University Assignment: Fashion Fiesta Business Management Plan

This report presents a comprehensive business plan for Fashion Fiesta, a new online fashion venture targeting the UK market. It begins with an executive summary outlining the company's strategies, including a low-pricing strategy, discount policies, and a focus on women's clothing and accessories for the 17-25 age group. The report delves into the opportunity reorganization, analyzing the socio-cultural and technological factors of the UK fashion industry, emphasizing the importance of ethical and environmentally friendly clothing. It also assesses the risks associated with the business, such as security breaches, changing tax laws, and customer dissatisfaction. The report then outlines a standard business plan, including the organization's objectives, mission, product offerings, market research, and implementation strategies, such as pricing, cost reduction, and marketing mix strategies. The plan highlights the importance of online marketing, social media integration, and environmental sustainability to achieve success in the competitive UK fashion market. The report is a valuable resource for students studying small business management and entrepreneurship, providing practical insights into business planning and market analysis.

Running head: SMALL BUSINESS MANAGEMENT
Small Business Management
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
This report reveals the business planning for Fashion Fiesta, which is a new venture and going to
introduce their product via online. In order to get a significant growth in their business, they have
decided to follow low pricing strategy and discount policy to cover a large range of customers.
Therefore, they have planned to offer some creative products for the women especially for the
age group of 17to 25 years. On the other hand, they also want to reduce the operation cost to
increase their profit margin. However, sustainability strategy will be taken to make their business
environmentally friendly.

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Table of Contents
Introduction......................................................................................................................................4
i) Discussion of the opportunity reorganization in the context of Fashion Fiesta...........................4
ii) Analysis of the risk associated with the business of Fashion Fiesta...........................................6
iii) Discussion of a standard business plan......................................................................................7
References......................................................................................................................................13

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Introduction
A business plan is a document that is developed for revealing the specific details in a
business. A business plan includes the business opportunity, business description, financial
information, market strategies and competition analysis (Zollo et al. 2017). For an organization,
it is important to change their old business plan and to incorporate a new business plan to meet
the demand of the current market. To give the shape a start-up business it is important for a
business owner to develop a specific business plan to get a competitive advantage in the global
as well as local market. This study deals with business planning in the context of Fashion Fiesta,
which is an online fashion vintage business in UK. This is a new venture and going to develop a
business plan to get a good business in the online fashion industry.
i) Discussion of the opportunity reorganization in the context of Fashion Fiesta
UK is unique for its fashion trend as the fashion industries of this country are innovative
and creative. However, the UK fashion industry offers high brand and casual wears, which are
not so much expensive. The fashion brands of UK are popular for their unique twists
(Thecreativeindustries.co.uk 2018). Fashion Fiesta is a new venture that is going to start their
online fashion business in UK. They are going to introduce mainly women clothing products and
accessories through online marketing. In order to develop a better business plan, this
organization needs to understand the socio-cultural and technological factors of UK to identify
their opportunity. The consumer fashion trend of UK focuses on the ethical clothing and
environmentally friendly clothing (Nibusinessinfo.co.uk 2018). This fashion trend gives a big
opportunity to Fashion Fiesta to grow their business in UK market. However, development of
ethical and environmentally friendly clothing will be a good approach for Fashion Fiesta to cover

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the customers in UK online fashion industry. The economic condition of UK is stable and
growing, which acts as the positive factor for Fashion Fiesta to start their new venture. The social
lifestyle of people is high and their income level is good in UK that leads the Fashion Fiesta to
prepare an online fashion marketing with high opportunity.
In the recent years, people are more technology oriented and life is so fast. UK is a
technology-oriented country. Technology drives major changes in the fashion market. One of the
most popular examples is the online fashion marketing (Zollo et al. 2017). Fashion Fiesta is an
online fashion vintage. Hence, the emerging technology of UK leads this organization to get a
high benefit from their online business. The lifestyle of people is very fast and advanced and
they prefer to do their work with the help of technology. Online shopping is very common and
popular in UK. People have less time due to their routine bound life. Hence, they prefer to shop
clothes via online during their busy life (Rodgers et al. 2017). Online marketing of Fashion
Fiesta will give the customers to complete their shopping from their home or from their
workplace. They have just press one click to buy their preferred product from a range of variety.
This will enable Fashion Fiesta to cover a large range of customers from the different
geographical regions in UK.
Social media plays an important role in online business. However, peoples of UK are
very social in nature and they spend a lot of time on social media. This digital tool is a great part
of their online shopping (Shen et al. 2017). Rapid use of social media in UK leads Fashion Fiesta
to grasp a good opportunity for their new online business as they can link their online business
with social media marketing. This will help this new venture to cover many customers in a short
period of time. Online fashion business in UK has been growing since 2013. In the years 2017,
24% of the online fashion business has increased in UK market. According to the market

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forecast, online fashion business will increase up to 79% by 2022 (Nibusinessinfo.co.uk 2018).
Based on this statistical data it can be said that Fashion Fiesta has a great opportunity to increase
their profit margin through online business in UK fashion industry.
ii) Analysis of the risk associated with the business of Fashion Fiesta
One of the major risks of the online vintage fashion industry is the breach of the security
(Belew and Elad 2017). However, a huge range of customers is associated with the fashion
industry. Hence, Fashion Fiesta needs to maintain the privacy of the customer's sensitive
information. UK business industry needs to follow the Data Protection Act to run their business.
As an online vintage fashion business, Fashion Fiesta needs to comply with this Act.
Incompliance with this privacy law may lead Fashion Fiesta to face legal obligation. Due to
break of confidentiality this fashion organization may face the lawsuit and loss of their customer
trust, which is a big threat to their new venture. Ever-changing tax law is another big risk for the
online fashion industry (Kshetri and Alcantara 2017). Fashion Fiesta needs to follow the
changing sales tax to continue their new venture, which may affect their profitability.
UK economy is affected due to Brexit. Hence, as a startup business, Fashion Fiesta may
face the financial struggle. However, the fashion industry is one of the creative sectors among
the various industries. Hence, for the online vintage fashion business website designing is a
crucial part to attract the customers (Turban et al. 2017). Fashion Fiesta has to plan, design,
create, host, secure and maintain their professional e-commerce website. These are not cheap
processes and as a new venture, this organization aims to get high volume and growing sales. As
a result, they need to invest a significant amount in their operating process, which will increase

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their operating cost. Hence, to make a resemblance between the investment and the profitability
will be difficult for this organization.
Advertising cost is high in the fashion industry in comparison to other industries
especially in the context of online vintage fashion business advertising cost is high as they have
to create attractive websites for their business promotion (Kshetri and Alcantara 2017). In the
context of Fashion Fiesta it will be difficult to establish a trusted brand name via online business
without having a physical store. This may affect their business. Apart from this customer
dissatisfaction is a common threat for the online fashion business as often the customers claim
that the fashion product, which they have seen on the website is different from the product that
they have got in their hand after purchasing the product. This may affect the customer loyalty in
the context of Fashion Fiesta.
iii) Discussion of a standard business plan
Summary of the organization
Fashion Fiesta is an online vintage fashion business organization and they are going to
start their new venture in UK. They aim to introduce women clothing and accessories. They will
create a cost-effective operation to increase the growth of the organization. They will focus on
the creativity and the low price. Providing quality product is their main target for the customers
of UK fashion industry. They will start their business via online across the UK.
Business objectives
The business objectives of Fashion Fiesta are as follow:
 To provide high-quality product

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 To offer product at affordable rate
 To understand the needs of current market
 To utilize the benefits of online marketing by creating accessible website
Mission
Fashion Fiesta aims to establish a customer-centric business. This is due to understanding
the current needs and demand of the market. However, they have chosen the online marketing
technique to promote their business in the national and international market.
Products
Fashion Fiesta mainly focuses on the women clothing and accessories. They will offer
outdoor clothing and seasonal clothing as per the demand of the customers. The women clothing
products and accessories are as follow:
Clothing product
 Synthetic clothing for outdoor activities
 Fleece outwear
 Coated nylon and rain gear
 Hats
 T-shirts
 Pants
 Shorts
 Skirts
 Various types of fashionable vests

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Accessories
 Jewellery
 Bags
 Shoes
Market Research
Market research is an essential component of any existing and new business. However, a
proper market research helps the organization to identify the current market trend (Hair 2015).
On the other hand, competitor's analysis can be done by conducting a thorough market research.
According to the current market research, it has been found that the demand for women clothing
has been rising since last 15 years in UK as well as in the global market. Online stores of
clothing are rapidly growing due to the popularity of the internet. In the recent years, 17-25 years
age group of women are the main target audience for the online fashion business as they are
mostly attracted to the fashion websites. They have less money in comparison to the middle and
older age thus they focus on the online shopping to get new variety at an affordable rate
(Rasmussen and Tanev 2015). In UK, the customers mainly focus on the environmentally
friendly clothing product. This is the current trend of UK fashion industry, which needs to be
observed by Fashion Fiesta before starting their new business. However, the fashion industry is a
creative industry. In order to make the business fast and global UK fashion market focuses on the
technology, this results in the online clothing stores. Therefore, customers also prefer online
shopping rather than shopping from physical stores. Such factors of the current UK fashion
market need to be analyzed by Fashion Fiesta.

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Strategy to implement the new business goal in the context of Fashion Fiesta
Pricing is crucial for any business to enhance the customer loyalty and to increase the
sales revenue generation (Lechner and Gudmundsson 2014). In the context of Fashion Fiesta,
they focus on the low pricing strategy with a high quality product. They aim to provide the
discount at the initial month of their operation. Therefore, they have planned to offer the seasonal
discount to enhance the interest of their customers towards the business. Cost reduction in the
operating process is another strategy to improve the profit margin. Apart from this, they are
going to make an environmentally friendly business to leads their new venture towards success
as environmental sustainability is a current demand for every growing business. They are going
to be green by incorporating waste management technique in their manufacturing process.
Fashion Fiesta follows the marketing mix strategy to enhance their market share in the
UK fashion industry. The marketing 4Ps include product, price, place and promotion
(Rasmussen and Tanev 2015). Fashion Fiesta gives their concern in product differentiation they
offer various types of fashionable vests. Therefore, they focus on the low pricing strategy with
high quality products to cover a large number of customers. In order to get more popularity this
organization has decided to establish their stores in the crowded area as this area will be easily
accessible for the potential customers. Their aim is to establish their new store in Bristol, which
is popular t place of UK for business. On the other hand, their promotional strategy includes
social media marketing to cover a large number of customers from different geographical
regions.

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Management and operation summary
Fashion Fiesta will be going to develop a marketing team, a human resource management
team, a technical team for managing the website and a corporate team to gather the current data
of their business. The technical team is the main part among the other teams as this organization
is going to start an online business in the UK fashion market. The website design team includes
web administrator. They want to establish a cost-effective operation process to make a balance
between the investment and the profitability. Cost reduction is crucial to make a business
sustainable (Wheelen and Hunger 2017). Thus, Fashion Fiesta aims to give the shape a cost-
effective business operation to make their new venture sustainable.
Financial plan
Start up the cost of an online business includes design and marketing cost mainly. These
are the two major areas of the investment for an online vintage fashion business. In the context of
Fashion Fiesta, their start-up investment will be £ 186900.00.
List of expenses
Legal requirement-£10,000
Consultant-£15,000
Manufacturing cost-£66,900
Equipment cost-£30,000
Business promotional cost-£25000

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Human resource cost-£20000
Website designing-£15000
Others-£5000
Hence, the total expense is £186900.00 for the startup business of Fashion Fiesta.
Cash Flow Statement
Cash flow statement from 1st Jan of 2017 to 31st December 2017
Cash flow from investing ($1,200)
Cash flow from financing ($18,00)
Cash flow from operation $5,000
Net cash flow $2,000
Cash flow refers to the flow of the business funds statement, which focuses on the firm’s
capacity. In the context of Fashion Fiesta their net cash flow is $2,000 in the year 2017.
Promotional planning
Promotional planning plays an important role in ant startup business as the success of a
new venture depends on it (Park et al. 2017). In the context of Fashion Fiesta, they are going to
start an online vintage fashion business thus their promotional plan will be based on the company
shopping website and social media. They will advertise their products by creating their own
shopping website and by using others fashion websites that popular in UK. On the other hand,
they aim to use social media like Facebook, Twitter, and Instagram to promote their business in
customer domain.

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Conclusion
The above study focuses on the business planning in the context of Fashion-Fiesta. It has
been found that this organization aims to offer a creative product at low price across the UK
fashion market. They cost reduction in the operating process is their another mission. They have
decided to provide a discount for the first month of their operation. On the other hand, they focus
on the use of social media and creation of the website to promote their business via online.

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References
Belew, S. and Elad, J., 2017. Starting an online business all-in-one for dummies. John Wiley &
Sons.
Hair, J.F., 2015. Essentials of business research methods. ME Sharpe.
Kshetri, N. and Alcantara, L., 2017. Cross-national Heterogeneity in Online Advertising: A
Panel Data Analysis of the Effect of Data Privacy Laws.
Lechner, C. and Gudmundsson, S.V., 2014. Entrepreneurial orientation, firm strategy and small
firm performance. International Small Business Journal, 32(1), pp.36-60.
Nibusinessinfo.co.uk. 2018. Grow your retail business. [online] Available at:
https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-online-retailing
[Accessed 18 Jan. 2018].
Park, B., Seo, J. and Yoo, S., 2017. Promotion of Online-Offline Mentoring Linkage with
Venture Capital.
Rasmussen, E.S. and Tanev, S., 2015. The emergence of the lean global startup as a new type of
firm. Technology Innovation Management Review, 5(11).
Rodgers, R.F., Ziff, S., Lowy, A.S., Yu, K. and Austin, S.B., 2017. Results of a strategic science
study to inform policies targeting extreme thinness standards in the fashion
industry. International Journal of Eating Disorders, 50(3), pp.284-292.

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Shen, B., Qian, R. and Choi, T.M., 2017. Selling luxury fashion online with social influences
considerations: Demand changes and supply chain coordination. International Journal of
Production Economics, 185, pp.89-99.
Thecreativeindustries.co.uk. 2018. REASONS TO CHOOSE UK FASHION. [online] Available
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Jan. 2018].
Turban, E., Whiteside, J., King, D. and Outland, J., 2017. Marketing and Advertising in E-
Commerce. In Introduction to Electronic Commerce and Social Commerce (pp. 261-291).
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Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. pearson.
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AND CONSUMER-BASED BRAND EQUITY: THE ROLE OF BRAND EXPERIENCE
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