Foundation Business Essentials - Shining Shoes Company Report

This report provides a comprehensive analysis of the business plan for "The Shining Shoes Company," a proposed retail venture based in Liverpool, UK, specializing in recycled and new shoes. The report details the company's business concept, target market, and competitive landscape, including competitors like Hotter, Joseph Cheaney & Sons, and Walsh. It outlines the company's objectives, such as minimizing waste and increasing sales, and justifies the choice of a sole trader ownership structure. A PESTLE analysis is conducted to assess the impact of political, economic, social, technological, legal, and environmental factors on the business. The report also touches upon the importance of budget preparation, a launching event, and the development of marketing objectives, including target markets, marketing mix, and strategies to attract customers. The assignment emphasizes the company's commitment to corporate social responsibility and its unique value proposition of offering recycled shoes and online exchange options to cater to diverse customer needs.

Foundation Business
Essentials -
Introduction

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Concept of New Business...........................................................................................................1
TASK 2............................................................................................................................................4
PESTLE Analysis of Shining Shoes Company...........................................................................4
TASK 3............................................................................................................................................6
Launching Event.........................................................................................................................6
Producing a Budget.....................................................................................................................7
TASK 4............................................................................................................................................7
Marketing Objectives..................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business Idea can be defined as the starting point for any current and future
entrepreneurs. Idea for starting a business is important only in the initial stage of start up. The
following assignment is based on launching a new venture and will consider all the aspects
impacting on its formation and working. The assignment will start with the new business idea
proposed and will specify its business, location, sector and the products or services which it will
provide to their customers. In addition to this, the assignment will also focus on customer
segments which the business will target and on the competitors with which the business has to
compete. The assignment will state the objectives of the business and will also provide
justification for their state of ownership which the company will choose. The impact of macro
environmental factors will also be analysed in this assignment by making use of PESTLE
Analysis. As launching new business need amount in large amount so to control the cost, budget
will be prepared and a launching event of the business will also conducted. Finally the
assignment will provide marketing objectives, target markets, marketing mix and marketing
strategies used by the company to attract their target market.
TASK 1
Concept of New Business
The name of the new business launched is “The Shining Shoes Company”. The company
will be based in Liverpool, UK (Baskerville and Dulipovici, 2015). The reason behind choosing
this as a business idea is because the company is adopting recycling process. Customers will be
asked to give their old shoes and take new shoes home in exchange. Discounts will also be
provided to the customers which will help the company in attracting more and more customers
towards the products of the company. It will become easy for the company to attract the
customers towards the product and likewise the company will also be able to fulfil their
Corporate Social Responsibilities towards the environment which is a positive point for the
company. Another reason for the selection of this business is because people are fed up of
wearing same shoes again and again so the company will provide the customers with this facility
which will make it different from other businesses and it will become easy for the company to
gain market share. Shining Shoes Company will provide their customers with formal shoes for
those people who are going to office on daily basis and sport shoes will be offered to those
1

people who are health conscious. “ Health Conscious” here refers to those people who are
purchasing sports shoes for jogging taking into consideration their health. As the sports shoes
offered by the company are comfortable in wearing and are also economical in price (Chapman,
2015).
The location chosen for the operations of business is Liverpool. The company will make
operate its business in a rented shop in front of the Tower Buildings in Liverpool. The location
chosen is appropriate for the business as the population level of people living in this area is high.
In addition to this, financial situation of the people living in this area is also good and they can
afford high prices of the products. So there are chances that the company will be able to make
good profits at this location and will strengthen its survival and growth. The sector in which the
company will deal is Retail Sector. The company will make the production and recycling
process at their own and will also sell the products with the help of retail outlets.
Further the sale and purchase activities of the products of the company will take place in
both the ways which are online and high street. It is because most of the people in this location
are working and it may not be possible for them to come directly to the shop and make choices
of their preference in shoes (Cohen and et. al., 2015). So the company is providing the customers
with an online facility to choose the products they like and also make payment for their purchase.
Customers will also be provided to make the exchange process online by uploading the pics of
their old shoes and choose the one which they want to purchase.
Name of the Competitor Reason
Hotter
The following company is chosen as a competitor for Shining
Shoes because the company is also providing comfort shoes to their
customers and is also providing free delivery of all products over
the prices of £ 80. So this company is considered as a competitor
for Shining Shoes Company.
Joseph Cheaney & Sons The products of this company also matches with our ones also.
Along with their other products, the company is also offering
formal shoes to their customers. So there are chances that the
company needs to compete with the products of this company also.
Due to this reason this company is also considered as competitor
2

for the company.
Walsh The most probable reason for considering this company as a
competitor for Shining Shoes Company is because of its dealing in
sports shoes. The company is offering sports shoes to their
customers and has also captured good market share. So it will be
difficult for the company to capture market share as while
competing with already well established brands.
Objectives of the Business:
 To develop and offer product or services that lead to minimum wastage.
 To perform Corporate Social Responsibility by adopting business practices towards
environmental safety.
 To increasing sales of the company upto 10% within 8 months of business establishment.
 To achieve sustainability at marketplace by offering unique services.
Explanation of Objectives:
The first objective will be fulfilled by providing customers with the best quality products
and adopting recycling process so that waste could be reduced. This objective is important
because because waste materials are impacting very badly on the environment. So in order to
prevent the environment from being polluted this is the first and foremost objective of the
business to reduce wastage (Croy and Wieselblad, 2018).
Coming to the second objective, it says that business will also focus on the responsibility
towards the public and stakeholders of the company. This objective is also important to take into
consideration because to gain trust of people and stakeholders, it is important for the company to
run their business ethically.
In the third objective, the focus is in increasing the sales of the company which will be
the result of fulfilment of above two objective (Rudtsch and et. al., 2014). It is also important
because profit is important for an organisation to run successfully and also its survival and
growth. Due to these reasons the company is focusing on increasing the sales of the company by
10%.
The last objective focuses on providing the customers with the best possible services such
as high quality products and also at fair prices. The following objectives is important because in
3

today's world, consumer is the king of the market so it is important for the company to run their
business ethically which will help the business in gaining and maintaining the market share.
The most suitable form of ownership for this business will be Sole Trader. In this form of
business ownership, all the rights to make decisions lies in the hands of one individual. The
business will be run by a single individual and will be solely responsible for all the profits and
losses made from the decisions. The following form of business ownership will be best suitable
for Shining Shoes Company as in starting the business is not operated at large scale and the
operations of the company are not much diverse and complex (da Rosa and da Silva, 2015). So
this form of ownership will be beneficial as the company will be able to make quick decisions
regarding any issue. In addition to this, it also does not require any licensing or legal procedure
to be followed. So, the company will have the benefit of saving the money which is required in
other form of ownership and will also be able to save time which will be required to complete the
legal formalities and procedures to register the venture for doing business. Due to these reasons,
the following form of business ownership will be best suitable for Shining Shoes Company.
TASK 2
PESTLE Analysis of Shining Shoes Company
The following framework is used to analyse and evaluate the impact of macro
environmental factors on the working of an organisation (What is PESTLE Analysis? A Tool for
Business Analysis, 2019). This tool takes into consideration six factors and after analysing those
factors, the company will be able to decide about their impact on the organisation which is
discussed as under:
Political Factors:
These are those factors which impact upon the working of an organisation due to the
policies made by the government of a country such as government policy, political stability or
instability, foreign trade policy, tax policy, labour law, etc. and so on.
Opportunity: The company can take benefit out of the political stability of the country which will
help the company in formulating effective and long term policies which will contribute towards
the growth and development of the company (Schuettner, Van Sell and Sheriff, 2015). As
political stability of the country will make possible for the company to formulate stable policies
which will facilitate the company to gain more market share and earn more profits.
4

The following factor is important to the company as if the policies are not taken into
consideration, it will increase the government intervention in the working of the company in the
form of penalties or fines so in order to avoid these bad impacts, it is important for the company
to take them into consideration (Scarborough, 2016).
Economical Factors:
These are those factors which impacts upon the working of an organisation due to change
in the economic growth, exchange rates, interest rates, inflation, disposable income of customers,
etc.
Opportunity: It is an opportunity for the company to make benefit from the disposable income of
the customers in which the company has been established. As the disposable income of the
customers of this area are more than the company can avail this opportunity by attracting more
and more people from this area and increase their sales.
Threat: It is threat to the company due to increased instability in the stock markets, it has lead to
fluctuation in the interest rates. Due to this incident, it has lowered down the purchasing power
of the buyers and will impact negatively on the performance of the company.
Social Factors:
These are those factors which impacts upon the working of an organisation due to
changes in taste and preferences of people, beliefs, feelings of customers, age, population, etc.
Opportunity: It is an opportunity for the company as the number of people living in this area are
high so the company can easily make know about their taste and preference and develop the
products according to the needs and demands of customers so that the profits could be increased
(Dube and Dube, 2017).
Threat: The regular change in the demand and taste of customers can lead to impact negatively
on the working of Shining Shoes Company.
Technological Factors:
These are those factors which impact upon the working of an organisation due to some
innovation in technology which can be related to improvement in ways of producing goods and
services, improvement in the ways of distributing goods and services, etc.
Opportunity: The adoption of technology in relation to recycling process will help the company
in creating a good image in the market. This will contribute directly towards the growth and
5

development of the company. So it is essential for the company to adopt this technology to get
the advantage over its competitors.
Legal Factors:
These are those factors which impact upon the working of an organisation due to some
special rules and regulations made by the government of the country which impacts upon the
working of an organisation.
Threat: In UK, the government had made severe regulation regarding the advertisement of the
products of a company which says that the company should not show any misleading
advertisement to their customers which can distract them. So to avoid government intervention it
is recommended to the company to follow the rules and regulations made by the government in
relation to Advertising.
Environmental Factors:
These are those factors which impact upon the working of an organisation due to the
impact it is creating on the environment such as pollution, emission of harmful gases, global
warming, etc. are included in the environmental factors.
Opportunity: One of the objectives of the company is also focusing on fulfilling the Corporate
Social Responsibility, so the company could take participate in some environmental preservation
projects which will impact positive on the brand image of the company and helps in reducing the
intervention of the government in company's working (Maurice and Thomas, 2015).
Overall it can be said that there is a need to the company to work and make improvement
in their strategies and policies in relation to reduce the impact of macro environmental factors of
the working of Shining Shoes Company.
TASK 3
Launching Event
The launching event of the business will be arranged in the form of celebrity opening
event. The event will be organised in the premises of the business itself. The arrangement for the
event will be organised on weekend so that more people could come and join the inauguration
event of the business. The company will also spend for food arrangements to be done for the
celebrities and also for those people who will join the inauguration event. If the food provided by
6

the company in inauguration event it will create a positive image in the minds of the people as
the quality of their products will be clear to the people (Ehret and Wirtz, 2017).
In addition to this, celebrity opening will be helpful for the company in creating
popularity of its business. The event will includes a number of 500 people to be invited. The
reason behind their invitation is to provide them with the products and services of the company
so that they could be attracted towards the products of Shining Shoes Company.
Producing a Budget
Expenses Amount (In £)
Venue £ 5,000
AV £ 8,900
Decor £ 2,400
Food and Beverage £ 5,000
Event Documentation £ 800
Entertainment £ 1,500
Marketing/ Advertising £ 2,000
`Other Miscellaneous Expenses £ 5,000
Total £ 30,600
TASK 4
Marketing Objectives
The company is providing various benefits to their customers from their products such as
products on discounted prices, exchanges of products from products, comfortable to wear, etc.
The product provided by the Shining Shoes Company is not a luxury, the product will be offered
to mass market and can be purchased by all class of people whether high class, middle class or
lower class people (Hassan, Husić-Mehmedović and Duverger, 2015). The brand message which
the company wants to convey from their products to their customers is about the high quality
7

products at cheaper prices. It is providing good quality products to their customers at affordable
prices which will best suit to the needs and demands of the customers.
Objectives:
 To capture Market Share to 15%.
 To earn revenue of £ 50,000 in the next 5 months.
Target Markets:
These are those markets which the company is going to target in order to increase the
sales of the products and services of the company. The main targets of the company will be the
people living in and around Liverpool because the people living in cities believes in trying thing,
which not only fulfil the needs and demands of the people living in that area but also believes in
making contribution towards the growth and development of the environment by providing the
customers with new and better products (Johansson, 2014).
The products of the company will focus on targeting the people coming above the age of
20, as in this area the people living in this age are more and hence they will be a source of
revenue for the company. The people living in this area also believes in preserving the
environment and the company is also making use of Recycling process so it will be easy for the
company to attract more customers in the market. The people of this area are targeted on the
basis of their disposable income which is high.
Marketing Strategies:
The marketing strategy of the company will be recycling process by which the company
will attract more number of customers towards their products and services. In order to
communicate to the targeted customers, the company will make use of Bill Boards and
Hoardings to communicate to the customers. It is because the market area is not much large and
does not need much expenses to be done. In future, when the business will be fully established in
the market, the company will provide customers with rebates and discounts which will depend
upon the trafficking of the customers in the Store.
Element Description Justification
Product The product of the company
will provide comfort to the
customers while making use of
them.
People in today's world are
more conscious about the
quality of the products and
services which companies are
8

providing.
Price The business will make use of
Penetration Pricing Strategy to
sell the products of the
company (M. Fournier and
Ineson, 2014).
The reason behind selection of
this strategy is because people
do not believe in new products
easily, they fear from their
consumption but low prices,
rebates, discounts attract them
so this strategy is adopted.
Place The company will provide
both the facilities to their
customers which are store and
online facility.
People do not have much time
to come to store and make
choice of their product so
online facility is provided to
them, also store facility is
provided to rigid and rare
customers who do not believe
in purchasing online and come
very less to make purchase
respectively.
Promotion The strategy used to promote
the products will be online
advertising, hoardings and bill
boards.
Reduction in the cost of
advertisement and will attract
more people as hoardings will
be put on places where people
visits more such as parks.
CONCLUSION
From the above assignment it has been concluded that while opening a new business
venture it is important to consider all the aspects which can impact upon its working in future.
Woking along with the objectives will help the company in going in the right direction which
will enhance the rate of growth and development of the company. In addition to this, it is also
concluded that PESTLE Analysis is also important to do in order to remove the negative impact
9

of those factors and adhering the positive impacts. Moreover, it is also concluded that business
make appropriate choice of launch of the business and also prepare budget for the same so that
all the event does not suffer from deficiency. At last, it is concluded that to get positive results it
is important to make choice of good strategies by the company.
10