Entrepreneurship and Business Plan Development for 'The Sports Shop'

This report presents a comprehensive business plan for "The Sports Shop," a sports product retailer transitioning to online operations. It details the company's mission, vision, and objectives, emphasizing a cost-effective business strategy to compete with established brands. The plan includes a PESTLE analysis to evaluate external factors, a SWOT analysis to identify strengths, weaknesses, opportunities, and threats, and a competitor analysis to understand the competitive landscape. The report also outlines the STP approach for market segmentation and the marketing mix for promoting the business. Furthermore, it provides a financial analysis, including projections and key performance indicators (KPIs), and discusses monitoring and control mechanisms to ensure business success. The legal status of the organization is defined as a limited liability company, and operational aspects, including raw materials, manufacturing, inventory, and order fulfillment, are discussed in detail, highlighting the interrelation between different components of the business.

Entrepreneurship -
Enterprise

EXECUTIVE SUMMARY
Entrepreneurship is the process through which an entrepreneur is able to extract value
from the business practices. Business plan is format through which the new business or strategy
planned by the business is portrayed in order to develop a step by step process. Understanding
the different factors which are both internal and external is very important for an organization to
understand the how they can impact the performance of the business. Financial analysis are
considered to be the key to the development of predictions in the business and how they can be
influenced. In order to control the processing of business KPI and variance analysis can be
applied.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
BUSINESS PLAN...........................................................................................................................4
Overview......................................................................................................................................4
Mission........................................................................................................................................4
Vision...........................................................................................................................................4
Objectives....................................................................................................................................4
Business Strategy.........................................................................................................................5
Legal Status.................................................................................................................................5
Operations....................................................................................................................................6
Interrelation in-between the different components......................................................................6
PESTLE.......................................................................................................................................7
SWOT..........................................................................................................................................8
Competitor analysis.....................................................................................................................9
STP approach.............................................................................................................................10
Marketing mix...........................................................................................................................10
Financials...................................................................................................................................12
Monitoring and control..............................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Entrepreneurship is the way in which the value is created for the extraction of the value
which is the process for the establishment of the business. In this project a business plan will be
constructed for “The Sports Shop” this is a business which deals with the products related to all
the different kind of sports. In this project the analysation of the development of online
operations for developing a fresh start with the business has been elaborated. This project will
develop a business strategy legal status, operations, marketing and finance. In this project the
analysation of the main components of the business and their interrelation will be explained. This
project will also demonstrate the effective business profession which provides the justification of
the reasoning and also supports the performance and the viability of the business. In this project
the evaluation potential issues which impacts the success of the business.
BUSINESS PLAN
Overview
The Sport Shop is a business which was initially a store of sports products which
included products like shoes, jerseys and other sports equipment. Due to the pandemic the
operations of this business has been affected which has created a negative influence in their
growth in the market (Corroon and Kight, 2018). Thus, with the help of this business plan this
organization will utilize online operations to be effective in a new fresh start of its business.
Mission
Mission of “The Sports Shop” is to provide its customers with top quality sports products
in prices which is economical in comparison to its competitors.
Vision
Vision of this business is to ensure that its business operation are able to fulfil the needs
of the customers and provide them the product which has quality, endurance and effectiveness.

Objectives
 To increase the profit of this organization by 10% by for March 2022.
 To develop the number of repeated consumers which purchase the products of the
organization by 5% through its marketing practices.
 To match the quality of its sports gear with the market with a low price.
Business Strategy
Due to the high impact which has happened on the business of Sports shop because of
Covid-19. Thus, this organization focuses on the developing the online business through its
website in order to be competitive in the organization (Sikka, 2017). This business also focuses
on different strategies which would allow the business to gain a competitive advantage. As there
is tough competition of this business from companies like Nike and Adidas. Therefore, the
organization would be focusing on being cost effective. Cost effective strategy is strategy which
helps the business to efficient in its product while maintaining the quality of its product. For this
strategy maximum use of the resources is very important for this company. This strategy will
also require effective management of inventory and also strong management. This company will
also try to bring innovation and flexibility in their products which is very trendy in the sports
fashion. It will allow the customers to have a customization of their products according to their
preferences. In comparison to the other companies it will provide all these services in at very low
prices.
Legal Status
The legal status of this organization is a limited liability company. This shows that the
owner's liability of is limited and this organization will be able to issue its shares in the stock
exchange. Apart from that the business of this organization will be based as a manufacturing
company which will produce its sports gear in efficient prices. The laws and regulations which
this organization would have to follow are,
Employment Rights Act 1996 :
This will concern with all the employees which are working in the organization regarding
their rights, rules and regulation which can be set by the business.
Health and Safety at work Act 1974 :
According to this Act employees safety needs to be a priority for the company and it
needs to provide all the essential facilities which are important for the health (Woolley, 2021).

Company's Act 2006 :
This is the primary source of UK law for the companies which explains the rules and
regulation needed to be followed as a corporate organization.
Apart from this the sports product of this organization cannot be an imitation of the
already existing products of any company due to the intellectual property rights which is present
(Kashyap and Parihar, 2019).
Operations
For a sports product manufacturer following are the business operations,
Raw materials :
This company would have to focus of getting the raw materials from those suppliers
which provide quality and are cost effective.
Manufacturing :
In this process the organization will produce its products according to the needs of the
customers. This process will be most important for maintaining the quality of the products
(Hacioglu and Sevgilioglu, 2019).
Inventory :
This will be the operation of the company in which it will store all its finished products
so that they can be transmitted to the customers or stores.
Receiving order :
Receiving the order is also a very important process through which the business can
increase its sales and also provide the customer what they want.
Packaging and Delivering :
These two operation are also very important as this helps the business to get the products
to reach the customer safely and will the marketing materials which are essential for the
promotional purpose.
Interrelation in-between the different components
The strategy of this organization is to become cost effective which would need the
business to be co-dependent on the other components. For this strategy the choice of the finance
is very important for this business to be cost effective. This legal structure will allow the
organization to issue equity shares which would be a key concept for the funds that it will need.
The marketing of this organization needs to be on the online platforms in order to attract more

and more customers. The additional services provide by the organization needs to be a part of
this marketing. Operations of this business will also prove to be very effective in the making the
business reach the stage of development. Ensuring all the practices of this business with
collaboration to the legal efficiency will help the business reach sustainability.
PESTLE
It is one of the technique which can be taken into consideration for evaluating external
factors so that accurate formulation of strategy to handle the prevailing challenges can become
possible (What is PESTLE analysis? 2021). It is concerned with assessing the factors which
can affect The Sports Shop in the manufacturing sector.
Political factor
There are several political factors which has influence on the processing of specified
company. The political stability of UK is stable but due to occurrence of pandemic efficiency of
the country has got affected which has adverse impact on the functioning of company (Hariandja
and et.al., 2017). The change in the manufacturing laws and tax regulation has influence on
survivability of the specified company.
Economical factor
Elements like exchange, employment, saving, GDP, inflation, etc. play important role in
affecting the functioning of business (Campbell and et.al., 2020). The Sports Shop has highly
got affected from the GDP growth rate which has been declined due to adverse situation. In the
current case, the purchasing power & saving, employment rate, etc can adversely influence the
functioning of The Sports Shop. Pandemic has negatively affected the employment which has
forced people to buy only necessary commodities.
Social factor
Change in the taste & preferences, cultural norms, attitude, beliefs, domestic factors
play significant role in affecting operational activities of enterprise. There are number of
components such as change in the taste & preferences regarding the sports products so
coordination with attitude of customers is highly important. The Sports Shop need to pay
attention on the changing trend so that avoiding adverse impact is important. The current trend in
the sports sector is ensuring higher quality & style of product which is important to focus by
specified enterprise.
Technological factor

Innovation and technological up gradation is highly important for the business to pay
attention for having depth understanding regarding growth & development. Digitization is one of
the major factor that helping to grow rapidly by overcoming several barriers. The Sports Shop
can maintain the quality & style of the product and sell larger number of the products through
merging on the business based platforms.
Legal factor
There are several rules, regulations, laws, legislation, etc. which are required to be
followed by the specified organization for eliminating any legal complications (Engelbrecht,
Johnston and Hooper, 2017). For having success in selling sports commodities it needs to
comply with health & safety, international quality majors, ethical marketing & advertising course
of action. In the present situation there are various rules & regulations which are need to be
coordinated by The Sports Shop for having smooth functioning in order to deal with customers.
Environmental factor
It is important for organization to largely pay attention on developing strategies for
reducing pollution carbon foot print, etc. For becoming successful in the current scenario there
are number of standards which are needed to be followed by the company so that re utilization
of resources by conducing recycling, waste management, etc can become possible.
SWOT
Strengths
 There are several types of strengths
which are possessed by the
organization that contribute in
achieving the success.
 The one of the significant strength
which is exerted by the particular
organization is marketing & advertising
that aids in spreading awareness.
 It has good supply chain which ensures
to meet the market demand in effective
manner. There is availability of
effective communication method which
Weaknesses
 there are few lacking areas which are
need to be focused by the company in
order to make the improvement actions.
 There is lack of proper management of
financial resources which hampers
appropriate allocation & optimum
utilization of resources.
 There is absence of significant
knowledge regarding the technological
aspects among employees that need to
be improved.
 Quality management is not that

is permits to share the overall
information in effective manner so that
clarity of particular roles &
responsibilities can be completed on
deadlines.
effective which can provide the
competitive edge to the overall
operational activities. It can lead to
affect the customer satisfaction level
and result in declination of sales
revenues
Opportunities
 In the operating areas there are several
options of partnership, merger &
acquisition, etc are available by The
Sports Shop. It can increase the access
to higher effective resources and funds
to coordinate with changing
circumstances.
 Emergence of digitization is largely
adopted by the number of buyer due to
easiness and convenience in shopping.
It can allow to incline the ability to
reach grater number of customers.
Threats
 There are number of aspects which
severed as risk to the organization. It
can n influence the way of conducting
procedure and position in sector.
 The trend in market regarding
particular sports products frequently
changes. It needs proper research &
development which require higher level
of financial resources and affect profits.
 Entry in this entry is easy which can
adversely affect the functioning of The
Sports Shop.
Competitor analysis
Elements The Sports Shop Nike
Price The company pay attention on
having penetrating pricing
strategy so that higher
profitability can be derived.
The particular organization
focuses on implementing
skimming strategy which aids
in meeting the overall
expenditure by ensuring
higher quality products
(Rahimi and Kozak, 2017).
Place The company has recently It is international organization

emerged on the digital
platform as well has stores in
domestic market.
that has strong presence on
both traditional and digital
platform for offering number
of products.
Unique selling proposition USP of The Sports Shop is
having cheap price along with
innovation in overall
manufacturing process of
products
It offers quality products
with maintaining higher profit
margin.
STP approach
Segmentation
There are four types on the basis of which segmentation is exerted such as demographic
geographic, behavioral and psychological. For the current product behavioral and psychological
base has been selected. It will focus on the customer that has attitude of buying goods on cheap
cost with good stylish pattern. They have psychology of obtaining goods on cheap rate so that
cope up with prevailing trend can become possible.
Targeting
It can pay attention on targeting the audience that has perception of purchasing goods
with changing time in order to coordinate with prevailing trend of sports (Lei, Nicolau and
Wang, 2019). This form of buyer has attitude of keeping themselves updated with the products
so that complying with prevailing fashion trend can become possible.
Positioning
For this purpose positioning of company's product much emphasis is given on the
pricing strategy. It pays attention on having penetrating pricing strategy so that reducing cost to
incline profitability. In addition to this, it allows to attract the larger number of customer by
keeping price low.
Marketing mix
For “The Sports Shop” the marketing would be very important to be implemented in its
operations which would include the following 4Ps of marketing mix,
Product :

The product of this company will be related to the different sports in the world which are
going to be, Football, Cricket, Basket Ball etc. This will provide the company a huge scope for
its development in the management of the organizational operations. These products will have
opportunity to be marketed in a way that the company can show how the prices of this business
is lower for the product of similar quality in comparison to its competitors.
Price :
The success of this business will be in its cost effective strategy which will allow the
business to decrease the price of its products (Cruz and Karatzas, 2017). It can be said as the way
in which the company will attract new customers and gain a competitive advantage.
Place :
Since the rise of Covid-19 the focus of the business needs to be on developing its online
practices which would help the business in the growth of organizational application and
management. Other than that the company would strategical buy stores in areas where there are
more sports related customers like near a stadium, high school or sports club.
Promotions :
The focus of the marketing team of this organization would be to promote the business of
the Sports Shop in order to gain competitive advantage. Utilization of the social media would be
a very important way in which the business can improve its practices. Other methods of
digitalization can be used for the marketing purpose.

Financials
There are several methods of sourcing the finance for The Sports Shop which can aid in
achieving higher profitability & stability (Ismail, 2018). It includes taking loan from bank,
crowdfunding, equity financing, etc. For accomplishing the objective of overcoming the adverse
impact of pandemic so that proper online conducting for selling sports products can become
possible. These methods Are useful for the specified company to achieve the predetermined
objectives.
Projected financial statement
The Sports Shop has got adversely affected from the pandemic situation which can be
improved by applying the formulated business plan. Its performance can be evaluated as follows:
Particulars Year 1 Year 2 Year 3
Amount
($)
Amount
($)
Amount
($)
Amount
($)
Amount
($)
Amount
($)
Sales unit 9000 10000 11000
Selling price 100 100 100
Sales Revenue 900000 1000000 1100000
Less Cost of Sales 675500 575500 75500 575500
Gross Profit 224500 424500 524500
Gross Profit Margin 25% 42% 48%
Expenses:
Payroll 8800 8800 8800
Sales and Marketing 6000 6500 7000
Depreciation 950 950 950
Utilities 1200 1200 1200
Insurance 300 300 300
Rent 5000 5000 5000
Payroll tax 1200 1200 1200
Less Total operating
expenses 23450 23950 24450
Profit before interest and
tax 201050 400550 500050
Less Interest 1150 1150 1150
Profit before tax 199900 399400 498900
Less Tax @ 20% 39980 79880 99780
Net Profit 159920 319520 399120
Net profit Margin 18% 32% 36%