Business Essentials: Paraphernalia Shop Plan in UK - Furniture

This report presents a business plan for Paraphernalia Shop, a customized furniture shop in the UK, focusing on the industrial area of London. It outlines the company's vision and mission, aiming to establish a strong brand presence by offering unique and thematic furniture solutions to businesses. The plan details the use of lightweight timber and a premium pricing strategy inclusive of delivery and transportation. It also identifies key competitors like IKEA and emphasizes the importance of high-quality, customized products to foster customer loyalty. The report includes a SMART objectives framework, a PESTLE analysis evaluating political, economic, social, and technological factors affecting the business, and a strategic approach to market positioning, targeting both luxury and budget-conscious customers. Desklib is a platform where students can find similar solved assignments and past papers.

Business essential

Table of Contents
2. TASK 1 MANDATORY........................................................................................................3
1. Part A...........................................................................................................................3
2. Part B...........................................................................................................................5
Task 2..............................................................................................................................................5
Task 3..............................................................................................................................................8
Part A.....................................................................................................................................8
Part B.....................................................................................................................................8
TASK 4............................................................................................................................................9
CONCLUSION.............................................................................................................................12

INTRODUCTION
In this contemporary era of business, a large number of organizations are
thoroughly demanding to combat the increasing level of competition with several need
base measures. One of these measures is to undertake a planned approach to operate
a business with certain pioneering tactics that in turn depicts their creativity as well. This
not only gives them a contending position in the market but together enhances their
brand recognition with greater sales and profitability. This in turn indicates yet another
fundamental requisition of creating a business plan to specify all relative details in it
(Hair, 2015). This will begin by stating the initial requirements for starting up a business
with some later inclusions to note down the progressions in terms of noting down the
trading details, etc. This will together assist the concerned bodies of the organization to
compare their earned incomes with their targeted shares and revenues. The below
report is based upon a similar reflection of a business plan created to set up a furniture
shop in UK. It is supposedly named as Paraphernalia Shop where it will be a
customized workshop. This report has together referred to analyze the present market
environment of furniture industry over there where this business will be located in the
industrial area of London. This has together assisted them to carry out a market
research on whose basis, further strategies of marketing will be created at the end of
this report.
TASK 1 MANDATORY
Part A
It is in context to start a new business organization in retail sector, a furniture
shop named Paraphernalia has been chosen that will be offering customized furniture’s
to the potential set of buyers. It will be situated in the posh area of London where this
will be targeting the trade businesses (Anderson and et. al., 2014). As a result to which,
it will be together established in London and will serve via both online and offline
means. Although, a mere business set up is not referred to fulfill the targeted business
goals until and unless backed up with some effective vision and missions. In context to
which, below stated are the vision and mission of the new business set of called
Paraphernalia-

 Vision- A foremost vision of this business is to acquire a contending position
in the retail industry of UK with specialization in customized furniture’s.
 Mission- To create a substantial recognition of their brand in the market by
combating the competitive state among some well-established retail
organizations in UK with a creative outlook to make customized furniture’s.
It is thus on the basis of above intended vision and mission of the business, it
has been ascertained that the cited firm will be operating with a pivotal
consideration of serving the clients in a way they exactly want to set up their
workplace. It is where most of the customers have been observed to search for
some unique concept to set up their work stations and often gets disillusioned
when they do not found it anywhere (Peteraf, Gamble and Thompson Jr, 2014).
Paraphernalia shop has thus aimed at satisfying the needs of such consumers who
are already looking for some sort of creativity to decorate their office. It is where
most of the business owners think it to be a fun filled way of engaging their potent
set of employees by providing them a considerable environment at work. In context
to which, the quoted entity will together consider to provide such type of furniture’s
that will correspond to a thematic set up as well. However, the raw materials from
which the furniture’s will be manufactured are light weighted timber wood that will
be easily transported from one place to another. In order to attain their long term
desire and goals the cited business unit can expand their market internationally. So
that they can increase its market share and profitability in the long run. There are
various emerging market such as India, China which having large market. It can
provide a good opportunities for the company to provide consistent growth and
development to their business.
It will be good quality material that will require polishing to maintain its superiority
once in two to three years. It will be thus an affordable service to the clients where
initially they will be required to pay in accordance to the premium price strategy of
Paraphernalia Shop. This is mainly due to their all-inclusive services with no
additive costs for home delivery and transportation, etc. It is where Paraphernalia
Shop will be a high street workshop where people can either visit themselves to
choose a commodity or they can also order it online by connecting to the customer

service representatives by discussing its price and other related details (Sherry
and Canon, 2014). Beside this, Paraphernalia will consist of all range of services
from luxury brands to austerity to meet out the necessities of the customers. It is
however with a fundamental consideration of positioning themselves with a distinct
outlook where the existent furniture companies are mostly serving luxury brands
only. Whereas, here this elected organization will serve from all small scale to
large scale business set ups. These contenders are Newcastle, FCI and the
London Furniture Company, etc. There are various competitors in the UK market
which can provide tough competition to the cited business unit. These competitors
can be IKEA which is one of the leading furniture’s manufacturer in the country.
Therefore, the cited business unit is required to provide high quality products to its
customers which can help to increase customer loyalty. They can provide
customization in the furniture’s and also provide innovate design which can help to
attract large number of potential customers.
Part B
Paraphernalia Shop along with the above stated vision and mission will together
operate with some well-defined objectives that will be SMART (specific, measurable,
achievable, realistic and time bound) in nature. These are as specified below-
1. To ascertain the factual preferences of the business owners whose business is
established in the London industrial area.
2. To identify the technical traits of today’s contemporary era so as to inculcate the
same in their undertaken business practice.
3. To distinctly position themselves in the retail sector of UK with more feasible
measures in terms of serving the customers in the best possible way.
4. To fulfill the realistic needs of the consumers in an advanced manner with certain
progressive measures to correspond their innovative outlook.
Each of these objectives have represented an important consideration in
establishing the business in a successful manner. It is where a primary research of the
market will largely assist the cited entity to acknowledge the actual preferences of their
clients. After which, they will together identify modernized techniques to serve their
customers in a relevant manner (Wilson, 2014). On whose basis, they will be

significantly able to position themselves in a contending position by fulfilling another
objective by lastly fulfilling the realistic needs and demands of the users. Also, the
quoted firm has opted for a sole trading business where it is the simplest business
structure and easy to establish with less legal consents that requires slight paper work.
This type of business has been chosen due to the nature and size of Paraphernalia
Shop where it will firstly initiate from small scale.
Task 2
Business environment is to complex and competitive which is change over a period of
time. There are two major environment in a business which can include internal and
external. It is essential for the cited business unit is to analyses and evaluate their
business environment so that they can make their decisions effectively. Internal factor
can be involved customers, suppliers, employees, investors, stakeholders,
organisational culture, polices and leadership. These factors can be control by
company. On the other hand external factors can be control by the firm therefore the
cited company required to evaluate these factors so that manager can overcome their
potential risk.
Pestle Analysis of Paraphernalia shop
Political factor: This is one of the major factors which is related with the political
stability and business policies. It is essential for a business unit is that to determine and
evaluate government stability in a particular country. In the context of UK which is
politically stable which can provide a good opportunities in the future growth and
development of cited business unit. A stable government can overcome political risk
and create certainty in the various business aspects. There are various decisions which
can influenced the business and its performance in the near future. After BREXIT UK
government is try to provide a sound business environment which can overcome the
trade barriers and promote ease of doing business environment in the country.
There are many political factor which influence the organizational activity as profitability
of an organization (Abowd, Alvisi and Reiter, 2017). Government makes many rules
and regulation which organization needs to follow at the time of carrying out business
activity. Some of political factor that is increase in Tax rate which can highly influence

the profitability of Paraphernalia shop. For example if government charge high tax rate
then it negatively impacts the profit which they earn. Further, law made for health and
safety is very beneficial for welfare of employee as well as organization.
Economical factor: This is another key factors which is related with the various
economic aspects of the country. It can be involved monitory and fiscal policies of the
United kingdom. UK is one of the leading economy in the world in term of GDP approx.
$ 2.8 trillion which is third largest in the European countries. The employment rate is
also good of the economy as compare to other countries. There interest rate also
favourable for the business which can help to get financial assistance to the cited
business organisation. But due to Brexit it having a negative impact on the growth and
development of the business. The global economic session is also biggest factor which
is a external economic driver of Paraphernalia company. As firm also need to deal with
rising labour and operational cost which is not easy (Sarwar, Ramachandran and
Hosseinian-Far 2017). Some political factor that is inflation rate, recession, interest rate
etc. at the time of recession spending power of consumer got down which impact sale of
Paraphernalia shop. Further increase in interest rate create barrier for the organization
in taking loan from bank for carrying out business operations
Social factor: There are various social factors which is helps to increase the demand
of goods and services in the country. It can involved consumer income, education,
qualification, population and other aspects. For example, the per capita income of the
UK is quite impressive with approx. $40000 as compare to other country. It can provide
a good opportunities for the cited business organisation. Apart from that, there are large
number of tourists are coming each and every which can help to increase the sales and
market share of the company which can leads increase the profitability of the firm which
is the common goals for each and every business unit. Social factor include taste and
preference of customer which impact the sale of Paraphernalia shop. If company is
unable to meet customer expectation then its customer may switch to other brand
products (.Bhardwaj, Nahar and Volakis, 2017). Further different type of people possess
different choices, so firm need to make product as pre the requirement of customer
which is not possible some time and it lead to impact the sale.

Technological factor: In the present era technology and innovation played a significant
role in the growth and development in the business. There are various new technologies
which can be used by the business units. For example, Paraphernalia shop can use
social media platform such as Facebook, You Tube, Instagram etc. in order to promote
their products and services in a cost effective manner. They can also use technology in
their production and operational activities. Like, they can installed an integrated
communication system which can be interlinked their all departments. It can help to
increase communication and they can also share files and information with each other
at any time within the organisation. It can leads to increase productivity and efficiency.
There are many new technology which is introduced in market and company need to
adopt it for increasing the sale and profit. Paraphernalia shop can develop online
website and online order facility in respect to attract large number of customer. Online
buying facility provide organization easiness in buying products and services from any
place without visiting shop Further through adoption of new technology support in
making innovative product as per the needs and demand of people.
Legal factor: Legal factors is also having a great significant in the business activities of
the company. There are various laws and regulations which can be impact on the
business performance. For example, Minimum pay wage act is related with the the pay
and remuneration. These laws is provide the guidelines regarding the pay structure of
an individuals. Another act is related with the employment right which can protect the
individual employee right and prevent the employee discrimination on the basis caste,
creed, religion and other aspects. Safety and security act is related with staff security at
the workplace. This laws is all about machinery, safety guidelines and other important
issues. This is the responsibilities of the cited business unit is provide a healthy working
condition to their staff so that they perform their task freely and independently.
For Paraphernalia it is important that it not break any rules and regulation made by
government (Abowd, Alvisi and Reiter, 2017). Further, there are some laws and
legistation made in respect to supply of raw material which the organization need to
follow strictly. Apart from this firm also need to make sure that its employee work in safe
environment. If employee not provided safe work place then they may switch to other
company. This may decrease the employee turnover rate.

Environmental factor: Today the customer is more aware towards the environmental
and climate issues. There are various organisations and government authorities provide
such information in order to provide awareness towards the environment. Therefore, the
cited company required to make their product which having less impact on the
environment. They can also promote various CSR program which can be related with
the environment. It can help to create a ideal image in the public and stakeholders.
Apart from that they can also use various technology in the production process which
cab save environment. Environmental factor is that factor which impact business and its
operations. There are many rules made for protecting the environment. So
Paraphernalia shop required to make sure that its any activity not harm or pollute the
environment. Further it should making product which are not environment friendly
because now a days people avoid buying product which impact their surrounding
environment.

Task 3
Part A
Statement: Grand even is organized for the opening of new Paraphernalia shop at near
by industrial area.
Part B
Party event for the Furniture showroom inauguration is organized so that business man
came to aware of new shop.
 Identify the target group: Paraphernalia shop mainly target Business man who
buy furniture for their business purpose. Along with this, people who like to décor
their home with attractive furniture fixtures. So mainly the shop is dealing in those
types of luxury furnitures which can be useful for those customers which are
interested to home décor. So they are having an expertise in it so they can
provide best designs and quality products. so the shop owned owners are having
a target on those types of customers which are having financial stability and as
well as which are having an interest in to the home decorative.
 Advertisements of the Grant opening ceremony: Advertisements is done by
sending email to business man and through face to face meeting in order to grab
attention of large number of customer. Further, social networking sites used for
making aware people who are interested in buying furniture. Apart from this
banners also placed of Paraphernalia shop at the event place for attracting large
number of customers. Advertisement and promotions are essential part for the
opening ceremony which can help to the owners to increase the number of
people which are affected by their openings. As well as it is essential for the shop
owners to invite all of those people which can be their customers in the future. So
they can send e mail invitation to those people which are related to the business
and professions and which have potential to become a customers of the shops. E
mail is an effective and authentic way to communicate with the professional and
businessman. As well as they can use print media to give a personal invitation to
the person which are relative and friends. For the promotions of the ceremony

they can use social media, in which they can make a people awareness for the
customers which are interested in to the furniture shopping.
 Invitation to media and Mayor: Invitation card send to Mayor, local news
reporters and city council member for making ceremony more attractive and
successful.They can give a personal invitation by a invitation card which is
effective and impressive for the shop owner to make a personal contact with
them. So they have to send a personal invitation card to them.
 Schedule the Grand opening ceremony: Gran opening ceremony will be
organized on weekend on at evening time, so that business man can easily visit
without facing problem in ceremony. They can give a personal invitation by a
invitation card which is effective and impressive for the shop owner to make a
personal contact with them. So they have to send a personal invitation card to
them.
 Event activities: for guest There are some activities at ceremony that is ribbon
cutting and free meal is provided to people who came in grand opening
ceremony ((Fozer, Sziraky and Mizsey, 2017.)). Further discount is provided to
customer who book products and services at the same time.It is essential for the
organiser to manage the interests of the invitees in to the opening so they have
to organise some activities like; they can play a video in which they can show
luxurious homes and offices which can help to the shop owners grand as well as
to the invitees to make their focus in the opening ceremony.
Part B
Budget is important part for Paraphernalia shop which support in reducing
unnecessary expenses and increase the revenue (Sarwar, Ramachandran. and
Hosseinian-Far, 2017). It is essential for the organization to prepare budget plan for its
grand opening ceremony in order to use all finance in systematic manner and for
reducing expenses. This budget plan support in calculating how much finance required
for organizing event
Budget plan for ORGANIZATION for ceremony is given below
Items Cost
Refreshment 45000

Advertisement activity 2500
Decoration 5000
Staff 3500
Others 2000
Paraphernalia shop provide free meal to people who visit in grand opening ceremony.
Along with this advertisement cost charged that is less because online advertisement
charged less cost. Meal charged per person 300. Moreover attractive decoration is done
which charged. It is essential for the shop owner to provide a meal for the invited people
to keep their interest to come in the ceremony and as well as it help to the shop owners
to stay them for a while to show their products. So as the have allocate a budget of the
45000 pound for this can be help full them to provide an effective and interesting and
delicious refreshment to the invitees.
TASK 4
Marketing objectives
Marketing objectives of Paraphernalia shop is to make their products unique and
innovative from other’s furniture products. The main objective of marketing is to offers
luxury furniture products for its customers (Andersen, Larsen and Boomsma, , 2013)
. Paraphernalia shop is focuses on developing its market in UK and gathers more
customers in its business.the marketing objectives is also consists high cost furniture
products for its customers. Along with this firm is also using latest technology for
expanding its business within UK. Marketing objectives is also consists to increases
sells of company by 5% n next 7 months. For this company make detailed marketing
information and conducted marketing research. Along with this each marketing goals is
time bounded and have to achieve within specific time bound.It is essential for the shop
owner to make their business objectives to improve make their business activities
accordingly. So in the first they have to set their objectives regarding to the profits and
market share which can help to the shop owners to improve their business activities and
as well as it can help to the shop keeper to make their products more finer as per the