Digital Transformation Business Plan for Love Yourself Limited

This document presents a comprehensive business plan for Love Yourself Limited (LYL), a traditional retail company in Kuwait, as it undergoes digital transformation. The plan details LYL's mission, vision, and objectives, including short-term goals like offering premium organic products on digital platforms and expanding into the Kuwaiti digital market, medium-term goals such as expanding into Saudi Arabia, and long-term goals of international expansion into Asia, Europe, the United States, and Canada. The plan includes a PEST analysis of the Kuwaiti market, SWOT analysis, and an examination of the company's values. It also outlines current and new processes, tools, organizational structure, channels, and product divisions, along with current and projected P&L structures. Furthermore, it covers digital business enablers like IOT, Big Data, AI, predictive analysis, and cybersecurity, and discusses transformation of the value chain, credit risk modeling, operational risk models, and other key strategic considerations. This assignment showcases a detailed approach to transitioning a traditional business into the digital realm, with a focus on leveraging technology and strategic planning for sustainable growth and international expansion. Desklib offers a wealth of similar solved assignments and past papers for students.

Running head: BUSINESS PLAN OF A DIGITAL BUSINESS
Business Plan of a Digital Business
Name of the Student
Name of the University
Author note

1BUSINESS PLAN OF A DIGITAL BUSINESS
Table of Contents
Introduction:....................................................................................................................................7
Mission:...........................................................................................................................................7
Vision:..............................................................................................................................................8
Objectives:.......................................................................................................................................8
Short term objectives:..................................................................................................................8
Medium term objectives:.............................................................................................................9
Long term objectives:..................................................................................................................9
Market (including types of customers):.........................................................................................10
PEST analysis of Kuwait:..............................................................................................................10
Political factors:.............................................................................................................................10
Government type:......................................................................................................................10
Bilateral agreements with other countries:................................................................................11
International organisations and their policies:...........................................................................13
Tax and tariffs:...........................................................................................................................14
Political threats:.........................................................................................................................17
Terrorism:..............................................................................................................................17
Volatile political relationships:..............................................................................................18
Findings 5:.....................................................................................................................................19
Economic factors:..........................................................................................................................19

2BUSINESS PLAN OF A DIGITAL BUSINESS
International currency exchange rate:........................................................................................22
Gross domestic products value (GDP):.....................................................................................29
Financial network:.....................................................................................................................31
Capital generation:.................................................................................................................31
Investments, revenue generation and liquidity:.....................................................................35
Support of allied sectors:.......................................................................................................36
Social factors:................................................................................................................................39
Educational standard:.................................................................................................................39
Culture:......................................................................................................................................40
Social usage of ecommerce:......................................................................................................42
Technological factors:...................................................................................................................44
Advanced technology:...............................................................................................................44
Cyber thefts:...............................................................................................................................48
SWOT analysis:.............................................................................................................................49
Values of the company:.................................................................................................................50
High quality products:...............................................................................................................51
Ethical and sustainable sourcing:...............................................................................................51
Diversity management:..............................................................................................................52
Innovation:.................................................................................................................................53
Processes of the company (new):..................................................................................................53

3BUSINESS PLAN OF A DIGITAL BUSINESS
Tools for each processes (current and new):.................................................................................54
Tools for Each Processes (New)....................................................................................................54
Digital business enablers...........................................................................................................54
IOT.........................................................................................................................................55
Working of IOT.........................................................................................................................55
Benefits of IOT’s in business organizations (LYL)..................................................................57
Application of IOT....................................................................................................................57
BIG DATA............................................................................................................................57
Working of Big Data.............................................................................................................58
Benefits of Big Data in Business (LYL)................................................................................59
Application of Big Data for marketing and sales..................................................................59
AI...........................................................................................................................................60
Benefits of AI in business (LYL)..........................................................................................60
Predictive Analysis................................................................................................................61
Benefits of Predictive Analysis.............................................................................................61
Object Recognition in business.............................................................................................62
Working of Object Recognition in business..........................................................................62
Benefits of Object Recognition in business...........................................................................62
Application of object recognition in business.......................................................................63
Chat-bot.................................................................................................................................63

4BUSINESS PLAN OF A DIGITAL BUSINESS
Working of chat-bot...............................................................................................................63
Benefits of chat-bot in business.................................................................................................64
Application of chat-bot in marketing and sales of LYL............................................................65
New Predictive Analysis Model................................................................................................65
Use of UNSTRUCTURED DATA............................................................................................68
Massive amounts of information (BIG DATA).....................................................................69
Cloud Computing.......................................................................................................................70
Perspective Model.....................................................................................................................71
Collaborative models.....................................................................................................................71
Benefits of collaborative model for LYL..................................................................................71
Digital business based on collaborative models.....................................................72
Cyber security and Digital Business Security...........................................................................72
Digital marketing.......................................................................................................................73
Omni-channel............................................................................................................................75
Transformation of value chain:......................................................................................................75
Value chain analysis:.....................................................................................................................76
Credit Risk modelling:...................................................................................................................78
Operational risk model:.................................................................................................................78
Quality Risk models:.....................................................................................................................79
Market risk models:.......................................................................................................................79

5BUSINESS PLAN OF A DIGITAL BUSINESS
Conversion risk models:................................................................................................................80
Segmentation model:.....................................................................................................................80
Branding models:...........................................................................................................................80
Demand Forecast model:...............................................................................................................80
Fraud model:..................................................................................................................................81
Fidelity Models:.............................................................................................................................81
Organisation of the company (current and new):..........................................................................81
LYL Current Organizational Structure......................................................................................81
Channels:.......................................................................................................................................88
Current Traditional Supply Channel..........................................................................................88
Current Traditional Distribution Channel..................................................................................90
E-Commerce Channels..............................................................................................................91
E-Commerce Distribution Channels..........................................................................................92
Products/Divisions of the company:..............................................................................................93
Division 1 (Shower gels and skin care products)......................................................................93
Division 2 (Women’s FMCG’s)................................................................................................94
Division 3 (Apparel’s)...............................................................................................................94
Division 4 (Food).......................................................................................................................95
P&L structure (current):................................................................................................................96
P&L structure:...............................................................................................................................96

6BUSINESS PLAN OF A DIGITAL BUSINESS
References:....................................................................................................................................97

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Introduction:
The country of Kuwait is very rich and is backed by huge oil reserves. The residents in
the country have high disposable income and can afford high quality products. The people in the
country usually lead high standard of life and seek more healthy products. The country has an
extreme geographical conditions consisting of vast and dry Arabian Desert. The country thus
suffers from shortage of food due to utter deficiency of cultivable land. The farmers in order to
cultivate more crops use high amount of chemicals which finally pass into the consumers. The
pesticides have shown to have detrimental effects on the health of the consumers, both man and
animals (KuwaitTimes.com. 2019). The similar trend of excessively high chemical addition
continues even while making personal care products and apparel. This scarcity of pesticide free
food, apparel and skincare products is the gap in the Kuwaiti market which the new business
plan would seek into fill. Love Yourself Limited (LYL) is a traditional retail company based
in Kuwait City, the capital city of Kuwait. The company till now has no digital presence
and operates through retail outlets in Kuwait city. The company would expand expand into
the digital platform by opening its official website and own ecommerce portal to market its
products.
Mission:
The mission of Love Yourself Limited is offering high quality products of organic origin
to customers on the traditional format as well as on the digital platform to generate high revenue.
The products of LYL are free from harmful chemicals and environment friendly. The company
would carry forward this mission of offering high quality organic products to the new digital
segment as well. The digital marketing platform of LYL would be accessible on different types
of devices like desktops, laptops, tablets and smart phones. The goods which the company offers

8BUSINESS PLAN OF A DIGITAL BUSINESS
are organic food products, organic personal care products and apparel made from organic
materials. The services which the company would seek to offer are customer care services and
advices for healthy lifestyle. The products which are only available at the city stores would also
be accessible on the digital platform. The paper would revolve around formation of a digital
strategy for the traditional company namely, Love Yourself Limited (LYL) from the point
of view of the chief executive officer (CEO) of the company.
Vision:
The vision of the LYL is creating value for both the customers, the society and the
environment by offering organic products. LYL has several chain of brick-and-mortar stores in
Kuwait city through which its serves customers. The company envisions to expand its market all
over Kuwait using its digital platform. The company would then close some of its existing brick-
and-mortar outlets, especially the poorly performing ones. This would result in reduction of cost
of store operations and cut down the carbon footprint of the company.
Objectives:
The objectives of LYL would be divided into short term, medium term and long term
objectives.
Short term objectives:
The first short term business objectives of Love Yourself Limited would be offering
premium quality organic products on the digital platforms at premium prices to generate high
profits. The digital platform would provide all the products which the traditional brick-and-
mortar stores of LYL are offering at present. The second objective of the company would in the
short term aim to expand into the digital market of Kuwait. The third short term objective of

9BUSINESS PLAN OF A DIGITAL BUSINESS
LYL would be increasing its issued capital by issuing fresh shares and complying with the
prescribed regulations in the country for increasing issue of shares (Boursakuwait.com.kw.
2019).
Medium term objectives:
The first medium term objective of LYL would be expanding into Saudi Arabia to cater
to the growing digital commerce market of the country. The company would at a later stage
would also open its own signature stores in Saudi Arabia. The second medium term objective of
the company would be listing its securities on Saudi Stock Exchange to gain access to the stock
market.
Long term objectives:
The long term business objectives of Love Yourself Limited would be divided into three
stages. The company would expand into four Asian countries namely, India, China, Japan and
Sri Lanka as its first long term objective. As a part of expansion into the Asian countries LYL
should get listed on National Stock Exchange (NSE), The Stock Exchange of Hong Kong
Limited (HKE), Tokyo Stock Exchange and Colombo Stock Exchange respectively. The second
long term objective of LYL would be expanding into Europe. The countries LYL would target
are France, Germany, Italy and the United Kingdom. The third long term strategy which the
company would seek to materialise would be entry into the United States and Canada. The
company would get listed on LSE on the UK and NYSE in the USA. Thus, the long term aim of
the company would be to emerge as a transnational company with its business spanning across
several countries and listing on leading stock exchanges, thus rendering it with a robust financial
base to operate at the international level.

10BUSINESS PLAN OF A DIGITAL BUSINESS
Market (including types of customers):
The main market of LYL would be Kuwait, the country of domicile of the company. The
main customer base LYL would target would consist of middle and upper class customers who
want lead healthy lifestyle by consuming organic products. Oroian et al. (2017) can business
firms including digital business firms come under the strong effect of the macroeconomic
factors. It can be pointed out that business firms cannot control these external market factors.
They, in order to adapt to these factors have to form strategies. Thus, it can be pointed out that it
would be prudent for LYL to conduct a macroeconomic analysis of the Kuwaiti market using
two tools namely, PEST and Porter’s five forces model.
PEST analysis of Kuwait:
The PEST analysis of bring into light the macroeconomic market conditions of Kuwait
which would in turn direct the strategies which LYL would be required to adopt. The PEST
analysis would take into account political factors, economic factors, social and technological
factors which the company would require to consider.
Political factors:
The following are the political factors of Kuwait which LYL would be required to take
into consideration:
Government type:
Kuwait has a hybrid form of political system combining features of an elected parliament
and appointed government. The head of the state is Emir which corresponds to the monarchy
form of administration prevailing in most of the countries in the Middle East. However, the
nomination of the heir apparent to the monarch requires nomination of National Assembly by

11BUSINESS PLAN OF A DIGITAL BUSINESS
absolute majority. Similarly, though the Prime Minister of the country is appointed by the Emir
or the king, the nomination is subject to approval of the National Assembly (Kna.kw. 2019). The
political system of Kuwait is far more liberal compared to Saudi Arabia which is absolute
monarchy (Saudi.gov.sa. 2019). This political stability of Kuwait is evident from the fact Kuwait
scored 78 in the political risk (Prsgroup.com. 2019).
Findings 1:
The above analysis of the government type of Kuwait shows that the government of the
country is semi-monarchy. This means that the government of the country is able liberal in
nature compared to the other Gulf countries. This means that the companies in Kuwait can avail
more support from the government of the country to procure resources from foreign countries as
well as export their goods. This liberal nature of the Kuwait Government would also enable the
resident companies like LYL to expand into other countries as well (Meyer et al. 2018).
Bilateral agreements with other countries:
The Government of Kuwait has strong relationships with several countries of Asia, North
America, South America, Europe and Oceania. The Government of Kuwait has embassies in
these countries. The countries like Canada and the United States of America have their
embassies in Kuwait in turn (E.gov.kw. 2019). These strong bilateral relationships of the
Government of Kuwait is a great driver for the companies due to two four reasons. Nordman and
Tolstoy (2016) mention that foreign relationships with other resource rich countries enable the
companies to procure raw materials for their finished products. Moreover, the companies based
in Kuwait like LYL are able to able to procure plants from other countries. Secondly, this
enables the companies to obtain talented employees from other labour markets like China and the
US (Khilji, Tarique and Schuler 2015). Thus it can be inferred from this discussion that foreign