
Sales and promotion approaches is define as a techniques which are adopted by a
company in order to advertise as well as promote their business at the potential marketplace. In
respect of Forever Clothing they may adopt several approaches for sales and promotion activities
such as social media, digital media, conduct advertisement on newspaper and television and so
on.
3.5 Analysis of how purchase decisions are made, and how/if this behaviour can be changed
Purchase decision of a person is based on proper procedure according to firstly they will
determine need and issues for which they have to purchase things, then at next stage they
conduct information search in order to know from where they can conduct purchasing. Third
stage will be evaluation of alternative that related to identification of different store from where
they can purchase products. After all these stage purchase of product will be done according to
requirement (Ritala and et. al., 2013). Along with this, behaviour of a customer get change when
they have option of getting more innovative as well as attractive products in decided budget.
3.6 Customer price sensitivity
The pricing strategy which is adopted by Forever Clothing is seeming pricing in which
management fix price of products at low and when they get growth and be stable at marketplace
they will increase cost of offering.
3.7 Cost of acquiring and retaining customers
Forever Clothing also need to conduct various activities so that they can acquire as well
as retain customers in effective manner which will help in attracting more and more customers at
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potential marketplace. So in order to acquiring customer company need to conduct promotional
activities and in that they get costing of near by £ 10,000 £ 30,000 per year. On the other hand,
respective firm also need to conduct activities which lead to retaining of customers for long time
duration and for this approx £ 15,000 £ 20,000 amount will be incurred.
3.8 Strengths and weaknesses of competitors and ways that competitors are likely to react when
the company enters the market
Forever Clothing is operating their business at fashion and clothing industry, where there
is high competition. There are also several strengths as well as weakness of these competitors,
some are given below:-
Strengths Weaknesses
 Competitors have huge number of
experience due to which they know in
what situation which strategy will work
(Schaltegger, Hansen and Lüdeke,
2016).
 Competitors also have huge numbers of
potential as well as loyal customers that
will help them in enhancing their
business.
 Respective company competitors are
also have high experienced as well as
knowledgable employees which aid
them in conducting work effectively for
attaining their desire goal.
 Competitors are operating at respective
industry from huge time and it is not
possible for them to always come up
with innovative products.
 Competitors are also not provide high
quality training and development to
their employees which affect their
working style as well as productivity
(Sørensen and Jensen, 2015).
These are some major strength and weaknesses of Forever Clothing competitors.
Moreover, when they get to know about Forever Clothing and its products, competitors at United
Kingdom will try to offer unique products which help them in attracting as well as retaining
customers.
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