MGNT943 Business Innovation Plan: The Plus Size Store, Australia

This report outlines a comprehensive business plan for 'The Plus Size Store,' an online apparel venture targeting the plus-size women's market in Australia and New Zealand. The plan addresses the identified market opportunity stemming from a lack of sufficient retail options and limited product diversification in existing stores. It details the company's structure, product line, and value proposition, emphasizing customized plus-size garments sourced from India. The report covers market analysis, including GDP and obesity rates, and projects potential revenue. It also explores sustainable practices, legal and governance arrangements, cultural and leadership aspects, marketing considerations, technical aspects, and potential risks. The plan incorporates a business model canvas, financial projections, and a timeline for key activities, highlighting the firm's commitment to environmental and economic sustainability. The report concludes with recommendations for the venture's success.

Running head: ENTREPRENEURIAL VENTURE
THE PLUS SIZE STORE – An Entrepreneurial Venture
Name of the student
Name of the university
Author Note:

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ENTREPRENEURIAL VENTURE
Table of Contents
Introduction:....................................................................................................................................3
About Plus Size Store:.....................................................................................................................4
The company, its modus operandi and leadership structure:..........................................................4
Product line:.....................................................................................................................................5
Opportunity:.....................................................................................................................................7
Market of Plus Size Store:...............................................................................................................7
Taking opportunity of the market in a sustainable way:................................................................10
Funding of the store:......................................................................................................................11
Capital generation:.....................................................................................................................11
Revenue:....................................................................................................................................12
Investments:...............................................................................................................................13
Legal compliance:..........................................................................................................................14
Governance arrangements:............................................................................................................14
Relevant cultural aspects:..............................................................................................................15
Relevant leadership aspects:..........................................................................................................16
Marketing considerations:.............................................................................................................16
Technical considerations:..............................................................................................................18
Sustainability considerations:........................................................................................................18
Risks:.............................................................................................................................................18

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Key Business activities of THE PLUS SIZE STORE Time:........................................................19
Conclusion:....................................................................................................................................21
Recommendations:........................................................................................................................21
References:....................................................................................................................................23

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ENTREPRENEURIAL VENTURE
Introduction:
Entrepreneurial ventures usher economic benefits in the nations they serve. Urbano and
Aparicio (2016) mention in this respect that, ‘Entrepreneurship has been considered an
important mechanism to achieve economic growth.’ This is because entrepreneurial ventures
lead to development of products, creation of job opportunities and generation of revenue.
Prandelli, Pasquini and Verona (2016) opine that entrepreneurs have cognitive skills which
enable them to identify the gaps between demand and supply in the market. They identify the
needs of the consumers which the existing firms are not able to fulfill with their products or
needs which are not fulfilled to the satisfactory levels. These gaps between the expectations of
the customers and the present products present opportunities to the entrepreneurs to develop new
products. The entrepreneurs develop new products to market them and earn profits (Reuber et al.
2018) strengthen the opinion by pointing out that entrepreneurs using their skills to identify
market opportunities to expand into foreign markets as well. Hoogendoorn, van der Zwan and
Thurik (2019) though do not contradict the above authors, point out that entrepreneurial ventures
in the initial phase face shortage of resources like financial resources and have to compete with
the established firms marketing almost related or similar products. Moreover, the established
firms use strategies like marketing to retain their customers and prevent newly entering firms
from entering the market. These factors pose risks before the entrepreneurial ventures entering
the market. Thus, the entrepreneurial firms in order to utilize the market opportunities and reduce
the risks substantially have to form business plans. The aim of the report would be presenting a
business plan for an entrepreneurial venture called THE PLUS SIZE STORE which would be
based in Australia. The market opportunity which the firm has identified is the lack of sufficient
numbers of stores marketing apparel for women with plus sized body frame. Moreover, the

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existing stores selling plus sized apparels usually sell limited number of specimens. They
generally do not introduce diversification in terms of designs and variants of the apparel
(Clements 2016). This lack of stores which advertise plus sized apparel as a part of their
respective mainstream product line would provide market opportunity to THE PLUS SIZE
STORE to enter the apparel market of Australia and New Zealand. It would be an online
apparel store and would open its own outlets in the future years.
About Plus Size Store:
The company, its modus operandi and leadership structure:
THE PLUS SIZE STORE would be an online apparel marketing company which based in
Melbourne, often referred to as the fashion capital of Australia (Theaustralian.com.au. 2020).
The online store would be available to customers for viewing its entire collection of pieces
of plus sized apparel products on the official website of the company www.tpss.com.au. The
term ‘tpss’, in the name of the official website would be the abbreviated form of the name of the
company. The customers would also be able to download the tpss app on their smart phones to
view and order apparel. The uniqueness of THE PLUS SIZE STORE would lie in the fact that it
would market customised plus sized garments as its main stream product line. THE PLUS SIZE
STORE size store would gain information from the individual customers regarding their
preferences in terms of size of the apparel, cut, design and styling aspects. The firm would then
provide customised plus sized apparel pieces to women as per the particulars received from them
in the order. The clothes would be sourced from India since the manufacturing costs in the
country is low.

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The company would be a limited liability company at least in the initial stage. However,
as the business would expand, THE PLUS SIZE STORE would get listed on the ASX to gain the
status of a listed company. The company would function under the leadership of a CEO. The
board of directors would take the business decisions after being approved by the CEO. The
tagline of THE PLUS SIZE STORE would be ‘Because you are beautiful’.
Product line:
The mainstream product line of THE PLUS SIZE STORE would consist of a wide range
of pieces of apparel sourced from India for women with plus sized body frame. The main raw
material which would make up the apparel products would be superior cotton which would
provide comfort to the consumers. The fabric used would allow free movement to the large sized
women which would make them feel confident. As far as the variants of apparel are concerned,
the buyers would be able to choose from a vast array of style and design. The online store would
market t-shirts, shirts, jackets, skirts, pairs of casual trousers, pairs of formal trousers, gowns,
formal suits and pullovers, all for plus sized women. THE PLUS SIZE STORE would also
market accessories like fancy jewelry, hats, scarves, wrist bands, ties and belts. The apparel
would be available in different types of colours ranging from bright colours like red to dull
shades like grey. The consumers can avail variety of designs like single colour, floral and stripes.
The product line of THE PLUS SIZE STORE would provide women apparel products and
accessories as per their needs, tastes and preferences.
Business Model canvas of THE PLUS SIZE STORE, Australia
Key Partners Key activities
Value
proposition
Customer
relationship(How)
Customer
segments(Who)

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ENTREPRENEURIAL VENTURE
1. The suppliers of
plus sized garments
from India.
2. The bank with
which the THE PLUS
SIZE STORE would
have its business
accounts.
3. The provider of
the online portal
which would be
attached to the
official website of
the company.
1. Marketing of
customised plus
sized garments to
female
customers.
2. Sourcing the
garments from
India.
1. Provide plus
sized
garments and
accessories to
the female
customers
with oversized
physical built.
2. Ensuring
that they are
comfortable in
the dresses.
1. Dresses would be
available at both
brick and mortar
stores and online
platforms.
2. The company
would maintain
continuous
customer
communication on
social media
platforms.
Female with bulky
body structures
Key
Resources(What) Channels(How)
1. Financial
resources-
Companies
acquire capital
from market and
invest in asset
classes-all on the
fintech
plartforms
2-material
resources-
Procured from
Indian suppliers
5. Human
resources-
Acquired by
floating
adversiment of
vacancies on the
online job
portals. Human
resources or
employees are
the makers and
users of the
business model.
Official website,
Youtube, Mobile
app
Cost structure Revenue structure
Fixed costs(taxes, customs duties and
rent on property etc)
Variable costs(Salary of employees,
marketing expenses etc)
Semivariable costs(electricity,
telephone, internet etc)
1. Marketing goods on own outlets and online portal
attached to official website
2. Markerting products on third party ecommerce
websites.

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ENTREPRENEURIAL VENTURE
Opportunity:
The market opportunity which THE PLUS SIZE STORE exploit to enter the market of
Australia is lack of sufficient numbers of stores marketing apparel products for plus sized
women. New Zealand would serve as its first host market. The existing business firms do not
view the plus sized apparel segment as a profitable segment and invest very little capital in it.
These stores in general sideline the plus sized garments. They also invest very little capital in this
segment in terms of design and style. Thus, the customers who seek plus sized garments find it
difficult to avail them. Moreover they are limited to a limited variety of garments which can be
described as a form of customer harassment. This gap between the demand for plus sized apparel
and the actual number of firms catering to this need would present the market opportunity to
THE PLUS SIZE STORE to enter the Australian market of plus sized garments.
Market of Plus Size Store:
THE PLUS SIZE STORE would market plus sized apparel and would be housed in
Melbourne. The company being an LLC would be financially stronger compared to a sole
proprietorship entrepreneurial venture or a partnership venture. This format of the company
would enable to market its products throughout Australia and New Zealand in the initial
phase. The main customer segment which THE PLUS SIZE STORE would aim would be
the upper class customers and middle class customers. The sector in which the company
would operate would be plus sized apparel sector. The graph below shows that Australia has
experienced an increasing rate of GDP per capita till 2018. Thus, on the basis of this graph one
could construe that the residents of the country are experiencing increase in the disposable
income to afford high end and expensive plus sized apparel (IBISWorld 2020). According to the
Australian Institute of Health and Welafre, Government of Australia, in 2018, the number of

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female residents in the country was 12.6 million (Aihw.gov.au. 2020). The population of female
experiencing obesity in the country was around 75% in 2018 (Abs.gov.au. 2020). The expected
market size which THE PLUS SIZE STORE could expect to gain in the first year of launch in
2020 would A$ 104186250. The LLC would look forward to attain a market size of A$
109395563 by 2021 and A$ 114865341 within 2022.
Figure 1. Graph showing GDP per capita of Australia
(Source: Tradingeconomics.com. 2020)

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Figure 2. Graph showing percentage of obese people in Australia till 2018
(Source: Abs.gov.au. 2020)
Population of female till
2018 (Aihw.gov.au. 2020)(in
mn)
12.
6
1260000
0
Number of
customers(ass
uming 10% of
obese women
would buy
from THE
PLUS SIZE
STORE)
Avera
ge
price
of
appar
el per
unit(
A$)
Profit
(%)
Sale
price
per
unit(
A$)
Revenue
generated
(A$)
Percentage of obese female
till 2018 (Abs.gov.au. 2020)
75
%
Number of obese female till
2018
9.4
5 9450000
Assuming 5% increase in
obesity in 2019
9.9
2 9922500
Assuming 5% increase in
obesity in 2020
10.
42
1041862
5 1041863 100 10 110
10418625
0
Assuming 5% increase in
obesity in 2021
10.
94
1093955
6.25 1093956 100 10 110
10939556
3
Assuming 5% increase in
obesity in 2022
11.
49
1148653
4.06 1148653 100 10 110
11486534
1

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ENTREPRENEURIAL VENTURE
Figure 3. Table estimating the market size of THE PLUS SIZE STORE
(Source: Author)
Taking opportunity of the market in a sustainable way:
THE PLUS SIZE STORE should aim to take opportunity of the market in a sustainable
way. Sustainability should be incorporated in the core business strategy of THE PLUS SIZE
STORE. First of all, the firm should source apparel products made from organic cotton made in
India. This strategy would ensure that the firm would promote use of organic cotton in textile
manufacturing to a greater extent. As per the WWF, cultivation of cotton causes immense
amount of environmental pollution because the process involves use of high amounts of
fertilisers and pesticides. The pesticides contaminate water bodies. As per an article published
by the Vogue in its Australian edition, cultivation of organic cotton does not involve use of
harmful chemicals . The manufacturing of apparel from organic cotton requires less amount of
water (Vogue.com.au. 2020). Thus, organic cotton is more environmentally sustainable
compared to its inorganic counterpart. Thus, by procuring plus sized apparel made from organic
cotton right from the very initial stage THE PLUS SIZE STORE would promote environmental
sustainability. The firm should promote the environmental benefits of using organic cotton
among the stakeholders like consumers and suppliers of cotton. This way THE PLUS SIZE
STORE would promote consumption of organic cotton in Australia and enable bringing down
environmental pollution caused by inorganic cotton.
THE PLUS SIZE STORE right from its inception stage should not only target to achieve
environmental sustainability but also economic sustainability in the local community. The
product line of the firm clearly mentions goods like bands and jewellery. The firm should

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ENTREPRENEURIAL VENTURE
procure these from the local suppliers. The firm would thus enable the local suppliers of
accessories to generate revenue and bring about economic development. This would enable firm
keep the procurement costs low since these goods would be procured locally involving local
logistics chains. Hence, the firm would be able to keep the prices of these accessories low. These
accessories would as a result attract more customers and generate higher revenue. In fact, the
firm would be able to diversify a portion of losses it may suffer owing to low sale of plus sized
garments during initial period over the revenue generated by sale of accessories. Thus, one can
establish that THE PLUS SIZE STORE should integrate sustainability and profitability while
exploiting the market opportunity of growing demands for plus sized garments in Australia
(IBISWorld 2020)
Funding of the store:
The funding strategies of THE PLUS SIZE STORE would be divided into three
categories namely capital generation, revenue generation and investments.
Capital generation:
THE PLUS SIZE STORE would be a limited liability company or LLC. The company
would be able to generate capital by issuing shares in the capital market. The company should
issue initial public offerings or IPOs to raise funds. The company should aim to give its member
(shareholders) high amount of returns on their investments. THE PLUS SIZE STORE in the
initial stage may not be able to give returns in the initial years owing to its high expenses which
would lead to generation of low net profits as shown the table below. However, the firm should
gradually increase the ROI which it would give to its members to attract more capital to support
its business which would require more capital with each passing year. As far as the rate of return