GBC: Analysis of a New Textile Business Venture in England

This project analyzes the feasibility of a new textile business venture, Great British Cotton (GBC), based in London, England. It examines the macroeconomic environment of Britain using PESTEL analysis, assessing political, economic, social, technological, environmental, and legal factors. An internal SWOT analysis evaluates the company's strengths, weaknesses, opportunities, and threats. The project further develops a marketing mix strategy, including product, pricing, place, and promotion, along with STP (segmentation, targeting, positioning) strategies. A feasibility study, encompassing human resources, technical, and financial aspects, is conducted, culminating in a business model. The analysis concludes with recommendations for GBC's successful entry and operation in the British cotton textile market, considering factors like Brexit and technological advancements, and emphasizing the importance of sustainable and ethical practices.

Running head: A NEW TEXTILE BUSINESS VENTURE IN ENGLAND
A New Textile Business Venture in England
Name of the Student:
Name of the University:
Author Note:

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A NEW TEXTILE BUSINESS VENTURE IN ENGLAND
Executive Summary:
Developments of new business organisations create new job opportunities; introduce new
products and results in generation of more revenue. New companies promote towards
development of the industries they belong. These factors have made development of new
companies synonymous to economic advancements. The business organisation irrespective of
size, industry and tenure comes under the influences of macroeconomic market conditions.
These firms have to adopt the market conditions in their policies where attribute them with
their strengths, weaknesses, opportunities and threats. The paper analyses the how these
market conditions influence new firms by taking an arbitrary firm called Great British Cotton
based on London as an example. The firm would produce cotton textile items initially in
England and later overseas. The company before entering the market would prepare a
marketing mix and conduct a feasibility study to estimate whether entry into the market
would be profitable considering the market conditions. The findings from the analysis show
that the market in Britain in profitable for GBC, the new firm to enter.

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Table of Contents
Introduction:...............................................................................................................................4
PESTEL of Britain:....................................................................................................................4
Political:.................................................................................................................................4
Economic factors:...................................................................................................................6
Social:.....................................................................................................................................7
Technology:............................................................................................................................8
Environmental:.......................................................................................................................9
Legal:....................................................................................................................................10
SWOT Analysis of Great British Cotton (GBC):....................................................................10
Marketing mix of GBC:...........................................................................................................11
Product:................................................................................................................................12
Pricing:.................................................................................................................................12
Place:....................................................................................................................................12
Promotion:............................................................................................................................13
STP of GBC:............................................................................................................................13
Segmentation:.......................................................................................................................13
Targeting:.............................................................................................................................14
Positioning:..........................................................................................................................14
Feasibility study and budget of GBC:......................................................................................14
Human resource feasibility:.................................................................................................14

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Technical feasibility:............................................................................................................15
Financial feasibility:.............................................................................................................15
Business model of GBC:..........................................................................................................16
Conclusion:..............................................................................................................................17
Recommendations for GBC:....................................................................................................18
References:...............................................................................................................................19

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A NEW TEXTILE BUSINESS VENTURE IN ENGLAND
Introduction:
Development of new enterprises creates new opportunities in every country. New
businesses generate employment opportunities, introduces new products in the market and
new capital generation. All business organisations come under macroeconomic influences
which shape their strengths, weaknesses, opportunities and threats or market risks (Roth
2015). These risks the market poses to new business require the entrepreneurs to conduct
feasibility tests. The researcher would explore a new imaginary business organisation called
Great British Cotton (GBC) with its headquarters in London, England which would
manufacture high quality cotton garments. He would explore the macroeconomic conditions
of the British economy through PESTEL and internal environment of the company through
SWOT. This would be followed by a marketing mix of the new business, STP strategies
followed by feasibility studies. The findings from these analyses would be summarised which
would form the basis of recommendations to the new business organisation.
PESTEL of Britain:
The following section would explore the macroeconomic conditions of Britain and
how these factors would influence the new cotton textile company:
Political:
England is a politically stable country under the rule of a parliamentary government
system with the British monarch is her nominal head. The government of England makes
policies pertaining to industries, commerce and all other areas which form the basis of
the operations of these industries (ons.gov.uk 2017). The country has the advanced
technology but does not produce cotton fibre, the basic raw material for cotton textile
industry. This is where the political bilateral ties Britain has with foreign countries come into

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power. The government of the country has strong bilateral ties with cotton producing
countries of Asia, America, Australia and Europe (MacDonald 2015). These strong political
agreements of the British Government with these cotton producing countries allow the cotton
textile producing firms in Britain obtain cotton at low costs. This analysis shows that political
decisions of the British Government and the foreign ties act as positive catalysts for the
cotton textile industry. This means that new firms like Great British Cotton would be able to
grow in the market taking advantage of the political ties of Britain (Roth 2015). They firm in
its initial can source cotton from the foreign market and manufacture high quality cotton
textile.
Political factors can also provide challenges to operations of the British cotton
industry. The bilateral ties of Britain with foreign economies invite entry of foreign cotton
manufacturers which compete with the existing manufacturers. The new cotton textile
producing firms are new in the market are not equipped sufficiently to counteract this
external aggression because of their limited resources, market goodwill and knowledge
(theguardian.com 2017). A very important political happening which would have strong
impact on the industries in Britain is Brexit. England is a member of the European Union and
can avail the tax free benefits while conducting business within Europe. The industries of
England post Brexit would lose access to the markets of Europe which would increase
their cost of obtaining resources like technology from Europe manifold (theguardian.com
2017). The new companies like GBC would be affected more strongly because they do not
have the resources to manage this sudden increase in operation cost. This analysis clearly
shows that the political conditions of Britain like a stable government and strong bilateral ties
can encourage development of new enterprises like GBC. However, the political moves like
Brexit, terrorist attacks and sudden change of government policies pose challenges to
these new business firms (Liu, Hodgkinson and Chuang 2014). The new firm GBC should

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form strategies to enter British cotton textile market and incorporate these factors in its
business strategies like marketing mix.
Economic factors:
The economic factors have strong impacts on the operations of all industries including
the cotton textile industry. The economic factors prevailing in a country are largely outcome
of the political factors. The strong political ties Britain shares with the main cotton producing
and exporting markets like Asia act as important positive drivers for the cotton industry in the
country (theguardian.com 2017). The cotton textile producing firms can easily acquire raw
cotton from these countries which enable them to reduce their cost of production. Britain is a
member of the European Union which allows her to acquire resources from European
countries at low rates. The cotton textile manufacturing companies are able to acquire
technology and human resources from Europe at low rates (Muhammad, Fathelrahman and
Ullah, 2015). These economic factors result in reduced cost of production, high quality cotton
textile and mass production in the cotton textile companies in England. Britain provides the
cotton industry with a huge network of financial institutions which provides these cotton
producing firms with financial capital to operate efficiently in the market. Today, cotton is a
commodity traded on exchanges like Bremen Cotton Exchange, Germany which ensures that
countries export high quality of cotton at appropriate prices (baumwollboerse.de 2017).
These factors can help Great British Cotton to develop and expand its business in the British
market. However, Post Brexit the cotton textile producing firms would not be able to acquire
resources from the European markets at low rates. This would increase the cost of acquiring
materials and manpower from Europe. The cotton industry in this situation would have to
increase its import from other markets like Asia and the United States to continue production
(theguardian.com 2017). The economic challenges which the industries of Britain
including the cotton industry face are fluctuations in the rates of Pound and economic

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slowdown in the European economy. A fall of price of Great British Pound would mean
that the British textile companies would have to source raw cotton at higher price and export
cotton products at lower price (thesun.co.uk 2017). This economic dependence on foreign
markets impacts the production of cotton textile manufacturers of England especially, the
new firms like GBC which have limited resources and cannot spend huge capital to acquire
materials from these foreign markets.
Social:
The social factors like changing preferences of customers and income of the
customers have deep impacts on the firms operating in a country. The graph below shows
that rising gross domestic product in England which is projected to rise in the future years.
This shows that the people living in Britain have more disposable income to buy expensive
cotton products especially designer clothes. British cotton goods are in high demand all over
the world which fuels production in the textile industry in Britain (ft.com 2017). The new
firms like Great British Cotton can make use of this demand to establish itself in the British
market in the initial phase and then expand into foreign markets.

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Figure 1. Graph showing gross domestic product of Britain
(Source: ons.gov.uk 2017)
Technology:
Technology plays a very important role in manufacturing of products including cotton
textile. England has been the seat of industrial revolution which is closely associated with
advancements in cotton textile industry. She has experienced discoveries, inventions and
innovations since historical times which have made her technologically very powerful. The
cotton industry in England is known for several inventions like flying shuttle and is one of the
most technologically advanced industries in the world. England gets technological support
from her industrially developed European counterparts like France and Germany (Barker
2018). The country is home to top fashion brands like Alexander McQueen which

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manufacture designer cotton outfits considered as status symbols all over the world
(alexandermcqueen.com 2017). The cotton textile industry in England uses modern
technology to produce a variety of garments which result in its extensive product line. The
British cotton textile manufacturers use modern technology like ecommerce to find out
suppliers of high quality cotton and other materials from all over the world. Cloud
computing and conferencing have enabled these companies to communicate and conduct
business with suppliers and distributors located in geographically distant markets (Roth
2015). Thus, advancement of technology in England acts as a great push to the cotton
manufacturing firms like GBC, enabling them to manufacture high quality cotton products
and manage a global supply chain management.
The new firms like Great British Cotton can use technology to establish a strong hold
in the market in England. They can use technology like inventory control to manage their
inventory of raw materials which would help them to reduce wastage. They can as a result
allocate the amount saved due to reduced wastage towards achieving more productivity
(telegraph.co.uk 2017).
The above analysis shows that technology acts a powerful factor encouraging growth
of technology intensive industry like cotton industry. The biggest challenge technological
advancements poses to the firms today irrespective of industry is data theft. The established
firms inject huge amount of capital towards strengthening their data security (Simpson 2017).
The new firms like GBC are at increasing threats due to their limited technological and
financial power to check data thefts.
Environmental:
The environmental factors impacting the cotton industry are sustainability issues
pollution issues which it faces during the course of production of cotton goods. The cotton

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textile faces several environmental issues like pollution caused by the cotton textile factories.
The next environmental issue facing the cotton firms are that these farms release waste water
which further causes pollution. The cotton textile firm Great British Cotton should use
sustainable and eco friendly methods of producing cotton textile (worldwildlife.org 2017).
This would enable it to reduce environmental pollution.
Legal:
The cotton textile industry comes under heavy impacts of the legal factors, both at the
national and international levels. This is because first, the cotton textile companies of
England acquire their supplies of raw cotton from India, China and the United States. This
means the cotton importing countries have to follow laws related to customers and excise.
They buy raw materials from and sell finished cotton products to foreign countries (Abdella
2016). This means the cotton textile manufacturers in England come under exchange rates
and international financial laws. Moreover, the Fair Trade Organisation in the United
Kingdom requires the cotton textile manufacturers to buy cotton from farmers at fair trade
rates to ensure economic sustainability of the latter (fairtrade.org.uk 2017). They earn profit
and thus have to income taxes both in England and abroad. This analysis shows that the
cotton textile producing firms including new firms like GBC should follow the legal
frameworks laid down by the British and foreign governments while operating in the market.
SWOT Analysis of Great British Cotton (GBC):
Strengths Weakness
1. Great British Cotton can make use of the
foreign bilateral ties of Britain with Asian
countries to acquire high quality cotton.
2. It is a new company and can attract customers
1. GBC is a new firm with limited resources
which limits its capability to acquire materials
and human resources.
2. GBC being a new firm has no customer base

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with innovative cotton textile products. of its own to which it can sell products to
generate revenue.
Opportunities Threats
1. The firm can promote its products in Britain to
attract the rich and middle class customers of
Britain.
2. As pointed out in the economic conditions, the
firm can approach the financial institutions in
Britain to provide it with venture capital and low
interest loans. This finance would provide the
firm to acquire sufficient materials and human
resources to operate in adequate level to earn
sufficient profits to grow in the market.
3. The firm can promote its products on the
ecommerce portals which would allow it to
advertise its products globally. This would allow
selling its products to a large group of customers
both in England and abroad.
1. The cotton textile industry in England is
dominated by established firms which have
majority of the customer share in the market.
These firms make strategies to restrict growth of
new firms to keep the competition in their favour.
2. The cotton textile industry is England
experience invasions by established cotton textile
companies from other countries like China and
the United States of America like Nike.
3. The analysis of the technological factors show
that cotton manufacturing and selling is
dependent on technology which is changing at a
very fast pace. This threatens the new cotton
textile manufacturing firms like GBC to invest
huge amount in technological advancements
often, at the cost of its production.
Figure 2. SWOT analysis table of Great British Cotton
(Source: Author)
Marketing mix of GBC:
The following are the marketing mix which the new cotton textile manufacturing firm
GBC can adopt to operate in England in the initial phase and overseas in later phase: