Business Plan Analysis Report: BUS302 - University Assignment

This report presents a comprehensive analysis of a business plan, comparing and contrasting it with a sample plan from a textbook case study. The report begins with an overview of the company's background, including its mission, products, and market analysis, which includes industry analysis and competition. It then delves into the target market segment strategy, followed by an examination of the marketing plan, encompassing product offerings, pricing, distribution, and promotion strategies. The financial plan is critically reviewed, and potential risks are identified. The report concludes with recommendations and a summary of key findings. The assignment covers various aspects of business planning, providing a holistic perspective on how different companies approach their operations and strategies. It also highlights the importance of adapting the business plan according to the company's goals and objectives, market and industry analysis, marketing, and financial planning.

Running head: BUSINESS PLAN
BUSINESS PLAN
Student’s name
University Name
Author note

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BUSINESS PLAN
Table of Contents
1.0. Company Background..............................................................................................................2
1.1 Mission..................................................................................................................................2
1.2. Products offered....................................................................................................................3
2.0. Market analysis.........................................................................................................................3
2.1 Industry analysis....................................................................................................................3
2.2 Competition...........................................................................................................................4
3.0 Target market segment strategy.................................................................................................4
4.0 Marketing plan...........................................................................................................................5
4.1 Products.................................................................................................................................5
4.2. Pricing strategy.....................................................................................................................6
4.3. Distribution strategy.............................................................................................................7
4.4 Promotion strategy.................................................................................................................7
5.0 Financial plan.............................................................................................................................8
6.0 Critical risks...............................................................................................................................9
7.0 Recommendation.......................................................................................................................9
8.0 Conclusion...............................................................................................................................10
References:....................................................................................................................................11
Appendix........................................................................................................................................13

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1.0. Company Background
ReHabiliments is a private limited corporation, the business organization deals with
clothing and apparel business. The business headquarters is located in Sandybar Harbor. The
company was established in the year 1994; it promotes the group and increases its revenue since
the year of its establishment. The company sells t-shirts and sweat shirts to the public. The entire
business of ReHabiliments is established in based on the principle of Harmony. They highly
believe in harmony of thought, purpose and humility(Abrams 2013). They believe that when the
people of the group are one, they can achieve support in their purpose and will be accepted in the
market irrespective of their weakness. Upon purchasing the clothes and garments of the
ReHabiliments, the customers make a decision to be a part of the company’s community which
is dedicated for the good of humanity. To compare it with Blueprints Business Planning Pty Ltd,
the company is a medium sized business that specializes in management consulting service.
1.1 Mission
ReHabiliments is clothing and garments industry, the company offers trendy clothes and
garments such as casual wear, active wear, head gear, leather coats and jackets. It sells its
products internationally which consists of people of all the age groups. The aim of the company
is to transform the lives of the people who are less fortunate. It aims to secure the funds with the
combination of investments and dept strategies. It aims to initiate marketing and sales to expand
the company’s business. It is also the mission of the company to expand the clothing line and
generate healthy sales revenue(Abrams 2013). To compare it with the goals and mission of
Blueprints Business Planning Pty Ltd, they aim to employ employees with approximate salary of

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$42,000 p.a. in order to meet the expenses and generate the net profit of around $2000 for its
future investments. Its goals are to establish viable consultancy service by employing five
people(Abrams 2013).
1.2. Products offered
ReHabiliments offers clothes and garments ranging from trendy wears, casual and active
wears, it sells t-shirts and sweat shirts. It offers Jerseys, Denim jackets, pants. The business
offers casuals including Dockers-Khakis, Polo shirt, traditional suits. It provides active wear and
sportswear such as sweat suits, sweatshirts for men and women. It offers workout gears including
workout tops, workout bottoms, socks and jackets(Baker, Addams and Davis 2013). It offers
leather garments, baseball jackets, head gear including ski Hat, Beanie Fitted Baseball Cap, Sun
Visor.
2.0. Market analysis
2.1 Industry analysis
The demand for the clothing and apparel textile products is mature and slow growing.
There is intense competition in the market and the structure of the company and the operations
are continuously changing. The market is highly fragmented. In order to penetrate the market,
the company has to initiate high levels of research and specialization in the market. The clothing
and apparels are sold domestically and well as internationally. The company has a unique trade
structure which enables the company to enhance its business opportunities(Blackburn, Hart and
Wainwright, 2013). This feature of the market creates opportunity for the designers to enter the
market and enable good visibility of their products. The products of the company are directly
bought from the manufacturers and then are marketed. Since there is intense level of competition
in the market the company needs to invest extensively in both money and time and there might

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not be any assurance of positive return on investment. As compared to Blueprints Business
Planning Pty Ltd, there is a definite demand for generic management consulting service,
however, the industry is ill defined and unregulated(Ceptureanu, Ceptureanu and Visileanu
2017).
2.2 Competition
There is intense competition in the market in regard to prices. There is an increasing
pressure of competition from the foreign companies. Hence they need to shift the push strategy.
There are poor economic conditions which forces the industry to keep the prices of the products
and service low in the market. The clothing and garment industry competes with the other sector
of the retail industry. The other sectors of the industry include the electronics wholesalers and
retails, the other discount stores, shoes, convenience and other stores in the market. Therefore it
can be said that the apparel industry is dynamic and has highly competitive environment. The
company faces competition from variety of sources which includes The Gap, Inc, Nautica
Enterprises, Inc, and others(Drexler, Fischer and Schoar 2014). The closest competitor is FUBU
corporations in terms of popularity, product range, growth and profitability. To compare it with
Blueprints Business Planning Pty Ltd, its competitors are similar potential strategic allies
including other management consultants, accountancy practices, commercial training providers,
accountants, business enterprise centers(Finch 2013).
3.0 Target market segment strategy
The clothing and garments manufacturers have a diversified product line and self owned
outlets. The company believes that age is not a barrier, the consumers crave for new and different
type of clothing and apparel, and they actively seek new fashion forward items. The target the
following market segment:

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 Adult clothing- ( Both Women and men), Age group- 20-50 years
 Children’s wear- ( Infants), Age group 0-5 years
 Junior clothing- ( Boys and girls), Age group- 5-20 years
 Sports/ active wear- ( Men and women)- Age group- 10-50 years
As compared to Blueprints Business Planning Pty Ltd, it targets the Central Sydney
metropolitan area; it targets the new small business owners as well as the existing owners
who are interested to increase their knowledge. It targets the business owners with
sufficient income (approximately $ 200000) who would be able to pay for the
service(Drexler, Fischer and Schoar 2014).
4.0 Marketing plan
4.1 Products
ReHabiliments provides a full collection of garments and apparels which are classy, versatile and
upscale. The apparel lines include the active and casual wears, leather coats, baseball jackets,
headgear and workout gear. The company started its business by adding logos in their apparels,
producing whole items with the use of team designers(Huq, Chowdhury and Klassen 2016).
Product description
Casual wear: It includes business casuals like Dockers-Khakis, Polo shirts, business appropriate
clothes, clearly casuals, resort casuals and casual confusion. It carries variety of products
including: Jerseys, T-shirts, Denim Jackets, Denim pants. It provides variety of products that
suits the interest and desire of every individual. It is suitable for casual wear or for afternoon
leisure(Kant Hvass 2014). The clothing is made of high tech fabrics and contains functional,
ergonomic designs. It aims to grab the customer who desire comfort n their daily wear.

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Active wear/ sportswear: it offers yoga pants, track suits, and athleisure lifestyle apparel. It offers
high performance clothing for sportswear an active sport, and adventure purpose. It includes
sweatshirts, sweat suits, workout gear, workout tops and bottoms, cotton jackets with polyester
blend. It contains a natural look and the fabric of the clothing adds to the style of the clothing. It
targets the customers who are active and sporty in nature(Pike and Page 2014). The apparels are
highly suitable for the customers are remain active throughout the day and are adventurous in
nature.
Leather garments: it offers leather motorcycle jackets, this product captured the heart of men and
women, and it carries on making classic traditional leather, motorcycle jackets. The apparels
include motorcycle jackets and leather pants. The leather jackets are versatile and classic article
of clothing provided by the company(Russell Atchison and Brooks 2018). Leather garments are
highly stylish and are fashionable.
Baseball jackets: The baseball jackets have more conservative color schemes of grey and back.
They are made of thick and lined satin with finest details. It provides the baseball jackets with
sports symbol.
Headgear: it includes ski Hat, Beanie, fitted baseball cap., Sun visor. They are an integral part of
the young generation’s wardrobes along with the fashion items. It provides variety of hats which
suits the taste of different people. Hats are highly fashionable wear; it offers protection from both
hot summer days and the chilling cold of the winter (Schaper et al. 2014). The company
provides hats of distinctive designs and they are highly fashionable.

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4.2. Pricing strategy
Casual products: Jerseys- $65, T-shirt- ranging from $ 25-60, denim jackets-$60-65, Denim
pants- $50
Active wear/ sportswear: sweatshirts- $ 60- $70, Sweat suits- $100
Workout gear: workout tops-$ 25, workout bottoms: $35, socks-$15, Jackets - $45
Leather garments: Motorcycle jackets-$300, leather pants-$ 175
Baseball Jackets: Baseball jackets: $75
Headgear: Wool Ski Hat-$15, Beanie-$12, Fitted Baseball Cap-$25, Sun Visor-$15
As compared to the pricing strategy of Blueprints Business Planning Pty Ltd, they charge rates
for casual consulting and other training services at $120 per hours. The standard price for a
standard business plan includes $ 2000 and other specific costs. The terms of payment are within
10 working year(Turker and Altuntas 2014).
4.3. Distribution strategy
ReHabiliments follows a traditional distribution channel, t has unique trade structure, and
this enables the business to enhance business opportunities. Since the industry faces strong
competition in the market, they are highly recommended to invest majorly in time as well as
money, however, this might be ensure them with positive results(Vedel and Ellegaard 2013). The
materials for the clothing are bought from the distributors and directly from the manufacturers.
They use sales representatives in order to facilitate its entry into the new market, since the
competition is extremely high. Several showrooms are use to display the wide range of products,
the customers can place their orders throughout the year. Whereas, the services provided by
Blueprints Business Planning Pty Ltd, is home based, they deal with the clients directly at their

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own premises(MacCarthy and Jayarathne 2015). The company follows no particular structure for
distribution arrangement.
4.4 Promotion strategy
ReHabiliments uses effective offline and online strategies to promote its products. It advertises
its products both at their website online and offline, thereby adding value to their products. It
organizes events and activities on special occasions and reaches the target audience with an
invitation for special celebration. It celebrates its anniversaries and special dates and takes
advantages of the moments to promote their products and services. Further, it window displays
its products; they enhance their showrooms and make it attractive for the customers(Russell
Atchison and Brooks 2018). Packaging is also an important part of their promotional techniques
they use cardboard and recycled paper to wrap the clothing and apparels and emphasizes on the
company name.
As compared to Blueprints Business Planning Pty Ltd, the services are not necessarily
being promoted to the general community. However, it is highly essential to promote its services
to potential clients and seek work from the clients later on. The company use business cards and
letterheads as a promotional tool, other promotional tools include direct ails, telephoning
contacts, listing name in Sydney Yellow pages, promoting literature, increasing its networks,
linking with the other practicing professionals, using testimonials and enhancing public relations.
They significantly focus on public relation initiatives (Schaper et al. 2014).
5.0 Financial plan
ReHabiliments is seeking a fund of $ 100,000 additionally to the existing fund of $
100,000(Shen et al. 2013). The financial objectives include securing finance from SBA lender,
reinvest its profits for increase its market share. The financial plans are highly based upon sales

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volume. The sales volume is to be detailed in the sales forecasts which would represent
company’s assets, liabilities, capital, revenue and its expenses. It plans to utilize its funds
efficiently and reinvest its profits for further business investments. Since the company is at its
early stage of development, the company will be concentrating its marketing on the market
segments to drive its income statement(Turker and Altuntas 2014). With gradual improvements,
the management will be analyzing and monitoring the track planned with the actual financial
figures. The company will be using the funds with business utilize including salary of the
employees, rental purpose, insurance, advertising, office supplies and miscellaneous expenses.
The capital of the business and the funds is to be used for start-up costs, further develop the
business, enhance its business infrastructure, establish reputable storefront, improve its internal
systems, invest in product development and improve its extensive marketing and geographic
positioning of the company(Vedel and Ellegaard 2013).
Compared to the financial plan of Blueprints Business Planning Pty Ltd, it is assumed
that the revenue will be paid within month’s issues; no provision has been made for inflation or
increase in costs. Depreciation of equipment items has been calculated using straight line method
at 10% premium the sales is assumed to be 60%; the sales price is $ 50 (Finch 2013). The
directors of the business will be contributing to capital. The sales income of the next year will be
based on the commitments of the early orders from the clients which will initiate cash flow. The
bank loans will not be required(Drexler, Fischer and Schoar 2014).
6.0 Critical risks
Some of the risks faced by the ReHabiliments are marketing; the clothing stores might
incur the risks trough the marketing and sales strategy. The business might face the risks of trend
analysis, trend assessment is another risk, trends are highly fluctuating, ever changing and are

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often elusive in nature. These risks are vital for the company. Also there is high competition in
the market which might reduce the profitability of the company. As compared to the risks faced
by Blueprints Business Planning Pty Ltd, there is a liability issues, there might be excessive
workload(Huq, Chowdhury and Klassen 2016).
7.0 Recommendation
It is recommended that ReHabiliments must initiate creativity and ingenuity in order to
meet the demands and requirements of the customers. Since the company might face fluctuations
in the economic conditions, demographic trends, behavior of the customer and the pricing, the
company is recommended to enhance their production and improve their promotional strategies.
By considering the market analysis accurately and analyzing the customer base the company will
be able to enhance its sales and will be able to increase its profits. In order to attain market
leadership, the company needs to secure initial capital and invest its funds in a most appropriate
manner(Kant Hvass 2014). By efficient allocation of funds the company will be able to acquire
the necessary requirements of the business.
8.0 Conclusion
Therefore, from the above analysis it can be concluded that there is high competition in
the market. However, the company with its aggressive marketing strategy, it can achieve
aggressive sales forecasts and generate revenue in the next financial year. It has also been
analyzed that ReHabiliments managements has successfully determined the market trends and
potential customer base and it has the ability to grow and expand. It will be able to capture 10%
of the urban customers. The company has the potential to be a highly regarded resource in the
domestic as well as the international market. Due to the company’s unique identity and
aggressive marketing strategy, the company can develop its products with strategic partnership

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with other clothing outlets. The company’s profitable revenue model has the potential to provide
satisfactory returns on the potential investments. It can be concluded that ReHabiliments will be
able to achieve operational success in its next financial years. The report has analyzed and
compared the business plan of ReHabiliments with the business plan of Blueprints Business
Planning Pty Ltd,
References:
Abrams, R.M., 2013. The successful business plan: secrets & strategies. The Planning Shop.
Baker, W.H., Addams, H.L. and Davis, B., 2013. Business planning in successful small
firms. Long range planning, 26(6), pp.82-88.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.
Ceptureanu, S.I., Ceptureanu, E.G. and Visileanu, E., 2017. Comparative analysis of small and
medium enterprises organizational performance in clothing industry/Analiza comparativa a
performantelor organizationale ale întreprinderilor mici si mijlocii. Industria Textila, 68(2),
p.156.

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Cortez, M.A., Tu, N.T., Van Anh, D., Ng, B.Z. and Vegafria, E., 2014. Fast fashion quadrangle:
An analysis. Academy of Marketing Studies Journal, 18(1), p.1.
Drexler, A., Fischer, G. and Schoar, A., 2014. Keeping it simple: Financial literacy and rules of
thumb. American Economic Journal: Applied Economics, 6(2), pp.1-31.
Finch, B., 2013. How to write a business plan (Vol. 35). Kogan Page Publishers.
Freise, M. and Seuring, S., 2015. Social and environmental risk management in supply chains: a
survey in the clothing industry. Logistics Research, 8(1), p.2.
Hills, G.E., 2015. Market analysis in the business plan: Venture capitalists' perceptions. Journal
of Small Business Management (pre-1986), 23(000001), p.38.
Huq, F.A., Chowdhury, I.N. and Klassen, R.D., 2016. Social management capabilities of
multinational buying firms and their emerging market suppliers: An exploratory study of the
clothing industry. Journal of Operations Management, 46, pp.19-37.
Kant Hvass, K., 2014. Post-retail responsibility of garments–a fashion industry
perspective. Journal of Fashion Marketing and Management, 18(4), pp.413-430.
Kozlowski, A., Searcy, C. and Bardecki, M., 2015. Corporate sustainability reporting in the
apparel industry: an analysis of indicators disclosed. International Journal of Productivity and
Performance Management, 64(3), pp.377-397.
MacCarthy, B.L. and Jayarathne, P.G.S.A., 2015. Sustainable collaborative supply networks in
the international clothing industry: a comparative analysis of two retailers. Production Planning
& Control, 23(4), pp.252-268.

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Pike, S. and Page, S.J., 2014. Destination Marketing Organizations and destination marketing: A
narrative analysis of the literature. Tourism management, 41, pp.202-227.
Russell, R., Atchison, M. and Brooks, R., 2018. Business plan competitions in tertiary
institutions: encouraging entrepreneurship education. Journal of Higher Education Policy and
Management, 30(2), pp.123-138.
Schaper, M,.Volery,T,.Weber,P, and Gibson,B, 2014. Entrepreneurship and Small Business
4thed.Cornwall: Wiley
Shen, B., Choi, T.M., Wang, Y. and Lo, C.K., 2013. The coordination of fashion supply chains
with a risk-averse supplier under the markdown money policy. IEEE Transactions on Systems,
Man, and Cybernetics: Systems, 43(2), pp.266-276.
Software, P. (2019). Free Retail and Online Store Business Plans | Bplans. [online] Bplans.com.
Available at: https://www.bplans.com/retail_and_online_store_business_plan_templates.php
[Accessed 13 Apr. 2019].
Turker, D. and Altuntas, C., 2014. Sustainable supply chain management in the fast fashion
industry: An analysis of corporate reports. European Management Journal, 32(5), pp.837-849.
Vedel, M. and Ellegaard, C., 2013. Supply risk management functions of sourcing
intermediaries: An investigation of the clothing industry. Supply chain management: An
international journal, 18(5), pp.509-522.

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Appendix
Market analysis

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SALES FORECAST
MO
NTH
1
MO
NTH
2
MO
NTH
3
MO
NTH
4
MO
NTH
5
MO
NTH
6
MO
NTH
7
MO
NTH
8
MO
NTH
9
MO
NTH
10
MO
NTH
11
MO
NTH
12
Sales
Men's
Apparel
0
%
$0 $0 $100
,000
$102
,000
$104
,040
$106
,121
$108
,243
$110
,408
$112
,616
$114
,869
$117
,166
$119
,509
Women's
Apparel
0
%
$0 $0 $150
,000
$154
,500
$159
,135
$163
,909
$168
,826
$173
,891
$179
,108
$184
,481
$190
,016
$195
,716
Boy's
Apparel
0
%
$0 $0 $20,
000
$20,
800
$21,
632
$22,
497
$23,
397
$24,
333
$25,
306
$26,
319
$27,
371
$28,
466
Girl's
Apparel
0
%
$0 $0 $21,
000
$21,
420
$21,
848
$22,
285
$22,
731
$23,
186
$23,
649
$24,
122
$24,
605
$25,
097
Infants'/
Toddlers'
Apparel
0
%
$0 $0 $28,
000
$28,
560
$29,
131
$29,
714
$30,
308
$30,
914
$31,
533
$32,
163
$32,
806
$33,
463
Internet
Sales
0
%
$0 $0 $180
,000
$183
,600
$187
,272
$191
,017
$194
,838
$198
,735
$202
,709
$206
,763
$210
,899
$215
,117
TOTAL
SALES
$0 $0 $499
,000
$510
,880
$523
,059
$535
,544
$548
,344
$561
,467
$574
,922
$588
,717
$602
,863
$617
,368
Direct
Cost of
Sales
Mont
h 1
Mont
h 2
Mont
h 3
Mont
h 4
Mont
h 5
Mont
h 6
Mont
h 7
Mont
h 8
Mont
h 9
Mont
h 10
Mont
h 11
Mont
h 12
All
Product
Lines
$0 $0 $99,
800
$102
,176
$104
,612
$107
,109
$109
,669
$112
,293
$114
,984
$117
,743
$120
,573
$123
,474
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal
Direct
$0 $0 $99, $102 $104 $107 $109 $112 $114 $117 $120 $123

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Cost 800 ,176 ,612 ,109 ,669 ,293 ,984 ,743 ,573 ,474
Financial plan

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Break even analysis