Love Yourself Limited: Digital Transformation and Expansion Plan

This document presents a comprehensive business plan for Love Yourself Limited (LYL), a company aiming to address food shortages in Kuwait by expanding into the digital market. The plan details LYL's mission, vision, and objectives, including short-term goals like offering premium quality products and expanding digitally in Kuwait, medium-term goals such as expanding into Saudi Arabia and listing securities, and long-term goals of expanding into major Asian countries, Europe, and the US. The plan includes a market analysis targeting upper and middle-class Kuwaitis, a macro environment analysis considering political, economic, social, and technological factors, and a flowchart of sales and revenue generation processes. It also covers LYL's values, new processes, a SWOT analysis, and the current and new tools for the business, focusing on digital business enablers like IoT, big data, AI, predictive analysis, object recognition, and chatbots. Furthermore, the plan discusses new predictive analysis models, digital transformation strategies, the use of unstructured data, real-time prediction, deep learning, cloud computing, perspective models, collaborative models, cyber security, and digital marketing strategies for LYL's successful expansion into the digital realm.

BUSINESS PLAN OF A DIGITAL
BUSINESS

INTRODUCTION
 Kuwait can be categorized as a rich
country in the world
 The extreme geographical condition of
the country account for food shortage
 The development of Love Yourself Limited
(LYL) can address the food problem in the
country
 This can help the company to gain
expansion into digital platform

MISSION, VISION AND OBJECTIVES
 The mission is to offer high quality
products of organic origin
 The vision is to create value for the
customers, society and the
environment
 The short term objective of LYL is to
offer premium quality products
 The second short team objective is
expand into the digital market of
Kuwait

CONTD..
 The first medium term objective is to expand in
Saudi Arabia
 The second medium term objective is to list the
securities in the Saudi Stock Exchange
 The long term objective of LYL is to expand in
major Asian countries
 The second is to gain access in the European
market
 The third long term objective is to expand in
the US and get listed on LSE and NYSE

MARKET
 Target market: Kuwait
 Target customers: Upper and middle
class people
 Formulate strategies to cope up with
the digital market demands of Kuwait
 Macro environment analysis is needed
for the development of LYL in Kuwait

POLITICAL FACTORS AFFECTING
KUWAIT
 Political factors such as Government of the
country can be considered as important
 Tax and tariffs have strong implication on the
development of the policies in the country
 Threats in the political circle is usually
received from terrorism and volatile political
relation with Iraq
 Despite this LYL can gain advantage for
proper political ties with US and India

 The economic factor have a huge impact on
the business
 The international currency exchange rate can
be considered as the strongest factor
 The weak international currency value of KWD
can be considered as a hindrance for the
company
 Interdependence between capital and revenue
also account for financial network in Kuwait
ECONOMIC FACTORS AFFECTING
KUWIAT

FLOWCHART OF SALES AND REVENUE GENERATION
PROCESS
LYL
Retail sales
division
(Traditional
business)
Digital sales
division (Newly
expanded
business)
Goods sold to
customers directly
at the retail stores
Payments received in
cash/cards
Customers
view products
on digital
portals
Customers place
orders
Customers pay
cash on delivery Customers pay through
cards on delivery of goods
or may pay right along with
the order

INTERDEPENDENCE BETWEEN CAPITAL AND REVENUE
Love Yourself Limited follows
policies laid down by CBK and
KSE
Acquires finished
goods
Investors
Markets on the
digital platforms
Sells to third
party
distributors
and retailers
Sells through
its chain of
outlets
Customers

 Social factors play a significant role in the
development of a business
 In Kuwait, education standard is important as
people are educated in every field and the country
spots a high pool of talent
 The business culture of organic food can be
considered as important for Kuwait
 Multinational brands dominate the market
 Establishment of digital business division paves
the way for ecommerce penetration of the country
SOCIAL FACTORS AFFECTING
KUWIAT

 Advanced technology in the form of online
payment gateways can be considered by LYL
 Customer data can be preserved by using big
data
 Cyber thefts can be considered as challenge
as the company cannot conduct real time
bank payments effectively
 Hence, technology need to used effieciently
by LYL to gain positive impact
TECHNOLOGICAL FACTORS AFFECTING KUWIAT

EXAMPLE OF A PAYMENT SYSTEM

VALUES OF LOVE YOURSELF LIMITED
 The value of LYL can be
considered by taking its
embracement of the
digital format
 The four pillars on which
the value is rested
includes
 High quality products
 Ethical and sustainable
sourcing
 Diversity management
 Innovation

NEW PROCESSES OF LYL
 It follows a traditional retail sales
structure
 Relies on acquiring organic goods
 Organic foods are manufactured in the
factories and the laboratories
 A huge array of distribution channels
across the world
 Indirect distribution channels are used

SWOT
ANALYSIS
Strengths:
1. Financial strengths: LYL is an established traditional
business in Kuwait and is financially strong. It is a limited
company and can source capital from the market. The
financial strength is evident from its shift towards digital
business which requires immense capital investments.
2. Huge customer base: LYL already has a huge customer base
which is evident from the financial base which supports the
digital strategy of the company.
3. High quality products: LYL markets high quality products.
4. Environmental sustainability: LYL markets organic products
in Kuwait which means that products cause minimum
environmental damage.
Weaknesses:
1. No digital presence: LYL follows a traditional business format which
means the company has no digital presence till date. This means that
the company is not able to market its products online compared to its
competitors.
2. Lower competitive strength: LYL owing to its lack of digital presence
fails to market its products on the digital platform, thus losing
business opportunities to customers which means it has lower
competitive strength compared to its competitors.
3. High operating costs: Operating in traditional business format using
brick-and-mortar format attracts a huge operating costs compared to
the revenue generated.
Opportunities:
1. Digital expansion: LYL should enter the digital format. This
would enable it to generate high revenue by marketing its
products online.
2. Marketing of products: LYL should market its products to
generate higher revenue.
3. Generating higher capital: LYL would be able to provide
information about its products, financial performance and
other business related facts on its official website. This would
enable it attract more capital by projecting a more transparent
image before the investors.
Threats:
1. Cyber threats: LYL on entering the digital platform would also
expose itself to cyber threats.
2. Legal threats: LYL would be required to comply with laws pertaining
to internet operations and ecommerce businesses. This would require
the company to employ specialists.

CURRENT AND NEW TOOLS FOR THE PROCESS
 Kuwait used basic and old school
retailer for its development
 The basic accounting software used by
the company was Tally and Excel
 The reason for using these two
software is to conduct the financial
calculations
 The Excel software were also used to
conduct effective supply chain
management

DIGITAL BUSINESS ENABLERS
 The digitalization of organizations
enable to use e-commerce techniques
 Convenient solutions are taken into
account
 Digital business enablers can help in
enhancing the digital marketing
expertise of LYL
 Examples of the enablers can be
provided

IOT
 IOT helps to interrelate computing
devices
 It is a smart device that allow for the
collection of sensory data with other
devices
 Some of the benefits include help in
monitoring the entire process, save
money and time, generate revenue
 It helps in monitoring potential threats
in LYL

CHARACTERISTICS OF IOT

BIG DATA
 It is a complex data set form
 These are huge data that are not processed
with regular software
 Big data can help to connect with the
customers
 The benefits of using big data is that save
cost, help in understanding current condition
and help to control reputation
 It is used to optimize the price of the products

WORKING OF BIG DATA

AI
 AI have several prospects in various
fields
 It is used by managers to enhance the
scope of LYL
 It helps employees to improve their
work
 Benefits of using AI includes providing
overview of customers, make predictive
analysis and have data related to the
organizational machine language

PREDICTIVE ANALYSIS
 Predictive analysis uses collected data
and algorithms for statistical calculation
 It is used to identify the possible future
outcomes
 It helps in providing the best assessment
of LYL
 Benefits include improving efficiency of
production, maintain competitive
advantage and help in reduction of risks

OBJECT RECOGNITION IN BUSINESS
 Object recognition helps to identify objects with
techniques to match the computer vision
 It helps in the development of deep learning
 It also interpret algorithms
 It is done through the process of machine
learning and deep learning
 Benefits of object recognition includes providing
security to LYL, recognize objects
 The application includes identifying important
data in image

CHAT BOX
 Chat box is used to stimulate
conversation
 The core working ability is to identify
the intent of the users
 It helps to save time, money and
provide customer satisfaction by
reducing the number of errors
 It is associated with social media and
help LYL to respond to the query of the
customers

EXAMPLE OF CHAT BOX

NEW PREDICTIVE ANALYSIS MODEL
 It helps in testing and validating a
model to predict the best possible
outcome
 The collected data is pre-processed
 The data processed helps in modeling
of the data
 Three types of models can be used by
LYL
 It can use time series algorithm,
regression algorithm and association

NEW DIGITAL TRANSFORMATION
Creater of objects for E-business
Create item for e-business Save item of E-business<<include>>
Deletes items for E-business
Delete E-business Find items to buy
Finish control Accessibility of E-business
Create E-business purchasing
Deletes items
Edit items for purchsing
Finds Purchasing objects
Saves items available in E-
business
Finds item for purchasing Edits item before purchasing
Creates items for purchasing
<<include>>
<<include>>
<<include>>
<<include>>
<<include>>
<<include>><<extend>>
<<include>>
<<extend>>
<<extend>>
<<extend>>
Creater of objects for E-business
Create item for e-business Save item of E-business<<include>>
Deletes items for E-business
Delete E-business Find items to buy
Finish control Accessibility of E-business
Create E-business purchasing
Deletes items
Edit items for purchsing
Finds Purchasing objects
Saves items available in E-
business
Finds item for purchasing Edits item before purchasing
Creates items for purchasing
<<include>>
<<include>>
<<include>>
<<include>>
<<include>>
<<include>><<extend>>
<<include>>
<<extend>>
<<extend>>
<<extend>>

USE OF UNSTRUCTURED DATA
 It can be considered in many forms for
mainstream rational database
 Non-uniformity is maintained in the
unstructured data
 LYL can take several steps for completing
its analysis
 Some of the steps include set up
automated process, identify areas of
interest and identify patterns and trends

MASSIVE AMOUNTS OF INFORMATION (BIG DATA)
 LYL can increase its ability to conduct
huge volume of information and
expand the range of analysis
 LYL can gain benefits financially
 The challenge of LYL would be to
optimize the campaigns and improve
the results
 It can provide LYL with processing
power required for optimizing
campaigns

REAL TIME PREDICTION AND DEEP LEARNING
 Real time prediction is based on predictive
models for increasing the productivity and
efficiency
 It can produce fast results for LYL regarding
new development and customer needs
 Deep learning can help LYL to make new
digital transformation
 LYL can create several websites in different
languages

CLOUD COMPUTING
 Cloud computing can help LYL in digital
transformation
 It can help in fluctuating in case of
labor effectiveness
 The risk of system failure would reduce
for LYL
 It can involve the use of replacing the
legacy system

PERSPECTIVE MODEL
 It is used for predicting future outcome
 LYL can use perspective model based
on algorithms
 It can provide LYL with new and
upgraded platform
 Can help in creating a decision making
perspective model

COLLABORATIVE MODELS
 Collaborative models require a
distinguished business structure
 LYL can use the models for increasing the
competitive advantage
 Responsible corporate governance is
required of the structure at LYL
 Other benefits include building critical
mass, increase opportunities for
competition, share resources

DIGITAL BUSINESS BASED ON COLLABORATIVE
MODELS
 This can be considered as a new
concept
 It is the use of internet and other
technologies
 It is also demonstrated as tools that
breaks boundaries
 It leads to the sharing of data base for
the tracking system

CYBER SECURITY AND DIGITAL BUSINESS SECURITY
 Cyber threat is an integral part of the
business value delivery
 It helps in the protection of internet that is
connected with the hardware and software
 It can help in preventing cyber attacks and
data breaches
 LYL can use cyber securities for mitigating
threats of cyber terrorism, cyber warfare
and cyber espionage

DIGITAL MARKETING
 LYL can be made as a recognized
branch throughout Kuwait
 LYL can use social media such as
Facebook to reach people
 LYL can build fan base page to attract
customers
 Creating a Twitter account can help in
publicizing the company globally

USE OF INTERNET BY KUWAIT
PEOPLE

OMNI-CHANNEL
 It is a strategy of introducing
approaches to multiple channels
 It helps in providing customers with an
opportunity to experience seamless
shopping
 It is a business model that weaves
channels and shares data
 It can help LYL to approach customers
through assortment

TRANSFORMATION OF VALUE CHAIN

VALUE CHAIN ANALYSIS
 LYL creates value for its stakeholders
 It can enter into procurement contract
 Offer high quality products to customers
 LYL can give employees and managers
high salary
 It can make timely payment to suppliers
 Pay high taxes to the Kuwait Government
 Would emit low amount of wastes

CREDIT RISK MODELLING
 The risk of not receiving the amount that is
due from debtors
 It is used to calculate the sales figures of a
company
 LYL purchases bulk credits to encourage the
distributors
 Loss by default can also be considered as
credit risk modeling
 It checks the financial stability of the
distributors

OPERATIONAL RISK MODEL
 Risk due to the failure of operational
activities
 Operational facilities include man,
material, labor and financial capital
 It can take place due to any type of
changes in the market

QUALITY RISK MODELS
 Poor quality of raw materials lead to
such risks
 Efficient risk management can be
minimized by LYL
 The suppliers of LYL need to mention
the quality parameters
 The model can point out the risk
reporting procedure

MARKET RISK AND CONVERSION
MODELS
 Market risk analyses the fall in return it
incurs in its face value
 It takes into account historical figures
and trends and make assumptions of
factors that aggravate risks
 Conversion model analyses the factors
required for converting customers
 LYL uses segmentation to counter the
risk

SEGMENTATION AND BRANDING
MODELS
 The segmentation model takes into
account the needs of the customers
 It considers the geographical
segmentation of the market
 The branding model of LYL follows its
product line
 The branding model targets upper class
customers

DEMAND FORECAST, FRAUD AND FIDELITY MODEL
 Demand forecast acknowledge the
sales report of the marketing team
 The fraud model helps to reduce the
occurrences of fraud
 LYL can use training and continuous
development of employees

LYL NEW AND CURRENT ORGANIZATIONAL
STRUCTURE
 Currently LYL follows traditional retail
sales organizational structure
 The sales department is headed by the
sales supervisor of LYL
 The new organizational structure of LYL
can be departmentalized based on
requirements
 It can help in digitalizing the
organization and fulfill the needs of the
customers

CURRENT TRADITIONAL SUPPLY AND DISTRIBUTION
CHANNEL
 The USP of the company is the organic sell of
products
 The local and foreign suppliers aid the
company with the organic products
 The distribution channels are the retail outlets
and franchises of the company
 At the same time, LYL has been expanding in
the foreign market
 Dealers and distribution managers sign the
contract with external retail stores

E-COMMERCE AND E-COMMERCE DISTRIBUTION
CHANNELS
 The change in focus from retail sales to
digitalization have had an impact on LYL
 It is based on the USP of the sell of organic
products
 Digitalization of business creates new demands
 LYL can gain assistance from e-commerce
distribution channels like Amazon
 It can even create an official website for
maintaining the distribution channel of the
company

PRODUCTS AND DIVISION OF THE COMPANY
 Division 1: Shower gels and skin care
products-It ensures organic value in the
market
 Division 2: Women’s FMCG-Products such as
lipsticks, fragrance and creams are
manufactured by LYL
 Division 3: Apparel-It consists of men’s,
women’s and children’s apparel
 Division 4: Food-Diet meals and organic
products are provided

P&L STRUCTURE
Particulars Amount(KWD)
Income
Sales 1530000000
Discount received 200000
Interest on investments 1500000
Profit from sales of assets 2100000
Total 1533800000
Expenses
Accounting expenses 2000000
Licensing costs 100000
Discount allowed 10000
Legal expenses 300000
Advertising costs 2000000
Interests on bank 100000
Cost of goods sold 300000
Electricty 2000000
Rent 15000000
Salary 331200000
Free sample 10000000
Telephone 400000
Repairs and maintenance 700000
Miscellaneous 5000000
Total 369110000
Net Profit before tax 1164690000
Less: tax @ 20% 232938000
Net profit after tax 931752000

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